<?xml version="1.0" encoding="ASCII"?>
<!-- Generated by CompSci Transform (tm) - http://www.compsciresources.com -->
<!-- Created: Wed Jun 15 21:13:40 UTC 2022 -->
<html xmlns:compsci="http://compsciresources.com" xmlns:country="http://xbrl.sec.gov/country/2022" xmlns:dei="http://xbrl.sec.gov/dei/2022" xmlns:dtr="http://www.xbrl.org/dtr/type/2020-01-21" xmlns:iso4217="http://www.xbrl.org/2003/iso4217" xmlns:ix="http://www.xbrl.org/2013/inlineXBRL" xmlns:ixt="http://www.xbrl.org/inlineXBRL/transformation/2020-02-12" xmlns:ixt-sec="http://www.sec.gov/inlineXBRL/transformation/2015-08-31" xmlns:kern="http://akerna.com/20220331" xmlns:link="http://www.xbrl.org/2003/linkbase" xmlns:pf0="http://fasb.org/srt/2022" xmlns:us-gaap="http://fasb.org/us-gaap/2022" xmlns:us-types="http://fasb.org/us-types/2022" xmlns:xbrldi="http://xbrl.org/2006/xbrldi" xmlns:xbrli="http://www.xbrl.org/2003/instance" xmlns:xl="http://www.xbrl.org/2003/XLink" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:xs="http://www.w3.org/2001/XMLSchema-instance" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns="http://www.w3.org/1999/xhtml" xmlns:xml="http://www.w3.org/XML/1998/namespace"><head>
     <title> </title>

<meta content="text/html" http-equiv="Content-Type" />
</head>
<body><div style="font: 10pt Times New Roman, Times, Serif"><div>

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

</div><!-- Field: Rule-Page --><div style="margin-top: 0; margin-bottom: 0; width: 100%"><div style="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid">&#160;</div></div><!-- Field: /Rule-Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-size: 6pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>UNITED
STATES</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>SECURITIES
AND EXCHANGE COMMISSION</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Washington,
D.C. 20549</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FORM
<ix:nonNumeric contextRef="c0" name="dei:DocumentType">S-1</ix:nonNumeric></b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><img alt="" src="image_001.jpg"/></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><ix:nonNumeric contextRef="c0" name="dei:EntityRegistrantName"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Exact
Name of Registrant as Specified in its Charter)</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 32%; border-bottom: black 1.5pt solid; text-align: center"><ix:nonNumeric contextRef="c0" format="ixt-sec:stateprovnameen" name="dei:EntityIncorporationStateCountryCode"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Delaware</b></span></ix:nonNumeric></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 32%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>7374</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 32%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>83-2242651</b></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(State or other jurisdiction of</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">incorporation or organization)</span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Primary Standard Industrial</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Classification Code Number)</span></p></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(I.R.S. Employer</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Identification No.)</span></p></td></tr> </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>1550
Larimer Street&#160;#246&#160;</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Denver,
Colorado 80202</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>1-888-932-6537</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Address,
including zip code, and telephone number,</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">including
area code, of principal executive offices)</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Corporation
Service Company</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>251
Little Falls Drive</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Wilmington,
Delaware 19808</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(302)
636-5400</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Address,
including zip code, and telephone number,</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">including
area code, of agent for service)</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Copies
to:</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; width: 50%; padding-right: 5.4pt; padding-left: 5.4pt"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Jason
    K Brenkert, Esq.</b></span></p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Dorsey
    &amp; Whitney LLP</b></span></p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>1400
    Wewatta Street, Suite 400</b></span></p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Denver,
    Colorado 80202</b></span></p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Telephone:
    (303) 352-1133</b></span></p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Fax
    Number: (303) 629-3450</b></span></p></td>
    <td style="font: 10pt Times New Roman, Times, Serif; width: 50%; padding-right: 5.4pt; padding-left: 5.4pt"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Faith
    L. Charles, Esq.</b></span></p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Naveen
    Pogula, Esq.</b></span></p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Thompson
    Hine LLP</b></span></p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>335
    Madison Avenue, 12<sup>th </sup>Floor</b></span></p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>New
    York, New York 10017</b></span></p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Telephone:
    (212) 344-5680</b></span></p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Facsimile:
    (212) 344-6101</b></span></p></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>As
soon as practicable after the effective date of this Registration Statement.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Approximate
date of commencement of proposed sale to the public)</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span 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:&#160;&#9744;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span 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 registration statement for the same offering.
&#9744;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span 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.&#160;&#9744;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span 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.&#160;&#9744;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span 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, a smaller reporting
company, or an emerging growth company. See the definitions of &#8220;large accelerated filer,&#8221; &#8220;accelerated filer,&#8221;
&#8220;smaller reporting company&#8221; and &#8220;emerging growth company&#8221; in Rule 12b-2 of the Exchange Act.&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 25%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large accelerated filer</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 25%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; width: 25%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated filer</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 25%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><ix:nonNumeric contextRef="c0" format="ixt-sec:entityfilercategoryen" name="dei:EntityFilerCategory"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accelerated filer</span></ix:nonNumeric></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller reporting company</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><ix:nonNumeric contextRef="c0" format="ixt:fixed-true" name="dei:EntitySmallBusiness"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</span></ix:nonNumeric></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td colspan="2" style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging Growth Company</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><ix:nonNumeric contextRef="c0" format="ixt:fixed-true" name="dei:EntityEmergingGrowthCompany"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</span></ix:nonNumeric></td></tr> </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span 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 Securities Act. <ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:EntityExTransitionPeriod">&#9744;</ix:nonNumeric></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span 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 amendment which specifically states that this Registration Statement shall thereafter become effective
in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement shall become effective
on such date as the Securities and Exchange Commission acting pursuant to said Section 8(a), may determine.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>

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

</div><!-- Field: Rule-Page --><div style="margin-top: 0; margin-bottom: 0; width: 100%"><div style="font-size: 1pt; border-top: Black 1pt solid; border-bottom: Black 2pt solid">&#160;</div></div><!-- Field: /Rule-Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 6pt">&#160;</span></p><div>


</div><!-- Field: Page; Sequence: 1 --><div>
    </div><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">&#160;</p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Red">The
information in this prospectus is not complete and may be changed. We may not sell the securities until the Registration Statement filed
with the Securities and Exchange Commission, of which this prospectus is a part, is effective. This prospectus is not an offer to sell
these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; width: 34%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #FF0000"><b>PRELIMINARY
    PROSPECTUS</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #FF0000"><b>SUBJECT
    TO COMPLETION</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #FF0000"><b>DATED
    JUNE 15, 2022</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><img alt="" src="image_002.jpg"/></b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Up
to ______________ Units, Each Unit Consisting of One Share of Common Stock and One Warrant to Purchase One Share of Common Stock</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Up
to _________________ Pre-funded Units, Each Pre-funded Unit Consisting of One Pre-funded Warrant to Purchase One Share of Common Stock
and One Warrant to Purchase One Share of Common Stock</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Shares
of Common Stock Underlying the Warrants</b></span></p><div>

</div><p style="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Shares
of Common Stock Underlying the Pre-Funded Warrants</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are offering up to ________ units, each unit
consisting of one share of common stock and one warrant to purchase one share of common stock. The warrants included in the units have
an exercise price of $ ___ per share, will be immediately exercisable and expire ________ years from the date of issuance. The offering
price of the units is $ ___ per unit.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are also offering to those purchasers, if any, whose purchase of units in this offering would otherwise result in such purchaser, together
with its affiliates and certain related parties, beneficially owning more than 4.99% (or, at the election of the purchaser, 9.99%) of
our outstanding shares of common stock immediately following the consummation of this offering, the opportunity to purchase, if any such
purchaser so chooses, pre-funded units in lieu of units that would otherwise result in such purchaser&#8217;s beneficial ownership exceeding
4.99% (or, at the election of the purchaser, 9.99%) of our outstanding shares of common stock. Each pre-funded unit consists of one pre-funded
warrant to purchase one share of common stock and one warrant to purchase one share of common stock. The purchase price of each pre-funded
unit will be equal to the price per unit being sold to the public in this offering, minus $0.0001, and the exercise price of each pre-funded
warrant included in the pre-funded units will be $0.0001 per share. The pre-funded warrants included in the pre-funded units will be
immediately exercisable and may be exercised at any time until all of the pre-funded warrants are exercised in full. The warrant included
in the pre-funded unit is in the same form as the warrant included in the unit.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
each pre-funded unit we sell, the number of units we are offering will be decreased on a one-for-one basis. The units and the pre-funded
units will not be issued or certificated. The shares of common stock or pre-funded warrants, as the case may be, and the accompanying
warrants can only be purchased together in this offering, but the securities contained in the units or pre-funded units will be immediately
separable upon issuance and will be issued separately. The shares of common stock issuable from time to time upon exercise of the warrants
and the pre-funded warrants are also being offered by this prospectus. The registration statement of which this prospectus forms a part
also registers the common stock purchase warrants to be issued to the underwriter and the shares of common stock issuable upon exercise
thereof.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

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

</div><!-- Field: Page; Sequence: 2 --><div>
    </div><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">&#160;</p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our common stock is currently listed on the Nasdaq
Capital Market under the symbol &#8220;KERN.&#8221; On June 13, 2022, the last reported price for our common stock as reported on the
Nasdaq Capital Market was $0.3825 per share. In this offering, the actual public offering price per unit or pre-funded unit, as the case
may be, will be determined between us and the underwriter in the offering, and may be at a discount to the current market price of our
common stock. Therefore, the assumed public offering price used throughout this prospectus may not be indicative of the final offering
price. There is no established public trading market for the warrants or the pre-funded warrants, and we do not expect such a market to
develop. In addition, we do not intend to apply for a listing of the warrants or the pre-funded warrants on any national securities exchange
or other nationally recognized trading system.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are a &#8220;smaller reporting company&#8221; and an &#8220;emerging growth company&#8221; as defined under the federal securities laws
and, as such, we may continue to elect to comply with certain reduced public company reporting requirements in future reports.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Investing
in our securities involves a high degree of risk. See &#8220;<i>Risk Factors</i>&#8221; beginning on page 6 of this prospectus.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined
if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

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

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Per Unit</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Per
                                            Pre-<br/> Funded</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Unit</b></p></td><td style="padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%">Public offering price</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;&#160;&#160;&#160;</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;&#160;&#160;&#160;</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Underwriting discount and commissions<sup>(1)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Proceeds, before expenses, to us <sup>(2)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"></td><td style="text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span>&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have agreed to reimburse
    the underwriter for certain expenses and issue warrants to the underwriter in an amount equal to 5% of the aggregate number of shares
    and shares issuable upon exercise of the warrants and/or pre-funded warrants. For more information, see &#8220;<i>Underwriting.&#8221;</i></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><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: 0in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Because
there is no minimum offering amount required as a condition to closing in this offering, the total public offering amount, underwriting
discount and commissions, and proceeds to us, before expenses, are not presently determinable and may be substantially less than the
total maximum offering amounts set forth above.&#160;&#160;For more information, see &#8220;<i>Plan of Distribution</i>.&#8221;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
offering is being underwritten on a firm commitment basis. We have granted the underwriter a 45-day option from the date of this prospectus
to purchase up to (i) ________ shares of our common stock and/or warrants to purchase up to ________ shares of common stock, in any combination
thereof; and/or (ii) ________ pre-funded units, consisting of ____________ warrants to purchase up to ________ shares of common stock
and ____________ pre-funded warrants to purchase up to __________ shares of common stock, from us solely to cover over-allotments, if
any.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
underwriters expect to deliver our shares to purchasers in the offering on or about&#160;&#160;&#160;&#160;&#160;, 2022.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 18pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 18pt"><b>A.G.P.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June&#160;
, 2022</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>


</div><!-- Field: Page; Sequence: 3 --><div>
    </div><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">&#160;</p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>TABLE
OF CONTENTS</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><div>



</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; width: 90%; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_001">ABOUT THIS PROSPECTUS</a></span></td>
    <td style="width: 1%">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ii</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; ">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_002">SUMMARY</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_003">THE OFFERING</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; ">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_004">SUMMARY OF RISK FACTORS</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_005">SUMMARY FINANCIAL DATA</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; ">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_006">RISK FACTORS</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">6</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_007">FORWARD-LOOKING STATEMENTS</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">26</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; ">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_008">RECENT DEVELOPMENTS</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">28</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_009">USE OF PROCEEDS</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">30</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; ">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_010">DILUTION</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">30</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_011">DIVIDEND POLICY</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: -0.25in; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">31</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; ">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_012">DESCRIPTION OF COMPANY CAPITAL STOCK</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">31</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_013">DESCRIPTION OF THE BUSINESS</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">34</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; ">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_014">DESCRIPTION OF PROPERTY</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">45</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_015">LEGAL PROCEEDINGS</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">45</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; ">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_016">MARKET FOR COMMON EQUITY AND RELATED SHAREHOLDER MATTERS</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">45</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_017">MANAGEMENT&#8217;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in">48</td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; ">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_018">DIRECTORS AND EXECUTIVE OFFICERS</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">70</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_019">EXECUTIVE COMPENSATION</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">74</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; ">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_020">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">82</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_021">CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">84</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; ">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_022">CERTAIN MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">85</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_023">UNDERWRITING</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">93</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; ">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_024">EXPERTS</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">96</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_025">LEGAL MATTERS</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">96</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; ">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#a_026">WHERE YOU CAN FIND MORE INFORMATION</a></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">96</span></td></tr>
</table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>


</div><!-- Field: Page; Sequence: 4; Options: NewSection --><div>
    </div><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"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->i<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><div>

</div><div><a id="a_001"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ABOUT
THIS PROSPECTUS</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
registration statement of which this prospectus forms a part that we have filed with the Securities and Exchange Commission, or SEC,
includes and incorporates by reference exhibits that provide more detail of the matters discussed in this prospectus. You should read
this prospectus and the related exhibits filed with the SEC, together with the additional information described under the heading &#8220;Where
You Can Find More Information.&#8221;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>You
should rely only on the information contained in&#160;this prospectus and in any free writing prospectus prepared by or on behalf of
us. We have not, and the underwriter has not, authorized anyone to provide you with information different from, or in addition to, that
contained in&#160;this prospectus or any related free writing prospectus. This prospectus is an offer to sell only the securities offered
hereby but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in&#160;this prospectus
is current only as of its date. Our business, financial condition, results of operations and prospects may have changed since that date.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are not offering to sell or seeking offers to purchase these securities in any jurisdiction where the offer or sale is not permitted.
We have not done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where
action for that purpose is required, other than in the United States. Persons outside the United States who come into possession of this
prospectus and any free writing prospectus related to this offering in jurisdictions outside the United States are required to inform
themselves about and to observe any restrictions relating to this offering and the distribution of this prospectus and any such free
writing prospectus applicable to that jurisdiction.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless
otherwise indicated, any reference to Akerna, or as &#8220;we&#8221;, &#8220;us&#8221;, or &#8220;our&#8221; refers to Akerna Corp. and
its consolidated subsidiaries (&#8220;Akerna&#8221; or the &#8220;Company&#8221;).<b>&#160;</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><div>

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

</div><!-- Field: Page; Sequence: 5 --><div>
    </div><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"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->ii<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div style="padding: 5.4pt; border: Black 1.5pt solid">

<a id="a_002"></a><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SUMMARY</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><i>&#160;</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><i>The following highlights certain information
contained elsewhere in this prospectus. It does not contain all the details concerning the Offering, including information that may be
important to you. You should carefully review this entire prospectus including the section entitled &#8220;Risk Factors&#8221; and the
consolidated historical and pro forma financial statements and accompanying notes contained herein. See &#8220;Where You Can Find More
Information.&#8221; </i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><i>&#160;</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Summary of Our Business</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Akerna is a leading provider of enterprise software
solutions within the cannabis industry. Cannabis businesses face significant complexity due to the stringent regulations and restrictions
that shift based on regional, state, and national governing bodies. As the first to market more than ten years ago, Akerna&#8217;s family
of software platforms help to enable regulatory compliance and inventory management across the entire supply chain. When the legal cannabis
market started to grow, we identified a need for organic material tracking and regulatory compliance software as a service (SaaS) solution
customized specifically for the unique needs of the industry. By providing an integrated ecosystem of applications and services that help
our clients enable compliance, regulation, consumer safety and taxation, Akerna is building the technology backbone of the cannabis industry.
While designed specifically for the unique needs of the cannabis market, our solutions are adaptable for other industries requiring government
regulatory oversight, or where the tracking of organic materials from seed or plant to end products is desired.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Executing upon our expansion strategy, we acquire
complementary cannabis brands to grow the scope of Akerna&#8217;s cannabis ecosystem. Since 2019, we have integrated six new brands into
the Akerna product and service offering. Our first acquisition, Solo Sciences (&#8220;Solo&#8221;), was initiated in the fall of 2019, with
the full acquisition completed in July 2020. We added Trellis Solutions (&#8220;Trellis&#8221;) to our portfolio on April 10, 2020 and finalized
the acquisition of Ample Organics (&#8220;Ample&#8221;) and Last Call Analytics (&#8220;Last Call&#8221;) on July 7, 2020. More recently,
on April 1, 2021 we completed our acquisition of Viridian Sciences Inc. (&#8220;Viridian&#8221;), a cannabis business management software
system built on SAP Business One, followed by the acquisition of The NAV People, Inc. d.b.a 365 Cannabis (&#8220;365 Cannabis&#8221;), a
cannabis business management software system built on Microsoft Business Central, on October 1, 2021. Through our growing family of companies,
Akerna provides highly versatile platforms that equip our clients with a central data management system for tracking regulated products.
Our solutions also provide clients with integrated security, transparency, and scalability capabilities, all while helping maintaining
compliance with their governing regulations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On the commercial side, our products help state-licensed
businesses operate in compliance with applicable regional laws. Our integrated ecosystem provides integrations with third-party vendors
and add-ons that enhance the capabilities of our commercial software platforms. On the regulatory side, we provide track and trace solutions
that allow state governments to monitor compliance of licensed cannabis businesses. To date, our software has helped monitor the compliance
of more than $30 billion in legal cannabis. While our software facilitates the success of legal cannabis businesses, we do not handle
any cannabis-related material, do not process cannabis sales transactions within the United States (&#8220;U.S.&#8221;), and our revenue
is generated from a fixed-fee based subscription and professional services model and is not related to the type or amount of sales made
by our clients.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We drive revenue growth through the development
of our product line, our acquisitions and from continued expansion of the cannabis, hemp, and CBD industry. Businesses across the regulated
cannabis industry use our solutions. The brand recognition of our existing products, our ability to provide services in all areas of the
seed-to-sale life cycle, and our wealth of relevant experience attracts cultivation, manufacturing, and dispensary clients who are seeking
comprehensive business optimization solutions. Our software solutions are designed to be scalable, and while mid-market and smaller customers
have historically been our primary target segment, we are focused on extending our customer reach to address the needs of the emerging
enterprise level operator. We believe these larger multi-state/multi-vertical operations represent significant long-term future growth
opportunities as the cannabis industry continues to consolidate at a rapid rate. The sophistication of our platform accommodates the complexities
of both multi-vertical and multi-state business needs, making us critical partners and allowing us to cultivate long-term, successful
relationships with our clients.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our principal executive offices are located at
1550 Larimer Street #246, Denver, Colorado 80202, and our telephone number is (888) 932-6537 and our Internet website address is <i>www.akerna.com</i>.
&#160;The information on our website is not a part of, or incorporated in, this prospectus.</p>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><!-- Field: Page; Sequence: 6; Options: NewSection; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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






</div><div style="padding-right: 5pt; padding-left: 5pt; border: Black 1.5pt solid; width: 98%">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p>

<a id="a_003"></a><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">THE OFFERING</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 20%"><b>Issuer</b></td>
<td style="text-align: justify; font-size: 10pt; width: 80%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Akerna Corp.</span></td></tr>
<tr style="vertical-align: top">
<td>&#160;</td>
<td style="text-align: justify; font-size: 10pt">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 0.125in; text-indent: -0.125in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Units Offered by Us:</b></span></td>
<td style="text-align: justify"><p style="text-align: justify; margin-top: 0; margin-bottom: 0">Up to __________ units on a &#8220;firm commitment&#8221; basis, each unit consisting of one share of common stock and one warrant to purchase one share of common stock, at a price of $____ per unit.</p>
    <p style="text-align: justify; margin-top: 0; margin-bottom: 0">&#160;</p>
    <p style="text-align: justify; margin-top: 0; margin-bottom: 0">Each warrant will have an exercise price of $____ per share, will
be immediately exercisable, and will have a term of exercise of ________ from the original issuance date. This prospectus also relates
to the offering of the shares of common stock issuable upon exercise of the warrants.</p></td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 0.125in; text-indent: -0.125in; font-size: 10pt">&#160;</td>
<td style="text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 0.125in; text-indent: -0.125in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Pre-Funded Units Offered by Us:</b></span></td>
<td style="text-align: justify"><p style="margin-top: 0; margin-bottom: 0">We are also offering to those purchasers, if any, whose purchase of units in this offering would otherwise result in the purchaser, together with its affiliates and certain related parties, beneficially owning more than 4.99% (or, at the election of the purchaser, 9.99%) of our outstanding shares of common stock immediately following the consummation of this offering, the opportunity to purchase, if such purchasers so choose, pre-funded units (each pre-funded unit consisting of one pre-funded warrant to purchase one share of common stock and one warrant to purchase one share of common stock), in lieu of units that would otherwise result in any such purchaser&#8217;s beneficial ownership exceeding 4.99% (or, at the election of the purchaser, 9.99%) of our outstanding shares of common stock.</p>
                                <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
                                <p style="margin-top: 0; margin-bottom: 0">The purchase price of each pre-funded unit will be equal to the price per unit being sold to the public in this offering, minus $0.0001, and the exercise price of each pre-funded warrant included in the pre-funded units will be $0.0001 per share. The pre-funded warrants included in the pre-funded units will be immediately exercisable and may be exercised at any time until all of the pre-funded warrants are exercised in full.</p>
                                <p style="margin-top: 0; margin-bottom: 0">&#160;</p>
                                <p style="margin-top: 0; margin-bottom: 0">For each pre-funded unit we sell, the number of units we are offering will be decreased on a one-for-one basis. &#160; This prospectus also relates to the offering of the shares of common stock issuable upon exercise of the pre-funded warrants. &#160;</p></td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 0.125in; text-indent: -0.125in; font-size: 10pt">&#160;</td>
<td style="text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 0.125in; text-indent: -0.125in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Common Stock Outstanding Before this offering:</b></span></td>
<td style="text-align: justify">36,574,158 shares of common stock. &#160;</td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 0.125in; text-indent: -0.125in; font-size: 10pt">&#160;</td>
<td style="text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 0.125in; text-indent: -0.125in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Common Stock Outstanding After this offering <sup>(1)</sup>:</b></span></td>
<td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">_____________ shares of common stock (or, _____________ shares if the underwriter exercises its over-allotment option in full), assuming the sale of all units covered by this prospectus, no sale of pre-funded units, and no exercise of any warrants issued in this offering. If the warrants are exercised in full, assuming no pre-funded warrants are sold, then there will be _____________ shares outstanding (or, _____________ shares if the underwriter exercises its over-allotment option in full).</span></td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 0.125in; text-indent: -0.125in; font-size: 10pt">&#160;</td>
<td style="text-align: justify; font-size: 10pt">&#160;</td></tr>
<tr>
<td style="padding-left: 0.125in; text-indent: -0.125in; vertical-align: top; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Over-Allotment Option</b></span></td>
<td style="text-align: justify; vertical-align: bottom">We have granted the underwriter a 45-day option from the date of this prospectus to purchase up to (i) ________ shares of our common stock and/or warrants to purchase up to ________ shares of common stock, in any combination thereof; and/or (ii) ________ pre-funded units, consisting of ____________ warrants to purchase up to ________ shares of common stock and ____________ pre-funded warrants to purchase up to __________ shares of common stock, from us solely to cover over-allotments, if any. &#160;</td></tr>
</table>

<p style="margin: 0">&#160;</p>
</div><div>

</div><!-- Field: Page; Sequence: 7; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>
</div><div style="padding-right: 5pt; padding-left: 5pt; border: Black 1.5pt solid; width: 98%">
<p style="margin: 0">&#160;</p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="padding-left: 0.125in; text-indent: -0.125in; font-size: 10pt; width: 20%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Use of Proceeds:</b></span></td>
<td style="text-align: justify; font-size: 10pt; width: 80%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We intend to use the net proceeds from this offering for general corporate purposes, including servicing our ongoing debt obligations under our convertible notes, working capital, marketing, product development and capital expenditures. See &#8220;<i>Use of Proceeds</i>&#8221; in this prospectus.</span></td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 0.125in; text-indent: -0.125in; font-size: 10pt">&#160;</td>
<td style="text-align: justify; font-size: 10pt">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 0.125in; text-indent: -0.125in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Dividend Policy:</b></span></td>
<td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have never declared or paid any cash dividends on our shares of common stock. We do not anticipate paying any cash dividends in the foreseeable future.</span></td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 0.125in; text-indent: -0.125in; font-size: 10pt">&#160;</td>
<td style="text-align: justify; font-size: 10pt">&#160;</td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 0.125in; text-indent: -0.125in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Nasdaq Capital Market Trading Symbol:</b></span></td>
<td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our shares of common stock are listed on the Nasdaq Capital Market under the symbol &#8220;KERN.&#8221; We do not intend to list the warrants or the pre-funded warrants on any securities exchange or nationally recognized trading system.</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</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: 0in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td><td style="text-align: justify">Unless otherwise indicated, the number of our shares of common
stock to be outstanding immediately after this offering as shown above is based on 36,574,158 shares of common stock outstanding as of
June 3, 2022. The number of shares outstanding excludes the following as of June 3, 2022:</td>
</tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; 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"><span style="font-family: Times New Roman, Times, Serif">398,595
shares of common stock issuable upon vesting of outstanding restricted stock units and restricted stock awards;</span></td>
</tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; 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"><span style="font-family: Times New Roman, Times, Serif">5,813,804
shares of common stock issuable upon the exercise of warrants outstanding at a weighted average exercise price of $11.50 per share;</span></td>
</tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; 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"><span style="font-family: Times New Roman, Times, Serif">28,685,185
shares of common stock issuable upon conversion of our outstanding convertible notes;</span></td>
</tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; 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"><span style="font-family: Times New Roman, Times, Serif">291,192
shares of common stock issuable upon conversion of exchangeable shares; and</span></td>
</tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; 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"><span style="font-family: Times New Roman, Times, Serif">3,580,126
shares of common stock reserved for future issuance under our equity incentive plan.</span></td>
</tr></table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
</div><div>

</div><!-- Field: Page; Sequence: 8; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>
</div><div style="padding-right: 5pt; padding-left: 5pt; border: Black 1.5pt solid; width: 98%">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p>

<a id="a_004"></a><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SUMMARY OF RISK FACTORS</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An investment in our securities involves a high
degree of risk. You should carefully consider all of the risks described below, and the other risks set forth in the section of this prospectus
entitled &#8220;Risk Factors&#8221; commencing on page 6, before making a decision to invest in our units. If any of the following events
occur, our business, financial condition and operating results may be materially adversely affected. In that event, the trading price
of our securities could decline, and you could lose all or part of your investment. Such risks include, but are not limited to:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Funds raised in this offering may not be sufficient
to eliminate the substantial doubt about our ability to continue as a going concern.</span></td></tr></table>

<p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Due to this offering, the conversion price pursuant
to our Senior Convertible Notes will need to be adjusted, which will result in the potential issuance of higher number of shares of our
common stock pursuant to the conversion than previously anticipated, thereby resulting in significant dilution to our stockholders.</span></td></tr></table>

<p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">If our common stock is delisted from Nasdaq,
the liquidity and price of our common stock could decrease and our ability to obtain financing could be impaired.</span></td></tr></table>

<p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Management will have broad discretion as to the
use of the net proceeds from this offering, and we may not use the proceeds effectively.</span></td></tr></table>

<p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">If you purchase shares of our common stock in
this offering, you will experience immediate dilution as a result of this offering and you may experience future dilution as a result of future equity offerings or other equity issuances.</span></td></tr></table>

<p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&#160;&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">This Offering may cause the trading price of
our common stock to decrease.</span></td></tr></table>

<p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">A significant portion of our total outstanding
shares are eligible to be sold into the market, which could cause the market price of our common stock to drop significantly, even if
our business is doing well.</span></td></tr></table>

<p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">There is no public market for the units, pre-funded
units, or warrants being offered in this offering.</span></td></tr></table>

<p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Holders of our warrants and pre-funded warrants
will have no rights as a common stockholder until they acquire our common stock.</span></td></tr></table>

<p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">If we do not maintain a current and effective
prospectus relating to the common stock issuable upon exercise of the warrants or pre-funded warrants, public holders will only be able
to exercise such warrants or pre-funded warrants on a &#8220;cashless basis.&#8221;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">The pre-funded warrants are speculative in nature.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">The warrants may not have any value.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Provisions of the warrants and pre-funded warrants
offered by this prospectus could discourage an acquisition of us by a third party.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">There is substantial doubt about our ability
to continue as a going concern.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">We have a history of losses, expect to continue
to incur losses in the near term and may not achieve or sustain profitability in the future.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Our long-term results of operations are difficult
to predict and depend on the commercial success of our clients, the continued growth of the cannabis industry generally, and the regulatory
environment within which the cannabis industry operates.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">As a company whose clients operate in the cannabis
industry, we face many unique and evolving risks.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</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">&#160;</td>
    <td style="width: 0.25in; font-size: 12pt"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="font-size: 12pt; text-align: justify"><span style="font-size: 10pt">A significant portion of our business is, and is expected to be, from government contracts, which present certain unique risks.</span></td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Acquisitions and integration issues may expose
us to risks.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">We are smaller and less diversified than many
of our potential competitors.</span></td></tr></table>




<p style="margin-top: 0; margin-bottom: 0">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Our obligations to the holders of our Senior
Convertible Notes are secured by a security interest in substantially all of our assets, if we default on those obligations, the Senior
Convertible Note holders could foreclose on our assets.</span></td></tr></table>

<p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Warrants are exercisable for our common stock,
which could increase the number of shares eligible for future resale in the public market and result in dilution to our stockholders.</span></td></tr></table>

<p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&#160;</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">
<td style="width: 0.25in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">The market price of our shares of common stock
is particularly volatile given our status as a relatively new public company with a generally small and thinly traded public float, which
could lead to wide fluctuations in our share price. You may be unable to sell your shares of common stock at or above your purchase price,
which may result in substantial losses to you.</span></td></tr></table>

<p style="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&#160;&#160;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p>
</div><div>
</div><!-- Field: Page; Sequence: 9; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>
</div><div style="padding-right: 5pt; padding-left: 5pt; border: Black 1.5pt solid; width: 98%">
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p>

<a id="a_005"></a><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SUMMARY FINANCIAL DATA</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following tables set forth our summary historical
financial and other data as of and for the periods indicated. We have derived the summary historical financial data for the year ended
December 31, 2021, the transitional six months ended December 31, 2020 and the year ended June 30, 2020 from the audited financial statements
and we have derived the summary historical financial data for the three months ended March 31, 2022 from the unaudited financial statements,
each included elsewhere in this prospectus.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The summary historical financial and other data
set forth below should be read in conjunction with the information included under the headings &#8220;Use of Proceeds,&#8221; and &#8220;Management&#8217;s
Discussion and Analysis of Financial Condition and Results of Operations&#8221; and the audited and unaudited financial statements and
related notes included elsewhere in this prospectus.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</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 style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">Statement of Operations Data</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended<br/>
 December&#160;31,<br/>
 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months<br/>
 Ended<br/>
 December&#160;31,<br/>
 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended<br/>
 June 30,<br/>
 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Period<br/>
 Ended<br/>
 March 31,<br/>
 2022<br/>
 (unaudited)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%; text-align: left">Total revenue</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">20,684,974</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">7,824,784</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">12,573,276</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,950,841</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Cost of revenue</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">8,119,487</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">3,141,041</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">6,209,724</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">2,203,671</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Gross profit</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">12,565,487</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">4,683,743</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">6,363,552</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">4,747,170</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total operating expenses</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">45,920,806</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">20,423,420</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">23,635,403</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">25,383,818</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Loss from operations</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(33,355,319</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(15,739,677</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(17,271,851</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(20,636,648</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net loss</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(31,328,711</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(16,219,296</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(14,422,070</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(21,952,893</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Basic and diluted net loss per common share</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(1.22</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(1.01</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(1.14</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(0.69</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Basic and diluted weighted average common stock outstanding</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">25,641,950</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">16,056,030</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">11,860,212</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">31,605,783</td><td style="text-align: left">&#160;</td></tr>
  </table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</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>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">As of<br/> March 31,<br/> 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; text-align: justify; border-bottom: Black 1.5pt solid">Balance Sheet Data</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">(unaudited)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Total current assets</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">18,230,064</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">22,552,914</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">15,267,227</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Total assets</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">94,483,167</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">77,169,072</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">74,346,780</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Total current liabilities</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">29,170,517</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">16,051,215</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">30,378,099</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Total liabilities</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">34,533,484</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">19,946,452</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">33,566,484</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Accumulated deficit</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(88,508,236</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(57,179,525</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(110,461,129</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total equity</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">59,949,683</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">57,222,620</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">40,780,296</td><td style="text-align: left">&#160;</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
</div><div>

</div><!-- Field: Page; Sequence: 10; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>


</div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="a_006"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">RISK FACTORS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><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. &#160;You should carefully consider the risks described below, together with all of the other information included
in this prospectus, before making an investment decision with regard to our securities. The statements contained in this prospectus that
are not historic facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ
materially from those set forth in or implied by forward-looking statements. If any of the following risks actually occurs, our business,
financial condition or results of operations could suffer. &#160;In that case, the trading price of our common stock could decline, and
you may lose all or part of your investment.</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>You should carefully consider the following
risk factors in evaluating our business and us. The factors listed below represent certain important factors that we believe could cause
our business results to differ. These factors are not intended to represent a complete list of the general or specific risks that may
affect us. It should be recognized that other risks may be significant, presently or in the future, and the risks set forth below may
affect us to a greater extent than indicated. If any of the following risks occur, our business, financial condition or results of operations
could be materially and adversely affected.</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b>Risks Relating to
Our Financial Condition and Operating History</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>There is substantial doubt about our ability
to continue as a going concern.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Our financial statement
footnotes include disclosure regarding the substantial doubt about our ability to continue as a going concern. Our financial statements
do not include any adjustments that might result from the outcome of the uncertainty regarding our ability to continue as a going concern.
This going concern opinion could materially limit our ability to raise additional funds through the issuance of equity or debt securities
or otherwise. Further reports on our financial statements may include an explanatory paragraph with respect to our ability to continue
as a going concern. Our ability to continue as a going concern is uncertain and dependent upon obtaining the financing necessary to meet
our financial commitments and to continue our ongoing operations as currently planned. We do not have sufficient funds to meet planned
expenditures over the next twelve months, and will need to seek additional debt or equity financing to meet our planned expenditures.
We will require additional financing in the second quarter of 2022 to meet our ongoing operational working capital requirements and continue
to meet the financial covenants of our convertible notes. We plan to meet those requirements in part through the use of our at-the-market
facility, but there are no guarantees that the facility will permit us to raise sufficient cash to meet our ongoing requirements. These
factors raise substantial doubt regarding our ability to continue as a going concern. If we are unable to raise sufficient capital we
may have to reduce operations which could significantly affect our results of operations. If we fail to meet the financial covenants of
our debt and cannot obtain a waiver from such provisions or otherwise come to an agreement with the holders of our debt, such holders
may declare a default on the debt which could subject our assets to seizure and sale, negatively impacting our business. See &#8220;Risks
Relating to our Convertible Debt&#8221; below.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>We have a history
of losses, expect to continue to incur losses in the near term and may not achieve or sustain profitability in the future.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have incurred significant losses in each fiscal year since our inception
in 2010. For the quarter ended March 31, 2022, we had a net loss of approximately $22 million. For the year ended December 31, 2021, we
had a net loss of approximately $31.3 million. For the six months ended December 31, 2020 we had a net loss of approximately $16.2 million.
For fiscal year ended June 30, 2020, we had a net loss of approximately $14.4 million. These losses have been due to the substantial investments
we have made to develop our monitoring and compliance platforms and related software, market these products to government regulatory agencies
and commercial businesses and growing our infrastructure to support the increased business. We expect to continue to invest in the further
development of our platforms, software, and related product offerings and to grow both our government regulatory and commercial business
client base. As a result, we expect our operating expenses to increase in the future due to expected increased sales and marketing expenses,
operational costs, product development costs, and general and administrative costs and, therefore, our operating losses will continue
or even increase at least through the near term. In addition, because we are now a public company, we will incur significant legal, accounting,
and other expenses that MJ Freeway, or MJF, did not incur as a non-public company. Furthermore, to the extent that we are successful in
increasing our client base, we will also incur increased expenses because costs associated with generating and supporting client agreements
are generally incurred upfront, while revenue is generally recognized ratably over the term of the agreement. You should not rely upon
our recent revenue growth as indicative of future performance. We may not reach profitability in the near future or at any specific time
in the future. If and when our operations do become profitable, we may not sustain profitability.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 11; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>We have a relatively
short operating history, which makes it difficult to evaluate our business and future prospects.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">We have a relatively
short operating history, which makes it difficult to evaluate our business and future prospects. Our wholly-owned subsidiary, MJF, has
been in existence since 2010, and much of our revenue growth has occurred during the past three years. We have encountered, and will continue
to encounter, risks and difficulties frequently experienced&#160;by growing companies in rapidly changing industries, including those
related to:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; </span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">market acceptance of our current and future products and services; </span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; </span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">changing regulatory environments and costs associated with compliance; </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; </span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to compete with other companies offering similar products and services; </span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; </span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to effectively market our products and services and attract new clients; </span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; </span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">existing client retention rates and the ability to upsell clients; </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; </span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the amount and timing of operating expenses, particularly sales and marketing expenses, related to the maintenance and expansion of our business, operations, and infrastructure; </span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; </span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to control costs, including operating expenses; </span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; </span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to manage organic growth and growth fueled by acquisitions; </span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; </span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">public perception and acceptance of cannabis-related products and services generally; and </span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; </span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">general economic conditions and events. </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">If we do not manage these
risks successfully, our business and financial performance will be adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>Our long-term results
of operations are difficult to predict and depend on the commercial success of our clients, the continued growth of the cannabis industry
generally, and the regulatory environment within which the cannabis industry operates.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our offers of products and services globally to
help government regulatory agencies and commercial businesses monitor regulatory compliance and operate efficiently and successfully in
compliance with applicable state laws. Our long-term results will directly depend on the continued growth of the legalized cannabis industry
(and public acceptance of cannabis-related products) and the ability of our current and future clients to successfully market their own
products and services. If the legalized cannabis marketplace does not continue to grow because the public does not increasingly accept
cannabis-related products or government regulators adopt laws, rules, or regulations that terminate or diminish the ability for commercial
businesses to develop, market, and sell cannabis-related products, our business and financial performance would be materially adversely
affected. Additionally, even if the cannabis marketplace continues to grow rapidly, and government regulation allows for the free-market
development of this industry, products, and services competitive with those offered by us may enjoy better market acceptance.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The legalized cannabis industry may not continue
to grow, and the regulatory environment may not remain favorable to participants in the industry. More generally, our products and services
may not experience growing market acceptance, which would adversely impact our ability to grow revenue.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 12; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Direct and indirect consequences of the
COVID-19 pandemic may have material adverse consequences.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The current COVID-19 pandemic is creating extensive
disruptions to the global economy. Governments, businesses, and the public are taking unprecedented actions to contain the spread of COVID-19
and to mitigate its effects, including quarantines, travel bans, shelter-in-place orders, closures of businesses, fiscal stimulus, and
legislation designed to deliver monetary aid and other relief. While the scope, duration, and full effects of COVID-19 are rapidly evolving
and not fully known, the pandemic and related efforts to contain it have disrupted global economic activity, adversely affected the functioning
of financial markets, impacted interest rates, increased economic and market uncertainty, and disrupted trade and supply chains. If these
effects continue for a prolonged period or result in sustained economic stress or recession, we may experience adverse effects on our
operations. Specifically, if our clients are forced to reduce business hours or close their businesses for an extended period of time
or if their customer base experiences financial hardship, our clients may experience a sharp decline in revenue and be unable to meet
their obligations to us under existing agreements or be unwilling to extend their agreements past current terms, which may adversely impact
our financial results. Further, we may experience a decrease in new clients due to a lack of financial resources or a decline in new markets
as businesses and financial markets deal with the impact of COVID-19. As governments are focused on relief efforts and fiscal stimulus
measures, important legislation to expand or clarify certain existing or new markets for our products may be postponed or abandoned, which
may adversely impact our results. Further, these conditions may impact our ability to access financial markets to obtain the necessary
funding to operate our business as currently contemplated, which may adversely affect our liquidity and working capital. To the extent
the COVID-19 pandemic adversely affects our business and financial results, it may also have the effect of heightening many of the other
risks described in this registration statement, such as those relating to our operations and financial condition. Due to the highly uncertain
and dynamic nature of events relating to the COVID-19 pandemic, it is not currently possible to estimate the impact of the pandemic on
our business. However, these effects could have a material impact on our operations, and we will continue to monitor the COVID-19 situation
closely. Through December 31, 2021, we have experienced delays in our consulting projects and the corresponding delay in revenue recognition
for such projects, which we believe could be the result of government shutdowns and other regulatory uncertainty surrounding COVID-19.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Risks Related to the Cannabis Industry</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>As a company whose clients operate in the
cannabis industry, we face many unique and evolving risks.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We currently serve government and private clients
with respect to their tracking, monitoring, and compliance needs as they operate in the growing cannabis industry. Any risks related to
the cannabis industry that may adversely affect our clients and potential clients may, in turn, adversely affect demand for our products.
Specific risks faced by companies operating in the cannabis industry include, but are not limited to, the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="margin: 0pt 0 0pt 0.25in; font: 10pt Times New Roman, Times, Serif; text-align: left"><i>Marijuana remains illegal
under United States federal law</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Marijuana is a Schedule-I controlled substance
under the Controlled Substances Act (&#8220;CSA&#8221;), and is illegal under federal law. It remains illegal under United States federal
law to grow, cultivate, sell or possess marijuana for any purpose or to assist or conspire with those who do so. Additionally, 21 U.S.C.
856 a.1. states that it shall be unlawful to &#8220;knowingly open, lease, rent, use, or maintain any place, whether permanently or temporarily,
for the purpose of manufacturing, distributing, or using any controlled substance.&#8221; Even in those states in which the use of marijuana
has been authorized, its use remains a violation of federal law. Since federal law criminalizing the use of marijuana is not preempted
by state laws that legalize its use, strict enforcement of federal law regarding marijuana would likely result in our clients&#8217; inability
to proceed with their operations, which would adversely affect demands for our products.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="margin: 0pt 0 0pt 0.25in; font: 10pt Times New Roman, Times, Serif; text-align: left"><i>Uncertainty of federal
enforcement</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 4, 2018, former Attorney General Sessions
rescinded the previously issued memoranda (known as the Cole Memorandum) from the U.S. Department of Justice (&#8220;DOJ&#8221;) that
had de-prioritized the enforcement of federal law against marijuana users and businesses that comply with state marijuana laws, adding
uncertainty to the question of how the federal government will choose to enforce federal laws regarding marijuana. Former Attorney General
Sessions issued a memorandum to all United States Attorneys in which the DOJ affirmatively rescinded the previous guidance as to marijuana
enforcement, calling such guidance &#8220;unnecessary.&#8221; This&#160;one-page memorandum was vague in nature, stating that federal
prosecutors should use established principles in setting their law enforcement priorities. Under previous administrations, the DOJ indicated
that those users and suppliers of medical marijuana who complied with state laws, which required compliance with certain criteria, would
not be prosecuted. On November 7, 2018, Jeff Sessions resigned from his position as Attorney General. The current Attorney General, Merrick
Garland, has not indicated any change in enforcement priority for state-compliant marijuana businesses, however, substantial uncertainty
regarding federal enforcement remains. Regardless, the federal government has always reserved the right to enforce federal law regarding
the sale and disbursement of medical or recreational marijuana, even if state law sanctioned such sale and disbursement. Although the
rescission of the Cole Memorandum does not necessarily indicate that marijuana industry prosecutions are now affirmatively a priority
for the DOJ, there can be no assurance that the federal government will not enforce such laws in the future. As a result, it is now unclear
if the DOJ will seek to enforce the CSA against those users and suppliers who comply with state marijuana laws.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 13; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In 2014, Congress passed a spending bill, (the
&#8220;2015 Appropriations Bill&#8221;), containing a provision (the &#8220;Appropriations Rider&#8221;), blocking federal funds and resources
allocated under the 2015 Appropriations Bill from being used to &#8220;prevent such States from implementing their own State medical marijuana
law.&#8221; The Appropriations Rider provided a budgetary constraint on the federal government from interfering with the ability of states
to administer their medical marijuana laws, although it did not codify federal protections for medical marijuana patients and producers.
Moreover, despite the Appropriations Rider, the DOJ maintains that it can still prosecute violations of the federal marijuana ban and
continue cases already in the courts. However, the Ninth Circuit Court of Appeals and other courts have interpreted the language to mean
that the DOL cannot prosecute medical marijuana operators complying strictly with state medical marijuana laws. Additionally, the Appropriations
Rider must be re-enacted every year. The Appropriations Rider was renewed on December 20, 2019 through the signing of the fiscal year
2020 omnibus spending bill, effective through September 30, 2020, continued re-authorization of the Appropriations Rider cannot be guaranteed.
Subsequently, the Appropriations Rider was extended through a series of stopgap spending bills on October 1, December 11, December 18,
December 20 and December 22, 2020.&#160;On December 27, 2020 the Appropriations Rider was included in the fiscal year 2021 omnibus spending
bill and will remain in effect through September 30, 2022. If the Appropriation Rider is not extended in the future, the risk of federal
enforcement and override of state medical marijuana laws would increase.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Despite the rescission of the Cole Memorandum,
the Department of the Treasury, Financial Crimes Enforcement Network, has not rescinded the &#8220;FinCEN Memo&#8221; dated February 14,
2014, which de-prioritizes enforcement of the Bank Secrecy Act against financial institutions and marijuana-related businesses which utilize
them. This memo appears to be a standalone document and is presumptively still in effect. At any time, however, the Department of the
Treasury, Financial Crimes Enforcement Network, could elect to rescind the FinCEN Memo. This would make it more difficult for us and our
clients and potential clients to access the U.S. banking systems and conduct financial transactions, which would adversely affect our
operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="margin: 0pt 0 0pt 0.25in; font: 10pt Times New Roman, Times, Serif; text-align: left"><i>We could become subject
to racketeering laws</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">While we do not grow, handle, process or sell
cannabis or cannabis-derived products, our receipt of funds from clients that do conduct such operations in violation of federal law exposes
us to risks related to federal racketeering laws. The Racketeer Influenced Corrupt Organizations Act (&#8220;RICO&#8221;) is a federal
statute providing criminal penalties in addition to a civil cause of action for acts performed as part of an ongoing criminal organization.
Under RICO, it is unlawful for any person who has received income derived from a pattern of racketeering activity (which includes most
felonious violations of the CSA), to use or invest any of that income in the acquisition of any interest, or the establishment or operation
of, any enterprise which is engaged in interstate commerce. RICO also authorizes private parties whose properties or businesses are harmed
by such patterns of racketeering activity to initiate a civil action against the individuals involved. Although RICO suits against the
cannabis industry are rare, a few cannabis businesses have been subject to a civil RICO action. Any violation of RICO could result in
significant fines, penalties, administrative sanctions, convictions or settlements arising from civil proceedings conducted by either
the federal government or private citizens or criminal charges, including but not limited to, seizure of assets, disgorgement of profits,
cessation of our business activities or divestiture.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 42.65pt">&#160;</p><div>

</div><p style="margin: 0pt 0 0pt 0.25in; font: 10pt Times New Roman, Times, Serif; text-align: left"><i>Banking regulations could
limit access to banking services and expose us to risk</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our receipt of payments from clients engaged in
state-legal cannabis operations could also subject us to the consequences of a variety of federal laws and regulations that involve money
laundering, financial record keeping and proceeds of crime, including the Bank Secrecy Act, as amended by Title III of the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) and any
related or similar rules, regulations or guidelines, issued, administered or enforced by the federal government. Since we fund from activities
that are illegal under the CSA, banks and other financial institutions providing services to us risk violation of federal anti-money laundering
statutes (18 U.S.C. &#167;&#167; 1956 and 1957), the unlicensed money-remitter statute (18 U.S.C. &#167; 1960) and the Bank Secrecy Act,
among other applicable federal statutes. Banks often refuse to provide banking services to businesses involved in the cannabis industry
due to the present state of federal laws and regulations governing financial institutions. The inability to open bank accounts may make
it difficult for us or our clients to operate and our client&#8217;s reliance on cash can result in a heightened risk of theft, which
could harm their businesses and, in turn, harm our business. Additionally, some courts have denied marijuana-related businesses bankruptcy
protection, thus, making it very difficult for lenders to recoup their investments, which may limit the willingness of banks to lend to
our clients and to us. The lack of banking and financial services presents unique and significant challenges to businesses in the cannabis
industry and we may experience similar difficulties in obtaining and maintaining regular banking and financial services because of the
activities of our clients.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 42.65pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 42.65pt"></p><div>

</div><!-- Field: Page; Sequence: 14; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 42.65pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><i>Dividends and distributions
could be prevented if our receipt of payments from clients is deemed to be proceeds of crime</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event that any of our operations, or any
proceeds thereof, any dividends or distributions therefrom, or any profits or revenues accruing from such operations were found to be
in violation of money laundering legislation or otherwise, such transactions may be viewed as proceeds of crime under one or more federal
statutes or any other applicable legislation. This could restrict or otherwise jeopardize our ability to declare or pay dividends or effect
other distributions. Furthermore, while there are no current intentions to declare or pay dividends in the foreseeable future, in the
event that a determination was made that our proceeds from operations (or any future operations) could reasonably be shown to constitute
proceeds of crime, we may decide or be required to suspend declaring or paying dividends without advance notice and for an indefinite
period of time.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="margin: 0pt 0 0pt 0.25in; font: 10pt Times New Roman, Times, Serif; text-align: left"><i>Further legislative development
beneficial to our operations is not guaranteed</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Among other things, our business involves the
provision of an online platform that provides monitoring and tracking of those involved in the cultivation, distribution, manufacture,
storage, transportation, and/or sale of medical and adult-use cannabis products in compliance with applicable state law. The success of
our business depends on the continued development of the cannabis industry and the activity of commercial business and government regulatory
agencies within the industry. The continued development of the cannabis industry is dependent upon continued legislative and regulatory
authorization of cannabis at the state level and a continued laissez-faire approach by federal enforcement agencies. Any number of factors
could slow or halt progress in this area. Further regulatory progress beneficial to the industry cannot be assured. While there may be
ample public support for legislative action, numerous factors impact the legislative and regulatory process, including election results,
scientific findings or general public events. Any one of these factors could slow or halt progressive legislation relating to cannabis
and the current tolerance for the use of cannabis by consumers, which could adversely affect the demand for our product and operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="margin: 0pt 0 0pt 0.25in; font: 10pt Times New Roman, Times, Serif; text-align: left"><i>The cannabis industry could
face strong opposition from other industries</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that established businesses in other
industries may have a strong economic interest in opposing the development of the cannabis industry. Cannabis may be seen by companies
in other industries as an attractive alternative to their products, including recreational marijuana as an alternative to alcohol, and
medical marijuana as an alternative to various commercial pharmaceuticals. Many industries that could view the emerging cannabis industry
as an economic threat are well established, with vast economic and federal and state lobbying resources. It is possible that companies
within these industries could use their resources to attempt to slow or reverse legislation legalizing cannabis. Any inroads these companies
make in halting or impeding legislative initiatives that would be beneficial to the cannabis industry could have a detrimental impact
on our clients and, in turn on our operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="margin: 0pt 0 0pt 0.25in; font: 10pt Times New Roman, Times, Serif; text-align: left"><i>The legality of marijuana
could be reversed in one or more states</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The voters or legislatures of states in which
marijuana has already been legalized could potentially repeal applicable laws that permit the operation of both medical and retail marijuana
businesses. These actions might force businesses, including those that are our clients, to cease operations in one or more states entirely.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 15; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="margin: 0pt 0 0pt 0.25in; font: 10pt Times New Roman, Times, Serif; text-align: left"><i>Changing legislation and
evolving interpretations of the law</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Laws and regulations affecting the medical and
adult-use marijuana industry are constantly changing, which could detrimentally affect our clients and, in turn, our operations. Local,
state, and federal marijuana laws and regulations are broad in scope and subject to evolving interpretations, which could require our
clients and thus us to incur substantial costs associated with modification of operations to help ensure such clients&#8217; compliance.
In addition, violations of these laws, or allegations of such violations, could disrupt our clients&#8217; business and result in a material
adverse effect on our operations. In addition, it is possible that regulations may be enacted in the future that will limit the amount
of cannabis growth or related products that our commercial clients are authorized to produce. We cannot predict the nature of any future
laws, regulations, interpretations, or applications, nor can we determine what effect additional governmental regulations or administrative
policies and procedures, when and if promulgated, could have on our operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="margin: 0pt 0 0pt 0.25in; font: 10pt Times New Roman, Times, Serif; text-align: left"><i>Dependence on client licensing</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our business is dependent on our clients obtaining
various licenses from various municipalities and state licensing agencies. There can be no assurance that any or all licenses necessary
for our clients to operate their businesses will be obtained, retained or renewed. If a licensing body were to determine that a client
of ours had violated applicable rules and regulations, there is a risk the license granted to that client could be revoked, which could
adversely affect our operations. There can be no assurance that our existing clients will be able to retain their licenses going forward,
or that new licenses will be granted to existing and new market entrants.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="margin: 0pt 0 0pt 0.25in; font: 10pt Times New Roman, Times, Serif; text-align: left"><i>Insurance risks </i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the U.S, many marijuana-related businesses
are subject to a lack of adequate insurance coverage. In addition, many insurance companies may deny claims for any loss relating to marijuana
or marijuana-related operations based on their illegality under federal law, noting that a contract for an illegal transaction is unenforceable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="margin: 0pt 0 0pt 0.25in; font: 10pt Times New Roman, Times, Serif; text-align: left"><i>Bankruptcy risks</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Because cannabis is illegal under U.S. federal
law, and bankruptcy is a strictly federal proceeding, many courts have denied cannabis businesses federal bankruptcy protections, thus
making it very difficult for lenders to recoup their investments in the cannabis industry in the event of a bankruptcy. If we were to
seek protection from creditors pursuant to applicable bankruptcy or insolvency laws, even though we are not directly engaged in manufacturing,
distributing, selling or otherwise handling cannabis under state cannabis laws, there is no guarantee that U.S. federal bankruptcy protections
would be available to our United States operations, which would have a material adverse effect on us, our lenders and other stakeholders.
While state-level receivership options do exist in some states as an alternative to bankruptcy, the efficacy of these alternatives cannot
be guaranteed.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The cannabis industry is an evolving industry
and we must anticipate and respond to changes. </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The cannabis industry is not yet well-developed,
and many aspects of this industry&#8217;s development and evolution cannot be accurately predicted. While we have attempted to identify
any risks specific to the cannabis industry, you should carefully consider that there are other risks that cannot be foreseen or are not
described in this prospectus, which could materially and adversely affect our business and financial performance. We expect that the cannabis
market and our business will evolve in ways that are difficult to predict. For example, it is anticipated that over time, we will reach
a point in most markets where we have achieved a market penetration level in which new client acquisitions are less productive, and the
continued growth of our revenue will require more focus on increasing the rate at which existing clients purchase products and services
across our platforms. Our long-term success will depend on our ability to successfully adjust our strategy to meet the changing market
dynamics. If we are unable to successfully adapt to changes in the cannabis industry, our operations could be adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>


</div><!-- Field: Page; Sequence: 16; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Risks related to Our Business</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>A significant portion
of our business is and is expected to be, from government contracts, which present certain unique risks.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Contracts for Leaf Data
Systems with government agencies in Pennsylvania, Washington, and Utah represented 16%, 25% and 39% of our revenue for the year ended
December 31, 2021, the six months ended December 31, 2020 and fiscal year ended June 30, 2020, respectively. In order to obtain a government
contract for Leaf Data Systems, we are required to follow a competitive bidding process in each state where we seek a contract. Government
contracts have very specific compliance requirements that often require contractors to invest material time and money to prepare a bid
to ensure that our technology, processes, and staff meet these specific requirements. After expenditures of such time and money, there
is no assurance that the bid will result in an award of a contract. Further, even if a contract is awarded, there are strict procedures
that government agencies follow when it comes to reimbursement of the costs incurred in the course of fulfilling contracts. Accordingly,
it is possible that some or all costs might not be reimbursed under a government contract as contemplated by us.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Government agencies also
typically audit and investigate government contractors. These agencies review a contractor&#8217;s performance under its contracts, its
cost structure, its business systems, and compliance with applicable laws, regulations, and standards. If an audit or investigation uncovers
improper or illegal activities, we may be subject to civil or criminal penalties and administrative sanctions, including reductions of
the value of contracts, contract modifications or terminations, forfeiture of profits, suspension of payments, penalties, fines, and suspension,
or prohibition from doing business with the government. In addition, we could suffer serious reputational harm if allegations of impropriety
were made against us. Any such imposition of penalties, or the loss of such government contracts, could materially adversely affect our
business, financial condition, results of operations, and growth prospects.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">There also is typically
a longer window of liability under government contracts than private contracts, and the government can seek claims after the contract
has ended and payments under the contract have been made. The terms of government contracts may also require the sharing of proprietary
information, processes, software, and product development efforts with the government. Additionally, government employees are required
to follow certain protocols to ensure there is no appearance of impropriety in the bidding process. As a result, bidders on government
contracts must ensure that there is no appearance of favoritism, gift-giving, bribery, or the exertion of other influences in the bidding
process. Any finding of the same can result in fines to the bidder and cancellation of contracts. The applicable state government generally
has the ability to terminate our contract, in whole or in part, without prior notice, for convenience or for default based on performance.
If a government contract were to be terminated for convenience, we generally would be protected by provisions covering reimbursement for
costs incurred on the contract and profit on those costs, but not the anticipated profit that would have been earned had the contract
been completed. The state government also has the ability to stop work under a contract for a limited period of time for its convenience.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">We cannot assure you
that we will be successful in navigating the government contract bidding process or that we will be able to maintain our existing government
contracts or obtain additional government contracts in the future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our operations may be adversely affected
by disruptions to our information technology, or IT, systems, including disruptions from cybersecurity breaches of our IT infrastructure.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We rely on information technology networks and
systems, including those of third-party service providers, to process, transmit, and store electronic information. In particular, we depend
on our information technology infrastructure for a variety of functions, including financial reporting, data management, project development,
and email communications. Any of these systems may be susceptible to outages due to fire, floods, power loss, telecommunications failures,
terrorist attacks, sabotage, and similar events. Global cybersecurity threats and incidents can range from uncoordinated individual attempts
to gain unauthorized access to our information technology systems to sophisticated and targeted measures known as advanced persistent
threats. The ever-increasing use and evolution of technology, including cloud-based computing, create opportunities for the unintentional
dissemination or intentional destruction of confidential information stored in our systems or in non-encrypted portable media or storage
devices. We could also experience a business interruption, information theft of confidential information, or reputational damage from
industrial espionage attacks, malware, or other cyber-attacks, which may compromise our system infrastructure or lead to data leakage,
either internally or at our third-party providers. Despite the implementation of network security measures and disaster recovery plans,
our systems and those of third parties on which we rely may also be vulnerable to computer viruses, break-ins, and similar disruptions.
If we or our vendors are unable (or are perceived as unable) to prevent such outages and breaches, our operations may be disrupted, and
our business reputation could be adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We expect that risks and exposures related to&#160;cybersecurity&#160;attacks
will remain high for the foreseeable future due to the rapidly evolving&#160;nature and sophistication of these threats.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 17; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Privacy regulation is an evolving area and
compliance with applicable privacy regulations may increase our operating costs or adversely impact our ability to service our clients
and market our products and services.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Because we store, processes, and use data, some
of which contains personal information, we are subject to complex and evolving federal, state, and foreign laws and regulations (including
Canada&#8217;s Cannabis Act and related regulations and the European Union&#8217;s general data protection regulation, or GDPR) regarding
privacy, data protection, and other matters. While we believe we are currently in compliance with applicable laws and regulations, many
of these laws and regulations are subject to change and uncertain interpretation, and could result in investigations, claims, changes
to our business practices, increased cost of operations, and declines in user growth, retention, or engagement, any of which could seriously
harm our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We rely on third parties for certain services
made available to users of our platforms, which could limit our control over the quality of the user experience and our cost of providing
services.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Some of the applications and services available
through the Leaf Data System and MJ Platform are provided through relationships with third-party service providers. We do not typically
have any direct control over these third-party service providers. These third-party service providers could experience service outages,
data loss, privacy breaches, including cyber-attacks, and other events relating to the applications and services they provide that could
diminish the utility of these services and which could harm users thereof. The MJ Platform itself does not depend on any third-party software
or applications and is based entirely on open source technologies and custom programming. The MJ Platform, however, is hosted by Amazon
Web Services, a third-party service provider. There are readily available alternative hosting services available should we desire or need
to move to a different web host. Certain ancillary services provided by us also uses the services of third-party providers, for which,
we believe, there are readily available alternatives on comparable economic terms. Offering integrated platforms, such as the Leaf Data
System and MJ Platform which rely, in part, on the services of other providers lessens the control that we have over the total client
experience. Should the third-party service providers we rely upon not deliver at standards we expect and desires, acceptance of our platforms
could suffer, which would have an adverse effect on our business and financial performance. Further, we cannot be assured of entering
into agreements with such third-party service providers on economically favorable terms.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Acquisitions and integration issues may
expose us to risks.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our business strategy includes making targeted
acquisitions. Any acquisition that we make may be of significant size, may change the scale of our business and operations, and may expose
us to new geographic, political, operating, financial, and geological risks. Our success in our acquisition activities depends on our
ability to identify suitable acquisition candidates, negotiate acceptable terms for any such acquisition, and integrate the acquired operations
successfully with our own. Any acquisitions would be accompanied by risks. For example, there may be significant changes in our market
value after we have committed to complete the transaction and have established the purchase price or exchange ratio; a potential targeted
acquisition&#8217;s business and prospects may prove to be below expectations; we may have difficulty integrating and assimilating the
operations and personnel of any acquired companies, realizing anticipated synergies and maximizing the financial and strategic position
of the combined enterprise and maintaining uniform standards, policies, and controls across the organization; the integration of the acquired
business or assets may disrupt our ongoing business and our relationships with employees, clients, suppliers, and contractors; and the
acquired business or assets may have unknown liabilities that may be significant. If we choose to use equity securities as consideration
for such an acquisition, existing shareholders may suffer dilution. Alternatively, we may choose to finance any such acquisition with
our existing resources. There can be no assurance that we would be successful in overcoming these risks or any other problems encountered
in connection with such acquisitions. To grow and be successful, we need to attract and retain qualified personnel.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In any future acquisitions, we may not be able
to successfully integrate acquired personnel, operations, and technologies, or effectively manage the combined business following the
acquisition. We also may not achieve the anticipated benefits from future acquisitions due to a number of factors, including: (a) an inability
to integrate or benefit from acquisitions in a profitable manner; (b) unanticipated costs or liabilities associated with the acquisition;
(c) the incurrence of acquisition-related costs; (d) the diversion of management&#8217;s attention from other business concerns; (e) the
loss of our or the acquired business&#8217; key employees; or (f) the issuance of dilutive equity securities, the incurrence of debt,
or the use of cash to fund such acquisitions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 18; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>To grow and be successful, we need to attract
and retain qualified personnel.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our growth and success will depend to a significant
extent on our ability to identify, attract, hire, train, and retain qualified professional, creative, technical, and managerial personnel.
Competition for experienced and qualified talent in the cannabis industry can be intense. We may not be successful in identifying, attracting,
hiring, training, and retaining such personnel in the future. If we are unable to hire, assimilate, and retain qualified personnel in
the future, such inability could adversely affect our operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We are smaller and less diversified than
many of our potential competitors.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">While we believe we are a leading provider in
the software solutions segment of the cannabis industry, there are general software design and integrated business platform companies
seeking to provide online and software-based business solutions and operations integration to clients in numerous industries. The continued
growth of the cannabis industry will likely attract some of these existing companies and incentivize them to produce solutions that are
competitive with those offered by us. Many of these potential competitors are a part of large diversified corporate groups with a variety
of other operations and expansive resources. We may not be able to successfully compete with larger enterprises devoting significant resources
to compete in our target market space, which may negatively affect operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our business and stock price may suffer
as a result of our limited public company operating experience and if securities or industry analysts do not publish or cease publishing
research or reports about us, our business, or our market, or if they change their recommendations regarding our common stock in an adverse
manner, the price and trading volume of our common stock could decline.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we are unable to execute our business strategy,
either as a result of our inability to manage effectively our business in a public company environment or for any other reason, our business,
prospects, financial condition, and operating results may be harmed.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The trading market for our common stock will be
influenced by the research and reports that industry or securities analysts may publish about us, our business, our market, or our competitors.
We currently have limited coverage by securities and industry analysts. If no additional securities or industry analysts commence coverage
of us, our stock price and trading volume would likely be negatively impacted. If any of the analysts who cover, or who may cover us in
the future, change their recommendation regarding our stock in an adverse manner, or provide more favorable relative recommendations about
our competitors, the price of our common stock would likely decline. If any analyst who may cover us were to cease coverage of us or fail
to regularly publish reports on us, we could lose visibility in the financial markets, which could cause our stock price or trading volume
to decline.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Risks related to Intellectual Property</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Protecting and defending against intellectual
property claims may have a material adverse effect on our business.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our ability to compete depends, in part,
upon successful protection of our intellectual property relating to our Leaf Data Systems and MJ Platform, and intellectual property
acquired in business combinations, such as Solo, Trellis, Ample, Viridian and 365 Cannabis. We seek to protect our proprietary and
intellectual property rights through patent applications, available copyright and trademark laws, nondisclosure agreements, and
licensing and distribution arrangements with reputable companies in our target markets. While patent protection for inventions
related to cannabis and cannabis-related products is available, there are substantial difficulties faced in the patent process by
cannabis-related businesses. Further, patent applications may be rejected for numerous other reasons beyond those related to the
cannabis industry, including that the subject matter of the application is found to be non-patentable. Our previous patent
applications were denied and while we are continuing to pursue such applications and believe they are with merit, there can be no
assurance that patents will be issued on these applications. The failure to be awarded patents on our technology could weaken our
ability to enforce our intellectual property rights. Any such enforcement, whether we have been granted patent protection or not,
would be costly, and there can be no assurance that we will have the resources to undertake all necessary action to protect our
intellectual property rights or that we will be successful. Any infringement of our material intellectual property rights could
require us to redirect resources to actions necessary to protect the same and could distract management from our underlying business
operations. The infringement of our material intellectual property rights and resulting actions could adversely affect our
operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 19; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our success depends in part upon our ability
to protect our core technology and intellectual property.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our success depends in part upon our ability to
protect our core technology and intellectual property. To establish and protect our proprietary rights, we rely on a combination of patent
applications, trade secrets, including know-how, license agreements, confidentiality procedures, non-disclosure agreements with third
parties, employee disclosure and invention assignment agreements, and other contractual rights.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We generally control access to and use of our
proprietary technology and other confidential information through the use of internal and external controls, including contractual protections
with employees, contractors, clients, and partners, and our software is protected by the U.S.&#160;and international copyright laws.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Despite efforts to protect our trade secrets and
proprietary rights through intellectual property rights, licenses, and confidentiality agreements, unauthorized parties may still copy
or otherwise obtain and use our software and technology, as was the case when our source code was compromised in June 2017. We have taken
significant actions to improve security but will be required to regularly modify our systems to combat new hacking approaches as they
develop. In addition, as our international operations expand, effective intellectual property protection may not be available or may be
limited in foreign countries.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Others may assert intellectual property
infringement claims against us.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Companies in the software and technology industries
own large numbers of patents, copyrights, trademarks, and trade secrets, and frequently enter into litigation based on allegations of
infringement, misappropriation, or other violations of intellectual property or other rights. In addition, various &#8220;non-practicing
entities&#8221; that own patents and other intellectual property rights often attempt to aggressively assert their rights in order to
extract value from technology companies. It is possible that others may claim from time to time that our products misappropriate or infringe
the intellectual property rights of third parties. Irrespective of the validity or the successful assertion of any such claims, we could
incur significant costs and diversion of resources in defending against these claims, which could adversely affect our operations. We
may receive unfavorable preliminary or interim rulings in the course of litigation, and there can be no assurances that favorable final
outcomes will be obtained in all cases. We may decide to settle such lawsuits and disputes on terms that are unfavorable to us. As a result,
we may also be required to develop alternative non-infringing technology or practices or discontinue the practices. The development of
alternative non-infringing technology or practices could require significant effort and expense or may not be feasible.&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Risks related to Our Charter Documents</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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 certificate of incorporation and amended and restated bylaws, as well as provisions of Delaware law, could impair
a takeover attempt and limit the price investors might be willing to pay in the future for our common stock and could entrench management.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Amended and Restated Certificate of Incorporation
contains provisions that may discourage unsolicited takeover proposals that stockholders may consider to be in their best interests. We
are also subject to anti-takeover provisions under Delaware law, which could delay or prevent a change of control. Together these provisions
may make more difficult the removal of management and may discourage transactions that otherwise could involve payment of a premium over
prevailing market prices for our securities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 20; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These provisions:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">create
a staggered Board of Directors making it more difficult for stockholders to remove a majority of the Board of Directors and take control;</span></td>
</tr></table><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">grant
the Board of Directors the ability to designate the terms of and issue new series of preferred shares, which can be created and issued
by the Board of Directors without prior stockholder approval, with rights senior to those of the common stock;</span></td>
</tr></table><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">impose
limitations on our stockholders&#8217; ability to call special stockholders&#8217; meetings; and</span></td>
</tr></table><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">make
it more difficult the removal of management and may discourage transactions that otherwise could involve payment of a premium over prevailing
market prices for our securities.</span></td>
</tr></table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, we are subject to the provisions
of Section 203 of the Delaware General Corporation Law, which may prohibit certain business combinations with stockholders owning 15%
or more of our outstanding voting stock. These and other provisions in our Amended and Restated Certificate of Incorporation, our bylaws,
and Delaware law could make it more difficult for stockholders or potential acquirers to obtain control of our Board of Directors or initiate
actions that are opposed by our then-current Board of Directors, including to delay or impede a merger, tender offer or proxy contest
involving us. Any delay or prevention of a change in control transaction or changes in our Board of Directors could cause the market price
of our common stock to decline.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our corporate opportunity provisions in
our Amended and Restated Certificate of Incorporation could enable management to benefit from corporate opportunities that might otherwise
be available to us.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Amended and Restated Certificate of Incorporation
provides that the doctrine of corporate opportunity, or any other analogous doctrine, shall not apply with respect to us, or any of our
directors or officers in circumstances where the application of such doctrine would conflict with any fiduciary duties or contractual
obligations they may otherwise have.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our management may become aware, from time to
time, of certain business opportunities (such as acquisition opportunities) and may direct such opportunities to other businesses in which
they have invested, in which case we may not become aware of or otherwise have the ability to pursue such opportunity. Further, such businesses
may choose to compete with us for these opportunities, possibly causing these opportunities to not be available to us or causing them
to be more expensive for us to pursue. These potential conflicts of interest could adversely impact our business or prospects if attractive
business opportunities are procured by such parties for their own benefit rather than for ours.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our amended and restated certificate of
incorporation provides, subject to limited exceptions, that the Court of Chancery of the State of Delaware will be the sole and exclusive
forum for certain stockholder litigation matters, which could limit our stockholders&#8217; ability to obtain a favorable judicial forum
for disputes with us or our directors, officers, employees or stockholders.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our amended and restated certificate of incorporation
requires, to the fullest extent permitted by law, that derivative actions brought in our name, actions against directors, officers, and
employees for breach of fiduciary duty, actions under the Delaware general corporation law or under our amended and restated certificate
of incorporation, or actions asserting a claim governed by the internal affairs doctrine may be brought only in the Court of Chancery
in the State of Delaware and, if brought outside of Delaware, the stockholder bringing the suit will be deemed to have consented to service
of process on such stockholder&#8217;s counsel. This choice of forum provision does not preclude or contract the scope of exclusive federal
or concurrent jurisdiction for any actions brought under the Securities Act or the Exchange Act of 1934, as amended, or the Exchange Act.
Accordingly, our exclusive forum provision will not relieve us of our duties to comply with the federal securities laws and the rules
and regulations thereunder, and our stockholders will not be deemed to have waived our compliance with these laws, rules and regulations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any person or entity purchasing or otherwise acquiring
any interest in shares of our capital stock shall be deemed to have notice of and consented to the forum provisions in our amended and
restated certificate of incorporation. This choice of forum provision does not exclude stockholders from suing in federal court for claims
under the federal securities laws but may limit a stockholder&#8217;s ability to bring such claims in a judicial forum that it finds favorable
for disputes with us or any of our directors, officers, other employees or stockholders, which may discourage lawsuits with respect to
such claims.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Alternatively, if a court were to find the choice
of forum provision contained in our amended and restated certificate of incorporation to be inapplicable or unenforceable in an action,
we may incur additional costs associated with resolving such action in other jurisdictions, which could harm our business, operating results
and financial condition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 21; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Risks Relating to our Convertible Debt </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The issuance of shares of our common stock
pursuant to our Senior Convertible Notes may result in significant dilution to our stockholders.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The conversion of our outstanding Senior Convertible Notes, issued
on October 5, 2021, could result in the issuance of a significant number of shares of our common stock. The original $20 million principal
amount of Senior Convertible Notes is convertible at a price of $4.05 per share, which would result in the issuance of 4,938,272 shares
of our common stock upon the conversion of the Senior Convertible Notes in full. At the option of Akerna, assuming all equity conditions
under the Senior Convertible Notes are met, the installment payments on the Senior Convertible Notes can be converted into shares of common
stock of Akerna at a price per share equal to the lower of (i) the conversion price then in effect, or (ii) the greater of (x) the floor
price of $0.54 and (y) 90% of the lower of (A) the volume-weighted average price of the common stock as of the trading day immediately
preceding the applicable date of determination and (B) the quotient of (I) the sum of the volume-weighted average price of the common
stock for each of the two (2) trading days with the lowest volume-weighted average price of the common stock during the ten consecutive
trading day period ending on and including the trading day immediately prior to the applicable date of determination, divided by (II)
two. If the equity conditions are not satisfied and the holder does not waive the equity conditions, the Senior Convertible Note&#8217;s
installment payments must be made in cash.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to the variable nature of the adjustments of installment conversion
prices and the formula that sets certain conversion prices of these securities based on a discount to the then-current market price, we
could issue up to 28,685,185 shares of common stock as of June 13, 2022, upon conversion of the Senior Convertible Notes at the floor
price, which may result in significant dilution to our stockholders and could negatively impact the trading price of our common stock.
This financing will reset the conversion price of the Senior Convertible Notes, see the risk factors under &#8220;Risks Related to this
Offering&#8221; below.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our obligations to the holders of our Senior
Convertible Notes are secured by a security interest in substantially all of our assets, if we default on those obligations, the Senior
Convertible Note holders could foreclose on our assets.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our obligations under the Senior Convertible Notes,
issued on October 5, 2021, and the related transaction documents are secured by a security interest in substantially all of our assets.
As a result, if we default on our obligations under such Senior Convertible Notes, the collateral agent on behalf of the holders of the
Senior Convertible Notes could foreclose on the security interests and liquidate some or all of our assets, which would harm our business,
financial condition and results of operations and could require us to reduce or cease operations and investors may lose all or part of
your investment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Events of default under the Senior Convertible
Notes include: (i) the failure of the registration statement to which this prospectus relates (under the registration rights agreement
between the Company and the holders) to be filed with the SEC or the failure of the applicable registration statement to be declared effective
by the SEC by deadlines set forth in the registration rights agreement; (ii) (x) the effectiveness of the applicable registration statement
lapses for any reason or such registration statement is unavailable to any holder of registrable securities and Rule 144 (subject to certain
conditions) is not unavailable to any holder of the conversion shares; (iii) suspension of trading of the Company&#8217;s common stock
on a national securities exchange for five days; (iv) uncured conversion failure; (v) failure by the Company to maintain required share
allocations for the conversion of the Senior Convertible Notes; (vi) failure by the Company to pay principal when due; (vii) failure of
the Company to remove restricted legends from shares issued to a holder upon conversion of the Senior Convertible Notes; (viii) the occurrence
of any default under, redemption of or acceleration prior to maturity of at least an aggregate of $50,000 of indebtedness of the Company;
(ix) bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted
by or against the Company or any subsidiary and not dismissed within 45 days of initiation; (x) the commencement by the Company or any
subsidiary of a voluntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or
other similar law; (xi) the entry by a court of a decree, order, judgment or other similar document in respect of the Company or any subsidiary
of a voluntary or involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization
or other similar law; (xii) final judgment for the payment of money aggregating in excess of $50,000 are rendered against the Company
or any subsidiary of the Company and not bonded or discharged within 30 days; (xiii) failure of the Company or any subsidiary to pay when
due any debts in excess of $50,000 due to any third party; (xiv) breaches by the Company or any subsidiary of any representations or warranties
in the securities purchase agreement for the Senior Convertible Notes or any document contemplated thereby; (xv) a false or inaccurate
certification by the Company that either (A) the &#8220;Equity Conditions&#8221; (as defined in the Senior Convertible Notes) are satisfied,
(B) there has been no &#8220;Equity Conditions Failure,&#8221; (as defined in the Senior Convertible Notes) or (C) as to whether any Event
of Default has occurred; (xvi) failure of the Company or any subsidiary to comply with certain of the covenants in the Senior Convertible
Notes; (xvii) the occurrence of (A) at any time after the six month anniversary of the issuance date, any current public information failure
that remains outstanding for a period of twenty (20) trading days or (B) any restatement of any financial statements of the Company filed
with the SEC; (xviii) any material adverse effect occurring; (xix) any provision of any transaction document shall at any time for any
reason cease to be valid and binding or enforceable; (xx) any security document shall for any reason (other than pursuant to the express
terms thereof or due to any failure or omission of the collateral agent) fail or cease to create a separate valid and perfected and, except
to the extent permitted by the terms hereof or thereof, first priority lien; (xxi) any material damage to, or loss, theft or destruction
of, any collateral, that is material to the business of the Company or any subsidiary and is not reimbursed by insurance; or (xxii) any
Event of Default occurs under any other Senior Convertible Notes.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 22; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The holders of the Senior Convertible Notes
have certain additional rights upon an event of default under such Senior Convertible Notes, which could harm our business, financial
condition, and results of operations and could require us to reduce or cease our operations.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the Senior Convertible Notes, the holders
have certain rights upon an event of default. Such rights include (i) the remaining principal amount of the Senior Convertible Notes bearing
interest at a rate of 15% per annum, (ii) during the event of default the holders of the Senior Convertible Notes will be entitled to
convert all or any portion of the Senior Convertible Notes at an alternate conversion price equal to the lower of (i) the conversion price
then in effect, and (ii) 80% of the lower of (x) the volume weighted average price of the common stock as of the trading day immediately
preceding the applicable date of determination and (y) the quotient of (A) the sum of the volume weighted average price of the common
stock for each of the two (2) trading days with the lowest volume weighted average price of the common stock during the ten consecutive
trading day period ending and including the trading day immediately prior to the applicable date of determination, divided by (B) two,
but not less than the floor price, and (iii) the holder having the right to demand redemption of all or a portion of the Senior Convertible
Notes, as described below. At any time after certain notice requirements for an event of default are triggered, a holder of Senior Convertible
Notes may require us to redeem all or any portion of the convertible note by delivering written notice. The redemption price will equal
the greater of (i) 115% of the outstanding principal of the convertible note to be redeemed and accrued and unpaid interest and unpaid
late charges thereon, and (ii) an amount equal to the market value of the shares of the common stock underlying the Senior Convertible
Notes, as determined in accordance with the Senior Convertible Notes. Upon the occurrence of certain events of default relating to the
bankruptcy of Akerna, whether occurring prior to or following the maturity date, Akerna will be required to immediately redeem the Senior
Convertible Notes, in cash, for an amount equal to 115% of the outstanding principal of the Senior Convertible Notes, and accrued and
unpaid interest and unpaid late charges thereon, without the requirement for any notice or demand or other action by any holder or any
other person or entity. We may not have sufficient funds to settle the redemption price and, as described above, this could trigger rights
under the security interest granted to the holders and result in the foreclosure of their security interests and liquidation of some or
all of our assets.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The exercise of any of these rights upon an event
of default could substantially harm our financial condition, substantially dilute our other shareholders and force us to reduce or cease
operations and investors may lose all or part of their investment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Risks Relating to Our Common Stock</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We may seek to raise additional funds, finance
acquisitions, or develop strategic relationships by issuing securities that would dilute investors&#8217; ownership. Depending on the terms
available to us, if these activities result in significant dilution, it may negatively impact the trading price of our shares of common
stock.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any additional financing that we secure, may require
the granting of rights, preferences, or privileges senior to, or pari passu with, those of our common stock. Any issuances by us of equity
securities may be at or below the prevailing market price of our common stock and in any event, may have a dilutive impact on stockholders&#8217;
ownership interest, which could cause the market price of our common stock to decline. We may also raise additional funds through the
incurrence of debt, subject to the limitations imposed by our current outstanding Senior Convertible Notes, or the issuance or sale of
other securities or instruments senior to our shares of common stock. We cannot be certain how the repayment of our Senior Convertible
Notes will be funded and we may issue further equity or debt in order to raise funds to repay the promissory notes, including funding
that may be highly dilutive. The holders of any securities or instruments we may issue may have rights superior to the rights of our common
stockholders. If we experience dilution from the issuance of additional securities and we grant superior rights to new securities over
holders of our common stock, it may negatively impact the trading price of our shares of common stock and stockholders may lose all or
part of their investment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 23; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>Warrants are exercisable
for our common stock, which could increase the number of shares eligible for future resale in the public market and result in dilution
to our stockholders.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Currently, before this offering, there are warrants
to purchase 5,813,804 shares of our common stock, and each one of those warrants is exercisable for one share of common stock at $11.50
per share. To the extent such warrants are exercised, additional shares of common stock will be issued, which will result in dilution
to the then-existing holders of common stock and increase the number of shares eligible for resale in the public market. Sales of substantial
numbers of such shares in the public market could adversely affect the market price of our common stock.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Certain of our warrants are accounted for
as a warrant liability and are recorded at fair value upon issuance with any changes in fair value each period reported in our statement
of operations, which may have an adverse effect on the market price of our securities.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We had 225,635 warrants that were issued in private
placements that occurred concurrently with the initial public offering of MTech, our successor (the &#8220;private warrants&#8221;). These
private warrants and the shares of Company common stock issuable upon the exercise of the private warrants are exercisable for cash or
on a cashless basis, at the holder&#8217;s option, and are non-redeemable so long as they are held by the initial purchasers or their permitted
transferees. If the private warrants are held by someone other than the initial purchasers or their permitted transferees, the private
warrants will be redeemable by the Company and exercisable by such holders on the same basis as the warrants included in the units sold
in the initial public offering, in which case the 225,635 private warrants could be redeemed by the Company for $2,256.35. Under generally
accepted accounting principles in the United States (&#8220;GAAP&#8221;), the Company is required to evaluate contingent exercise provisions
of these warrants and then their settlement provisions to determine whether they should be accounted for as a warrant liability or as
equity. As a result of the provision that the private warrants, when held by someone other than the initial purchasers or their permitted
transferees, will be redeemable by the Company, the requirements for accounting for these warrants as equity are not satisfied. Therefore,
the Company is required to account for these private warrants as a warrant liability and record (a) that liability at fair value and (b)
any subsequent changes in fair value as of the end of each period for which earnings are reported. The impact of changes in fair value
on earnings may have an adverse effect on the market price of our common stock.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We may face additional risks, including
regulatory, litigation, stockholder or other actions and negative impacts on our stock price, as a result of the material weakness in
our internal control over financial reporting and revisions to our financial statements.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of our material weaknesses in internal
control over financial reporting, the change in accounting for certain warrants, and the related revisions to our prior financial statements
or that may in the future be raised by the SEC, we face potential additional risks, including regulatory, litigation, stockholder or other
actions and negative impacts on our stock price, which may include, among others, claims invoking the federal and state securities laws,
contractual claims or other claims arising from the material weakness in our internal control over financial reporting and the preparation
of our financial statements. As of the date of this report, we have no knowledge of any such litigation or dispute. However, we can provide
no assurance that such litigation or dispute will not arise in the future. Any such litigation or dispute, whether successful or not,
could have a material adverse effect on our business, results of operations and financial condition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 24; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The market price of our shares of common
stock is particularly volatile given our status as a relatively new public company with a generally small and thinly traded public float,
which could lead to wide fluctuations in our share price. You may be unable to sell your shares of common stock at or above your purchase
price, which may result in substantial losses to you.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The market for our shares of common stock is characterized
by significant price volatility when compared to the shares of larger, more established companies that trade on a national securities
exchange and have large public floats, and we expect that our share price will continue to be more volatile than the shares of such larger,
more established companies for the indefinite future. The volatility in our share price is attributable to a number of factors, including
the fact that our shares are thinly traded relative to larger, more established companies. The price for our shares of common stock could,
for example, decline precipitously in the event that a large number of our shares of common stock are sold on the market without commensurate
demand. As of March 31, 2022, there are public warrants to purchase 5,813,804 shares of our common stock at $11.50 per share and <span>$16.7
million</span> in principal amount of Senior Convertible Notes at a price of $4.05 per share (subject to being reset to the price at which
shares of common stock are offered in this offering), which if exercised or converted and sold into the open market could cause our stock
price to decline. In addition, because we may be considered a speculative or &#8220;risky&#8221; investment due to our lack of profits
to date, certain investors may, under the fear of losing all or most of their investment in the event of negative news or lack of progress,
be more inclined to sell their shares of common stock on the market more quickly and at greater discounts, thus resulting in a rapid downward
decline in the price of our common stock. Many of these factors are beyond our control and may decrease the market price of our shares
of common stock, regardless of our operating performance.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The market price of our common stock is
still likely to be highly volatile and subject to wide fluctuations, and you may be unable to resell your shares of common stock at or
above the price at which you acquired them.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The market price of our common stock is likely
to be highly volatile and could be subject to wide fluctuations in response to a number of factors that are beyond our control, including,
but not limited to:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Variations
in our revenues and operating expenses;</span></td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Actual
or anticipated changes in the estimates of our operating results or changes in stock market analyst recommendations regarding our common
stock, other comparable companies, or our industry generally;</span></td>
</tr></table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Market
conditions in our industry, the industries of our clients, and the economy as a whole;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Actual
or expected changes in our growth rates or our competitors&#8217; growth rates;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Developments
in the financial markets and worldwide or regional economies;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Announcements
of innovations or new products or services by us or our competitors;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Announcements
by the government relating to regulations that govern our industry;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sales
of our common stock or other securities by us or in the open market; and</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Changes
in the market valuations of other comparable companies.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The trading price of our shares of common stock
might also decline in reaction to events that affect other companies in our industry, even if these events do not directly affect us.
In the past, following periods of volatility in the market, securities class-action litigation has often been instituted against companies.
Such litigation, if instituted against us, could result in substantial costs and diversion of management&#8217;s attention and resources,
which could materially and adversely affect our business, operating results, and financial condition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We have not paid dividends in the past and
do not expect to pay dividends for the foreseeable future, and any return on investment may be limited to potential future appreciation
in the value of our common stock.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 20pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We currently intend to retain any future earnings
to support the development and expansion of our business and do not anticipate paying cash dividends on our shares of common stock in
the foreseeable future. Our payment of any future dividends will be at the discretion of our Board of Directors after taking into account
various factors, including without limitation, our financial condition, operating results, cash needs, growth plans, and the terms of
any credit agreements that we may be a party to at the time. To the extent we do not pay dividends, our shares of common stock may be
less valuable because a return on investment will only occur if and to the extent our stock price appreciates, which may never occur.
In addition, investors must rely on sales of their common stock after price appreciation as the only way to realize their investment,
and if the price of our common stock does not appreciate, then there will be no return on investment. Investors seeking cash dividends
should not purchase our common stock.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 25; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Risks Relating to This Offering</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Funds raised in this offering may not be sufficient to eliminate
the substantial doubt about our ability to continue as a going concern.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our ability to continue as a going concern is uncertain and dependent
upon obtaining the financing necessary to meet our financial commitments and to continue our ongoing operations as currently planned.
Even with the funds raised in this offering, we may not have sufficient funds to meet planned expenditures over the next twelve months,
we may require additional financing in the near future to meet our ongoing operational working capital requirements and continue to meet
the financial covenants of our convertible notes and may need to seek additional debt or equity financing to meet our planned expenditures.
If we are unable to raise sufficient capital we may have to reduce operations which could significantly affect our results of operations.&#160;
If we fail to meet the financial covenants of our debt and cannot obtain a waiver from such provisions or otherwise come to an agreement
with the holders of our debt, such holders may declare a default on the debt which could subject our assets to seizure and sale, negatively
impacting our business.&#160;See &#8220;Risks Relating to Our Financial Condition and Operating History&#8221; above.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Due to this offering, the conversion price
pursuant to our Senior Convertible Notes will need to be adjusted, which will result in the potential issuance of higher number of shares
of our common stock pursuant to the conversion than previously anticipated, thereby resulting in significant dilution to our stockholders.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The conversion of our outstanding Senior Convertible
Notes, issued on October 5, 2021 (the &#8220;Senior Convertible Notes&#8221;), could result in the issuance of a significant number of
shares of our common stock. The currently outstanding $15.5 million principal amount of Senior Convertible Notes is convertible at a price
of $4.05 per share, which would result in the issuance of 3,824,691 shares of our common stock upon the conversion of the Senior Convertible
Notes in full. At the option of Akerna, the installment payments on the Senior Convertible Notes can be converted into shares of common
stock of Akerna at a price per share equal to the lower of (i) the conversion price then in effect, or (ii) the greater of (x) the floor
price of $0.54 and (y) 90% of the lower of (A) the volume-weighted average price of the common stock as of the trading day immediately
preceding the applicable date of determination and (B) the quotient of (I) the sum of the volume-weighted average price of the common
stock for each of the two (2) trading days with the lowest volume-weighted average price of the common stock during the ten consecutive
trading day period ending on and including the trading day immediately prior to the applicable date of determination, divided by (II)
two.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the terms of the Convertible Notes,
if on or after the issue date of the Convertible Notes the Company issues or sells shares of common stock or certain other securities
exercisable or convertible into shares of common stock for a deemed issue price less than the then current conversion price of the Convertible
Notes, then the conversion price of the Convertible Notes will be adjusted to the deemed issue price per share of the shares of common
stock or other securities issued. Therefore, if we issue the Units under this offering at a deemed issue price of ______ per share, the
conversion price of the Convertible Notes will be reset to $______ per share and the $15.5 million principal amount of Senior Convertible
Notes would be convertible into ______ shares of our common stock potentially resulting in significant dilution to our stockholders and
the purchasers of securities in this offering.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>If our common stock is delisted from Nasdaq, the liquidity and
price of our common stock could decrease and our ability to obtain financing could be impaired.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 24, 2022, we received a notification letter
from The Nasdaq Stock Market stating that we are not in compliance with the Minimum&#160;Bid&#160;Price Requirement, which requires our
listed securities to maintain a minimum bid price of $1.00 per share. The notification stated that we have a compliance period of 180
calendar days, or until November 21, 2022, to regain compliance with the Minimum Bid Price Requirement. If at any time during this 180-day
compliance period the closing bid price of our common stock is at least $1.00 per share for a minimum of ten consecutive business days,
then the Nasdaq Stock Market will provide us with written confirmation of compliance and the matter will be closed.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 26; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If compliance cannot be demonstrated by November
21, 2022, we may be eligible for additional time. To qualify, we will be required to meet the continued listing requirement for market
value of publicly held shares and all other initial listing standards on the&#160;Nasdaq&#160;Capital Market (except the bid price requirement).
In addition, we would be required to provide written notice of our intention to cure the minimum bid price deficiency during this second
180-day compliance period by effecting a reverse stock split, if necessary. If we are not granted an additional 180-day compliance period,
then Nasdaq will provide written notification that our securities will be subject to delisting. At that time, we may appeal the determination
to delist our securities to a Nasdaq hearings panel. There can be no assurance that we will regain compliance with the Minimum Bid Price
Requirement or otherwise maintain compliance with the other listing requirements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Management will have broad discretion as
to the use of the net proceeds from this offering, and we may not use the proceeds effectively.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our management will have broad discretion as
to the application of the net proceeds and could use them for purposes other than those contemplated at the time of this offering. Our
stockholders may not agree with the manner in which our management chooses to allocate and spend the net proceeds. Moreover, our management
may use the net proceeds for corporate purposes that may not increase our results of operations or the market value of our common stock.
Our failure to apply these funds effectively could have a material adverse effect on our business, delay the development and approval
of our products and cause the price of our common stock to decline.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>If you purchase shares of our common stock
in this offering, you will experience immediate dilution as a result of this offering.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Because the price per share being offered may
be higher than net tangible book value per share of our common stock, you will experience dilution to the extent of the difference between
the offering price per share of common stock you pay in this offering and the net tangible book value per share of our common stock immediately
after this offering. Our net tangible book value as of March 31, 2022 was approximately $(17.9 million), or $(0.52) per share of common
stock. Net tangible book value per share is equal to our total tangible assets minus total liabilities, all divided by the number of
shares of common stock outstanding. See &#8220;Dilution&#8221; on page 30&#160;of this prospectus for a more detailed illustration
of the dilution you may incur if you participate in this offering. Because the sales of the shares offered hereby will be made directly
into the market or in negotiated transactions, the prices at which we sell these shares will vary and these variations may be significant.
Purchasers of the shares we sell, as well as our existing stockholders, will experience significant dilution if we sell shares at prices
significantly below the price at which they invested.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>If you purchase shares of our common stock
in this offering, you may experience future dilution as a result of future equity offerings or other equity issuances.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In order to raise additional capital, we may
in the future offer and issue additional shares of our common stock or other securities convertible into or exchangeable for our common
stock. We cannot assure you that we will be able to sell shares or other securities in any offering at a price per share that is equal
to or greater than the price per share paid by investors in previous offerings, and investors purchasing shares or other securities in
the future could have rights superior to existing stockholders. The price per share at which we sell additional shares of our common
stock or other securities convertible into or exchangeable for our common stock in future transactions may be higher or lower than the
price per share in previous offerings. Further, we may choose to raise additional capital due to market conditions or strategic considerations,
even if we believe we have sufficient funds for our current or future operating plans. In addition, the exercise of outstanding stock
options and warrants or the settlement of outstanding restricted stock units would result in further dilution of your investment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 27; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>This offering may cause the trading price
of our common stock to decrease.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The price per share, together with the number
of shares of common stock we propose to issue and ultimately will issue if this offering is completed, may result in an immediate decrease
in the market price of our common stock. This decrease may continue after the completion of this offering.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>A significant portion of our total outstanding
shares are eligible to be sold into the market, which could cause the market price of our common stock to drop significantly, even if
our business is doing well.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sales of a substantial number of shares of our
common stock in the public market, either by us or by our current stockholders, or the perception that these sales could occur, could
cause a decline in the market price of our securities. Such sales, along with any other market transactions, could adversely affect the
market price of our common stock.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon completion of this offering, based on our
shares outstanding as of ______, 2022, we will have ______ shares of common stock outstanding based on the issuance and sale of ______
units in this offering, assuming no sale of any pre-funded units. Of these shares, ______ are subject to a contractual lock-up with the
underwriter for this offering for a period of ____ days following this offering. These shares can be sold, subject to any applicable volume
limitations under federal securities laws, after the earlier of the expiration of, or release from, the ____-day lock-up period. The balance
of our outstanding shares of common stock, including any shares of common stock included in units or issuable upon the exercise of the
warrants and pre-funded warrants purchased in this offering other than shares acquired by our current stockholders who are also subject
to the contractual lock-up, may be resold into the public market immediately without restriction, unless owned or purchased by our affiliates.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022, there were an aggregate
of 5,813,804 shares subject to outstanding warrants, many of which shares we have registered under the Securities Act of 1933, as amended
(the &#8220;Securities Act&#8221;). These shares can be freely sold in the public market upon issuance, subject to volume limitations
applicable to affiliates to the extent applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2022, there were 1,071,205 shares
subject to outstanding options and restricted stock units that are issuable under our equity incentive plan, all of which shares we have
registered under the Securities Act on a registration statement on Form S-8. These shares can be freely sold in the public market upon
issuance, subject to volume limitations applicable to affiliates, to the extent applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We do not intend to pay dividends in the
foreseeable future.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have never paid cash dividends on our common
stock. We currently intend to retain our future earnings, if any, to finance the operation and growth of our business and currently do
not plan to pay any cash dividends in the foreseeable future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>There is no public market for the units,
pre-funded units, or warrants being offered in this offering.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There is no established public trading market
for the units, pre-funded units, or warrants being offered in this offering, and we do not expect a market to develop. In addition, we
do not intend to apply to list the units, pre-funded units, or warrants on any securities exchange or nationally recognized trading system.
Without an active market, the liquidity of the units, pre-funded units, or warrants will be limited.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Holders of our warrants and pre-funded
warrants will have no rights as a common stockholder until they acquire our common stock.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Until you acquire shares of our common stock
upon exercise of your warrants or pre-funded warrants, you will have no rights with respect to shares of our common stock issuable upon
exercise of your warrants or pre-funded warrants. Upon exercise of your warrants or pre-funded warrants, you will be entitled to exercise
the rights of a common stockholder only as to matters for which the record date occurs after the exercise date.</p><div>

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



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


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

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

</div><!-- Field: Page; Sequence: 28; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>If we do not maintain a current and effective
prospectus relating to the common stock issuable upon exercise of the warrants or pre-funded warrants, public holders will only be able
to exercise such warrants or pre-funded warrants on a&#160;</i></b>&#8220;<b><i>cashless basis.</i></b>&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we do not maintain a current and effective
prospectus relating to the shares of common stock issuable upon exercise of the warrants or the pre-funded warrants at the time that
holders wish to exercise such warrants or pre-funded warrants, they will only be able to exercise them on a &#8220;cashless basis,&#8221;
and under no circumstances would we be required to make any cash payments or net cash settle such warrants to the holders. As a result,
the number of shares of common stock that holders will receive upon exercise of the warrants or pre-funded warrants will be fewer than
it would have been had such holders exercised their warrants or pre-funded warrants for cash. Under the terms of the warrants and pre-funded
warrants, we have agreed to use our best efforts to maintain a current and effective prospectus relating to the shares of common stock
issuable upon exercise of such warrants and pre-funded warrants until the expiration of such warrants and pre-funded warrants. However,
we cannot assure you that we will be able to do so. If we are unable to do so, the potential &#8220;upside&#8221; of the holder&#8217;s
investment in our company may be reduced.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The pre-funded warrants are speculative
in nature.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The pre-funded warrants offered hereby do not
confer any rights of common stock ownership on their holders, such as voting rights or the right to receive dividends, but rather merely
represent the right to acquire shares of common stock at a fixed price. Specifically, commencing on the date of issuance, holders of
the pre-funded warrants may acquire the common stock issuable upon exercise of such warrants at an exercise price of $0.0001 per share
of common stock. Moreover, following this offering, the market value of the pre-funded warrants is uncertain and there can be no assurance
that the market value of the pre-funded warrants will equal or exceed their public offering price. There can be no assurance that the
market price of the common stock will ever equal or exceed the exercise price of the pre-funded warrants, and consequently, whether it
will ever be profitable for holders of the pre-funded warrants to exercise the pre-funded warrants.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The warrants may not have any value.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each warrant has an exercise price per share of
$______, are immediately exercisable after their issuance and will expire ______ years from the initial issuance date. In the event our
common stock price does not exceed the exercise price of the warrants during the period when the warrants are exercisable, the warrants
may not have any value.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Provisions of the warrants and pre-funded
warrants offered by this prospectus could discourage an acquisition of us by a third party.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain provisions of the warrants and pre-funded
warrants offered by this prospectus could make it more difficult or expensive for a third party to acquire us. The warrants and pre-funded
warrants prohibit us from engaging in certain transactions constituting &#8220;fundamental transactions&#8221; unless, among other things,
the surviving entity assumes our obligations under the warrants and pre-funded warrants. Further, the warrants and pre-funded warrants
provide that, in the event of certain transactions constituting &#8220;fundamental transactions,&#8221; with some exception, holders
of such warrants and pre-funded warrants will have the right, at their option, to require us to repurchase such warrants and pre-funded
warrants at a price described therein. These and other provisions of the warrants and pre-funded warrants offered by this prospectus
could prevent or deter a third party from acquiring us even where the acquisition could be beneficial to you.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Proposed legislation in the U.S. Congress,
including changes in U.S. tax law, may adversely impact the Company and the value of the units, pre-funded units, shares of common stock,
pre-funded warrants, and warrants.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Changes to U.S. tax laws (which changes may have
retroactive application) could adversely affect the Company or holders of the units, pre-funded units, shares of common stock, pre-funded
warrants or warrants. In recent years, many changes to U.S. federal income tax laws have been proposed and made, and additional changes
to U.S. federal income tax laws are likely to continue to occur in the future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The U.S. Congress is currently considering numerous
items of legislation which may be enacted prospectively or with retroactive effect, which legislation could adversely impact the Company&#8217;s
financial performance and the value of the units, pre-funded units, shares of common stock, pre-funded warrants and warrants. In particular,
new proposed legislation known as the &#8220;Build Back Better Act&#8221; is under consideration within both houses of U.S. Congress.
The proposed legislation includes, without limitation, new corporate minimum income taxes. If enacted, most of the proposals would be
effective for 2022 or later years. The proposed legislation remains subject to change, and its impact on the Company and investors who
purchase the units, pre-funded units, shares of common stock, pre-funded warrants or warrants is uncertain.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 29; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>General Risk Factors</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We may not be able to timely and effectively
implement controls and procedures required by Section 404 of the Sarbanes-Oxley Act of 2002.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The standards required for a public company under
Section 404 of the Sarbanes-Oxley Act of 2002 are significantly more stringent than those required of MJF as a privately held company.
Management may not be able to effectively and timely implement controls and procedures that adequately respond to the regulatory compliance
and reporting requirements that are applicable to us. If we are not able to implement the additional requirements of Section 404 in a
timely manner or with adequate compliance, we may not be able to conclude that our internal controls over financial reporting are effective,
which may subject us to adverse regulatory consequences and could harm investor confidence and the market price of our common stock.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Failure to remediate material weaknesses
in internal controls over financial reporting could result in material misstatements in our financial statements.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our management has identified material weaknesses
in our internal controls over financial reporting and has concluded that due to such material weaknesses, our internal controls over
financial reporting (including disclosure controls and procedures) were not effective as of December 31, 2021. If not remediated, our
failure to establish and maintain effective disclosure controls and procedures over financial reporting could result in material misstatements
in our financial statements and a failure to meet our reporting and financial obligations, each of which could have a material adverse
effect on our financial condition and the trading price of our common stock.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The requirements of being a public company
may strain our resources and divert management&#8217;s attention. </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a public company, we are subject to the reporting
requirements of the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Act, the listing requirements of NASDAQ, and other applicable
securities rules and regulations. Compliance with these rules and regulations increase our legal and financial compliance costs, make
some activities more difficult, time-consuming or costly and increase demand on our systems and resources, particularly after we are
no longer an &#8220;emerging growth company.&#8221; The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure
controls and procedures and internal control over financial reporting. In order to maintain and, if required, improve our disclosure
controls and procedures and internal control over financial reporting to meet this standard, significant resources and management oversight
may be required. As a result, management&#8217;s attention may be diverted from other business concerns, which could adversely affect
our business and operating results. We may need to hire more employees in the future or engage outside consultants to comply with these
requirements, which will increase our costs and expenses.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, changing laws, regulations, and
standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing legal and
financial compliance costs and making some activities more time-consuming. These laws, regulations, and standards are subject to varying
interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time
as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters
and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to comply with
evolving laws, regulations, and standards, and this investment may result in increased general and administrative expenses and a diversion
of management&#8217;s time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new
laws, regulations, and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to
their application and practice, regulatory authorities may initiate legal proceedings against us and our business may be adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 30; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We are an &#8220;emerging growth company&#8221;
and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our shares of common
stock less attractive to investors.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are an &#8220;emerging growth company,&#8221;
as defined in the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to
other public companies that are not &#8220;emerging growth companies&#8221; including, but not limited to, not being required to comply
with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive
compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote
on executive compensation and shareholder approval of any golden parachute payments not previously approved. Additionally, as an emerging
growth company, we have elected to delay the adoption of new or revised accounting standards that have different effective dates for
public and private companies until those standards apply to private companies. As such, our financial statements may not be comparable
to companies that comply with public company effective dates. It cannot be predicted if investors will find our common stock less attractive
because we may rely on these exemptions. 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 our share price may be more volatile.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our ability to utilize our net operating
loss carryforwards and certain other tax attributes may be limited. </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under Section 382 and related provisions of the
Internal Revenue Code of 1986, as amended (the &#8220;Internal Revenue Code&#8221;), if a corporation undergoes an &#8220;ownership change&#8221;
(generally defined as a greater than 50% change (by value) in its equity ownership over a three year period), the corporation&#8217;s
ability to use its pre-change net operating loss carryforwards and other pre-change tax attributes to offset its post-change income may
be limited. We may, in the future, as a result of subsequent shifts in our stock ownership, experience, an &#8220;ownership change.&#8221;
Thus, our ability to utilize carryforwards of our net operating losses and other tax attributes to reduce future tax liabilities may
be substantially restricted. At this time, we have not completed a study to assess whether an ownership change under Section 382 of the
Internal Revenue Code has occurred at any time in the past or may occur in the foreseeable future, due to the costs and complexities
associated with completing such a study. Therefore, we may not be able to take full advantage of these carryforwards for federal or state
tax purposes.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our operations could be adversely affected
by events outside of our control, such as natural disasters, wars, or health epidemics.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may be impacted by business interruptions
resulting from geopolitical actions, including war and terrorism, or natural disasters including earthquakes, typhoons, floods, and fires.
An outbreak of any of the foregoing or fear of any of the foregoing could adversely impact us by disrupting the operations of our clients,
which could result in delayed payments, non-renewal of contracts, and other adverse effects on the market for our products or by causing
product development and implementation delays and disruptions (including as a result of government regulation and prevention measures).
We may incur expenses or delays relating to such events outside of our control, which could have a material adverse impact on our business,
operating results, and financial condition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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



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

</div><div><a id="a_007"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">FORWARD-LOOKING STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This prospectus and the exhibits attached hereto
contain &#8220;forward-looking statements&#8221; within the meaning of the Private Securities Litigation Reform Act of 1995, including
statements regarding future events or our future results of operations, financial condition, business, strategies, financial needs, and
the plans and objectives of management. In some cases forward-looking statements can be identified because they contain words such as
&#8220;anticipate,&#8221; &#8220;believe,&#8221; &#8220;continue,&#8221; &#8220;could,&#8221; &#8220;estimate,&#8221; &#8220;expect,&#8221;
&#8220;intend,&#8221; &#8220;may,&#8221; &#8220;might,&#8221; &#8220;likely,&#8221; &#8220;plan,&#8221; &#8220;potential,&#8221; &#8220;predict,&#8221;
&#8220;project,&#8221; &#8220;seek,&#8221; &#8220;should,&#8221; &#8220;target,&#8221; &#8220;will,&#8221; &#8220;would,&#8221; or similar
expressions and the negatives of those terms. Forward-looking statements are based on information available to our management as of the
date of this prospectus and our management&#8217;s good faith belief as of such date with respect to future events and are subject to
a number of risks, uncertainties, and assumptions that could cause actual performance or results to differ materially from those expressed
in or suggested by the forward-looking statements, in particular the substantial risks and uncertainties related to the ongoing COVID-19
pandemic. Important factors that could cause such differences include, but are not limited to:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability
    to continue as a going-concern;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to sustain
    our revenue growth rate, to achieve or maintain profitability, and to effectively manage our anticipated growth;</span></td></tr>
</table><div>

</div><p style="margin: 0">&#160;</p><div>

</div><p style="margin: 0"></p><div>

</div><!-- Field: Page; Sequence: 31; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="margin: 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="text-align: justify; width: 0.25in">&#160;</td>
    <td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our dependence on the commercial
    success of our clients, the continued growth of the cannabis industry and the regulatory environment in which the cannabis industry
    operates;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to attract
    new clients on a cost-effective basis and the extent to which existing clients renew and upgrade their subscriptions;</span></td></tr>

<tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the timing of our introduction
    of new solutions or updates to existing solutions;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to successfully
    diversify our solutions by developing or introducing new solutions or acquiring and integrating additional businesses, products,
    services, or content;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to respond
    to changes within the cannabis industry;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the effects of adverse
    changes in, or the enforcement of, federal laws regarding our clients&#8217; cannabis operations or our receipt of proceeds from
    such operations;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to manage unique
    risks and uncertainties related to government contracts;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to manage and
    protect our information technology systems;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="padding-left: 0.1pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to maintain
    and expand our strategic relationships with third parties;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="padding-left: 0.1pt; text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to deliver
    our solutions to clients without disruption or delay;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our exposure to liability
    from errors, delays, fraud, or system failures, which may not be covered by insurance;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to expand our
    international reach;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to retain or
    recruit officers, key employees, and directors;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to raise additional
    capital or obtain financing in the future;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to successfully
    integrate acquired businesses with Akerna&#8217;s business within anticipated timelines and at their expected costs;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to complete
    planned acquisitions on time or at all due to failure to obtain stockholder approval or governmental or regulatory clearances, or
    the failure to satisfy other conditions to completion, or the failure of completion for any other reason;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our response to adverse
    developments in the general market, business, economic, labor, regulatory, and political conditions, including worldwide demand for
    cannabis and the spot price and long-term contract price of cannabis;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our response to competitive
    risks;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to protect
    our intellectual property;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the market reaction to
    negative publicity regarding cannabis;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to manage the
    requirements of being a public company;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to service
    our convertible debt;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our accounting treatment
    of certain of our private warrants;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to effectively
    manage any disruptions to our business and/or any negative impact to our financial performance caused by the economic and social
    effects of the COVID-19 pandemic and measures taken in response; and</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">other factors discussed
    in other sections of this prospectus, including the sections titled &#8220;<i>Management&#8217;s Discussion and Analysis of Financial
    Condition and Results of Operations</i>&#8221; and &#8220;<i>Risk Factors</i>.&#8221;&#160;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated
or expected. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.
We disclaim any obligation to revise subsequently any forward-looking statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or unanticipated events. We qualify all the forward-looking statements contained
in this prospectus by the foregoing cautionary statements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="text-transform: uppercase"><b>&#160;</b></span></p><div>

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

</div><!-- Field: Page; Sequence: 32; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="text-transform: uppercase"><b>&#160;</b></span></p><div>

</div><div><a id="a_008"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">RECENT DEVELOPMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">On May 27, 2022, the
Company announced its implementation of certain expense reduction measures, approved by the Company&#8217;s board of directors on May
24, 2022, including a reduction of the Company&#8217;s workforce by 59 full-time employees, or approximately 33% of the Company. The
corporate restructuring follows the Company&#8217;s recent decision to address liquidity concerns in part by focusing its initiatives
on its enterprise business and new market expansion of the SMB business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">As a result of the corporate
restructuring, the company anticipates reporting $690,000 in total costs in its second quarter of 2022 to implement the reduction in
force, including the following cost elements: $630,000 in severance and associated payroll taxes; $40,000 in legal costs; and $20,000
in employee insurance benefits. Of the total cost, $440,000 in salaries, payroll taxes and benefits costs would have been reported in
its second quarter if the reduction in force had not been implemented. The corporate restructuring is expected to be substantially completed
by the end of the second quarter of 2022. The estimates of costs that the Company expects to incur and the timing thereof are subject
to a number of assumptions and actual results may differ. The Company may also incur other charges or cash expenditures not currently
contemplated in connection with the corporate restructuring. This estimate may change due to future changes in the Company&#8217;s stock
price. If the Company subsequently determines that it will incur additional material restructuring costs or charges or there are material
differences from the ranges provided, the Company will file an amendment to this Current Report on Form 8-K (this &#8220;Current Report&#8221;)
to disclose any such material costs, charges or differences.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">On May 27, 2022, in
relation the Company&#8217;s corporate restructuring, the Company&#8217;s executive leadership team agreed to 25% reduction in salary.
As a result, the salaries of Jessica Billingsley, Chief Executive Officer, David McCullough, Chief Technology Officer, and Raymond Thompson,
Special Advisor to the Chief Executive Officer, have been reduced by 25%.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">On May 27, 2022, the
Company filed an amendment to its Amended and Restated Certificate of Incorporation to amend Article 4 thereof to increase the number
of authorized shares of common stock, par value $0.001, from 75,000,000 shares to 150,000,000 shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">On May 25, 2022, the
stockholders of the Company approved an amendment to the Company&#8217;s Amended and Restated 2019 Long Term Incentive Plan (the &#8220;Incentive
Plan&#8221;) to increase the number of shares available under the Incentive Plan by 2,934,962 shares of common stock of the Company.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">On May 24, 2022, the
Company received a letter from the Listing Qualifications Staff of The Nasdaq Stock Market LLC (&#8220;Nasdaq&#8221;) indicating that,
based upon the closing bid price of the Company&#8217;s common stock, par value $0.0001 per share (&#8220;Common Stock&#8221;), for the
last 30 consecutive business days, the Company is not currently in compliance with the requirement to maintain a minimum bid price of
$1.00 per share for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2) (the &#8220;Notice&#8221;).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">The Notice has no immediate
effect on the continued listing status of the Company&#8217;s Common Stock on The Nasdaq Capital Market, and, therefore, the Company&#8217;s
listing remains fully effective.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "></p><div>

</div><!-- Field: Page; Sequence: 33; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">The Company is provided
a compliance period of 180 calendar days from the date of the Notice, or until November 21, 2022, to regain compliance with the minimum
closing bid requirement, pursuant to Nasdaq Listing Rule 5810(c)(3)(A). If at any time before November 21, 2022, the closing bid price
of the Company&#8217;s Common Stock closes at or above $1.00 per share for a minimum of 10 consecutive business days, subject to Nasdaq&#8217;s
discretion to extend this period pursuant to Nasdaq Listing Rule 5810(c)(3)(G) to 20 consecutive business days, Nasdaq will provide written
notification that the Company has achieved compliance with the minimum bid price requirement, and the matter would be resolved. If the
Company does not regain compliance during the compliance period ending November 21, 2022, then Nasdaq may grant the Company a second
180 calendar day period to regain compliance, provided the Company meets the continued listing requirement for market value of publicly-held
shares and all other initial listing standards for The Nasdaq Capital Market, other than the minimum closing bid price requirement, and
notifies Nasdaq of its intent to cure the deficiency.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">On May 23, 2022, we
entered into an amending agreement (the &#8220;Amendment&#8221;) to the Amended and Restated Stock Purchase Agreement, dated as of October
1, 2021 (the &#8220;Original Agreement&#8221;), by and among the Company, The Nav People, Inc., a Delaware corporation d/b/a &#8220;365
Cannabis&#8221;) (the &#8220;365 Cannabis&#8221;) and Matthew Dredge, Ian Humphries, Jeff Kiehn, David Walker and Quartermain Investment
Holdings Ltd. (collectively, the &#8220;Sellers&#8221;).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Pursuant to the Amendment,
Section 2.04(a) of the Original Agreement was amended to provide that the Sellers could elect to have the potential earn-out payment
described therein paid in cash or in shares of the Company or in any combination thereof. The Original Agreement previously had provided
that the Company could elect whether to pay the earn-out payment in cash or in shares of the Company. Under the Amendment, if a Seller
elects to have any portion of the earn-out payment paid in cash such amount payable will be reduced by 25%. Further, Section 2.04(b)
of the Original Agreement was amendment to reflect the administrative handling of the earn-out payment to the Sellers in cash or shares
of the Company.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Pursuant to the Amendment,
Section 2.06 of the Original Agreement was amended to require that $100,000 the Second Post-Closing Payment (as defined in the Original
Agreement) will be made at the end of June 2022 on the same day on which the Buyer&#8217;s end-of-month payroll is run and on each of
the next four months thereafter, in each such month on the same day on which the Buyer&#8217;s end-of-month payroll is run.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 16, 2022, the Company and Ray Thompson,
the Company&#8217;s then-President and Chief Operating Officer, agreed to a transition, effective immediately, by which Mr. Thompson
moved from his role as President and Chief Operating Officer to Special Advisor to the Chief Executive Officer. In this new role, Mr.
Thompson will continue to assist the Chief Executive Officer with certain of the day-to-day operations of the Company and advise the
Company on various aspects of corporate strategy. In relation to the Company&#8217;s enterprise business, Jeff Kiehn, the Company&#8217;s
current President of Akerna Enterprise will report to the Chief Executive Officer. Additionally, the Company intends for the functions
of strategic communications, compliance, technology, and human resources to report directly to the Company&#8217;s Chief Executive Officer.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">On May 11, 2022, the
Company and and John Fowle the Company&#8217;s Chief Financial Officer and Secretary agreed to a mutual separation effective as of May
17, 2022. Mr. Fowle is leaving to pursue other opportunities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 11, 2022, the Board of Directors of the
Company appointed Larry Dean Ditto, Jr. as Interim Chief Financial Officer (&#8220;Interim CFO&#8221;) of the Company effective May 17,
2022.</p><div>

</div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 34; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="a_009"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">USE OF PROCEEDS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We estimate that our net proceeds from this offering
will be approximately $______ million (or $______ if the underwriter exercises the over-allotment option in full), assuming a public offering
price of $______ per unit, which represents approximately a ______% discount to $______, the last reported sale price for the shares of
our common stock on ______, 2022, as reported by the Nasdaq Capital Market, after deducting estimated underwriting discounts and commissions
and estimated offering expenses payable by us and assuming none of the warrants issued in this offering are exercised.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">We intend to use the
net proceeds from this offering for general corporate purposes, including servicing our ongoing debt obligations under our convertible
notes, working capital, marketing, product development and capital expenditures. As of the date of this prospectus, we cannot predict
with certainty all of the particular uses for the net proceeds to be received upon the completion of this offering or the amounts that
we will actually spend on the uses set forth above. The amounts and timing of our actual use of proceeds will vary depending on numerous
factors, including the factors described under the heading &#8220;<i>Risk Factors</i>&#8221; and elsewhere in this prospectus. As a result,
management will retain broad discretion over the allocation of the net proceeds from this offering, and investors will be relying on
the judgment of our management regarding the application of the net proceeds.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_010"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">DILUTION</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If you invest in the securities being offered
by this prospectus, your interest will be diluted immediately to the extent of the difference between the public offering price per unit
and the as adjusted, net tangible book value per share of our common stock immediately after this offering.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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 March 31, 2022 was approximately $17.9 million, or approximately $(0.52) per share based on approximately 34.2 million shares
of our common stock issued and outstanding. Net tangible book value per share represents the amount of our total tangible assets, excluding
goodwill and intangible assets, less total liabilities, divided by the total number of shares of our common stock outstanding.</p><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">After giving further effect to the assumed sale
of __________ shares of our common stock and warrants to purchase __________ shares of our common stock for __________ per share at the
public offering price of $ __________ per share and related warrant, the closing sale price per share of our common stock on the Nasdaq
Capital Market on ______, 2022, assuming no sale of pre-funded warrants in this offering and no exercise of the warrants being offered
in this offering and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us,
our as adjusted pro forma net tangible book value per share as of March 31, 2022, would have been approximately $__________ million, or
approximately $__________ per share. This represents an immediate increase in net tangible book value per share of $__________ to existing
stockholders and an immediate dilution of approximately $__________ per share to new investors purchasing shares of our common stock in
this offering.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dilution per share to new investors is determined
by subtracting the pro forma, as adjusted, net tangible book value per share after this offering from the public offering price per share
and related warrant paid by new investors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table illustrates this dilution
on a per share basis:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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: #CCEEFF">
    <td style="width: 91%"><span style="font-size: 10pt">Assumed public offering price per unit</span></td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 7%; text-align: right"><span style="font-size: 10pt">[&#9679;]</span></td>
    <td style="width: 1%">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-size: 10pt">Historical net tangible book value per share as of March 31, 2022</span></td>
    <td><span style="font-size: 10pt">$</span></td>
    <td style="text-align: right"><span style="font-size: 10pt">[&#9679;]</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><span style="font-size: 10pt">Pro forma net tangible book value per share (deficit) as of March 31, 2022</span></td>
    <td><span style="font-size: 10pt">$</span></td>
    <td style="text-align: right"><span style="font-size: 10pt">[&#9679;]</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-size: 10pt">Increase in pro forma net tangible book value per share attributable to this offering</span></td>
    <td><span style="font-size: 10pt">$</span></td>
    <td style="text-align: right"><span style="font-size: 10pt">[&#9679;]</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><span style="font-size: 10pt">As adjusted pro forma net tangible book value per share after giving effect to this offering</span></td>
    <td><span style="font-size: 10pt">$</span></td>
    <td style="text-align: right"><span style="font-size: 10pt">[&#9679;]</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-size: 10pt">Dilution in net tangible book value per share to new investors</span></td>
    <td><span style="font-size: 10pt">$</span></td>
    <td style="text-align: right"><span style="font-size: 10pt">[&#9679;]</span></td>
    <td>&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The number of shares of common stock used in the
table above is based on 34,175,088 shares of common stock outstanding as of March 31, 2022 and ______ shares on an as adjusted basis after
giving effect to the issuance of ______ shares of common stock offered by this prospectus. Except as otherwise indicated herein, all information
in this prospectus assumes (i) no sale of pre-funded warrants, which, if sold, would reduce the number of shares of common stock that
we are offering on a one-for-one basis, and (ii) no exercise of the underwriter&#8217;s over-allotment option, (iii) no exercise of the
underwriter&#8217;s warrants to be issued in connection with this offering.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><!-- Field: Page; Sequence: 35; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The number of shares of common stock outstanding
excludes:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">634,519 shares of common
    stock issuable upon vesting of outstanding restricted stock units and restricted stock awards;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5,813,804 shares of common
stock issuable upon the exercise of warrants outstanding at a weighted average exercise price of $11.50 per share;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,370,370 shares of common
stock issuable upon conversion of our outstanding convertible notes;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">306,852 shares of common
    stock issuable upon conversion of exchangeable shares; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">461,776 shares of common
    stock reserved for future issuance under our equity incentive plan.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the extent that outstanding options or warrants
are exercised, you will experience further dilution. In addition, we may choose to raise additional capital due to market conditions
or strategic considerations even if we believe we have sufficient funds for our current or future operating plans. To the extent that
additional capital is raised through the sale of equity or convertible debt securities, the issuance of these securities could result
in further dilution to our stockholders.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_011"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">DIVIDEND POLICY</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not intend to pay dividends for the foreseeable
future. In addition, our ability to pay dividends is restricted by agreements governing Akerna&#8217;s and its subsidiaries&#8217; debt,
including the Company&#8217;s senior secured convertible notes. See &#8220;<i>Risk Factors</i>&#8221; above.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><div><a id="a_012"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">DESCRIPTION OF COMPANY CAPITAL STOCK</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of June 3, 2022, our authorized share capital
consists of 150,000,000 shares of Common Stock, $0.0001 par value per share, of which 36,574,158 shares of common stock are issued and
outstanding, 5,000,000 shares of preferred stock, $0.0001 par value per share, of which one share of special voting preferred stock is
issued and outstanding with a voting equivalent of 291,192 shares of common stock. We are a Delaware corporation and our affairs are governed
by our Amended and Restated Certificate of Incorporation and Amended and Restated By-laws. The following are summaries of material provisions
of our Amended and Restated Certificate of Incorporation and Amended and Restated By-laws insofar as they relate to the material terms
of our common stock. Complete copies of our Amended and Restated Certificate of Incorporation and Amended and Restated By-laws are filed
as exhibits to our public filings.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Common Stock</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All outstanding shares of common stock are of
the same class and have equal rights and attributes. The holders of common stock are entitled to one vote per share on all matters submitted
to a vote of our stockholders. Subject to the prior rights of all classes or series of stock at the time outstanding having prior rights
as to dividends or other distributions, all stockholders are entitled to share equally in dividends, if any, as may be declared from
time to time by the Board of Directors out of funds legally available. Subject to the prior rights of creditors of Akerna and the holders
of all classes or series of stock at the time outstanding having prior rights as to distributions upon liquidation, dissolution or winding
up of Akerna, in the event of liquidation, the holders of common stock are entitled to share ratably in all assets remaining after payment
of all liabilities. The stockholders do not have cumulative, preemptive rights, or subscription rights.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Preferred Stock</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The board of directors is authorized, subject
to any limitations prescribed by law, without further vote or action by the stockholders, to issue from time to time shares of Preferred
Stock in one or more series. Each such series of Preferred Stock shall have such number of shares, designations, preferences, voting
powers, qualifications, and special or relative rights or privileges as shall be determined by the board of directors, which may include,
among others, dividend rights, voting rights, liquidation preferences, conversion rights and preemptive rights. Issuance of Preferred
Stock by our board of directors may result in such shares having dividend and/or liquidation preferences senior to the rights of the
holders of our common stock and could dilute the voting rights of the holders of our common stock.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 36; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the issuance of shares of each series
of Preferred Stock, the board of directors is required by the Delaware General Corporation Law, and our certificate of incorporation
to adopt resolutions and file a certificate of designation with the Secretary of State of the State of Delaware. The certificate of designation
fixes for each class or series the designations, powers, preferences, rights, qualifications, limitations and restrictions, including,
but not limited to, some or all of the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="width: 0.25in; text-align: justify">&#160;</td>
    <td style="vertical-align: top; width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
    number of shares constituting that series and the distinctive designation of that series, which number may be increased or decreased
    (but not below the number of shares then outstanding) from time to time by action of the board of directors;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
    dividend rate and the manner and frequency of payment of dividends on the shares of that series, whether dividends will be cumulative,
    and, if so, from which date;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="width: 0.25in; text-align: justify">&#160;</td>
    <td style="vertical-align: top; width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether
    that series will have voting rights, in addition to any voting rights provided by law, and, if so, the terms of such voting rights;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether
    that series will have conversion privileges, and, if so, the terms and conditions of such conversion, including provision for adjustment
    of the conversion rate in such events as the board of directors may determine;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether
    or not the shares of that series will be redeemable, and, if so, the terms and conditions of such redemption;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether
    that series will have a sinking fund for the redemption or purchase of shares of that series, and, if so, the terms and amount of
    such sinking fund;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether
    or not the shares of the series will have priority over or be on a parity with or be junior to the shares of any other series or
    class in any respect;</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
    rights of the shares of that series in the event of voluntary or involuntary liquidation, dissolution or winding up of the corporation,
    and the relative rights or priority, if any, of payment of shares of that series; and</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">any
    other relative rights, preferences and limitations of that series.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Once designated by our board of directors, each
series of Preferred Stock may have specific financial and other terms that will be described in a prospectus. The description of the
Preferred Stock that is set forth in any prospectus is not complete without reference to the documents that govern the Preferred Stock.
These include our certificate of incorporation and any certificates of designation that our board of directors may adopt.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All shares of Preferred Stock offered hereby
will, when issued, be fully paid and nonassessable, including shares of Preferred Stock issued upon the exercise of Preferred Stock Warrants
or subscription rights, if any.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Although our board of directors has no intention
at the present time of doing so, it could authorize the issuance of a series of Preferred Stock that could, depending on the terms of
such series, impede the completion of a merger, tender offer or other takeover attempt.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Special Voting Share</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The special voting share has a par value of $0.0001
per share. The special voting share entitles the holder thereof to an aggregate number of votes equal to the number of the Exchangeable
Shares issued and outstanding from time to time and that are not owned by us or our subsidiaries. Except as otherwise provided herein
or by law, the holder of the special voting share and the holders of our common stock will vote together as a single class on all matters
submitted to a vote of Akerna&#8217;s shareholders. With respect to all meetings of shareholders of Akerna at which holders of Akerna
shares are entitled to vote, each registered holder of Exchangeable Shares shall be entitled to instruct the trustee holding the special
voting share to cast and exercise, in the manner instructed, that number of votes equal to the &#8220;Equivalent Vote Amount&#8221; for
each Exchangeable Share owned of record by such holder of Exchangeable Shares at the close of business on the record date established
by Akerna or by applicable law for such meeting, in respect of each matter, question, proposal or proposition to be voted on at such
meeting. At such time as the special voting share has no votes attached to it, the special voting share shall be automatically cancelled.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 37; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->32<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Exchangeable Shares</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Exchangeable Shares of Exchangeco are intended
to be substantially economically equivalent to shares of our common stock. The rights, privileges, restrictions and conditions attaching
to the Exchangeable Shares of Exchangeco include the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="width: 0.25in; text-align: justify">&#160;</td>
    <td style="vertical-align: top; width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">any
    holder of Exchangeable Shares of Exchangeco is entitled to require Exchangeco to redeem any or all of the Exchangeable Shares registered
    in his/her name in exchange for one share of our common stock for each Exchangeable Share presented and surrendered;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="width: 0.25in; text-align: justify">&#160;</td>
    <td style="vertical-align: top; width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">in
    the event Akerna declares a dividend on its common stock, the holders of Exchangeable Shares of Exchangeco are entitled to receive
    from Exchangeco the same dividend, or an economically equivalent dividend, on their Exchangeable Shares;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="width: 0.25in; text-align: justify">&#160;</td>
    <td style="vertical-align: top; width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
    holders of the Exchangeable Shares of Exchangeco are not entitled to receive notice of or to attend any meeting of the shareholders
    of Exchangeco or to vote at any such meeting, except as required by law or as specifically provided in the Exchangeable Share conditions;
    and</span></td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top">&#160;</td></tr>
  <tr>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
    holders of Exchangeable Shares of Exchangeco are entitled to instruct the Trustee to vote the special voting stock as described above.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Of the 3,294,574 Exchangeable Shares that were issued to former Ample
shareholders in connection with the consummation of the Arrangement, an aggregate of 658,915 Exchangeable Shares were issued as &#8220;Closing
Consideration&#8221; and an aggregate of 2,635,659 Exchangeable Shares, constituting part of the &#8220;Escrowed Consideration&#8221;
were issued into escrow pursuant to an escrow agreement (the &#8220;Escrow Agreement&#8221;), entered into on July 7, 2020 by and among
the Company, Exchangeco, John Prentice, as Shareholder Representative, and Odyssey Trust Company. Under the Escrow Agreement, subject
to unresolved claims by the Company under the Arrangement Agreement in respect of fraud, the Escrowed Consideration shall be released
to former Ample shareholders upon the six-, nine-, and twelve-month anniversaries of the Closing Date in accordance with the following
schedule -- 988,372 shares on the six-month anniversary, 823,643 shares on the nine-month anniversary, and 823,644 shares on the twelve-month
anniversary. As of the date hereof, 3,003,382 shares of common stock of Akerna have been issued on conversion of Exchangeable Shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Registration Rights</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have granted registration rights under the
Securities Act to certain holders of our common stock in relation to our acquisitions of Ample and 365 Cannabis and in relation to our
issuance of the Senior Convertible Notes. In relation to Ample, we agreed to file and maintain, until no Exchangeable Shares remain outstanding,
a registration statement regarding the exchange of the Exchangeable Shares into shares of our common stock pursuant to their terms. In
relation thereto, we filed a registration statement on Form S-1 on July 9, 2020 (333-239783) which was brought effective on August 14,
2020, as amended on January 8, 2021 and as amended on Form S-3 on May 24, 2021. In relation to the acquisition transaction of 365 Cannabis,
we have agreed to register the shares of common stock issuable upon initial closing of the transaction and upon settlement of the earn-out
provision, if any. In relation to our issuance of the Senior Convertible Notes, we have agreed to file the registration statement of
which this prospectus forms a part. We are also obligated to maintain such registration statement until the earlier of (i) the date as
of which all of the holders may sell all of the conversion shares required to be covered by such registration statement without restriction
pursuant to Rule 144 (including, without limitation, volume restrictions) and without the need for current public information required
by Rule 144(c)(1) (or Rule 144(i)(2), if applicable), (ii) the date on which the holders shall have sold all of the registrable securities
covered by such registration statement or (iii) the later of (x) ninety (90) calendar days after the date no Senior Convertible Notes
remain outstanding and (y) the first anniversary of the maturity date of the Senior Convertible Notes. We may also be required in the
future to file amendments to these registration statements to maintain effectiveness.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Election of Directors</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Class I Directors hold office until the 2025
annual meeting of stockholders and are eligible for reelection at such meeting. Our Class II Directors held office until the 2023 annual
meeting of stockholders and are eligible for reelection at such meeting. Our Class III Directors hold office until the 2024 annual meeting
of stockholders and are eligible for reelection at such meeting. Directors are elected by a plurality of the votes cast at the annual
meeting by the holders of common stock present in person or represented by proxy and entitled to vote at such meeting. There is no cumulative
voting for directors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 38; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->33<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Anti-Takeover Provisions</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Our Amended and Restated
Certificate of Incorporation contains provisions that may discourage unsolicited takeover proposals that stockholders may consider to
be in their best interests. We are also subject to anti-takeover provisions under Delaware law, which could delay or prevent a change
of control. Together these provisions may make more difficult the removal of management and may discourage transactions that otherwise
could involve payment of a premium over prevailing market prices for our securities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt -0.5in; text-align: justify; text-indent: 0.5in; ">These
provisions:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">create a staggered Board
    of Directors making it more difficult for stockholders to remove a majority of the Board of Directors and take control;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.25in; ">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">grant the Board of Directors
    the ability to designate the terms of and issue new series of preferred shares, which can be created and issued by the Board of Directors
    without prior stockholder approval, with rights senior to those of the common stock;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.25in; ">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">impose limitations on our
    stockholders&#8217; ability to call special stockholder meetings;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.25in; ">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">make it more difficult
    the removal of management and may discourage transactions that otherwise could involve payment of a premium over prevailing market
    prices for our securities.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_013"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">DESCRIPTION OF THE BUSINESS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Business Overview</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Akerna is a leading provider of enterprise software
solutions within the cannabis industry. Cannabis businesses face significant complexity due to the stringent regulations and restrictions
that shift based on regional, state, and national governing bodies. As the first to market more than ten years ago, Akerna&#8217;s family
of software platforms help to enable regulatory compliance and inventory management across the entire supply chain. When the legal cannabis
market started to grow, we identified a need for organic material tracking and regulatory compliance software as a service (SaaS) solution
customized specifically for the unique needs of the industry. By providing an integrated ecosystem of applications and services that
help our clients enable compliance, regulation, consumer safety and taxation, Akerna is building the technology backbone of the cannabis
industry. While designed specifically for the unique needs of the cannabis market, our solutions are adaptable for other industries requiring
government regulatory oversight, or where the tracking of organic materials from seed or plant to end products is desired.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Executing upon our expansion strategy, we acquire
complementary cannabis brands to grow the scope of Akerna&#8217;s cannabis ecosystem. Since 2019, we have integrated six new brands into
the Akerna product and service offering. Our first acquisition, Solo Sciences (&#8220;Solo&#8221;), was initiated in the fall of 2019,
with the full acquisition completed in July 2020. We added Trellis Solutions (&#8220;Trellis&#8221;) to our portfolio on April 10, 2020
and finalized the acquisition of Ample Organics (&#8220;Ample&#8221;) and Last Call Analytics (&#8220;Last Call&#8221;) on July 7, 2020.
More recently, on April 1, 2021 we completed our acquisition of Viridian Sciences Inc. (&#8220;Viridian&#8221;), a cannabis business management
software system built on SAP Business One, followed by the acquisition of The NAV People, Inc. d.b.a 365 Cannabis (&#8220;365 Cannabis&#8221;),
a cannabis business management software system built on Microsoft Business Central, on October 1, 2021. Through our growing family of
companies, Akerna provides highly versatile platforms that equip our clients with a central data management system for tracking regulated
products. Our solutions also provide clients with integrated security, transparency, and scalability capabilities, all while helping
maintaining compliance with their governing regulations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 39; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->34<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On the commercial side, our products help state-licensed
businesses operate in compliance with applicable regional laws. Our integrated ecosystem provides integrations with third-party vendors
and add-ons that enhance the capabilities of our commercial software platforms. On the regulatory side, we provide track and trace solutions
that allow state governments to monitor compliance of licensed cannabis businesses. To date, our software has helped monitor the compliance
of more than $30 billion in legal cannabis. While our software facilitates the success of legal cannabis businesses, we do not handle
any cannabis-related material, do not process cannabis sales transactions within the United States (&#8220;U.S.&#8221;), and our revenue
is generated from a fixed-fee based subscription and professional services model and is not related to the type or amount of sales made
by our clients.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We drive revenue growth through the development
of our product line, our acquisitions and from continued expansion of the cannabis, hemp, and CBD industry. Businesses across the regulated
cannabis industry use our solutions. The brand recognition of our existing products, our ability to provide services in all areas of
the seed-to-sale life cycle, and our wealth of relevant experience attracts cultivation, manufacturing, and dispensary clients who are
seeking comprehensive business optimization solutions. Our software solutions are designed to be scalable, and while mid-market and smaller
customers have historically been our primary target segment, we are focused on extending our customer reach to address the needs of the
emerging enterprise level operator. We believe these larger multi-state/multi-vertical operations represent significant long-term future
growth opportunities as the cannabis industry continues to consolidate at a rapid rate. The sophistication of our platform accommodates
the complexities of both multi-vertical and multi-state business needs, making us critical partners and allowing us to cultivate long-term,
successful relationships with our clients.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our platforms provide licensed businesses with
a true enterprise solution for managing their inventory and compliance and allow government regulators to engage in accurate and real-time
compliance monitoring. Key capabilities of our technology infrastructure include:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0"><i>Seed-to-Sale Tracking
</i>allows the tracking of products from cultivation, through harvest and processing and manufacturing, to the monitoring of the final
sale to the patient or consumer. Our traceability technology captures every step in an individual plant&#8217;s life, providing visibility
into the supply chain from any measurement of finished product dispensed to a patient or customer, back to the plant it came from, and
all activity, transportation, and transactions that happen in between. While we do not provide payment processing, and never take, own,
or handle any product or cash transaction, our platform records all sales as part of state and jurisdictional compliance Track-and-Trace
processes. The data gathered throughout all of these processes is captured, and provides the insights and information needed to run an
efficient and streamlined cannabis business. Seed-to-Sale software operates in a complementary relationship with state-mandated Track-and-Trace
systems, replicating the reporting functionality and eliminating the need for operators to duplicate their compliance data into two disparate
systems. Track-and-Trace systems are designed solely for government regulators to maintain compliance and do not have the sophistication
or functionality to provide cannabis business owners with the insights and tools for effective business management. Our seed-to-sale
platforms integrate with the state Track-and-Trace compliance system, reporting in the mandated data along the supply chain while also
providing business owners with the capabilities to make informed business decisions based on the fully overview of their operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Track-and-Trace</i> is
the compliance reporting system used by regulatory bodies in most states. In order to adhere to their state-specific compliance regulations,
cannabis operators are required to enter specific data points along the supply chain into the state-mandated track-and-trace system.
By doing so, regulators can track the movement of cannabis inventory through the full supply chain, even when it moves between facilities
or operators. The aggregated view that Track-and-Trace software seeks to ensure that the end product being sold has been grown, harvested,
processed, transferred and sold compliantly, and provides assurance of safety to consumers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Single System Integration
</i>allows state-licensed clients to manage inventory, customer records, and staff in one tracking system. MJ Platform and Leaf Data
Systems platforms can be fully integrated with one another to create a streamlined Seed-to-Sale/Track-and-Trace solution. Additionally,
our platforms can also be integrated with systems of numerous third-party suppliers. We have certified integrations with world class
accounting solutions, including Sage, SAP, Microsoft and Netsuite.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Anti-Counterfeiting Technology</i>.
Solo sciences provides next-generation anti-counterfeiting technology fused with a direct communication system between brands and consumers.
The solo sciences mission is to build confidence and establish trust among consumers, while enabling retailers and distributors to close
the loop with creators and producers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 40; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->35<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Cannabis Market Insights
</i>are curated using the anonymized data aggregated through our Seed-to-Sale platform for key industry intelligence. With over $30 billion
in cannabis sales tracked over the past twelve years, we have cultivated a substantial legal cannabis dataset across 30+ states and multiple
countries. This data provides a detailed overview of key industry trends, giving us the ability to provide banks, investors, researchers,
cannabis businesses, and non-cannabis businesses with cannabis market intelligence and comparison data.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Enterprise Resource Planning
(ERP) software</i> is a business process management software that manages and integrates a company&#8217;s financials, manufacturing,
inventory, supply chain, operations, commerce, and reporting activities. ERP systems improve an operator&#8217;s efficiency and effectiveness
by eliminating disparate systems, consolidating business critical information in a single location, reducing double entry data, and streamlining
operations. ERP software solutions built for cannabis operators combine traditional accounting, manufacturing, inventory, and supply
chain management with cannabis-specific track and trace and compliance functionality.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Using our years of experience, proprietary databases,
and resources to identify trends and predict changes in the cannabis industry we evolve our products and better assist our clients in
operating in compliance with the applicable laws of their jurisdictions and capitalizing on commercial opportunities within the applicable
regulatory framework, with accuracy, efficiency, and geographic specificity. We have worked with clients and governments across the globe
to create customized solutions that fit their specific regulatory and commercially compliant needs. While the majority of our clients
are in the U.S. and Canada, our solutions allow cannabis businesses to operate efficiently in this fast-changing industry and comply
with state, local, and federal (in countries such as Canada, Italy, Macedonia, and Colombia). Akerna and our family of companies is well-positioned
to provide compliance solutions for the expanding national and international legal cannabis market.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Industry &amp; Competition</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe the growing cannabis industry in numerous
U.S. states and other countries represents a significant market opportunity for our technology, as legally licensed operating companies
need to ensure they operate within applicable laws and carefully track inventory. With democratic leadership and the new legislation
passed during the 2020 election improving the outlook of the industry and a congress that is committed to push forward cannabis policy,
the industry&#8217;s growth potential has large near-term upside. Since state governments require supply chain transparency to ensure
compliance and the maintenance of the seed-to-sale life cycle within their jurisdictions, each new regulated jurisdiction offers an expanded
market opportunity for Akerna.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The regulated cannabis industry (medicinal and
adult-use) is experiencing rapid growth. According to BDSA&#8217;s 2021 Essential Cannabis Insights, December 2021 Vol 4, Issue 10, legal cannabis
sales in the U.S. passed $25 billion in 2021, growth of 40% over 2020&#8217;s $18 billion. BDSA&#8217;s Cannabis Market Forecast update from
September 2021 noted sales are forecasted to rise to $46 billion in 2026, a CAGR of 14% from 2021. Global cannabis sales reached nearly
$29 billion in 2021, an increase of 45% over 2020 sales of $20 billion. BDSA forecasts global cannabis sales will grow from $29 billion
in 2021 to $61 billion in 2026, a compound annual growth rate (CAGR) of more than 16%.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The COVID-19 pandemic has had a positive effect
on the growth and acceptance of the cannabis industry. Fitting into a non-cyclical, vice product category has worked to the industry&#8217;s
advantage overall based on the 2020 sales data. Although many cannabis companies felt extremely adverse circumstances, and some were
even forced to close or sell their businesses, this has accelerated a predictable M&amp;A marketplace in which licenses are being acquired
for a fraction of what they cost only 1 year ago. The largest Multi-State Operators (MSOs) are growing and financing faster than ever
before. For example, Curaleaf, one of the largest MSOs, opened their 100th retail location in February 2021. As a result of the current
M&amp;A marketplace, the landscape is beginning to position itself in a similar way that the alcohol industry has, with major companies
controlling a vast majority of market share. Akerna is positioned as an enterprise-level offering to address the needs of these large
MSOs that continue to grow through consolidation. The addition of the MJ Analytics seed-to-sale reporting engine, built on the architecture
of leading business intelligence platform, Domo, further positions Akerna as an enterprise-level solution.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 41; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->36<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Further to our current addressable market, the
regulatory changes in the 2018 Farm Bill in the U.S. have created an opportunity for hemp-based CBD in general retail and pharmaceutical
channels. Additionally, multiple countries across the world have legalized hemp for growth and export including Canada, China, Italy,
Australia, and South Korea. In the U.S., hemp-derived CBD is available broadly across retailers (not solely licensed cannabis dispensaries),
including online, drug and convenience stores, natural product, beauty, grocery, and pet stores. According to Grand View Research, Industrial
Hemp Market Analysis, The global cannabidiol market size was valued at USD 2.8 billion in 2020 and is expected to expand at a compound
annual growth rate (CAGR) of 21.2% from 2021 to 2028.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The unfortunate events of the 2019 vape scare
in the U.S. prompted regulatory changes and additional requirements, including anti-counterfeiting tags and codes. With major investment
and partnership with Solo, Akerna has provided a solution to address the issue for both regulators and operators. The combined supply
chain transparency solution was chosen by the State of Utah, requiring all medical dispensary products to be validated. Markets and Markets
projects that the anti-counterfeit packaging market size will grow from $105.9 billion in 2018 to $182.2 billion by 2023, at a CAGR of
11.5%. The anti-counterfeit packaging market is projected to witness high growth due to the increasing focus of manufacturers on brand
protection to reduce counterfeiting. By leveraging this investment, we strengthen our current addressable market with an essential compliance
tool.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The cannabis industry is a fast-growing, increasingly
complex, and rapidly changing landscape. Arcview Market Research and BDS Analytics note that the range of regulatory schemes is wide,
and fines for non-compliance are steep. Proper, safe, and profitable operation of a cannabis business requires a full understanding of
applicable laws, the ability to track plants and products to ensure compliance with these laws, and the ability to operate at scale in
a competitive environment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Competitive Landscape</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The competitive set within the cannabis technology
and consulting space has traditionally been comprised of several smaller and specialized companies with limited access to capital. As
part of our growth strategy, we may seek to acquire assets or companies that are synergistic with our business. We have built a scalable
infrastructure to support both rapid organic growth and targeted acquisitions. By providing the full seed-to-sale solution, we believe
we are well-positioned to be an acquirer of cannabis technology solutions throughout the supply chain. We compete with numerous technology
and consulting companies that offer services that are similar to some of our services including, but not limited to, Acumatica, BDS Analytics,
BioTrackTHC, Canna Advisors, Cova Cannabis, Dutchie, Flowhub, Headset, Jane, Metrc, New Frontier Data, Nextec, 3C, Treez, and TILT Holdings.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We face competition in each of the revenue segments
in which we&#160;operate. We believe, however, that we possess relative strengths in each segment that provide us with competitive advantages,
including:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; </span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the range of services offered
    by us; </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; </span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our management personnel
    and their industry knowledge and experience; and </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.25in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; </span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">our proprietary databases,
    which are only available to users of our platforms and consulting services. </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt -0.5in; text-align: justify; text-indent: 0.5in"><i>Range of Services</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe we possess a unique viewpoint into
the industry because we offer solutions to, and work with, both commercial businesses and government regulatory agencies towards the
common goal of ensuring regulatory compliance and real-time monitoring of inventory and sales. We offer a complete range of both software
and services to meet these needs for both state governments and commercial businesses. While we do not face competition from firms focusing
on specific subsets of our markets, there are a very limited number of competitors providing products or services that compete with our
complete range of products and services. We compete with software companies offering a product to businesses only in a certain geographic
region or of a certain business type. We also compete with consulting firms serving a specific phase of the cannabis plant life cycle.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 42; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->37<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt -0.5in; text-align: justify; text-indent: 0.5in"><i>Industry Knowledge and
Experience</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our management personnel have extensive technical
and business operations knowledge and experience within the cannabis and technology industries, which has been developed through numerous
years of service in key roles with a broad range of both cannabis and technology companies, both in terms of product and service type
and size. We leverage this knowledge and experience to guide our product and service development and delivery. Our management team possesses
significant compliance expertise, allowing us to continually monitor changes in legislation and regulation within the markets we and
our clients operate. We face competition from companies that have teams with technical expertise or cannabis industry experience, but
there are a limited number of competitors who have both and who understand the interplay between software and technology development
and the application of the same to the evolving cannabis compliance landscape.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"><i>Proprietary Databases</i></p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt -0.5in; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Twelve
years of operations have provided us with a statistically significant dataset of cannabis transaction information that we believe cannot
be readily duplicated by new entrants into the marketplace. This growing database includes proprietary sales, market trends, customer
preferences, pricing, and regulatory data. We use this dataset to predict trends more accurately in the marketplace and make this dataset
available to users of our platforms, providing greater utility to clients in this regard than can be provided by competing platforms.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt -0.5in; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Products and Solutions</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Software</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">SMB Market:</span></i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Akerna&#8217;s suite of small and medium business
(&#8220;SMB&#8221; or &#8220;Non-Enterprise&#8221;) products including MJ Platform, Ample Organics, and Trellis provide SaaS offerings
for legal cannabis, hemp and CBD businesses. We provide government-licensed cultivators, manufacturers, distributors, and retail dispensaries
with a data-driven seed-to-sale tracking platform that provides clients with an enterprise resource planning solution for managing their
inventory and regulatory compliance. Akerna&#8217;s products and ecosystem of connections are used by clients to compliantly track inventory
through all phases of the seed-to-sale cycle - from cultivation to extraction and infusion to packaging, distribution and retail sales.
Data points are collected at every stage of the product life cycle and about multiple aspects of the plant&#8217;s growing environment,
manufacturing processes, and ingredients, as well as retail pricing and purchase data. In Canada, the first G7 country with a federally
legal market, we have a pharmacy portal and insurance adjudication.<br/>
<br/>
We service licensed operators in all verticals of the industry, including cultivation, manufacturing, distribution, and retail dispensaries.
We have significant client presence for our commercial software solutions in mature cannabis markets such as Arizona, California, Michigan,
Pennsylvania, Colorado, Utah, Illinois, Oklahoma, and Puerto Rico, as well as Canada.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have exclusivity in the Pennsylvania and Utah
markets due to our government contracts, which require operators in the states to use MJ Platform.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Solo Sciences - Anti-counterfeiting Technology</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Solo is a technology provider for legal cannabis
businesses with a focus on providing a cannabis tracking technology that provides seed-to-sale-to-self data throughout a product&#8217;s
life cycle and empowers consumers with the ability to confirm the quality and authenticity of a product they have purchased.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Solo uses proprietary technology to place a unique
encrypted arrangement of patterns, the solo*TAG<sup>TM</sup> or solo*CODE<sup>TM</sup>, onto individual packaging labels. Solo technology
is significantly lower cost and more secure than traditional tagging technologies like radio-frequency identification. The technology
includes a free consumer mobile application, granting end-users and regulatory agencies the ability to track products in the supply chain,
verify their authenticity, and learn more detailed information about the product such as its origins and ingredients.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 43; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->38<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Solo technology platform also enables brands
to connect directly with consumers. Through it, product creators can provide end-users with push notifications, targeted news, product
insights, loyalty points, etc. Brands embrace the platform as it enables them to increase their revenues and create a more tailored marketing
experience. Clients benefit from product incentives while gaining trust in the products they are buying and consuming.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Solo has developed several key partnerships including
the Utah Department of Health and Department of Agriculture, through Akerna&#8217;s Leaf Data Systems contract including solo*TAG<sup>TM,</sup>,
a key tagging and technology component in a closed-loop system used by all Utah cannabis licensees as the state&#8217;s primary tracking
system at the retail, wholesale, cultivation, and manufacturing levels.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Enterprise Market:</span></i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Akerna&#8217;s Enterprise product suite provides
a comprehensive vertically integrated cannabis ERP and business management software system with a choice of being built on the Microsoft
Dynamics 365 Business Central platform or the SAP Business One platform. Our enterprise products were built by cannabis experts with
cannabis-specific functionality built into the core of the solution and are designed to meet present and future needs of growing businesses.
The software solutions allow business clients to manage their entire operations from cultivation to retail and incorporates Cultivation,
Production, Global Compliance, QC, Finance, Dispensing &amp; Retail, CRM, Warehousing, Distribution, Multi-Facility, Multi-Company, Multi-Entity,
Language, Currency and more with a client base comprised of leading U.S.-based MSOs and single-state operators, and Canadian LPs, in
addition to global cannabis clients outside North America. Our enterprise offerings leverage shared Akerna infrastructure for access
to Akerna&#8217;s broad ecosystem of offerings and to facilitate compliance with our up-to-date regulatory integrations, unparalleled
state and country reporting knowledge, and dedicated team of compliance experts.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Government Market:</span></i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Leaf Data Systems - Government Regulatory
Software</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Leaf Data Systems is our SaaS product for government
agencies. Leaf Data Systems provides regulatory authorities with visibility into the operations of licensed medical and recreational
cannabis businesses. Government regulators desire visibility at critical junctures within the seed-to-sale chain of custody in order
to ensure public safety, monitor sales data for the purposes of taxation, and perform physical inspections of cannabis industry facilities.
Leaf Data Systems allows for specific data points captured during these workflows to be compiled into the state and regional view retrievable
by regulatory officials.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Licensed cannabis facilities within a state can
track plant and product movement and waste across their organization, which is processed into reporting tailored to the government agencies
that regulate and enforce the rules of the industry. This gives regulators a tool for transparency and accountability across the cannabis
supply chain to ensure public and product safety as well as to monitor sales and inventory within the industry. Leaf Data Systems is
customized to the regulations of the state in which it is contracted and tailored to capture the relevant data points desired by regulatory
officials.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this report, Leaf Data Systems
serves two state clients, the Commonwealth of Pennsylvania and the State of Utah. The State of Utah mandates the use of our proprietary
solo*TAG<sup>TM</sup> the world&#8217;s first cryptographically-secure, cannabis product authentication system, exclusively for governments
as an alternative to radio-frequency identification tracking. This customized system includes an electronic verification and inventory
control system to track plants and products throughout the compliance supply chain.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Business Intelligence and Data Analytics Products</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have four data products: MJ Analytics (&#8220;MJA&#8221;);
and Akerna Acumen Big Data, which both leverage the extensive data captured in each of MJ Platform&#8217;s cultivation, E&amp;I, distribution,
and retail modules; AmpleData, which leverages data obtained through Canadian regulated retail channels; and Last Call Analytics, which
provides retail sales analytics for alcohol brands.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 44; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->39<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>MJ Analytics </i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">MJA gives MJ Platform clients access to aggregate
data across their organization to keep track of emerging legal and commercial trends, allowing for informed actionable insights at various
levels within the organization, including room, location, state, brand, and administration. MJ Platform allows users to align their operational
data from three vantage points: in real-time, past trends, and predictive future. This proprietary database assists the user in making
important decisions in real-time with respect to product monitoring, tracking, planning, and pricing.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Built in partnership with Domo and Snowflake,
MJA is monetized through the provision of Data Analytics subscriptions to clients. We typically grant a limited, non-exclusive, non-sublicensable
license to use our industry data for internal management, reporting, and business optimization purposes. The information typically supplied
to clients is aggregated and anonymized information regarding products, which may or may not be those of the client, sold through sales
generated through our online service platforms.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Akerna Acumen Business Intelligence</i>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have cultivated a substantial legal cannabis
dataset with over $30 billion in sales tracked and twelve years of data across 30+ states and multiple countries. With the contractual
ability to aggregate and anonymize this data, we have launched the Akerna Acumen product to provide banks, investors, researchers, cannabis
businesses, and non-cannabis businesses with cannabis market intelligence and valuable market comparison data. The data is available
in various formats and is available with updates as frequently as daily.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Last Call Analytics &amp; Ample Data</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Ample&#8217;s wholly owned subsidiary, Last Call
Analytics (&#8220;LCA&#8221;), is a retail analytics platform designed for the beverage alcohol industry, with a focus on allowing our
clients to use data to empower retail operations and generate revenue growth. The platform ingests sales and product data from a wide
variety of sources, normalizes and homogenizes the dataset, and displays the resultant analysis in a proprietary application.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">With the underlying technologies built by LCA,
Ample has created AmpleData, a retail analytics platform for the cannabis industry that applies the same proven solution to data streams
ingested from various points within the regulated supply chain<b>. </b>Ample Data is designed to provide key insights for Canadian cannabis
license holders, cannabis agencies and government regulators.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Cannabis Business Consulting</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We provide project-focused consulting services
to clients that are initiating or expanding their cannabis businesses or are interested in data consulting engagements regarding the
legal cannabis industry. We typically provide our consulting services to clients in emerging markets that are seeking consultation on
newly introduced licensing regimes and assistance with the regulatory compliant build-out of operations in newly opened states.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Entering the cannabis industry is a significant
undertaking. We work with clients to efficiently comply with state requirements in connection with the launch and operations of their
cannabis businesses. Our management and key personnel bring deep cannabis industry experience to us. Our management team and key personnel
have broad experience gained from working with numerous cannabis businesses, with operational experience across every vertical (<i>e.g</i>.,
cultivation, processing, and retail). Our team members have previously managed projects, including cultivation facilities exceeding&#160;100,000&#160;square
feet, retail operations with locations in multiple states, and online businesses serving an entire country.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Competitive Advantage</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Partner API.</i> We host an open API ecosystem
and are continually developing and maintaining an extensive collection of integrations that are designed to connect our solutions to
over 80 partners, provide full-service solutions at all points in the cannabis business life cycle, including compliance, hardware, banking,
accounting, online ordering, payment solutions, CRM and loyalty, delivery, and business analytics. We believe these integrations provide
a competitive advantage as they reduce implementation time, effort, and cost while providing a holistic cannabis solution; We have certified
API integration with tier one ERP software providers supplying sophisticated accounting solutions that collect and store business transactions
to satisfy external reporting requirements. Additionally, we leverage revenue sharing agreements and referral programs with our strategic
partners to further grow our business and our revenue.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 45; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->40<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Technology.</i> As the inventors of Seed-To-Sale
technology, our proprietary platform is an AWS cloud-based software solution. We offer specialized cannabis workflows specific to the
needs of the industry. We serve all verticals of the cannabis supply chain (cultivation, manufacturing, distribution, retail and delivery).
We are one of the few true, single-platform Seed-To-Sale solutions in the cannabis space, and the sophistication of our technology allows
us to uniquely scale across legal markets. Our platform has processed over $30 billion in legal cannabis sales, with speed, reliability,
and security capabilities designed to serve the needs of even the largest of enterprise customers. Compliance with state regulations
is built into our platform infrastructure, assisting clients in their efforts to operate within the regulation parameters of their individual
markets. The business insights provided by the data collection throughout the supply chain enables businesses to optimize their operations
and make crucial data-driven decisions for their business. These insights are easily analyzed and made actionable by our MJ Analytics
module, built in partnership with Domo, a leading BI platform.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Learning Management System</i>. Through our
license with ZolTrain, we are able to provide our Akerna clients with training modules to educate and on-board their staff and improve
the patient /consumer experience by pairing education with product information both in person and through digital channels. The Zoltrain
platform allows cannabis employees to self-direct their own learning and certification through an Akerna specific curriculum, and their
employers are able to monitor and track their progress, assisting clients in ensuring that their staff is fully trained and knowledgeable
about the software they are required to use within their job functions. This is one of the only LMS platforms specifically designed both
for the industry and for our software. It provides detailed notes, takeaways, scored exams and certificates of completion, ensuring staff
knows their Seed-To-Sale software inside and out. Zoltrain modules are dynamic, and can be easily updated to accommodate new content
or education on new product offerings. The AmpleLearn platform is a similar onboarding and education tool developed for Ample Organics
clients to assist with building their proficiency using the software in Canada. Similar to Zoltrain, AmpleLearn is built on industry
tested content within a dynamic learning environment. There are assessments, progress reports and certifications that are all available
to both the employee and their supervisor. The AmpleLearn product is maintained by the internal team at Ample Organics, ensuring that
the content is always up-to-date with the most recent software upgrades and functionality.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Strategy</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We intend to leverage our scale and capital markets
access to pursue additional growth through organic initiatives and to pursue our ecosystem strategy which leverages integrations, partnerships,
and inorganic growth.&#160;We believe having a scaled ecosystem gives us more opportunities to leverage our footprint and increase wallet
share by providing more value to our clients through having what we believe is the most robust cannabis technology suite available. We
intend to pursue additional growth through organic initiatives, including increased marketing personnel and resources, acquisitions,
and strategic relationships.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><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"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Graduate
                                            our SMB clients to Enterprise. </i>Consolidation, limited license markets, and natural industry
                                            maturation are leading many companies in our SMB portfolio to look at enterprise technology
                                            to scale their business. These market forces are an opportunity for us to convert more of
                                            our client base to our Enterprise solutions as they grow and expand into other states. We
                                            have mobilized ongoing marketing and sales campaigns to identify and actively engage these
                                            opportunities to convert to Enterprise.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><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">
<td style="width: 0.25in"></td><td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Broaden
                                            our base of clients.</i> With increasing cannabis legislation, rapid industry consolidation,
                                            and opportunities in other supply-chain driven industries, Akerna will continue to focus
                                            on expanding our leadership and market share in the mid-market, while optimizing our offerings
                                            for the multi-state/multi-vertical enterprise segment. We will continue to invest in our
                                            sales and marketing efforts and intend to expand into new markets to grow our client base.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><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">
<td style="width: 0.25in"></td><td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Grow
                                            revenue from our existing clients.</i> With increased product line offerings, such as MJ
                                            Analytics, as well as our growing API partner network, we are able to offer continued opportunities
                                            for our customers to optimize and streamline their operations. By leveraging our existing
                                            client base and provide them with an array of tools and solutions, we are able to increase
                                            the revenue opportunity without the burden of new client acquisition costs.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><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">
<td style="width: 0.25in"></td><td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Expand
                                            and deepen our partner ecosystem.</i> We have an extensive network of API integrated cannabis
                                            application provider</span><span style="font-family: Times New Roman, Times, Serif">s and
                                            other referral sources providing us with new avenues of qualified leads and new client opportunities.
                                            By continuing to grow and optimize these partner agreements and relationships, we have increased
                                            exposure to larger client pools, and revenue sharing agreements.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 46; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->41<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Customers&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Businesses across the cannabis and hemp industries
and of all sizes, ranging from small, single location/ single vertical businesses to multi-state enterprise operations, use the Akerna
family of solutions. The cannabis industry is still very much in its infancy compared to more established markets, and as it matures,
we are seeing a shift in the typical business model. In the beginning, most operators only managed a single location, or a single vertical
operation, and therefore many of our longer-standing clients fall into the small to mid-market size business. Over the past few years,
and significantly expedited by the COVID-19 pandemic, we are witnessing large-scale, rapid consolidation within the industry. Many of
the original small licensees are being purchased and assumed into larger, multi-state, enterprise level organizations. Our software solutions
are designed to be scalable, and as we see this shift in the market, we are focused on extending our customer reach to address the needs
of the emerging enterprise level operator. We believe these larger multi-state/multi-vertical operations represent significant long-term
future growth opportunities as the cannabis industry continues to consolidate. As more states legalize, these operators are identifying
future growth opportunities into these expanded legal markets and need a software solution that can grow with them.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Sales and Marketing&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We sell our solutions primarily on a subscription
basis with module-based and user-seat pricing, allowing businesses to customize their solution based on their specific business model
or vertical. With our integrations to major accounting solutions and cannabis service providers, we are able to customize solutions for
all sizes and types of businesses.&#160;To gain market share and expand beyond the small to mid- size market, Akerna invests in specialized
go-to-market strategies for sales and marketing unique to each state and customer segment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our omnichannel marketing program, which includes
paid and unpaid digital advertising, event marketing, account-based marketing, content marketing, prospect database nurturing, and other
digital marketing activities, is designed to capture inbound marketing leads. We also leverage our expertise and industry intelligence
to identify and engage directly with our prospective customers, especially at the enterprise level.&#160;Additionally, we have a broad
ecosystem of partners across the cannabis industry and have selectively implemented referral and revenue sharing opportunities with the
key players.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We reach each market segment, from emerging small
business to enterprise, through channels and tactics that match their expectations for content, outreach, timeliness, and service level.
This can require high touch service for some enterprise customers, with more a traditional purchase path for the smallest companies.
We hire and train both sales and marketing professionals specialized for the market and the customer segment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For growth in the regulatory and consulting side,
we stay current on emerging legal markets, both nationally and globally to actively conduct outreach and education programs to engage
with state regulators and business owners. This strategy strongly supports the growth of our consulting client bases, as we provide license
application assistance in new markets, and require in-depth understanding of the regulatory guidelines to be able to successfully win
licenses for our customers. We leverage our expertise to provide thought-leadership and industry guidance in order to gain recognition
as a leader in the space.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Government Regulation</b>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Cannabis and Cannabis-derived Products</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not grow, handle, process, or sell cannabis
or cannabis-derived products, nor do we ever possess any such material or process any transactions related to the sale of the same. We
only provide a technology platform for our clients to assist them with their compliance with state law and to monitor and control their
inventory in compliance with state regulatory environments. We do not receive any commissions from sale by our clients and our revenue
generation is not based on the sales of cannabis products by our clients, but rather we generate revenues through a fixed-fee based subscription
and professional services revenue model. We are not directly subject to state or federal government drug regulation and our products
are only intended to be used to assist with compliance with applicable state laws, under which our clients operate.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 47; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->42<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our clients are subject to state and federal
law as it relates to cannabis growth, processing, and sale. 37 U.S. states have legalized cannabis in some form. The federal government
regulates drugs through the Controlled Substances Act (CSA) (21 U.S.C. &#167; 811), which does not recognize the difference between medical
and recreational use of cannabis. State laws regulating cannabis are in direct conflict with the CSA, which prohibits cannabis use and
possession. Although certain states and territories authorize medical or recreational cannabis cultivation, manufacturing, production,
distribution, and sales by licensed or registered entities, under federal law, the cultivation, manufacture, distribution, possession,
use, and transfer of cannabis and any related drug paraphernalia, unless specifically exempt, is illegal and any such acts are criminal
acts under the CSA.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">While the U.S. Department of Justice has used
prosecutorial discretion to not prioritize enforcement actions against state-legal cannabis businesses that are compliant with state,
county, municipal and other local laws and regulations and which do not trigger any other federal enforcement priorities, the Department
of Justice reserves the right to enforce federal law and there can be no assurance that the federal government will not enforce the CSA
and related federal laws in the future.&#160;Any shift in enforcement priority at the Department of Justice or with the individual U.S.
Attorneys with jurisdiction over our clients, could have a drastic and adverse impact upon our clients and our business.&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">While we do not grow, handle, process or sell
cannabis or cannabis-derived products, our receipt of funds from clients that do conduct such operations in violation of federal law
exposes us to risks related to federal racketeering laws. The Racketeer Influenced Corrupt Organizations Act (&#8220;RICO&#8221;) is
a federal statute providing criminal penalties in addition to a civil cause of action for acts performed as part of an ongoing criminal
organization. Under RICO, it is unlawful for any person who has received income derived from a pattern of racketeering activity (which
includes most felonious violations of the CSA), to use or invest any of that income in the acquisition of any interest, or the establishment
or operation of, any enterprise which is engaged in interstate commerce. RICO also authorizes private parties whose properties or businesses
are harmed by such patterns of racketeering activity to initiate a civil action against the individuals involved. Although RICO suits
against the cannabis industry are rare, a few cannabis businesses have been subject to a civil RICO action.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our receipt of payments from clients engaged
in state-legal cannabis operations could also subject us to the consequences of a variety of federal laws and regulations that involve
money laundering, financial record keeping and proceeds of crime, including the Bank Secrecy Act, as amended by Title III of the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) and
any related or similar rules, regulations or guidelines, issued, administered or enforced by the federal government. Because the funds
from activities that are illegal under the CSA, banks and other financial institutions providing services to us risk violation of federal
anti-money laundering statutes (18 U.S.C. &#167;&#167; 1956 and 1957), the unlicensed money-remitter statute (18 U.S.C. &#167; 1960)
and the Bank Secrecy Act, among other applicable federal statutes. Banks often refuse to provide banking services to businesses involved
in the cannabis industry due to the present state of federal laws and regulations governing financial institutions. The lack of banking
and financial services presents unique and significant challenges to businesses in the cannabis industry and we may experience similar
difficulties in obtaining and maintaining regular banking and financial services because of the activities of our clients.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any violations of federal laws and regulations
could result in significant fines, penalties, administrative sanctions, convictions or settlements arising from civil proceedings conducted
by either the federal government or private citizens or criminal charges, including but not limited to, seizure of assets, disgorgement
of profits, cessation of business activities or divestiture.&#160;In the event that any of our operations, or any proceeds thereof, any
dividends or distributions therefrom, or any profits or revenues accruing from such operations were found to be in violation of money
laundering legislation or otherwise, such transactions may be viewed as proceeds of crime under one or more of the statutes noted above
or any other applicable legislation. This could restrict or otherwise jeopardize our ability to declare or pay dividends or effect other
distributions. Furthermore, while there are no current intentions to declare or pay dividends in the foreseeable future, in the event
that a determination was made that our proceeds from operations (or any future operations) could reasonably be shown to constitute proceeds
of crime, we may decide or be required to suspend declaring or paying dividends without advance notice and for an indefinite period of
time.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 48; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->43<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Privacy &amp; Customer Data</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Regulation related to the provision of services
over the Internet is evolving, as federal, state, and foreign governments continue to adopt new, or modify existing, laws and regulations
addressing data privacy and the collection, processing, storage, transfer, and use of data. In some cases, data privacy laws and regulations,
such as the European Union&#8217;s (&#8220;EU&#8221;) General Data Protection Regulation (&#8220;GDPR&#8221;) that took effect in May
2018, impose new obligations directly on us as both a data controller and a data processor, as well as on many of our clients. In addition,
domestic data privacy laws, such as the California Consumer Privacy Act (&#8220;CCPA&#8221;), which took effect in January 2020, continue
to evolve and could expose us to further regulatory burdens. Further, laws such as the EU&#8217;s proposed e-Privacy Regulation are increasingly
aimed at the use of personal information for marketing purposes and the tracking of individuals&#8217; online activities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Although we monitor the regulatory environment
and have invested in addressing these developments, such as GDPR and CCPA readiness, these laws may require us to make additional changes
to our services to enable us or our clients to meet the new legal requirements, and may also increase our potential liability exposure
through higher potential penalties for non-compliance. These new or proposed laws and regulations are subject to differing interpretations
and may be inconsistent among jurisdictions. These and other requirements could reduce demand for our services, require us to take on
more onerous obligations in our contracts, restrict our ability to store, transfer, and process data or, in some cases, impact our ability
or our clients&#8217; ability to offer our services in certain locations, to deploy our solutions, to reach current and prospective customers,
or to derive insights from customer data globally. The costs of compliance with, and other burdens imposed by, privacy laws, regulations,
and standards may limit the use and adoption of our services, reduce overall demand for our services, make it more difficult to meet
expectations from or commitments to clients, lead to significant fines, penalties or liabilities for non-compliance, impact our reputation,
or slow the pace at which we close sales transactions, any of which could harm our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Furthermore, the uncertain and shifting regulatory
environment and trust climate may cause concerns regarding data privacy and may cause our clients or our clients&#8217; customers to
resist providing the data necessary to allow our clients to use our services effectively. Even the perception that the privacy of personal
information is not satisfactorily protected or does not meet regulatory requirements could inhibit sales of our products or services
and could limit the adoption of our cloud-based solutions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Patents and Trademarks</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We primarily rely upon a combination of confidentiality
procedures, contractual provisions, copyright, trademark, patent, and trade secret laws, and other similar measures to protect our proprietary
information and intellectual property.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We hold 2 patents in the U.S., through Solo,
related to its Solo*ID proprietary technology.&#160;One patent has an issue date of December 1, 2009 and is set to expire on December
1, 2029.&#160;The other patent has an issue date of May 31, 2011 and is set to expire on July 11, 2025.&#160;We also have 2 patent applications
that are currently pending action by the U.S. Patent Office. One was filed on April 22, 2011 by MJF and the other was filed on January
22, 2022 related to Solo blockchain technology.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We and our wholly-owned subsidiaries hold 19
trademarks in the U.S., principally related to Akerna, MJ Freeway, Leaf Data Systems, our Daily Dose mailer, Solo*ID and our logos and
designs, 7 in Canada, principally related to Ample, AmpleCentral, AmpleData, AmpleExchange and Ample&#8217;s logos and designs and 1
in Colombia, 1 in Jamaica and 1 on EUIPO related to Ample&#8217;s logo and designs.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Employees</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2021, we had 204 full time employees. Of these employees,
157 were based in the U.S. and 47 were based in Canada. Our workforce is highly educated, with most of our employees working in engineering,
technical, or professional roles. None of our employees are a member of a union or a party to any collective bargaining agreement. We
believe our employee relations are good. On May 27, 2022, the Company announced its implementation of certain expense reduction measures,
approved by the Company&#8217;s board of directors on May 24, 2022, including a reduction of the Company&#8217;s workforce by 59 full-time
employees, or approximately 33% of the Company. See &#8220;Recent Developments&#8221; above for more information.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Company Information</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Emerging Growth Company</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are an &#8220;emerging growth company&#8221;
as defined in the Jumpstart Our Business Startups Act of 2012, (the &#8220;JOBS Act&#8221;) because we went public in the U.S. in January
2018 and meet the criteria outlined in the JOBS Act. We will remain an emerging growth company until up to the last day of the fiscal
year following the fifth anniversary of our initial public offering, or until the earliest of&#160; (i) the last day of the first fiscal
year in which our annual gross revenue exceeds $1.07 billion, (ii) the date that we become a &#8220;large accelerated filer&#8221; 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. As allowed by the JOBS Act, we have elected
to utilize the extended transition period provided to non-public companies for complying with new or revised accounting standards.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 49; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->44<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_014"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">DESCRIPTION OF PROPERTY</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our corporate headquarters are located in Denver,
Colorado, although we do not lease or own any real property associated with our corporate headquarters as our workforce is primarily
remote. We have one facility that we lease in Las Vegas, Nevada which serves as office space for our Las Vegas based employees. We believe
that our existing facilities are adequate for our current needs and that suitable additional or alternative space would be available
to us to lease on commercially reasonable terms if and when we need it. &#160;</p><div>

</div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="a_015"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">LEGAL PROCEEDINGS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are not a party to any material pending legal
proceedings, and no such proceedings are known to be contemplated.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From time to time, we may become involved in
other legal proceedings or be subject to claims arising in the ordinary course of our business. Regardless of the outcome of any existing
or future litigation, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources,
and other factors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-transform: uppercase"><b>&#160;</b></span></p><div>

</div><div><a id="a_016"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">MARKET FOR COMMON EQUITY AND RELATED SHAREHOLDER
MATTERS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Market Information</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Our
common stock is listed on the Nasdaq Capital Market under the trading symbol &#8220;KERN&#8221;. As of June 3, 2022, we had 36,574,158
</span>&#160;<span style="font-family: Times New Roman, Times, Serif">shares of common stock issued and outstanding and approximately
238 </span>&#160;<span style="font-family: Times New Roman, Times, Serif">registered shareholders. Because many of our shares of common
stock are held by brokers and other institutions on behalf of shareholders, we are unable to estimate the total number of shareholders
represented by these record holders.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;<b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Purchases of Equity Securities by the Company
and Affiliates</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>2019 Long Term Incentive Plan Summary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The purpose of the Incentive Plan is to enable
Akerna to offer its employees, officers, directors and consultants whose past, present and/or potential future contributions to Akerna
have been, are, or will be important to its success, an opportunity to acquire a proprietary interest in Akerna. The various types of
incentive awards that may be provided under the Incentive Plan are intended to enable Akerna to respond to changes in compensation practices,
tax laws, accounting regulations and the size and diversity of its business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Plan Administration</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Incentive Plan is administered by the compensation
committee of the Akerna Board (the &#8220;Compensation Committee&#8221;) or by the full Akerna Board, which may determine, among other
things, (1) the persons who are to receive awards, (2) the type or types of awards to be granted to such persons, (3) the number of shares
of common stock to be covered by, or with respect to what payments, rights, or other matters are to be calculated in connection with
the awards, (4) the terms and conditions of any awards, (5) whether, to what extent, and under what circumstances awards may be settled
or exercised in cash, shares of common stock, other securities, other awards or other property, or cancelled, forfeited, or suspended
and the method or methods by which awards may be settled, exercised, cancelled, forfeited, or suspended, (6) whether, to what extent,
and under what circumstances the delivery of cash, shares of common stock, other securities, other awards or other property and other
amounts payable with respect to an award, and (7) make any other determination and take any other action that the Compensation Committee
deems necessary or desirable for the administration of the Incentive Plan.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 50; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->45<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Stock Options</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Stock options granted under the Incentive Plan
may be of two types: (i) Incentive Stock Options (as defined in the Incentive Plan) and (ii) Non-qualified Stock Options (as defined
in the Incentive Plan). Any stock option granted under the Incentive Plan shall contain such terms, as the Compensation Committee may
from time to time approve.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The term of each stock option shall be fixed
by the Compensation Committee; provided, however, that no stock option may be exercisable after the expiration of ten years from the
date of grant; provided, further, that no Incentive Stock Option granted to a person who, at the time of grant, owns stock possessing
more than 10% of the total combined voting power of all classes of voting stock of Akerna (&#8220;10% Shareholder&#8221;) may be exercisable
after the expiration of five years from the date of grant.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The exercise price per share purchasable under
a stock option shall be determined by the Compensation Committee at the time of grant; provided, however, that the exercise price of
a stock option may not be less than 100% of the fair market value on the date of grant; provided, further, that the exercise price of
an Incentive Stock Option granted to a 10% Shareholder may not be less than 110% of the fair market value on the date of grant.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Stock Appreciation Rights</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Compensation Committee may grant Stock Appreciation
Rights in tandem with a stock option or alone and unrelated to a stock option. The Compensation Committee may grant stock appreciation
rights to participants who have been or are being granted stock options under the Incentive Plan as a means of allowing such participants
to exercise their stock options without the need to pay the exercise price in cash. In the case of a Non-qualified Stock Option, a stock
appreciation right may be granted either at or after the time of the grant of such Non-qualified Stock Option. In the case of an Incentive
Stock Option, a stock appreciation right may be granted only at the time of the grant of such Incentive Stock Option. Stock appreciation
rights shall be exercisable as shall be determined by the Compensation Committee. All or a portion of a stock appreciation right granted
in tandem with a stock option shall terminate and shall no longer be exercisable upon the termination or after the exercise of the applicable
portion of the related stock option.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Restricted Stock and Restricted Stock Units</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Shares of restricted stock may be awarded either
alone or in addition to other awards granted under the Incentive Plan. The Compensation Committee shall determine the eligible persons
to whom, and the time or times at which, grants of restricted stock will be awarded, the number of shares to be awarded, the price (if
any) to be paid by the holder, any restriction period, the vesting schedule and rights to acceleration thereof, and all other terms and
conditions of the awards. In addition, the Compensation Committee may award restricted stock units, which may be subject to vesting and
forfeiture conditions during the applicable restriction period, as set forth in an agreement.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Restricted stock constitutes issued and outstanding
shares of common stock for all corporate purposes. The holder will have the right to vote such restricted stock and to exercise all other
rights, powers and privileges of a holder of common stock with respect to such restricted stock, subject to certain limited exceptions.
Upon the expiration of the restriction period with respect to each award of restricted stock and the satisfaction of any other applicable
restrictions, terms and conditions, all or part of such restricted stock shall become vested in accordance with the terms of the agreement.
Any restricted stock that do not vest shall be forfeited to Akerna and the holder shall not thereafter have any rights with respect to
such restricted stock.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 51; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->46<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Compensation Committee may provide that settlement
of restricted stock units will occur upon or as soon as reasonably practicable after the restricted stock units vest or will instead
be deferred, on a mandatory basis or at the holder&#8217;s election, in a manner intended to comply with tax laws. A Holder will have
no rights of a holder of common stock with respect to shares subject to any restricted stock unit unless and until the shares are delivered
in settlement of the restricted stock unit. If the Committee provides, a grant of restricted stock units may provide a holder with the
right to receive dividend equivalents.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Other Stock-Based Awards</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other Stock-Based Awards may be awarded, subject
to limitations under applicable law, that are denominated or payable in, valued in whole or in part by reference to, or otherwise based
on or related to, shares of common stock, as deemed by the Compensation Committee to be consistent with the purposes of the Incentive
Plan, including, without limitation, purchase rights, shares of common stock awarded that are not subject to any restrictions or conditions,
convertible or exchangeable debentures, or other rights convertible into shares of common stock and awards valued by reference to the
value of securities of or the performance of specified subsidiaries.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Change of Control Provisions</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Incentive Plan provides that in the event
of a change of control event, (1) all of the then outstanding options and stock appreciation rights granted pursuant to the Incentive
Plan will immediately vest and become immediately exercisable as of a time prior to the change in control and (2) any performance goal
restrictions related to an award will be deemed achieved at 100% of target levels and all other conditions met as of a time prior to
the change in control. In the event of the sale of all of Akerna&#8217;s assets or a change of control event, then the Compensation Committee
may (1) accelerate the vesting of any and all Stock Options and other awards granted and outstanding under the Incentive Plan; (2) require
a holder of outstanding options to relinquish such award to Akerna upon the tender by Akerna to holder of cash, stock or other property,
or any combination thereof pursuant to the terms of the Incentive Plan and (3) terminate all incomplete performance periods in respect
of awards in effect on the date the acquisition occurs, determine the extent to which performance goals have been met based upon such
information then available as it deems relevant and cause to be paid to the holder all or the applicable portion of the award based upon
the Compensation Committee&#8217;s determination of the degree of attainment of performance goals, or on such other basis determined
by the Compensation Committee.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Akerna Board may at any time, and from time
to time, amend alter, suspend or discontinue any of the provisions of the Incentive Plan, but no amendment, alteration, suspension or
discontinuance shall be made that would impair the rights of a holder under any agreement theretofore entered into hereunder, without
the holder&#8217;s consent, except as set forth in this Incentive Plan or the agreement. Notwithstanding anything to the contrary herein,
no amendment to the provisions of the Incentive Plan shall be effective unless approved by the stockholders of Akerna to the extent stockholder
approval is necessary to satisfy any provision of the Ethics Code or other applicable law or the listing requirements of any national
securities exchange on which Akerna&#8217;s securities are listed.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Equity Compensation Plans</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif">The
following table </span>&#160;<span style="font-family: Times New Roman, Times, Serif">provides information as of December 31, 2021, with
respect to the shares of our common stock that may be issued under our existing equity compensation plans:</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p><div>

</div><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">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of<br/>
 securities&#160;to&#160;be<br/>
 issued upon<br/>
 exercise of<br/>
 outstanding<br/>
 options,<br/>
 warrants and<br/>
 rights or<br/>
 vesting<br/>
 of restricted<br/>
 stock units<br/> (column - a)</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted-<br/>
 average&#160;exercise<br/>
 price of<br/>
 outstanding <br/>
options, <br/>
warrants and <br/>
rights or<br/>
 vesting <br/>
of restricted<br/>
 stock units <br/> (column - b)</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; 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>Number of<br/>
 securities<br/>
 remaining<br/>
 available for<br/>
 future&#160;issuance<br/>
 under equity<br/>
 compensation<br/>
 plans (excluding<br/>
 securities<br/>
 reflected in </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>column (a))<br/> (column - c)</b></p></td><td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left; padding-bottom: 1.5pt">2019 - Equity compensation plan approved by security holders</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">683,767</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"><sup>(1)</sup></td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">&#160;&#160;&#160;&#160;&#160;&#160;-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">459,539</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">683,767</td><td style="padding-bottom: 4pt; text-align: left"><sup>(1)</sup></td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">459,539</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">See &#8220;2019 Long Term
    Incentive Plan Summary&#8221; above.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;<b>&#160;</b></p><div>

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

</div><!-- Field: Page; Sequence: 52; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->47<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_017"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>MANAGEMENT&#8217;S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>You should read the following discussion and
analysis of our financial condition and results of operations together with our financial statements and related notes appearing elsewhere
in this prospectus. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions.
&#160;Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors,
including, but not limited to, those set forth under &#8220;Risk Factors&#8221; and &#8220;Note Regarding Forward-Looking Statements&#8221;
above.</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Akerna is the leading provider of enterprise
software solutions within the cannabis industry. By providing an integrated ecosystem of applications and services that enables compliance,
regulation, consumer safety and taxation, Akerna is building the technology backbone of the cannabis industry. Our solutions provide
clients with integrated security, transparency, and scalability capabilities, all while maintaining compliance with their governing regulations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We intend to leverage our scale and capital markets
access to pursue additional growth through organic initiatives and to pursue our ecosystem strategy which leverages integrations, partnerships,
and inorganic growth. We believe having a scaled ecosystem gives us more opportunities to leverage our footprint and increase wallet
share by providing more value to our clients through having what we believe is the most robust cannabis technology suite available. We
intend to pursue additional growth through organic initiatives, including increased marketing personnel and resources, acquisitions,
and strategic relationships. We will continue scaling our platform for continued growth, adding new features and functionality, supporting
new products and content types, and improving the user experience.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We offer our software solutions to our customers
as a subscription-based service. Subscription fees are based upon the chosen package which includes differentiated platform capabilities,
support and user accounts. As customers recognize the value of our platform, we increasingly engage with them to facilitate broad adoption
across other parts of their business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe having a scaled ecosystem gives us
more opportunities to leverage our footprint and increase wallet share by providing more value to our clients through having what we
believe is the most robust cannabis technology suite available. In order to accelerate customer growth, we intend to pursue additional
initiatives, including increased marketing personnel and resources, acquisitions, and strategic relationships. We believe we are underpenetrated
in the overall market and have significant opportunity to expand our customer base over time.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have invested in professional services, customer
support and customer success functions to support our sales force by helping customers successfully deploy our platform. We actively
engage with our customers to assess whether they are satisfied and fully realizing the benefits of our platform. While these efforts
often require a substantial commitment and upfront costs, we believe our investment in product, customer support, customer success and
professional services will create opportunities to expand our customer relationships over time.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 53; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->48<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We plan to continue to make investments in areas
of our business to continue to expand our platform functionality to enhance current offerings and build new features.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 1, 2021 and October 1, 2021, we completed
our acquisitions of Viridian and 365 Cannabis which is reflected in the consolidated financial statements for the fiscal year ended December
31, 2021. The impact of the acquisition is discussed in our results of operations below.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Key Business Metrics</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to our results determined in accordance
with U.S. Generally Accepted Accounting Principles, or GAAP, we believe earnings before interest, taxes, depreciation and amortization,
or EBITDA, and Adjusted EBITDA are useful in evaluating our operating performance. We use EBITDA and Adjusted EBITDA, to evaluate our
ongoing operations and for internal planning and forecasting purposes. Please see the heading Non-GAAP Financial Measures for additional
discussion and a reconciliation of GAAP net loss to these non-GAAP measures.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Impact of COVID-19</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In December 2019, COVID-19 was first reported.
After ongoing assessment of the rapid spread, number of cases and countries affected, on March 11, 2020, the World Health Organization
characterized COVID-19 as a pandemic. The COVID-19 pandemic has created significant global economic uncertainty, impacted the business
of our clients, impacted our consulting business and our results of operations and could further impact our results of operations, and
our cash flows in the future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The COVID-19 pandemic impacted our clients&#8217;
business and the industry. Nearly every state and country where medical and adult use cannabis was legal declared access essential, which
we believe is a significant shift in sentiment. Our clients also have experienced increased consumer demand throughout the year, including
during the pandemic. We believe COVID-19 has accelerated consolidation in the cannabis industry. At the peak of the crisis, cannabis
companies lost on average 75% to 90% of their value, however, industry sales in 2021 increased 40% over 2020. As we move towards economic
recovery from the pandemic, more state governments are looking to cannabis legalization to generate tax revenue and create jobs. During
the November 2020 election, a total of 7 initiatives in 5 states passed with overwhelming majority support, showing increased bi-partisan
support. These initiatives bring the total number of states with legal, medical markets to 36 and adult-use markets to 17, plus Washington,
DC. Various additional states have pending legislation aimed at expanding or adding legalization to their markets. In terms of job creation,
over 107,059 jobs were added to the cannabis workforce in 2021, raising the total number of full-time equivalent jobs in the industry
to 428,059.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The ultimate extent of the impact of the COVID-19
pandemic on our operational and financial performance will depend on certain developments, including the duration of the outbreak, the
severity of the disease, responsive actions taken by public health officials, the impacts on our clients and our sales cycles, our ability
to generate new business, the impacts on our clients, employee and industry events, and the effects on our vendors, all of which are
uncertain and currently cannot be predicted. As a result, the extent to which the COVID-19 pandemic will continue to impact our financial
condition or results of operations is uncertain. Due to our subscription-based business model, the effect of the COVID-19 pandemic may
not be fully reflected in our results of operations until future periods. If the COVID-19 pandemic has a substantial impact on our employees&#8217;,
partners&#8217; or clients&#8217; productivity, our results of operations and overall financial performance may be harmed.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See the section entitled &#8220;Risk Factors&#8221;
for further discussion of the impact and possible future impacts of the&#160;COVID-19&#160;pandemic on our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 54; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->49<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Strategic Acquisitions</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have pursued and expect to continue to pursue
acquisitions that align with our strategic objectives to build relevant content, technology, and expertise to best serve our current
and future customers. Accordingly, the comparability of periods covered by our consolidated financial statements are, and in the future
may be, affected by the impact of these acquisitions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Components of Results of Operations</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Revenue</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We generate revenue from two primary sources:
(1) software and (2) consulting services. Revenue from software comprised approximately 92%, 86% and 79% of our revenue for the year
ended December 31, 2021, six months ended December 31, 2020, and year ended June 30, 2020, respectively.&#160;Revenue from consulting
services comprised approximately 7%, 12% and 19% of our revenue for the year ended December 31, 2021, six months ended December 31, 2020,
and year ended June 30, 2020, respectively. Revenue from software comprised approximately 94% and 95% of our revenue for the three months
ended March 31, 2022 and 2021, respectively. Revenue from consulting services comprised approximately 6% and 4% of our revenue for three
months ended March 31, 2022 and 2021, respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Software</i>. Our software is solutioned for
our key markets, SMB and enterprise customers. Our SMB customers become a natural funnel for our larger, more robust enterprise offerings
built on SAP and Microsoft. In either market, software revenue is generated from subscriptions and services related to the use of our
commercial software platforms, MJ Platform, Ample, Trellis, Viridian, and 365 Cannabis, our government regulatory platform, Leaf Data
Systems, and the sale of business intelligence, data analytics and other software related services. Software contracts are generally
quarterly or annual contracts paid monthly, quarterly, or annually in advance of service and cancellable upon 30 or 90 days&#8217; notice,
although we do have many multi-year commercial software contracts. Leaf Data Systems contracts are generally multi-year contracts payable
annually or quarterly in advance of service. Commercial software and Leaf Data Systems contracts generally may only be terminated early
for breach of contract as defined in the respective agreements. Amounts that have been invoiced are initially recorded as deferred revenue
or contract liabilities. Subscription revenue is recognized on a straight-line basis over the service term of the arrangement beginning
on the date that our solution is made available to the customer and ending at the expiration of the subscription term.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Consulting Services</i>. Consulting services
revenue is generated by providing solutions for operators in the pre-application of licensures and pre-operational phases of development.
These services include application and business plan preparation as they seek licenses to be granted. Consulting projects completed during
the pre-application phase generally solidify us as the software vendor of choice for subsequent operational phases once the operator
is granted the license. As a result, our consulting revenue is driven as new emerging states pass legislation, and as our client-operators
gain licenses. Accordingly, we expect our consulting services to grow over time as more states emerge with legalization reforms.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Other Revenue</i>. Our other revenue is derived
primarily from point-of-sale hardware and other non-recurring revenue.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Cost of Revenue and Operating Expenses</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Cost of Revenue</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our cost of revenue is derived from direct costs
associated with operating our commercial and government regulatory software platforms and providing consulting services. The cost of
revenue for our commercial and government regulatory platforms relates primarily to hosting and infrastructure costs and subcontractor
expenses incurred in connection with certain government contracts. Consulting cost of revenue relates primarily to our employees&#8217;
and consultants&#8217; salaries and other related compensation expenses. We record the cost of revenue using the direct cost method.
This method requires the allocation of direct costs including support services and materials to the cost of revenue.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 55; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->50<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Product Development Expenses</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our product development expenses include salaries
and benefits, nearshore contractor expenses, technology expenses, and other overhead related to the ongoing maintenance of our commercial
and government regulatory software platforms and planning for new software development. Product development costs, other than software
development expenses qualifying for capitalization, are expensed as incurred. Capitalized software development costs consist primarily
of employee-related costs. We devote substantial resources to enhancing and maintaining our technology infrastructure, developing new
and enhancing existing solutions, conducting quality assurance testing, and improving our core technology.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Sales and Marketing Expenses</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sales and marketing expense is primarily salaries
and related expenses, including commissions, for our sales, marketing, and client service staff. We also categorize payments to partners
and marketing programs as sales and marketing expenses. Marketing programs consist of advertising, events, such as trade shows, corporate
communications, brand building, and product marketing activities. We plan to continue to invest in marketing and sales by expanding our
domestic and international selling and marketing activities, building brand awareness, attracting new clients, and sponsoring additional
marketing events. The timing of these marketing events will affect our marketing costs in a particular quarter.&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We defer the portion of sales commissions that
is considered a cost of obtaining a new contract with a customer in accordance with the revenue recognition standard and amortize these
deferred costs over the period of benefit, currently one year. We expense the remaining sales commissions as incurred. The rates at which
sales commissions are earned varies depending on a variety of factors, including the nature of the sale (new, renewal, or add-on service
offering), the type of service or solution sold, and the sales channel.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>General and Administrative Expenses </i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our general and administrative expenses include
salaries and benefits and other costs of departments serving administrative functions, such as executives, finance and accounting, human
resources, public relations and investor relations. In addition, general and administrative expense includes non-personnel costs, such
as professional fees and other supporting corporate expenses not allocated to cost of revenue, product and development or sales and marketing.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Total Other (Income) Expense, Net</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total other (income) expense, net consists of
interest income on cash and cash equivalents, interest expense on our debt, quarterly remeasurement of the fair value of our convertible
notes and derivative liability, foreign currency gains and losses, and other nonoperating gains and losses.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b>Results
of Operations for the Three Months Ended March 31, 2022 Compared to Three Months Ended March 31, 2021</b></span>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table highlights the various sources
of revenues and expenses for the three months ended&#160;March 31, 2022&#160;as compared to the three months ended&#160;March 31, 2021:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; text-align: center">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Three Months Ended March 31,</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="white-space: nowrap; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">Change&#160;</p>Period over </td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; text-align: center">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">2022</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">2021</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Period</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Revenues:</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%">Software</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,508,513</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,795,153</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2,713,360</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">71</td><td style="width: 1%; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Consulting</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">427,009</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">172,747</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">254,262</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">147</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">15,319</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">46,124</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(30,805</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">(67</td><td style="padding-bottom: 1.5pt; text-align: left">)%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6,950,841</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,014,024</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,936,817</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">73</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt">Cost of revenues</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,203,671</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,454,167</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">749,504</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">52</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">Gross profit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,747,170</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,559,857</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,187,313</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">85</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; font-style: italic; text-align: left">Gross profit margin</td><td style="font-style: italic">&#160;</td>
    <td style="font-style: italic; text-align: left">&#160;</td><td style="font-style: italic; text-align: right">68</td><td style="font-style: italic; text-align: left">%</td><td style="font-style: italic">&#160;</td>
    <td style="font-style: italic; text-align: left">&#160;</td><td style="font-style: italic; text-align: right">64</td><td style="font-style: italic; text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Operating expenses:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Product development:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,105,361</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,424,100</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">681,261</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">48</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Sales and marketing</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,236,113</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,735,915</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,500,198</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">86</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">General and administrative</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,570,432</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,852,962</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">717,470</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">39</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,993,391</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,052,883</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">940,508</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">89</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt">Impairment of long-lived assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">15,478,521</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">15,478,521</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">nm</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Total operating expenses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">25,383,818</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,065,860</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">19,317,958</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">318</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt">Loss from operations</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(20,636,648</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(3,506,003</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(17,130,645</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt; text-align: right">489</td><td style="padding-bottom: 4pt; text-align: left">%</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">nm - percentage change not meaningful</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 56; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->51<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Revenue</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Software Revenue</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total software revenue&#160;increased&#160;to
$6.5&#160;million for the three months ended March 31, 2022&#160;from $3.8&#160;million for the three months ended March 31,&#160;2021,
for an&#160;increase&#160;of $2.7&#160;million, or 71%. Software revenue related to our enterprise offerings, Viridian and 365 Cannabis,
for the three months ended March 31, 2022 were $3.0 million, compared to $0 for the three months ended March 31, 2021 and software revenue
related to our non-enterprise offerings, which include MJ Platform, Ample, Trellis, Solo, and Leaf Data Systems, were $3.2 million for
the three months ended March 31, 2022 compared to $3.4 million for the three months ended March 31, 2021. There was also a slight decrease
in partnership and data revenue which was $0.2 million for the three months ended March 31, 2022 compared to $0.4 million during the same
period in the prior year. Software revenue accounted for 94% and 95% of total revenue for the three months ended March 31,&#160;2022&#160;and&#160;2021,
respectively. As indicated above, increase in software revenue during the three months ended March 31, 2022 as compared to the three months
ended March 31, 2021 was attributable to revenue generated from our enterprise offerings.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Consulting Revenue</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Consulting revenue includes revenue generated
from consulting services delivered to prospective and current cannabis, hemp and CBD businesses and business operators. Our consulting
revenue was $0.4&#160;million for the three months ended March 31, 2022&#160;compared to $0.2&#160;million for the three months ended
March 31, 2021, an increase of $0.2 million, or 147%. Consulting revenue was 6% and 4% of total revenue for the three months ended March
31, 2022&#160;and&#160;2021, respectively. Due to the nature of consulting revenue, our dependence on emerging market activity and the
ongoing pandemic as a driver of demand, the percentage of consulting revenue over total revenue has varied from period to period depending
on whether state legislation has expanded to allow new market entrants or growth of existing market participant operations.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Other Revenue</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other revenue includes retail/resale revenue,
which is generated from point-of-sale hardware. Other revenue was less than $0.1 million for the three months ended March 31, 2022 and
2021, respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>Cost of Revenue</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Our cost of revenue was
$2.2&#160;million for the three months ended March 31, 2022 compared to $1.5&#160;million for the three months ended March 31, 2021, an
increase of $0.7 million, or 52%. Total cost of revenue increased primarily as a result of an increase in hosting expenses of $0.3 million
and fees for SAP and Microsoft licenses in the amount of $0.5 million related to our acquisitions of Viridian and 365 Cannabis.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 57; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->52<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>Gross Profit</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Gross profit was $4.7
million for the three months ended March 31, 2022 compared to $2.6 million for the three months ended March 31, 2021, an increase of $2.2
million or 86%. Gross profit margin also increased from 64% for the three months ended March 31, 2021 to 68% for the three months ended
March 31, 2022. This improvement in gross margin was primarily due to operating synergies realized from our acquired assets, our ongoing
initiatives to drive operating effectiveness, and acquiring additional business-to-business customers, that have a higher gross margin.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>Operating Expenses</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><i>Product Development</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Product development expense
was $2.1&#160;million for the&#160;three months ended March 31,&#160;2022, compared to $1.4&#160;million for the&#160;three months ended
March 31,&#160;2021, an&#160;increase&#160;of $0.7&#160;million, or&#160;48%. Product development expense increased primarily due the
Viridian and 365 Cannabis acquisitions, which resulted in a $0.6 million increase in salary-related and contractor expenses for the three
months ended March 31,&#160;2022 compared to the same period in the prior year.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><i>Sales and Marketing</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.35pt; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Sales and marketing expense
was $3.2 million for the&#160;three months ended March 31, 2022, compared to $1.7 million for the&#160;three months ended March 31,&#160;2021,
an increase of $1.5 million, or 86%. The increase in sales and marketing expense is primarily related to the acquisitions of Viridian
and 365 Cannabis which resulted in an increase of $1.6 million in salary-related and contractor expenses for the three months ended March
31, 2022 compared to the three months ended March 31, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.35pt; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><i>General and Administrative</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">General and administrative
expense was $2.6&#160;million for the&#160;three months ended March 31,&#160;2022,&#160;compared to $1.9&#160;million for the&#160;three
months ended March 31, 2021, an increase of 0.7&#160;million, or 39%. The increase in general and administrative expense is primarily
related to the termination of our Las Vegas office space during the three months ended March 31, 2022, which resulted in a restructuring
charge of $0.5 million. There was also an increase of $0.1 million in salary-related and contractor expenses as well as bad debt expense
of $0.2 million for the three months ended March 31, 2022 compared to the same period in the prior year.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.35pt; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><i>Depreciation and Amortization</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Depreciation and amortization
expense increased to $2.0 million for the three months ended March 31, 2022 from $1.1 million for the three months ended March 31, 2021,
an increase of $0.9 million, or 89%. The increase in amortization expense is primarily attributable to the acquired intangible assets
from our Viridian and 365 Cannabis acquisitions in the amount of $0.6 million, which both occurred after March 31, 2021, as well as an
increase in capitalized software in the amount of $0.4 million.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><i>Impairment of long-lived
assets</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Due to a continued decline
in market conditions from December 31, 2021 to March 31, 2022, we recorded an impairment charge of $15.5 million on our non-enterprise
reporting unit during the three months ended March 31, 2022, compared to no impairment charge for the three months ended March 31, 2021
(see Note 9 - Goodwill and Intangible Assets, Net to the unaudited consolidated financial statements for the period ended March 31, 2022
for further discussion on the impairments recorded).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

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

</div><!-- Field: Page; Sequence: 58; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->53<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b>Results
of Operations for the Year Ended December 31, 2021 (audited) compared with the Year Ended December 31, 2020 (unaudited)</b></span>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table highlights the various sources
of revenues and operating expenses for the year ended December 31, 2021 as compared to the year ended December 31, 2020 (unaudited). The
results for the year ended December 31, 2020 were derived by combining the audited six-month transition period ended December 31, 2020
with Akerna&#8217;s three-month period ended March 31, 2020 and three-month period ended June 30, 2020:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Year Ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="text-align: center"><b>Change</b></td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2020<br/>
 (unaudited)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Period over <br/>
period</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Revenue</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%">Software</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">18,998,409</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">11,963,028</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">7,035,381</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">59</td><td style="width: 1%; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Consulting</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,510,413</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,739,683</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(229,270</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(13</td><td style="text-align: left">)%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Other revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">176,152</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">196,257</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(20,105</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">(10</td><td style="padding-bottom: 1.5pt; text-align: left">)%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">20,684,974</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">13,898,968</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6,786,006</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">49</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; padding-bottom: 1.5pt">Cost of revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,119,487</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,355,825</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,763,662</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">28</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">Gross profit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">12,565,487</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">7,543,143</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,022,344</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">67</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Operating Expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Product development</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6,271,966</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,129,814</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,142,152</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">22</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Sales and marketing</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">9,108,173</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">8,085,897</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,022,276</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">13</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">General and administrative</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">10,422,207</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">11,018,356</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(596,149</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(5</td><td style="text-align: left">)%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,735,150</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,223,844</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,511,306</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">78</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Impairment of long-lived assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,383,310</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,887,000</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,496,310</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">109</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: 1.5pt">Total operating expenses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">45,920,806</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">34,344,911</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,575,895</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">34</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Loss from operations</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(33,355,319</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(26,801,768</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(6,553,551</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt; text-align: right">24</td><td style="padding-bottom: 4pt; text-align: left">%</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">nm - percentage change not meaningful</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Total Revenue</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total revenue increased to $20.7 million for the
year ended December 31, 2021 from $13.9 million for the year ended December 31, 2020, an increase of $6.8 million, or 49%. The increase
in total revenue was driven primarily by growth in our software business of $7.0 million, or 59% compared to the prior period.&#160;The
growth in software was offset by a decline in consulting revenue of $0.2 million, or 13%, primarily a result of government shut-down related
to COVID-19 as discussed below.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Software Revenue</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total software revenue increased to $19.0 million
for the year ended December 31, 2021 from $12.0 million for the year ended December 31, 2020, for an increase of $7.0 million, or 59%.
Software revenue related to our enterprise offering, Viridian and 365 Cannabis, during the year ended December 31, 2021, were $4.8 million
compared to $0 in the prior year and software revenue related to our non-enterprise offerings, which include MJ Platform, Ample, Trellis,
Solo, and Leaf Data Systems, for the year ended December 31, 2021, were $12.8 million compared to $11.6 million in the prior year. There
was also in an increase in partnership and data revenue which was $1.4 million for the year ended December 31, 2021, compared to $0.4
million for the same period in the prior year. Software revenue accounted for 92% and 86% of total revenue in 2021 and 2020, respectively.
As indicated above, the increase in software revenue for the year ended December 31, 2021 was primarily attributable to our acquisitions
of Ample, Viridian, and 365 Cannabis.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 59; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->54<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Consulting Revenue</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Consulting revenue includes revenue generated
from consulting services delivered to prospective and current cannabis, hemp and CBD businesses and business operators. Our consulting
revenue was $1.5 million for the year ended December 31, 2021 compared to $1.7 million for the year ended December 31, 2020, a decrease
of $0.2 million, or 13%. Consulting revenue was 7% and 13% of total revenue for 2021 and 2020, respectively. Due to the nature of consulting
revenue, our dependence on emerging market activity as well as the ongoing pandemic as a driver of demand, the percentage of consulting
revenue over total revenue has varied from period to period depending on whether state legislation has expanded to allow new market entrants
or growth of existing market participant operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Other Revenue</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other revenue includes retail/resale revenue,
which was generated from point-of-sale hardware. Other revenue was $0.2 million for the years ended December 31, 2021 and 2020 and was
approximately 1% of total revenue for the years ended December 31, 2021 and 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Cost of Revenue </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cost of revenue increased to $8.1 million for
the year ended December 31, 2021 from $6.3 million for the year ended December 31, 2020, for an increase of $1.8 million, or 28%. Total
cost of revenue increased primarily as a result of our acquisitions of Ample, Viridian, and 365 Cannabis, the specific drivers being an
increase in hosting expenses by $1.6 million and fees for SAP and Microsoft licenses in the amount of $0.5 million. These increases from
acquisitions were partially offset by net savings of $0.6 million in Leaf Data Systems contractor costs during the year ended December
31, 2021 compared to the year ended December 31, 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Gross Profit</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Gross profit increased to $12.6 million for the
year ended December 31, 2021 from $7.5 million for the year ended December 31, 2020, for an increase of $5.0 million, or 67%. Gross margin
increased to 61% for the year ended December 31, 2021 from 54% for the year ended December 31, 2020. This improvement in gross margin
was primarily due to operating synergies realized from our acquired assets, our ongoing initiatives to drive operating effectiveness and
acquiring additional B2B customers, which have a higher gross margin.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Operating Expenses</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Product Development</i>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Product development expense increased to $6.3
million for the year ended December 31, 2021 from $5.1 million for the year ended December 31, 2020, for an increase of $1.2 million,
or 22%. Product development expense increased primarily due the acquisitions of Ample, Viridian, and 365 Cannabis which resulted in a
$1.4 million increase in salary-related expenses and a $0.3 million increase in stock compensation expense for the year ended December
31, 2021 compared to year ended December 31, 2020. These increases were partially offset by savings on contractor expenses in the amount
of $0.7 million.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Sales and Marketing</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sales and marketing expense increased to $9.1
million for the year ended December 31, 2021 from $8.1 million for the year ended December 31, 2020, for an increase of $1.0 million or
13%. The increase in sales and marketing expense is primarily related to the acquisitions of Ample, Viridian, and 365 Cannabis which resulted
in an increase of $1.0 million in salary-related expenses and a $0.1 million increase in stock compensation expense for the year ended
December 31, 2021 compared to year ended December 31, 2020. These increases were slightly offset by a reduction in external marketing
consulting costs as we moved more of our marketing initiatives in house.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 60; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->55<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>General and Administrative</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">General and administrative expense decreased to
$10.4 million for the year ended December 31, 2021 from $11.0 million for the year ended December 31, 2020, for a decrease of $0.6 million,
or 5%. This decrease was primarily related to a reduction in acquisition-related expenses of $2.9 million, as we completed two acquisitions,
Viridian and 365 Cannabis, during the year ended December 31, 2021 compared to three acquisitions, Solo, Trellis, and Ample, during 2020.
There was also a decrease of $0.6 million in rental expenses related to the termination of our office spaces in Denver in December 2020
and Toronto in June 2021, a decrease in financing fees of $0.9 million, and a decrease of $0.3 million in salary-related expenses as a
direct result of cost-saving measures placed into service during 2020.&#160;Partially offsetting these decreases is a $1.9 million increase
in restructuring charges during 2021 attributable to a lease settlement agreement for relinquishing office space in Toronto and the related
write off of leasehold improvements associated with the lease termination, as well as an increase of $0.6 million for legal, audit, tax
and other professional service fees as our business has continued to grow. We also had a $2.0 million change in fair value of contingent
consideration during the year ended December 31, 2020 related to the 2020 acquisitions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Depreciation and Amortization</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depreciation and amortization expense increased
to $5.7 million for the year ended December 31, 2021 from $3.2 million for the year ended December 31, 2020. The increase in amortization
expense is entirely related to the acquired intangible assets from our acquisitions completed in calendar year 2021 and 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Impairment of long-lived assets</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to a continued decline in market conditions
and declines in the operating results of our non-enterprise reporting unit, we recorded an impairment charge of $14.4 million during the
year ended December 31, 2021. During the year ended December 31, 2020, we recorded a $6.9 million impairment charges (see Note 6 - Goodwill
and Intangible Assets, Net to the audited consolidated financial statements for the year ended December 31, 2021 for further discussion
on the impairments recorded).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Results of Operations for the Six Months Ended
December 31, 2020 (audited) compared with the Six Months Ended December 31, 2019 (unaudited) </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table highlights the various sources
of revenues and operating expenses for the six months ended December 31, 2020 as compared to the six months ended December 31, 2019:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Six Months Ended<br/>
 December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="text-align: center"><b>Change</b></td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2019<br/>
 (unaudited)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Period over <br/>
period</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Revenue</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%">Software</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,766,985</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,802,654</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,964,331</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">41</td><td style="width: 1%; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Consulting</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">916,099</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,556,363</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(640,264</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(41</td><td style="text-align: left">)%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Other&#160;revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">141,700</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">140,076</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,624</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">1</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">7,824,784</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6,499,093</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,325,691</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">20</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; padding-bottom: 1.5pt">Cost of revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,141,041</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,994,940</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">146,101</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">5</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">Gross profit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,683,743</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,504,153</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,179,590</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">34</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Operating Expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Product development</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,166,088</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,234,403</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,931,685</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">156</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Sales and marketing</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,928,028</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,725,012</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">203,016</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">General and administrative</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,435,067</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,655,207</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(220,140</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(5</td><td style="text-align: left">)%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,007,237</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">104,667</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,902,570</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">nm</span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Impairment of long-lived assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,887,000</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,887,000</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">nm</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</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">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">20,423,420</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,719,289</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,704,131</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">nm</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Loss from operations</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(15,739,677</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(6,215,136</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(9,524,541</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt; text-align: right">153</td><td style="padding-bottom: 4pt; text-align: left">%</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">nm - percentage change not meaningful</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 61; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->56<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Total Revenue</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total revenue increased to $7.8 million for the
six months ended December 31, 2020 from $6.5 million for the six months ended December 31, 2019, an increase of $1.3 million, or 20%.
The increase in total revenue was driven primarily by growth in our software business of $2.0 million, or 41% compared to the prior period.
The growth in software was offset by a decline in consulting revenue of $0.6 million, or 41%, primarily a result of government shut-down
related to COVID-19 as discussed below.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Software Revenue</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total software revenue increased to $6.8 million
for the six months ended December 31, 2020 from $4.8 million for the six months ended December 31, 2019, for an increase of $2.0 million,
or 41%. Total software revenue increased $2.8 million primarily as a result of the acquisition of Ample, Trellis and Solo, offset by a
decline in government revenue of $0.4 million, primarily as a result of these contracts maturing to a run-and-maintain mode, and a decline
in other software revenue of $0.4 million. Total software revenue accounted for 86% and 74% of total revenue for the six months ended
December 31, 2020, and 2019, respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Consulting Revenue</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Consulting revenue includes revenue generated
from consulting services delivered to prospective and current cannabis, hemp and CBD businesses and business operators. Our consulting
revenue was $0.9 million for the six months ended December 31, 2020 compared to $1.6 million for the six months ended December 31, 2019,
a decrease of $0.6 million, or 41%. This decrease is mainly due to the impact of COVID-19. Consulting services are also correlated to
state legalizations and other regulatory expansion activity. As a result, individual year-over-year comparisons may experience variability
depending on the timing of recent legislative changes. During the COVID-19 pandemic and resulting shut-down, state legislatures have turned
their focus to the pandemic and tabled work on cannabis legislation, which resulted in delays in our providing consulting services during
the six months ended December 31, 2020. However, many state ballot initiatives were passed in the November 2020 election that provides
for new medical or adult-use marijuana. We expect, despite the slowing of our consulting activity experienced during the pandemic, we
will see increased demand for our services following the November 2020 election. As a sign consulting revenue is starting to rebound from
the impacts of the COVID-19 pandemic, consulting revenue increased to $0.6 million for the three months ended December 31, 2020 from $0.3
million for the three months ended September 30, 2020, an increase of $0.3 million, or 100%.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Consulting revenue was 12% and 24% of total revenue
for the six months ended December 31, 2020 and 2019, respectively. Due to the nature of consulting revenue and our dependence on emerging
market activity as well as the ongoing pandemic as a driver of demand, the quarters in which we recognize consulting revenue has varied
from year to year depending on whether state legislation has expanded to allow new market entrants or growth of existing market participant
operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Other Revenue</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other revenue includes retail/resale revenue,
which was generated from point-of-sale hardware. Other revenue was $0.1 million for the six months ended December 31, 2020 and $0.1 million
for the six months ended December 31, 2019. Other revenue was 2.0% and 2% of total revenue for the six months ended December 31, 2020
and 2019.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 62; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->57<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Cost of Revenue </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cost of revenue increased to $3.1 million for
the six months ended December 31, 2020 from $3 million for the six months ended December 31, 2019, for an increase of $0.1 million, or
5%. Total cost of revenue increased $0.4 million as a result of the acquisition of Ample, Trellis and Solo, offset by a decline in professional
services costs of $0.3 million due to declining use of third-party consulting firms for our government solution as a result of these contracts
maturing to a run-and-maintain mode.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Gross Profit</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Gross profit increased to $4.7 million for the
six months ended December 31, 2020 from $3.5 million for the six months ended December 31, 2019, for an increase of $1.2 million, or 34%.
Gross margin increased to 60% for the six months ended December 31, 2020 from 54% for the six months ended December 31, 2019. Total gross
profit increased $2.6 million as a result of the acquisition of Ample, Trellis and Solo, offset by the decline in consulting revenue of
$0.6 million, a decline government revenue of $0.4 million, primarily as a result of these contracts maturing to a run-and-maintain mode
and a decline in other software revenue of $0.4 million.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Operating Expenses</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Product Development</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Product development expense increased to $3.2
million for the six months ended December 31, 2020 from $1.2 million for the six months ended December 31, 2019, for an increase of $1.9
million, or 156%. The increase was due primarily to $1.3 million in employee-related costs from higher headcount and other operating cost
related to acquisitions. Stock compensation expense increased $0.4 million compared to the prior period. Software costs increased $0.3
million primarily a result of additional investment in information technology security and reporting tools and software hosting costs,
including data infrastructure.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Sales and Marketing</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sales and marketing expense increased to $3.9
million for the six months ended December 31, 2020 from $3.7 million for the six months ended December 31, 2019, for an increase of $0.2
million or 5%. Total sales and marketing expense increased $0.8 million as a result of the acquisition of Ample, Trellis and Solo, offset
by a decline other sales and marketing expense of $0.6 million primarily a result of decreased travel costs and a reduction in customer
event spend due primarily to cancelling all in-person customer activities and events as a result of the COVID-19 pandemic.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>General and Administrative</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">General and administrative expense decreased to
$4.4 million for the six months ended December 31, 2020 from $4.7 million for the six months ended December 31, 2019, for a decrease of
$0.2 million, or 5%. Total general and administrative expense increased $0.6 million as a result of the acquisition of Ample, Trellis
and Solo. Bad debt expense decreased $0.6 million during the six months ended December 31, 2020, as compared to the six months ended December
31, 2019, due to our improvement in the overall quality of our revenue and client portfolio, and the enhancement of our sales and marketing
team which has resulted in a steady decline in the number and amount of delinquent accounts. We recorded a benefit of $1.0 million to
reflect the estimated fair value of contingent consideration paid for our acquisition of Trellis and Ample. During 2020, we vacated certain
leased offices in the U.S. following the dislocation of our workforce because of the COVID-19 pandemic. As a result, we recorded a restructuring
charge of $0.4 million, which was recorded in general and administrative expenses. Stock compensation expenses increased $0.3 million
for the six months ended December 31, 2020, as compared to the six months ended December 31, 2019</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 63; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->58<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Depreciation and Amortization</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depreciation and amortization expense increased
to $2.0 million for the six months ended December 31, 2020 from $0.1 million for the six months ended December 31, 2019. Amortization
expense increased entirely as a result of acquired intangible assets from our acquisitions completed in calendar 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Impairment of long-lived assets</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of delays in executing on strategic
initiatives related to acquisitions completed in calendar 2020 we recorded a $6.9 million impairment adjustment during the six months
ended December 31, 2020. There were no similar charges during the six months ended December 31, 2019. A goodwill impairment charge of
$4.2 million was recorded related to our Ample reporting unit and an intangible asset charge of $2.7 million was recorded for intangible
assets acquired from our Solo transaction (see Note 6 - Goodwill and Intangible Assets, Net to the audited consolidated financial statements
for the six months ended December 31, 2019 for further discussion on the impairments recorded).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Non-GAAP Financial Measures</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to our results determined in accordance
with GAAP, we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP
financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP
financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past
financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations
as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance
with GAAP.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investors are cautioned that there are material
limitations associated with the use of non-GAAP financial measures as an analytical tool. Other companies, including companies in our
industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of
which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.&#160;We attempt to compensate for these
limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investors are encouraged to review the related
GAAP financial measures and the reconciliation of these non-GAAP financial measures with their most directly comparable GAAP financial
measures and not rely on any single financial measure to evaluate our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>EBITDA and Adjusted EBITDA</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that EBITDA and Adjusted EBITDA, when
considered with the consolidated financial statements determined in accordance with GAAP, are helpful to investors in understanding our
performance and allows for comparison of our performance and credit strength to our peers. EBITDA and Adjusted EBITDA should not be considered
alternatives to net loss as determined in accordance with GAAP as indicators of our performance or liquidity.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We define EBITDA as net loss before interest income
and expense, changes in fair value of convertible notes, changes in fair value of derivative liabilities, provision for income taxes,
and depreciation and amortization. We calculate Adjusted EBITDA as EBITDA further adjusted to exclude the effects of the following items
for the reasons set forth below:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr>
    <td style="width: 0.25in; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; width: 0.25in; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">impairment of long-lived assets, as this is a non-cash, non-recurring item, which effects the comparability of results of operations and liquidity;</span></td></tr>
  <tr>
    <td style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">stock-based compensation expense, as this represents a non-cash charge and our mix of cash and share-based compensation may differ from other companies, which effects the comparability of results of operations and liquidity;</span></td></tr>
</table><div>

</div><p style="margin: 0">&#160;</p><div>

</div><p style="margin: 0"></p><div>

</div><!-- Field: Page; Sequence: 64; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->59<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="margin: 0">&#160;</p><div>

</div><table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr>
    <td style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; width: 0.25in">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">costs incurred in connection with business combinations and mergers that are required to be expensed as incurred in accordance with GAAP, because business combination and merger related costs are specific to the complexity and size of the underlying transactions as well as the frequency of our acquisition activity these costs are not reflective of our ongoing operations; </span></td></tr>
  <tr>
    <td style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">costs incurred in connection with non-recurring financing, including fees incurred as a direct result of electing the fair value option to account for our debt instruments;</span></td></tr>
  <tr>
    <td style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">restructuring charges, which include costs to terminate a lease and the related writeoff of leasehold improvements and furniture, as we believe these costs are not representative of operating performance;</span></td></tr>
  <tr>
    <td style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">gain on forgiveness of PPP loan, as this is a one-time forgiveness of debt that is not recurring across all periods and we believe inclusion of the gain is not representative of operating performance;</span></td></tr>
  <tr>
    <td style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">equity in losses of investees because our share of the operations of investees is not representative of our own operating performance and may not be monetized for a number of years; </span></td></tr>
  <tr>
    <td style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and changes in the fair value of contingent consideration because these adjustments are not recurring across all periods and we believe these costs are not representative of operating performance.&#160;</span></td></tr>
  <tr>
    <td style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify">&#160;</td></tr>
  <tr>
    <td style="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="vertical-align: top; padding-top: 0.75pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">other non-operating expenses&#160;which includes a one-time gain on debt extinguishment and one-time loss on disposal of fixed assets, which effects the comparability of results of operations and liquidity;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The reconciliation of net loss to EBITDA and Adjusted
EBITDA is as follows:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year Ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Six Months Ended<br/>
 December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; font-style: italic">&#160;</td>
    <td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">(unaudited)</td><td style="font-weight: bold; font-style: italic">&#160;</td><td style="font-weight: bold; font-style: italic">&#160;</td>
    <td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">(unaudited)</td><td style="font-weight: bold; font-style: italic">&#160;</td><td style="font-weight: bold; font-style: italic">&#160;</td>
    <td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">(unaudited)</td><td style="font-weight: bold; font-style: italic">&#160;</td><td style="font-weight: bold; font-style: italic">&#160;</td>
    <td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">(unaudited)</td><td style="font-weight: bold; font-style: italic">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%; text-align: left">Net Loss</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(31,328,711</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(26,888,791</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(16,219,296</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(3,757,952</td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Interest expense (income)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,531,497</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">161,646</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">193,084</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(125,239</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Change in fair value of convertible notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,365,904</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">195,273</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">961,273</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Change in fair value of derivative liability</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(248,198</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(376,811</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(746,852</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(2,332,075</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Income tax expense (benefit)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(2,262,225</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">31,185</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">200</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">104,667</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt">Depreciation and amortization</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,735,150</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,223,844</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,007,237</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; padding-bottom: 1.5pt">EBITDA</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(25,206,583</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(23,653,654</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(13,804,354</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(6,110,599</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Impairment of long-lived assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">14,383,310</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6,887,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6,887,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Stock-based compensation expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,967,817</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,871,069</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,197,589</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">492,650</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Business combination and merger related costs</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">449,940</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,339,864</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,094,503</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">733,867</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Non-recurring financing fees</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">458,691</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,316,984</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">139,594</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Restructuring charges</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,419,908</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">490,146</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">490,146</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Changes in fair value of contingent consideration</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,991,000</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(993,000</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Gain on forgiveness of PPP loan</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(2,234,730</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Equity in losses of investee</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">7,564</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">16,335</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">12,643</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; padding-left: 0.25in; text-align: left">Other non-operating expense (income)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(186,177</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">59,397</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">59,271</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">130</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Adjusted EBITDA</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(7,940,260</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(11,663,859</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(4,916,608</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(4,883,952</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><!-- Field: Page; Sequence: 65; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->60<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended<br/>
 March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Net loss</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(21,952,893</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(6,457,703</td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Adjustments:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Interest expense (income)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">740</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">774,380</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Change in fair value of convertible notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,433,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,991,272</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Change in fair value of derivative liability</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(18,051</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">175,996</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Income tax expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(99,444</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6,270</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Depreciation and amortization</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,993,391</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,052,883</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; padding-left: 0.125in">EBITDA</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(18,643,257</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,456,902</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">Impairment of long-lived assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">15,478,521</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0.25in">Stock-based compensation expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">312,925</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">503,379</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 0.25in">Business combination and merger related costs (income)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(637</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">43,991</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0.25in">Non-recurring financing fees</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">27,954</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">17,884</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt; padding-left: 0.25in">Restructuring charges</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt; text-align: right">564,234</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt; text-align: right">47,187</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Equity in losses of investee</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,782</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Adjusted EBITDA</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(2,260,260</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(1,840,679</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Going Concern and Management's Liquidity
Plans</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the Financial Accounting Standards
Board&#8217;s (&#8220;FASB&#8221;) standard on going concern, Accounting Standard Update, or ASU No. 2014-15, The Company assesses going
concern uncertainty in its consolidated financial statements to determine if it has sufficient cash, cash equivalents and working capital
on hand, including marketable equity securities, and any available borrowings on loans, to operate for a period of at least one year from
the date the consolidated financial statements are issued, which is referred to as the &#8220;look-forward period&#8221; as defined by
ASU No. 2014-15. As part of this assessment, based on conditions that are known and reasonably knowable to The Company, it will consider
various scenarios, forecasts, projections, estimates and will make certain key assumptions, including the timing and nature of projected
cash expenditures or programs, and its ability to delay or curtail expenditures or programs, if necessary, among other factors. Based
on this assessment, as necessary or applicable, The Company makes certain assumptions around implementing curtailments or delays in the
nature and timing of programs and expenditures to the extent The Company deems probable those implementations can be achieved and it has
the proper authority to execute them within the look-forward period in accordance with ASU No. 2014-15.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial statements
have been prepared on the basis that we will continue as a going concern, which contemplates realization of assets and the satisfaction
of liabilities in the normal course of business. However, since our inception we have incurred recurring operating losses, used cash from
operations, and relied on capital raising transactions to continue ongoing operations. During the year ended&#160;December 31, 2021, six
months ended December 31, 2020, and year ended June 30, 2020, we incurred a loss from operations of $33.4&#160;million,&#160;$15.7 million,
and&#160;$17.3 million, respectively, and used cash in operations of $8.2 million, $8.7 million, and $14.3 million, respectively. At December
31, 2021, the Company had a working capital&#160;deficit of $10.9 million with $13.9 million in&#160;cash available to fund future operations.
During the three months ended March 31, 2022 and March 31, 2021, we incurred a loss from operations of $20.6 million and $3.5 million,
respectively, and used cash in operations of $3.6 million and $1.4 million, respectively. As of March 31, 2022, a working capital deficit
of $15.1 million with $9.7 million in cash available to fund future operations. These factors raise substantial doubt, as defined by GAAP,
about the ability of the Company to continue to operate as a going concern for the&#160;twelve&#160;months following the issuance of these
consolidated financial statements. These consolidated financial statements do not include any adjustments related to the recoverability
and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to
continue as a going concern.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 66; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->61<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 23, 2021, we entered into an Equity Distribution
Agreement with Oppenheimer &amp; Co.&#160;Inc. and A.G.P./Alliance Global Partners ("ATM Program"). Pursuant to the terms of
the ATM Program, we may offer and sell from time to time, up to $25&#160;million of shares of our common stock. As of December 31, 2021,
we have raised gross proceeds of $1.9&#160;million through the issuance of&#160;556,388&#160;shares through the ATM program. While no
assurance can be provided that we will be able to raise further capital under the program, we intend to use the net proceeds from the
sale of our shares of common stock, if any, for general corporate purposes, including working capital, marketing, product development,
capital expenditures and merger and acquisition activities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 5, 2021, we entered into a securities
purchase agreement with the&#160;two&#160;institutional investors that held the Company's convertible notes issued in June of&#160;2020&#160;(the
"2020&#160;Notes") to sell senior secured notes in a private placement (the "Senior Convertible Notes"). The Senior
Convertible Notes have an aggregate principal amount of $20&#160;million, an aggregate original issue discount of&#160;10%, and rank senior
to all our other outstanding and future indebtedness. Approximately $3.3&#160;million of the proceeds from the Senior Convertible Notes
were used to payoff the&#160;2020&#160;Notes, which were then to be cancelled. The net proceeds from the issuance of the Senior Convertible
Notes was approximately $14.6&#160;million, following the original issue discount and deductions for expenses and&#160;paydown&#160;of
the&#160;2020&#160;Notes. These net proceeds will be used to support&#160;Akerna's&#160;ongoing growth initiatives and continued investment
in current and future technology infrastructure. The Senior Convertible Notes are convertible into shares of common stock of&#160;Akerna&#160;at
a conversion price of $4.05&#160;per share.&#160;The Senior Convertible Notes mature on October 5, 2024 and are to be repaid in monthly
installments beginning on January 1, 2022. The Senior Convertible Notes can be repaid in common shares or cash.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management&#8217;s plan for the Company to continue
as a going concern includes raising additional capital from our ATM program, subject to certain effects on the Senior Convertible Notes
should we utilize the program, including resetting the conversion price of the Senior Convertible Notes should we raise more than $5 million
under the ATM program and an increase of 10% in the amount payable on the monthly installment payments if they are paid in cash and we
have used the ATM program in the 12 months prior to the installment date, settling our contingent consideration and Senior Convertible
Notes in common stock rather than cash as it comes due, to the extent that this is permissible, and implementing certain cost cutting
strategies throughout the organization, while continuing to seek to grow our customer base and realize synergies as we continue to integrate
our recent acquisitions. If the Company is unable to raise sufficient additional funds through the ATM Program and make it's convertible
debt payments in stock, it will have to develop and implement a plan to extend payables, reduce expenditures (including by laying off
employees and reducing or eliminating the funding of certain business units and initiatives of the Company), or scale back our business
plan until sufficient additional capital is raised through other equity or debt offerings to support further operations and satisfaction
of the debt, and the Company may be subject to additional risks, including retention of key employees. Such offerings may include the
issuance of shares of common stock, warrants to purchase common stock, preferred stock, convertible debt or other instruments that may
dilute our current stockholders. If we are required to raise additional capital as discussed above and if we cannot timely raise additional
funds, we may also be unable to meet the financial covenants of the Senior Convertible Notes, which could result in an event of default
under those instruments which could negatively impact the Company. See the risks detailed in our Form 10-K under &#8220;Item 1A. Risk
Factors - Risks Relating to our Convertible Debt&#8221;.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The ability of the Company to continue as a going
concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure
other sources of financing and attain profitable operations. We will require additional financing in the second quarter of 2022 to meet
our ongoing operational working capital requirements and continue to meet the financial covenants of the Senior Convertible Notes. As
noted above, we plan to meet those requirements in part through the use of our ATM Facility, but there are no guarantees that the ATM
Facility will permit us to raise sufficient cash to meet our ongoing requirements. We also assume that we will be able to pay our convertible
debt in common stock rather than cash, however if at any point our stock price is below $2.00 (which it is as of the date hereof), the
debt holders may request the payments in cash rather than stock. These factors raise substantial doubt about the Company&#8217;s ability
to continue as a going concern for one year from the issuance of the consolidated financial statements. If we are unable to raise sufficient
capital we may have to reduce operations which could significantly affect our results of operations. If we fail to meet the financial
covenants of the Senior Convertible Notes and cannot obtain a waiver from such provisions or otherwise come to an agreement with the holders
of our debt, such holders may declare a default on the debt which could subject our assets to seizure and sale, negatively impacting our
business. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification
of assets and liabilities that might be necessary if the Company is unable to continue as a going concern.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 67; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->62<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our corporate liquidity requirements primarily
include payroll costs and corporate general and administrative expenses and our current sources of corporate liquidity include the cash
on hand from our Senior Convertible Notes as well as the proceeds we anticipate from the access to our ATM Program. &#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Cash Flows</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our cash and restricted cash balance was $14.4
million and $18.3 million as of December 31, 2021 and 2020, respectively. Cash flow information are as follows:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended <br/>
December&#160;31,<br/>
 2021</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Six months<br/>
 ended <br/>
December&#160;31,<br/>
 2020</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Cash provided by (used in):</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; width: 76%; text-align: left">Operating activities</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(8,167,904</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(8,705,738</td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Investing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(10,485,085</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(7,139,047</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; padding-bottom: 1.5pt">Financing activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,736,252</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,532,380</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Effect of change in exchange rates on cash and restricted cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">18,623</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,783</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="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Net decrease&#160;in cash and restricted cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,898,114</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(6,315,188</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our cash and restricted cash balance was $10.2
million as of March 31, 2022. Cash flow information is as follows:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended <br/> March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</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">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</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">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Cash (used in) provided by:</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; width: 76%; text-align: left">Operating activities</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(3,585,394</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(1,373,818</td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Investing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(647,022</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(704,637</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; padding-left: 0.125in; text-align: left">Financing activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,615</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(333,847</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Effect of change in exchange rates on cash and restricted cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(8,544</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,579</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: 1.5pt">Net decrease in cash and restricted cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,246,575</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,413,881</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Operating Activities</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our largest source of operating cash is cash collections
from our customers for subscriptions to our products. Our primary uses of cash in operating activities are for employee-related expenditures,
marketing expenses and third-party hosting costs. Net cash used in operating activities is impacted by our net loss adjusted for certain
non-cash items, including depreciation and amortization expenses, change in fair value of convertible notes and derivative liabilities,
stock-based compensation, deferred income taxes, as well as the effect of changes in operating assets and liabilities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in operating activities totaled
$8.2 million during the year ended December 31, 2021 and $8.7 million during the six months ended December 31, 2020. For the year ended
December 31, 2021, cash was consumed from operations by a net loss of $31.3 million, less non-cash items of $24.0 million and a net change
in assets and liabilities of $0.8 million. For the six months ended December 31, 2020, cash was consumed from operations by a net loss
of $16.2 million, less non-cash items of $9.7 million and a net change in assets and liabilities of $2.2 million.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 68; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->63<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in operating activities increased
to $3.6&#160;million during the&#160;three months ended March 31, 2022, from $1.4&#160;million during the three months ended March 31,
2021, an&#160;increase&#160;of $2.2&#160;million. For the three months ended March 31, 2022, cash was consumed from operations by a net
loss of $22.0 million, less non-cash items of $19.5 million and a net change in assets and liabilities of $1.1 million. For the three
months ended March 31, 2021, cash was consumed from operations by a net loss of $6.5 million, less non-cash items of $4.6 million and
a net change in assets and liabilities of $0.5 million.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Investing Activities</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our primary investing activities have consisted
of capitalization of internal-use software necessary to deliver significant new features and functionality in our platform which provides
value to our customers. As our business grows, we expect our capital expenditures to continue to increase. Other investing activities
include cash outflows related to purchases of property and equipment, and from time-to-time, the cash paid for asset and business acquisitions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in investing activities totaled
$10.5 million during the year ended December 31, 2021, as a result of net cash paid as consideration for the 365 Cannabis acquisition
and amounts invested in the development of our software products. Net cash used by investing activities during the six months ended December
31, 2020 was $7.1 million as a result of amounts invested in the development of our software products and the net cash paid as consideration
for the acquisition of Ample.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in investing activities totaled
$0.6 million during the three months ended March 31, 2022, as a result of cash outflows for the development of our software products.
Net cash used by investing activities during the three months ended March 31, 2021, was $0.7 million which was also related to our software
development.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Financing Activities</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our financing activities have consisted primarily
of proceeds from issuance of our common stock, issuances of convertible debt and proceeds from the exercise of warrants.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash provided by financing activities totaled
$14.7 million during the year ended December 31, 2021 and represents cash proceeds of $18.0 million from the issuance of convertible debt
in October 2021, proceeds from our ATM program in the amount of $1.8 million partially offset by the value of shares withhold for tax
withholdings and payments on our convertible debt in the amount of $0.5 million and $4.6 million, respectively. Net cash provided by financing
activities was $9.5 million for the six months ended December 31, 2020, of which $12 million was related to the common stock offering
that closed on October 30, 2020, partially offset by $1.5 million&#160;in payments on our financing obligations and $1.0 million of offering
costs from issuing common stock.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in financing activities totaled
less than $0.1 million during the three months ended March 31, 2022 and $0.3 million for the three months ended March 31, 2021. During
both periods the cash used in financing activities was related to the value of shares withhold for tax withholdings.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>ATM Program</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 23, 2021, we entered into an Equity Distribution
Agreement with Oppenheimer &amp; Co. Inc. and A.G.P./Alliance Global Partners (the "ATM Program"). Pursuant to the terms of
the Agreement, we may offer and sell from time to time, up to $25 million of shares of our common stock. As of December 31, 2021, we have
raised gross proceeds of $1.9 million through the issuance of 556,388 shares through the ATM program.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 69; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->64<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Senior Secured Convertible Notes Issuance</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 5, 2021, we entered into a Securities
Purchase Agreement ("SPA") with the two institutional investors that held the Company's convertible notes issued on June 8,
2020 (the "2020 Notes") to sell a new series of senior secured notes in a private placement (the "Senior Convertible Notes").
The Senior Convertible Notes have an aggregate principal amount of $20,000,000, an aggregate original issue discount of 10%, and rank
senior to all our other outstanding and future indebtedness. Approximately $3.3 million of the proceeds from the Senior Convertible Notes
were used to payoff the 2020 Notes, which were then to be cancelled. The net proceeds from the issuance of the Senior Convertible Notes
was approximately $14.6 million, following the original issue discount and deductions for expenses and paydown of the 2020 Notes. These
net proceeds will be used to support Akerna's ongoing growth initiatives and continued investment in current and future technology infrastructure.
The Senior Convertible Notes are convertible into shares of common stock of Akerna at a conversion price of $4.05 per share. The Senior
Convertible Notes can be repaid in common shares or cash.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Maturity and Repayment Dates</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Senior Convertible Notes mature on October
5, 2024, or the Maturity Date. The principal amount is payable in monthly installments beginning on January 1, 2022. Unless deferred by
the holder, on installment dates from January 1, 2022 through, and including, June 1, 2023, $1.1 million in principal amount will be payable
and on installment date July 1, 2023, $0.2 million in principal amount will be payable. With respect to installment dates from August
1, 2023 through and including the maturity date of October 5, 2024, any deferred payments from prior installment dates will be payable.
We may not prepay any portion of the principal amount nor interest, if any.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Interest</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Senior Convertible Notes are being sold with
an original issue discount and do not bear interest except upon the occurrence of an Event of Default (described below), in which event
the applicable rate will be 15.0% per annum.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Conversion </i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Senior Convertible Notes are convertible at
any time in whole or in part, at the option of the Note Holders, into shares of the common stock at a rate equal to the amount of principal,
interest (if any) and unpaid late charges (if any), divided by a conversion price of $4.05, or the Conversion Price. The Conversion Price
is subject to standard adjustments in the event of any stock split, stock dividend, stock combination, recapitalization or other similar
transaction.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the occurrence of Events of
Default, the Note Holders will be entitled to convert all or any portion of the Senior Convertible Notes at an alternate conversion price
equal to the lower of (i) the conversion price then in effect, and (ii) 80% of the lower of (x) the volume-weighted average price, or
VWAP, of the common stock as of the trading day immediately preceding the applicable date of determination and (y) the quotient of (A)
the sum of the VWAP of the common stock for each of the two trading days with the lowest VWAP of the common stock during the ten consecutive
trading day period ending on and including the trading day immediately prior to the applicable date of determination, divided by (B) two,
but not less than the floor price of $0.54.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Events of Default</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Senior Convertible Notes are subject to certain
customary events of default, see Item 1A. &#8220;Risk Factors - Risks Related to our Convertible Debt&#8221; for a short discussion of
events of default under the Senior Convertible Notes.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Contractual Obligations</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For information concerning our contingent consideration,
convertible debt, and operating lease obligations, see Notes 4, 6, and 7, respectively, to our unaudited condensed consolidated financial
statements for the period ended March 31, 2022, which appear below.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Off-Balance Sheet Arrangements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 70; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->65<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Critical Accounting Policies and Significant
Judgments and Estimates</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our consolidated financial statements and the
related notes included in this prospectus are prepared in accordance with GAAP. The preparation of these consolidated financial statements
requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, and
related disclosures. To the extent that there are material differences between these estimates and actual results, our financial condition
or results of operations would be affected. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on
historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our actual results could
differ from these estimates.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Critical accounting policies and estimates are
those that we consider critical to understanding our historical and future performance, as these policies relate to the more significant
areas involving management's judgments and estimates.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Revenue Recognition</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We generate revenue through the sale of our cloud-based
software and the delivery of consulting services. Revenues are recognized when control of these services is transferred to our customers
in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition
through the following steps:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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">Identification of the contract, or contracts, with a customer</td>
</tr></table><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><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">Identification of the performance obligations in the contract</td>
</tr></table><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><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">Determination of the transaction price</td>
</tr><tr style="vertical-align: top; text-align: justify">
<td>&#160;</td><td style="text-align: left">&#160;</td><td style="text-align: justify">&#160;</td></tr>
     </table><div>

</div><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">Allocation of the transaction price to the performance obligations
in the contract</td>
</tr></table><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><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">Recognition of revenue when, or as, we satisfy a performance
obligation</td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We recognize subscription on a ratable basis over
the contract term beginning on the date that our service is made available to the customer. Our subscription contracts range from twelve
months to thirty-six months in duration, are billed in advance and are non-cancelable. We consider the access to our platform and related
support services in a customer contract to be a series of distinct services which comprise a single performance obligation because they
are substantially the same and have the same pattern of transfer. Amounts that have been invoiced are recorded in accounts receivable
and in deferred revenue or revenue, depending on whether transfer of control to customers has occurred. We record contract liabilities
to deferred revenue when cash payments are received or due. Deferred revenue consists of the unearned portion of customer billings.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Consulting revenue contracts have an initial set
of proprietary deliverables that are provided to clients upfront, which is considered a separate performance obligation. As such, 30%
of the contract value is recognized upfront when deliverables are provided, with the remaining recognized over the life of the contract
as the consulting services are performed.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Capitalized Software Development Costs</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We capitalize software development costs incurred
to develop functionality for our commercial software platforms and government regulatory software platform, as well as certain upgrades
and enhancements that are expected to result in enhanced functionality. These costs include personnel and related expenses for employees,
costs of third-party contractors and other services directly associated with the development projects. We capitalize certain software
development costs for new offerings as well as upgrades to our existing software platforms. We amortize these development costs over the
estimated useful life of two to five years on a straight-line basis. We believe there are two key estimates within the capitalized software
balance, which are the determination of the amounts to be capitalized and the determination of the useful life of the software.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We determine the amount of software development
costs to be capitalized based on the amount of time spent by our developers on projects in the application stage of development. Costs
associated with building or significantly enhancing our commercial software platform and our government regulatory platform are capitalized,
while costs associated with planning new developments and maintaining our software platforms are expensed as incurred. There is judgment
involved in estimating the time allocated to a particular project in the application stage as well as the determination of whether the
project is an enhancement to the existing software or maintenance thereof. A significant change in the time spent on each project or the
determination of the nature of projects involving existing software platforms could have a material impact on the amount capitalized and
related amortization expense in subsequent periods.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 71; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->66<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We determined that a two-to-five-year life is
appropriate for our capitalized software based on our best estimate of the useful life of the software after considering factors such
as continuous developments in the technology, obsolescence and anticipated life of the service offering before significant upgrades. Based
on our prior experience, software will generally remain in use for a minimum of two to five years before being significantly replaced
or modified to keep up with evolving client needs. While we do not anticipate any significant changes to this two-to-five-year estimate,
a change in this estimate could produce a material impact on our consolidated financial statements. For example, if we received information
that indicated the useful life of all software was one year rather than two to five, our capitalized software balance would materially
decrease, and our expense would materially increase.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Stock-Based Compensation</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Stock-based compensation for all employee and
non-employee stock-based awards, including restricted stock units and restricted stock, is measured at fair value on the date of grant
and recognized over the service period. The fair value of restricted stock units and restricted stock are calculated based on the fair
value of our common stock on the date of grant.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Stock-based compensation expense is recognized
over the requisite service periods of awards, which is typically one to four years for restricted stock units and restricted stock. The
estimated forfeiture rate applied to employee awards is based on historical forfeiture rates. The estimated number of stock-based awards
that will ultimately vest requires judgment, and to the extent actual results, or updated estimates, differ from our current estimates,
such amounts will be recorded as a cumulative adjustment in the period actual results are realized or estimates are revised. A higher
forfeiture rate will result in an adjustment that will decrease stock-based compensation expense, whereas a lower forfeiture rate will
result in an adjustment that will increase stock-based compensation expense. We do not apply a forfeiture rate assumption to value non-employee
awards, given the nature of the services provided.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Business Combinations</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We account for business acquisitions using the
purchase method of accounting, in accordance with which assets acquired and liabilities assumed are recorded at their respective fair
values at the acquisition date. Goodwill represents the excess of the purchase price over the estimated fair values of the assets acquired
and liabilities assumed.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Significant judgment is used in determining fair
values of assets acquired and liabilities assumed, as well as intangible assets and their estimated useful lives. Fair value and useful
life determinations are based on, among other factors, estimates of future expected cash flows attributable to the acquired intangible
assets and appropriate discount rates used in computing present values. Management applied significant judgement in estimating the fair
value of the acquired developed technology intangible asset, which involved significant estimates and assumptions with respect to forecasted
revenue growth rates, the revenue attributable to the acquired intangible asset over its estimated economic life and the discount rate.
These judgments may materially impact the estimates used in allocating the purchase price consideration to the fair value of assets acquired
and liabilities assumed, as well as our current and future operating results. Actual results may vary from these estimates that may result
in adjustments to goodwill and acquisition date fair values of assets and liabilities during a measurement period or upon a final determination
of asset and liability fair values, whichever occurs first. Adjustments to the fair value of assets acquired and liabilities assumed made
after the end of the measurement period are recorded within our operating results.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Contingent Consideration Liabilities</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ASC 805 requires that contingent consideration
be estimated and recorded at fair value as of the acquisition date as part of the total consideration transferred. Contingent consideration
is an obligation of the acquirer to transfer additional assets or equity interests to the selling shareholders in the future if certain
future events occur or conditions are met, such as the attainment of product development milestones. Contingent consideration also includes
additional future payments to selling shareholders based on achievement of components of earnings, such as &#8220;earn-out&#8221; provisions
or percentage of future revenues, including royalties paid to the selling shareholders based on a percentage of revenues generated from
CHI and Sera Labs over the contractual period.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 72; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->67<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of milestone-based contingent consideration
was determined using a scenario analysis valuation method which incorporates our assumptions with respect to the likelihood of achievement
of revenue and gross margin percentage milestones, as defined in the Sera Labs Merger Agreement, credit risk, timing of the contingent
consideration payments and a risk-adjusted discount rate to estimate the present value of the expected payments, all of which require
significant management judgment and assumptions. Since the contingent consideration payments are based on nonfinancial, binary events,
management believes the use of the scenario analysis method is appropriate.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of all contingent consideration
after the Sera Labs Merger Date is reassessed by us as changes in circumstances and conditions occur, with the subsequent change in fair
value recorded in our consolidated statements of operations. Changes in key assumptions can materially affect the estimated fair value
of contingent consideration liabilities and, accordingly, the resulting gain or loss that we record in our consolidated financial statements.
See Note 17 to our consolidated financial statements included elsewhere in this Report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Impairment of Goodwill and Acquired Intangible
Assets</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Goodwill is not amortized but rather tested for
impairment at least annually, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Goodwill
impairment is recognized when the carrying value of goodwill exceeds our implied fair value. Goodwill is evaluated for impairment annually
on October 31, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Acquisition intangible assets consist primarily
of technology, customer relationships and trade names. Purchased intangible assets are recorded at fair value on the date of acquisition
and amortized over their estimated useful lives following the pattern in which the economic benefits of the assets will be consumed, generally
straight-line. We continually evaluate whether events and circumstances have occurred that indicate the remaining estimated useful life
of amortizable long-lived assets may warrant revision or that the remaining balance may not be recoverable. When factors indicate that
acquisition intangible assets should be evaluated for possible impairment, we use an estimate of the related undiscounted future cash
flows over the remaining life of the amortizable long-lived assets in measuring whether they are recoverable. if the estimated undiscounted
future cash flows do not exceed the carrying value of the asset, a loss is recorded as the excess of the asset&#8217;s carrying value
over its fair value.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Determining if an impairment triggering event
has occurred (which may include, but is not limited to, a significant adverse change in customer demand or business climate or a significant
decrease in expected cash flows) requires significant management judgement.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Senior Convertible Notes</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We determined at the issuance of our Senior Convertible
Notes to elect the fair value option. At issuance, the carrying value of the Senior Convertible Notes was recorded at estimated fair value
calculated using probability weighted valuations of various settlement scenarios. The valuations of the various settlement outcomes were
calculated using Monte Carlo simulation models and discounted cash flow models. We remeasure the Senior Convertible Notes to estimated
fair value on each reporting period using valuation techniques similar to those applied at issuance. The change in the fair value resulting
from changes in instrument specific credit risk is recognized as other comprehensive income with the remainder of the change recognized
in current earnings. We believe key estimates used in accounting for the Senior Convertible Notes are the fair value at the reporting
period end as well as the determination of the portion of the change resulting from instrument specific credit risk, including assumptions
regarding the probability of various outcomes and the volatility of Akerna's common stock. A significant change in the probability weighting
or the volatility could have a material impact to the carrying value of the Senior Convertible Notes as well as the amount of change recognized
during the period in earnings.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 73; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->68<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Income Taxes </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Income taxes are accounted for using the asset
and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of
temporary differences between the carrying amounts and the tax basis of other assets and liabilities. We provide for income taxes at the
current and future enacted tax rates and laws applicable in each taxing jurisdiction. We use a two-step approach for recognizing and measuring
tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. We recognize
interest and penalties related to income tax matters in selling, general and administrative expenses in the consolidated statement of
operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We recognize deferred tax assets to the extent
that its assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative
evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies,
and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of
its net recorded amount, we will make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for
income taxes. &#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Going Concern Assessment</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">With the implementation of FASB&#8217;s standard
on going concern, ASU No. 2014-15, we assess going concern uncertainty in our consolidated financial statements to determine if we have
sufficient cash and cash equivalents on hand and working capital, including available loans or lines of credit, if any, to operate for
a period of at least one year from the date our consolidated financial statements are issued, which is referred to as the &#8220;look-forward
period&#8221; as defined by ASU No. 2014-15. As part of this assessment, based on conditions that are known and reasonably knowable to
us, we consider various scenarios, forecasts, projections, and estimates, and we make certain key assumptions, including the timing and
nature of projected cash expenditures or programs, and our ability to delay or curtail those expenditures or programs, if necessary, among
other factors. Based on this assessment, as necessary or applicable, we make certain assumptions around implementing curtailments or delays
in the nature and timing of programs and expenditures to the extent we deem probable those implementations can be achieved and we have
the proper authority to execute them within the look-forward period in accordance with ASU No. 2014-15.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Recent Accounting Pronouncements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Please refer to Note 2 - &#8220;Summary of Significant
Accounting Policies&#8221; to the consolidated financial statements for our discussion about new accounting pronouncements adopted and
those pending.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt"><b><i>&#160;</i></b></p><div>

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

</div><!-- Field: Page; Sequence: 74; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->69<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="a_018"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">DIRECTORS AND EXECUTIVE OFFICERS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Directors and Executive Officers</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td style="width: 35%; border-bottom: black 1.5pt solid; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Name</b></span></td>
    <td style="white-space: nowrap; width: 1%; text-align: justify">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; width: 7%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Age</b></span></td>
    <td style="white-space: nowrap; width: 1%; text-align: justify">&#160;</td>
    <td style="width: 56%; border-bottom: black 1.5pt solid; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Position</b></span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jessica Billingsley</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">44</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chairman of the Board and Chief Executive Officer<sup>(3)</sup></span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Scott Sozio</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">42</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director<sup>(2)</sup></span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Matthew R. Kane</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">41</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director<sup>(1)</sup></span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tahira Rehmatullah</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">40</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director<sup>(1)</sup></span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Barry Fishman</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">64</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director<sup>(3)</sup></span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Larry Dean Ditto, Jr.</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">56</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interim Chief Financial Officer</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ray Thompson</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">52</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Special Advisor to the Chief Executive Officer </span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">David McCullough</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">45</span></td>
    <td style="white-space: nowrap; text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Technology Officer</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class I director.</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class II director.</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class III director.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Jessica Billingsley</b> has served as Chief
Executive Officer and director since the consummation of our Business Combination on June 17, 2019, and Chairman of the Board since July
2019. Ms. Billingsley co-founded MJF, our wholly-owned subsidiary, in 2010 and served as President of MJF from 2010 to April 2018 and
Chief Executive Officer since May 2018. An early investor in one of Colorado&#8217;s first legal medical cannabis businesses, Ms. Billingsley
created the category of cannabis seed-to-sale technology after seeing the need first-hand. Prior to MJF, Ms. Billingsley was the founder
and chief executive officer of Zoco, a technology services firm with clients across the United States. Ms. Billingsley has 20 years of
technology and systems experience with rapidly scaling businesses, and founded her first business at the age of 22. Ms. Billingsley served
on the board of the National Cannabis Industry Association from 2012 &#8211; 2019 and currently serves as Chair of the Board of the United
States Cannabis Council. Ms. Billingsley was named one of Fortune&#8217;s 10 most promising women entrepreneurs in 2015 and named one
of Inc. Magazine&#8217;s 100 Female Founders in 2018. Ms. Billingsley holds a dual degree from the University of Georgia in Computer Science
and Communications. Ms. Billingsley was selected to serve on our Board based on her extensive experience with technology and systems companies,
broad experience in the telecommunications industry, and her background as an entrepreneur.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Scott Sozio</b> has served as a director since
October 2018, prior to the consummation of our merger on June 17, 2019. From October 2018 until the consummation of the merger on June
17, 2019, Mr. Sozio served as President and Secretary of Akerna. From September 2017 and until the merger in June 2019, Mr. Sozio served
as the chief executive officer and a director of MTech Acquisition Corp. Since July 2019, Mr. Sozio has served as Head of Corporate Development.,
Mr. Sozio is the co-founder of Hypur Ventures and since June 2016, has served as its managing director. Since April 2015, Mr. Sozio has
served as a director of Hypur Inc., a financial technology firm focused on banking compliance. Since September 2016, Mr. Sozio has served
as a director of Simplifya Holdings, LLC, a cannabis compliance technology business, both portfolio companies of Hypur Ventures. Since
February 2013, Mr. Sozio has served as a partner in Van Dyke Holdings, where he is responsible for its private investment portfolio. Prior
to joining Van Dyke Holdings, Mr. Sozio was a vice president of Bay Harbour Management L.C., a distressed-debt focused hedge fund. He
joined Bay Harbour in 2004 after working in the Financial Restructuring Advisory Group at CIBC World Markets. Mr. Sozio is the former
Chairman of Island One, Inc., a timeshare company based in Florida (from 2011 to 2012), and acquired by Diamond Resorts as part of Diamond&#8217;s
initial public offering, and a former director of Great Destinations, Inc., a timeshare sales business based in California (from 2013
to 2016), and acquired by Interval International in 2016. Mr. Sozio holds a B.A. in Architecture from Columbia University. Mr. Sozio was
selected to serve on our Board based on his extensive experience in finance and investment management and his broad experience with working
with cannabis companies.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Matthew R. Kane</b>&#160;has served as a director
since the consummation of our merger on June 17, 2019. Since December 2015, Mr. Kane has served as a director or MJF. In 2002, Mr. Kane
co-founded and served as co-chief executive officer of Green Shades Software, Inc., a human resources, payroll and tax reporting software
company, until 2019 where he has since served as a board member. Additionally, Mr. Kane has served as chief executive officer of Welltality,
a health care technology start-up, from 2014 to 2018, where he has since served as a board member. He received his bachelor&#8217;s degree
in Computer Information Systems from Jacksonville University in 2001, an MBA from the Warrington College of Business at the University
of Florida in 2006, and a Masters in Information and Data Service at the University of California, Berkeley in 2020. He previously served
for 11 years on the board of Jacksonville University from 2007 to May 2018 and was reappointed in 2019. Mr. Kane was selected to serve
on our Board based on his extensive experience in in the software technology applications industry.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 75; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->70<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Tahira Rehmatullah </b>has served as a director
since consummation of our merger on June 17, 2019. Since October 2018, prior to the merger and until consummation of the merger in June
2019, Ms. Rehmatullah served as Vice President and Treasurer. Since 2016, Ms. Rehmatullah has been president of T3 Ventures, a strategy
and management consulting firm. From September 2017 to June 2019, Ms.&#160;Rehmatullah was the chief financial officer of MTech Acquisitions
Inc. From 2016 to 2019, Ms. Rehmatullah was a managing director of Hypur Ventures, where she was responsible for portfolio company management
as well as investment sourcing and execution. From June 2017 to June 2018, Ms. Rehmatullah served as a director of Dope Media, a cannabis
media company and portfolio company of Hypur Ventures. Prior to joining Hypur Ventures, from 2014 to 2016 Ms. Rehmatullah served as the
general manager of Marley Natural, a cannabis brand based on the life and legacy of Bob Marley, where she was responsible for the brand
launch as well as managing its day-to-day operations. From 2014 to 2016, Ms. Rehmatullah served as an investment manager at Privateer
Holdings, a private equity firm with investments in the legal cannabis industry. Prior to her activities in the cannabis industry, from
2011 to 2012, Ms. Rehmatullah was a portfolio manager at City First Enterprises where she was responsible for underwriting, structuring
and managing deals for their community development and investment portfolio. From 2007 to 2011, Ms. Rehmatullah was an associate at Perry
Capital where she led research initiatives for the asset-backed securities team. Her career began in Ernst &amp; Young&#8217;s Financial
Services Advisory practice in 2005. Ms.&#160;Rehmatullah holds an M.B.A. from the Yale School of Management and a B.S. in Finance and
minor in Life Sciences from The Ohio State University. Ms. Rehmatullah was selected to serve on our Board based on her extensive experience
in finance and investment management and her broad experience working with cannabis companies.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Barry Fishman </b>has served as a director
since he was elected to the Board at the 2021 Annual Meeting of the Stockholders on June 7, 2021. Over the past two decades, Barry has
been the Chief Executive Officer of four life science companies (two listed on the Toronto Stock Exchange), including VIVO Cannabis from
2017-2020, Merus Labs International from 2014-2017, Teva Canada from 2003-2012 and Taro Canada from 2000-2003. From 1979-1982, Mr. Fishman
was a Senior Associate at Deloitte. Mr. Fishman has also served as a director of five public and three not-for-profit organizations. In
2015, Barry was inaugurated into the Canadian Healthcare Marketing Hall of Fame for his contributions to healthcare and exemplary service
to the community. Mr. Fishman is a Certified Public Accountant. Mr. Fishman holds a Bachelor degree in Communications from McGill University.
Mr. Fishman was selected to serve on our Board based on his extensive public company experience as both a Chief Executive Officer and
a director and based on his being a Certified Public Accountant who can provide better guidance on accounting issues and review on the
Company&#8217;s audit committee.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Larry Dean Ditto, Jr. </b>was appointed as
Interim Chief Financial Officer of Akerna effective May 17, 2022, and he has served as accounting and financial consultant for Akerna
since April 21, 2022. Mr. Ditto is the Chief Financial Officer (&#8220;CFO&#8221;) of Mydecine Innovations Group, Inc (&#8220;Mydecine&#8221;),
where he has served as CFO since December 2020 and will continue to serve as CFO concurrent to his service as the Company&#8217;s Interim
CFO. Prior to his service at Mydecine, Mr. Ditto served Sigue Corporation from June 2019 through December 2020. He was the company&#8217;s
CFO and, following his CFO tenure, also supported the company as a Financial Consultant. He served as the Vice President and Corporate
Controller of OSI Systems, Inc. from April 2018 through June 2019 and the CFO of DLH Davinci LLC (Dental Lab Holdings) from January 2016
through April 2018. Mr. Ditto holds a Bachelor of Arts in Economics and Management from Albion College and holds a Master of Business
Administration from the Kelley School of Business at Indiana University.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Ray Thompson</b> was appointed Special Advisor
to the Chief Executive Officer in May 2022, and he served as President and Chief Operating Officer of Akerna from January 2022 to May
2022 and Chief Operating Officer from November 2018 to January 2022. From November 2016 to January 2018, Mr. Thompson worked as the head
of customer and sales Operations for Gloo, a people development SaaS company. During that time, Mr. Thompson reported to the executive
team to develop and execute on market strategies, product offerings, financial projections, and talent management. From October 2008 to
October 2016, Mr. Thompson served as corporate senior vice president of VisionLink, a multiagency humanitarian software platform, managing
across all aspects of the business providing enterprise SaaS solutions to federal and state governments and international humanitarian
organizations. From 1996 to 2008, Mr. Thompson served in various executive sales and marketing roles across multiple technologies companies.
Mr. Thompson holds a Masters in Business Administration from the University of Denver.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 76; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->71<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>David McCullough </b>has served as Chief Technology
Officer of Akerna since July 1, 2020. Mr. McCullough has been with Akerna and MJF since 2015, previously serving as Akerna&#8217;s executive
vice president of product &amp; engineering. Before joining MJF, Mr. McCullough was the Chief Technology Officer of StudentPublishing.com,
during that time, he actively managed the technical aspects of Student Publishing&#8217;s sale to and system integration with lulu.com.
Mr. McCullough has over 16 years of software engineering experience, including extensive government systems experience. Mr. McCullough
has previously served as a professor at New Mexico State University where he taught courses in data communications and networking. Mr.
McCullough holds a master&#8217;s degree in Computer Science. MCSE, CCNP, A+. N+.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Board Qualifications</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Board has not formally established any specific,
minimum qualifications that must be met by each of its officers or directors or specific qualities or skills that are necessary for one
or more of its officers or members of the Board to possess. However, we expect to generally evaluate the following qualities: educational
background, diversity of professional experience, including whether the person is a current or was a former chief executive officer or
chief financial officer of a public company or the head of a division of a prominent organization, knowledge of our business, integrity,
professional reputation, independence, wisdom, and ability to represent the best interests of our stockholders.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our officers and the Board will be composed of
a diverse group of leaders in their respective fields. Many of these officers or directors have senior leadership experience at various
companies. In these positions, they have also gained experience in core management skills, such as strategic and financial planning, public
company financial reporting, compliance, risk management, and leadership development. Many of our officers and directors also have experience
serving on boards of directors and/or board committees of other public companies and private companies, and have an understanding of corporate
governance practices and trends, which provides an understanding of different business processes, challenges, and strategies. Further,
these officers and directors also have other experience that makes them valuable, such as managing and investing assets or facilitating
the consummation of business investments and combinations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We, along with our officers and directors, believe
that the above-mentioned attributes, along with the leadership skills and other experiences of our officers and board members described
above, provide us with a diverse range of perspectives and judgment necessary to facilitate our goals of shareholder value appreciation
through organic and acquisition growth.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Number and Terms of Office of Officers and
Directors</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Board is divided into three classes: Class
I; Class II; and Class III. The directors in Class&#160;I have a term expiring at this Annual Meeting and again at the 2025 annual meeting
of stockholders, the directors in Class II have a term expiring at the 2023&#160;annual meeting of stockholders, and the directors in
Class III have a term expiring at the 2024 annual meeting of stockholders. The Class I directors are Matthew R. Kane and Tahira Rehmatullah,
the Class II director is Scott Sozio, and the Class III directors are Jessica Billingsley and Barry Fishman.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our officers are appointed by the Board and serve
at the discretion of the Board, rather than for specific terms of office. Our Board is authorized to appoint persons to the offices set
forth in our Amended and Restated Bylaws as it deems appropriate.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Arrangements between Officers and Directors</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To our knowledge, there is no arrangement or understanding
between any of our officers and any other person, including Directors, pursuant to which the officer was selected to serve as an officer.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

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

</div><!-- Field: Page; Sequence: 77; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->72<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Family Relationships</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None of our Directors are related by blood, marriage,
or adoption to any other Director, executive officer, or other key employees. &#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Other Directorships</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None of the Directors of Akerna are currently
also directors of issuers with a class of securities registered under Section&#160;12 of the Exchange Act (or which otherwise are required
to file periodic reports under the Exchange Act). <b>&#160;</b>In the past five years, Mr. Fishman has served as a director to Merus Labs
International Inc., Aurora Cannabis Inc., Field Trip Health Ltd., and VIVO Cannabis Inc.; and Ms. Rehmatullah served as a director for
Good Works Acquisition Corp. from August 2020 to August 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Legal Proceedings</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are not aware of any of our directors or officers
being involved in any legal proceedings in the past ten years relating to any matters in bankruptcy, insolvency, criminal proceedings
(other than traffic and other minor offenses) or being subject to any of the items set forth under Item 401(f) of Regulation S-K.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Director Independence</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board evaluates the independence of each nominee
for election as a director of our Company in accordance with the Listing Rules (the &#8220;Nasdaq Listing Rules&#8221;) of the Nasdaq
Stock Market LLC (&#8220;Nasdaq&#8221;).&#160;Pursuant to these rules, a majority of our Board must be &#8220;independent directors&#8221;
within the meaning of the Nasdaq Listing Rules, and all directors who sit on our Audit Committee, Nominating Committee and Compensation
Committee must also be independent directors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Nasdaq definition of &#8220;independence&#8221;
includes a series of objective tests, such as the director or director nominee is not, and was not during the last three years, an employee
of the Company and has not received certain payments from, or engaged in various types of business dealings with, the Company.&#160;In
addition, as further required by the Nasdaq Listing Rules, the Board has made a subjective determination as to each independent director
that no relationships exist which, in the opinion of the Board, would interfere with such individual&#8217;s exercise of independent judgment
in carrying out his or her responsibilities as a director.&#160;In making these determinations, the Board reviewed and discussed information
provided by the directors with regard to each director&#8217;s business and personal activities as they may relate to Company and its
management.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result, the Board has affirmatively determined
that each of Matthew R. Kane, Tahira Rehmatullah, and Barry Fishman are independent in accordance with the Nadsaq Listing Rules. The Board
has also affirmatively determined that all members of our Audit Committee, Nominating Committee and Compensation Committee are independent
directors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="text-transform: uppercase"><b>&#160;</b></span></p><div>

</div><!-- Field: Page; Sequence: 78; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->73<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="a_019"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">EXECUTIVE COMPENSATION</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b>Summary
Compensation Table</b></span>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our named executive officers for the&#160;fiscal
year ended December&#160;31, 2021 are Jessica Billingsley, our Chief Executive Officer, John Fowle, our former Chief Financial Officer,
Ray Thompson, our former President and Chief Operating Officer, David McCullough, our Chief Technology Officer and Nina Simosko, our former
Chief Commercial Officer.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth all information
concerning the compensation earned, for the fiscal year ended December 31, 2021, six-month transition period ended December 31, 2020,
and for the fiscal year ended June 30, 2020 for services rendered to us by persons who served as our named executive officers at the end
of December 31, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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; padding-left: 0.25in; text-indent: -0.25in"><span style="font-size: 10pt"><b>Name and Principal Position</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Year</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Salary<br/>
($)</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Bonus<br/>
($)</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Stock<br/>
Awards<br/>
($)</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>All Other<br/>
Compensation<br/>
($)</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Total<br/>
($)</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-left: 0.25in; text-align: center; text-indent: -0.25in"><span style="font-size: 10pt"><b>(a)</b></span></td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: center"><span style="font-size: 10pt"><b>(b)</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: center"><span style="font-size: 10pt"><b>(c)</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: center"><span style="font-size: 10pt"><b>(d)</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: center"><span style="font-size: 10pt"><b>(e)</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: center"><span style="font-size: 10pt"><b>(i)</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: center"><span style="font-size: 10pt"><b>(j)</b></span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 28%; padding-left: 27pt; text-indent: -0.25in"><span style="font-size: 10pt">Jessica Billingsley</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: center">&#160;</td>
    <td style="width: 9%; text-align: center"><span style="font-size: 10pt">2021</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt">262,500</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt">201,866</span></td>
    <td style="width: 1%"><span style="font-size: 10pt"><sup>(22)</sup></span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt">108,200</span></td>
    <td style="width: 1%"><span style="font-size: 10pt"><sup>(1)</sup></span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt">11,774</span></td>
    <td style="width: 1%"><span style="font-size: 10pt"><sup>(2)</sup></span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt">584,340</span></td>
    <td style="width: 1%">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 0.5in; text-indent: -0.25in"><span style="font-size: 10pt"><i>Chief Executive Officer</i></span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt">2020 TP</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">125,000</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">81,625</span></td>
    <td><span style="font-size: 10pt"><sup>(3)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">125,450</span></td>
    <td><span style="font-size: 10pt"><sup>(4)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">740</span></td>
    <td><span style="font-size: 10pt"><sup>(5)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">332,815</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 0.25in; text-indent: -0.25in">&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt">2020</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">250,000</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">54,750</span></td>
    <td><span style="font-size: 10pt"><sup>(6)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">153,474</span></td>
    <td><span style="font-size: 10pt"><sup>(7)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">21,780</span></td>
    <td><span style="font-size: 10pt"><sup>(8)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">480,004</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 27pt; text-indent: -0.25in"><span style="font-size: 10pt">Nina Simosko<sup>(9)</sup>&#160;</span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt">2021</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">200,000</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">83,200</span></td>
    <td><span style="font-size: 10pt"><sup>(10)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">283,200</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.5in; text-indent: -0.25in"><span style="font-size: 10pt"><i>Former Chief</i></span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt">2020 TP</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">100,000</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">94,200</span></td>
    <td><span style="font-size: 10pt"><sup>(11)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">194,200</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.5in; text-indent: -0.25in"><span style="font-size: 10pt"><i>Commercial Officer</i></span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt">2020</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">154,545</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">999,996</span></td>
    <td><span style="font-size: 10pt"><sup>(12)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">1,154,541</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 27pt; text-indent: -0.25in"><span style="font-size: 10pt">John Fowle<sup>(13)</sup></span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt">2021</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">200,000</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">83,200</span></td>
    <td><span style="font-size: 10pt"><sup>(14)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">283,200</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 0.5in; text-indent: -0.25in"><span style="font-size: 10pt"><i>Former Chief</i></span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt">2020 TP</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">100,000</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">94,200</span></td>
    <td><span style="font-size: 10pt"><sup>(15)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">194,200</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 0.5in; text-indent: -0.25in"><span style="font-size: 10pt"><i>Financial Officer</i></span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt">2020</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">106,250</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">799,997</span></td>
    <td><span style="font-size: 10pt"><sup>(16)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">906,247</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 27pt; text-indent: -0.25in"><span style="font-size: 10pt">Ray Thompson</span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt">2021</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">200,000</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">83,200</span></td>
    <td><span style="font-size: 10pt"><sup>(17)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">283,200</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.5in; text-indent: -0.25in"><span style="font-size: 10pt"><i>Former Chief Operating Officer</i></span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt">2020 TP</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">100,000</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">94,200</span></td>
    <td><span style="font-size: 10pt"><sup>(18)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">194,200</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 27pt; text-indent: -0.25in"><span style="font-size: 10pt">David McCullough</span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt">2021</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">200,000</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">60,075</span></td>
    <td><span style="font-size: 10pt"><sup>(19)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">83,200</span></td>
    <td><span style="font-size: 10pt"><sup>(20)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">343,275</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 0.5in; text-indent: -0.25in"><span style="font-size: 10pt"><i>Chief Technology Officer</i></span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt">2020 TP</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">100,000</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">94,200</span></td>
    <td><span style="font-size: 10pt"><sup>(21)</sup></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">194,200</span></td>
    <td>&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the year ended 2021, Ms. Billingsley was awarded 20,000 restricted stock units with a grant date fair value of $83,200. These awards
vest 25% annually on December 1 with the final vesting occurring on December 1, 2024. As compensation for the 2021 fiscal year, Ms. Billingsley
was also awarded a discretionary bonus of 22,322 restricted shares with a grant date fair value of $25,000. These shares fully vested
on April 12, 2022.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to cash and stock awards, Ms. Billingsley may redeem loyalty awards generated by corporate purchases made on certain credit
cards for her personal use. During the year ended 2021, Ms. Billingsley redeemed $11,774 in loyalty awards for her personal use.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to Ms. Billingsley&#8217;s employment agreement with Akerna, she is eligible for a bonus that is determined by the Board on the basis
of fulfillment of the objective performance criteria established in its discretion. For the transition period 2020, the transition period
bonus was determined based Akerna&#8217;s relative performance against budgeted targets, as further described below. The Board evaluated
the achievement of these targets and Ms. Billingsley&#8217;s transition period 2020 bonus amount was $81,625.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the transition period 2020, Ms. Billingsley was awarded 20,000 restricted stock units with a grant date fair value of $94,200. These
awards vest 25% annually on July 1 with the final vesting occurring on July 1, 2024. As compensation for the 2020 transition period,
Ms. Billingsley was also awarded a discretionary bonus of 7,548 restricted shares with a grant date fair value of $31,250. These shares
fully vested on April 26, 2021.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to cash and stock awards, Ms. Billingsley may redeem loyalty awards generated by corporate purchases made on certain credit
cards for her personal use. During the transition period 2020, Ms. Billingsley redeemed $740 in loyalty awards for her personal use.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 79; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->74<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to Ms. Billingsley&#8217;s employment agreement with Akerna, she is eligible for an annual bonus that is determined by the Board on the
basis of fulfillment of the objective performance criteria established in its discretion. For the 2020 fiscal year, the annual bonus
was determined based Akerna&#8217;s relative performance against budgeted targets, as further described below. The Board evaluated the
achievement of these targets and Ms. Billingsley&#8217;s 2020 annual bonus amount was $54,750.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(7)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
2020, Ms. Billingsley was awarded 10,000 restricted stock units with a grant date fair value of $57,900. These awards vest 25% annually
on July 1 with the final vesting occurring on July 1, 2023. Ms. Billingsley was awarded share-based compensation that was conditioned
upon the price of a share of our Common Stock achieving a specified total return as of June 30, 2020. This award had a grant date fair
value of $12,465. The total return target was not achieved, as such no shares will be issued pursuant to this award. Ms. Billingsley
was also awarded a share based annual bonus award of 19,694 shares of Common Stock. This award had a grant date fair value of $83,109.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(8)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to cash and stock awards, Ms. Billingsley may redeem loyalty awards generated by corporate purchases made on certain credit
cards for her personal use. During 2020, Ms. Billingsley redeemed $21,780 in loyalty awards for her personal use.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(9)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ms.
Simosko became Chief Revenue Officer of Akerna on September 23, 2019, her title was subsequently changed to Chief Commercial Officer
without any change in duties or compensation. Ms. Simosko ceased to be the Chief Commercial Officer on January 31, 2022.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(10)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the year ended 2021, Ms. Simosko was awarded 20,000 restricted stock units with a grant date fair value of $83,200. These awards vest
25% annually on December 1 with the final vesting occurring on December 1, 2024.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(11)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the transition period 2020, Ms. Simosko was awarded 20,000 restricted stock units with a grant date fair value of $94,200. These awards
vest 25% annually on July 1 with the final vesting occurring on July 1, 2024.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(12)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
2020, Ms. Simosko was awarded 125,156 restricted stock units with a grant date fair value of $999,996, these awards vest 25% annually
on the grant date anniversary in each of the subsequent four years.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(13)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
Fowle became Chief Financial Officer of Akerna on December 17, 2019. Mr. Fowle ceased to be the Chief Financial Officer on May 17, 2022.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(14)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the year ended 2021, Mr. Fowle was awarded 20,000 restricted stock units with a grant date fair value of $83,200. These awards vest 25%
annually on December 1 with the final vesting occurring on December 1, 2024.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(15)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the transition period 2020, Mr. Fowle was awarded 20,000 restricted stock units with a grant date fair value of $94,200. These awards
vest 25% annually on July 1 with the final vesting occurring on July 1, 2024.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(16)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
2020, Mr. Fowle was awarded 72,727 restricted stock units with a grant date fair value of $799,997, these awards vest 25% annually on
the grant date anniversary in each of the subsequent four years.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(17)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the year ended 2021, Mr. Thompson was awarded 20,000 restricted stock units with a grant date fair value of $83,200. These awards vest
25% annually on December 1 with the final vesting occurring on December 1, 2024.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(18)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the transition period 2020, Mr. Thompson was awarded 20,000 restricted stock units with a grant date fair value of $94,200. These awards
vest 25% annually on July 1 with the final vesting occurring on July 1, 2024.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(19)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the year ended 2021, Mr. McCullough was awarded a discretionary cash bonus of $60,075.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(20)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the year ended 2021, Mr. McCullough was awarded 20,000 restricted stock units with a grant date fair value of $83,200. These awards vest
25% annually on December 1 with the final vesting occurring on December 1, 2024.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 80; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->75<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(21)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the transition period 2020, Mr. McCullough was awarded 20,000 restricted stock units with a grant date fair value of $94,200. These awards
vest 25% annually on July 1 with the final vesting occurring on July 1, 2024.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(22)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to Ms. Billingsley&#8217;s employment agreement with Akerna, she is eligible for a bonus that is determined by the Board on the basis
of fulfillment of the objective performance criteria established in its discretion. For the year ended 2021, the bonus was determined
based Akerna&#8217;s relative performance against budgeted targets, as further described below. The Board evaluated the achievement of
these targets and Ms. Billingsley&#8217;s 2021 fiscal year bonus amount was $201,866.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Employment Agreements</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Jessica Billingsley</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the consummation of the mergers
on June 17, 2019, Ms. Billingsley and Akerna entered into an employment agreement, dated June 17, 2019 (the &#8220;<b>Billingsley Employment
Agreement</b>&#8221;). Under the terms of the Billingsley Employment Agreement, Ms. Billingsley serves at the Chief Executive Officer
of Akerna at will, and must devote substantially all of her working time, skill and attention to her position and to the business and
interests of Akerna (except for customary exclusions).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Akerna pays Ms. Billingsley an annual base salary
in the amount of $250,000. The base salary is subject to (1)&#160;review at least annually by the Board for increase, but not decrease,
and (2) automatic increase by an amount equal to $50,000 from its then current level on the date upon which Akerna&#8217;s aggregate,
gross consolidated trailing twelve month (TTM) revenue equals the product of (x) two <span style="text-decoration:underline">multiplied</span> by (y) Akerna&#8217;s TTM revenue
as of the Closing. Effective October 1, 2021, Ms. Billingsley&#8217;s annual base salary was increased to $300,000. Within ten days of
the consummation of the Merger Agreement, Akerna paid Ms. Billingsley a completion award in a single lump sum of $95,000.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Ms. Billingsley will be eligible for an annual
bonus (the &#8220;Annual Bonus&#8221;) with respect to each fiscal year ending during her employment. Her target annual cash bonus shall
be in the amount of one hundred percent (100%) of her base salary (the &#8220;Target Bonus&#8221;) with the opportunity to earn greater
than the Target Bonus upon achievement of above target performance. The amount of the Annual Bonus shall be determined by the Board on
the basis of fulfillment of the objective performance criteria established in its reasonable discretion. The performance criteria for
any particular fiscal year shall be set no later than ninety days after the commencement of the relevant fiscal year. For the 2021 fiscal
year, the Annual Bonus shall be determined based upon four (4) budget components (B2B Software Revenue, B2G Software Revenue, Services
Revenue and Adjusted EBITDA) and NPS Scores With regards to the budget components, each scales linearly between achieving 75% to 100%,
and greater than 100% with respect to the B2B Software Revenue, B2G Software Revenue, and Adjusted EBITDA target budget components respectively,
of the applicable fiscal year&#8217;s budget for each such component (with 50% of the Target Bonus payable upon achievement of 75% of
budget, 100% of the Target Bonus payable upon achievement of budget (and, with respect to the B2B Software Revenue, B2G Software Revenue,
and Adjusted EBITDA budget components, with 200% of each weighted portion of the Target Bonus payable upon achievement of 125% of the
corresponding component of budget, with linear interpolation between points. Accelerator to be paid at the discretion of the Board of
Directors in cash, stock, or both. For the transition period 2020 and the 2020 fiscal year, the Annual Bonus was determined based upon
the following four (4) budget components, each of which scales linearly between achieving 75% to 100%, and greater than 100% with respect
to the Platform Recurring Revenue (as defined in Billingsley Employment Agreement) and Government Recurring Revenue (as defined in Billingsley
Employment Agreement) budget components respectively, of the applicable fiscal year&#8217;s budget for each such component (with 50% of
the Target Bonus payable upon achievement of 75% of budget, 100% of the Target Bonus payable upon achievement of budget (and, with respect
to the Platform Recurring Revenue and Government Recurring Revenue budget components, with 200% of each weighted portion of the Target
Bonus payable upon achievement of 125% of the corresponding component of budget, with linear interpolation between points)). During the
fiscal year ended June 30, 2020, due to achieving targets Ms. Billingsley received a bonus of $54,750 and she received a discretionary
share bonus of $90,000 worth of the Company&#8217;s shares of Common Stock based on the 10-day volume weighted average price as of the
date of the award, which resulted in the issuance of 19,694 shares of Common Stock with a grant date fair value of $83,109. During the
transition period ended December 31, 2020, due to achieving targets Ms. Billingsley received a bonus of $81,625.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 81; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->76<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Ms. Billingsley is entitled to participate in
annual equity awards and employee benefits. She is indemnified by Akerna to for any and all expenses (including advancement and payment
of attorneys&#8217; fees) and losses arising out of or relating to any of her actual or alleged acts, omissions, negligence or active
or passive wrongdoing, including, the advancement of expenses she incurs. The foregoing indemnification is in addition to the indemnification
provided to her by Akerna pursuant to her Indemnification Agreement.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event of Ms. Billingsley&#8217;s termination
for cause or without good reason, Akerna will be obligated to pay any accrued but unpaid base salary and any annual bonus earned and awarded
for the fiscal year prior to that in which the termination occurs. In the event of Ms. Billingsley&#8217;s termination without cause or
with good reason, Akerna will be obligated to pay any accrued but unpaid base salary, any annual bonus earned and awarded for the fiscal
year prior to that in which the termination occurs, a cash severance payment equal to her base salary, pro-rated annual bonus for the
fiscal year in which the termination occurs through the date of termination, and twelve months of health benefits.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Billingsley Employment Agreement also contains
noncompetition and non-solicitation provisions that apply through her employment and for a term of one year thereafter, and which are
in addition to the noncompetition and non-solicitation provisions prescribed under a certain Non-Competition Agreement between Ms. Billingsley
and Akerna. The Billingsley Employment Agreement also contains a non-disparagement provision that apply through her employment and for
a term of two years thereafter.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>John Fowle</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 17, 2019, Mr. Fowle entered into a
letter agreement with Akerna. Mr. Fowle served as the Chief Financial Officer of Akerna at will. Akerna paid Mr. Fowle an annual base
salary of $200,000 in 2021. At the Board&#8217;s discretion, Mr. Fowle may be eligible for a bonus. Under the Company&#8217;s 2022 executive
compensation structure, Mr. Fowle received a base salary of $250,000 and Mr. Fowle&#8217;s performance target annual cash bonus was to
be 25% of his base salary. Mr. Fowle received a grant of approximately $800,000 of restricted stock units, which will vest as to 25% on
the first anniversary of the grant date, as to the next 25% on the second anniversary of the grant date, as to the next 25% on the third
anniversary of the grant date and as to the remaining 25% on the fourth anniversary of the grant date. Mr. Fowle was entitled to participate
in employee benefits. Upon a change of control transaction, Mr. Fowle&#8217;s unvested restricted stock units or any other equity interests
that he may be granted, will immediately vest. If Mr. Fowle&#8217;s employment is terminated by Akerna without cause or by him with good
reason, he is entitled to his base salary through the date of termination.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Akerna entered into an Employee Covenant Agreement
with Mr. Fowle, which obligates Mr. Fowle from disclosing any confidential information, including without limitation, trade secrets. The
agreement also prohibits Mr. Fowle during the term of his employment and for a period of two years after his employment from soliciting
any customer, client, employee, supplier or vendor of Akerna, and rendering any services or giving advice to any competitor or affiliate
of a competitor. The agreement also requires Mr. Fowle to return all Akerna property and disclose all work product to Akerna.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 11, 2022, Akerna and Mr. Fowle agreed to
a mutual separation effective as of May 17, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Larry Dean Ditto, Jr.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Prior to Mr. Ditto&#8217;s
appointment as Interim CFO, the Company and Mr. Ditto entered into a consultant agreement dated April 21, 2022 (the &#8220;Consulting
Agreement&#8221;). Pursuant to the Consulting Agreement, Mr. Ditto has agreed to perform certain financial and accounting related services.
The Company will pay Mr. Ditto a monthly fee of $12,000 for performance of services up to 80 hours per calendar month. If Mr. Ditto performs
more than 240 hours of service per calendar quarter, Mr. Ditto will be paid $150 per hour for additional services performed exceeding
240 hours per calendar quarter, subject to the Company&#8217;s approval of such additional services. In the event that Mr. Ditto becomes
a full-time employee during the term of the Consulting Agreement, the Company will grant Mr. Ditto restricted stock units that are valued
at $25,000 and will immediately vest upon the grant. Unless terminated by either party in accordance with the Consulting Agreement, the
Consulting Agreement will terminate after 12 months. The term of the Consulting Agreement can be extended by mutual agreement between
the Company and Mr. Ditto. Mr. Ditto is also eligible for a one-time $18,000 bonus if an acquisition of the Company occurs, subject to
certain terms and conditions. Mr. Ditto&#8217;s compensation as described above under the Consulting Agreement has not changed as a result
of his appointment as Interim CFO.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 82; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->77<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Ray Thompson</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 19, 2018, Mr. Thompson entered into
a letter agreement with Akerna&#8217;s wholly owned subsidiary MJ Freeway LLC. Mr. Thompson served as the President and Chief Operating
Officer of Akerna at will. Akerna paid Mr. Thompson an annual base salary of $200,000 in 2021. As part of his appointment as the Company&#8217;s
President under the Company&#8217;s 2022 executive compensation structure, Mr. Thompson received an annual base salary of $275,000 and
Mr. Thompson&#8217;s performance target annual cash bonus shall be 25% of his base salary. At the Board&#8217;s discretion, Mr. Thompson
may be eligible for a bonus. Upon a change of control transaction, Mr. Thompson&#8217;s unvested restricted stock units or any other equity
interests that he may be granted, will immediately vest. If Mr. Thompson&#8217;s employment is terminated by Akerna without cause or by
him with good reason, he is entitled to his base salary through the date of termination.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Akerna entered into an Employee Covenant Agreement
with Mr. Thompson, which obligates Mr. Thompson from disclosing any confidential information, including without limitation, trade secrets.
The agreement also prohibits Mr. Thompson during the term of his employment and for a period of two years after his employment from soliciting
any customer, client, employee, supplier or vendor of Akerna, and rendering any services or giving advice to any competitor or affiliate
of a competitor. The agreement also requires Mr. Thompson to return all Akerna property and disclose all work product to Akerna.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 16, 2022, Akerna and Mr. Thompson agreed
to a transition, effective immediately, by which Mr. Thompson will move from his current role as President and Chief Operating Officer
to Special Advisor to the Chief Executive Officer. In that role, Mr. Thompson will continue to assist the Chief Executive Officer with
certain of the day-to-day operations of the Company and advise the Company on various aspects of corporate strategy.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>David McCullough</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. McCullough does not have a formal letter agreement
with Akerna in relation to his employment as the Chief Technology Officer. Akerna paid Mr. McCullough an annual base salary of $200,000
for 2021. Under the Company&#8217;s 2022 executive compensation structure, Mr. McCullough will receive a base salary of $250,000 and Mr.
McCullough&#8217;s performance target annual cash bonus shall be 25% of his base salary. At the Board&#8217;s discretion, Mr. McCullough
may be eligible for a bonus. Upon a change of control transaction, Mr. McCullough&#8217;s unvested restricted stock units or any other
equity interests that he may be granted, will immediately vest. If Mr. McCullough&#8217;s employment is terminated by Akerna without cause
or by him with good reason, he is entitled to his base salary through the date of termination.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Akerna entered into an Employee Covenant Agreement
with Mr. McCullough, which obligates Mr. McCullough from disclosing any confidential information, including without limitation, trade
secrets. The agreement also prohibits Mr. McCullough during the term of his employment and for a period of two years after his employment
from soliciting any customer, client, employee, supplier or vendor of Akerna, and rendering any services or giving advice to any competitor
or affiliate of a competitor. The agreement also requires Mr. McCullough to return all Akerna property and disclose all work product to
Akerna.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Nina Simosko</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 23, 2019, Ms. Simosko entered into
a letter agreement with Akerna. Ms. Simosko serves as the Chief Revenue Officer of Akerna at will. Akerna pays Ms. Simosko an annual base
salary of $200,000. At the Board&#8217;s discretion, Ms. Simosko may be eligible for a bonus. Ms. Simosko received an approximate grant
of $1,000,000 of restricted stock units, which will vest as to 25% on the first anniversary of the grant date, as to the next 25% on the
second anniversary of the grant date, as to the next 25% on the third anniversary of the grant date and as to the remaining 25% on the
fourth anniversary of the grant date. Upon a change of control transaction, Ms. Simosko&#8217;s unvested restricted stock units or any
other equity interests that she may be granted, will immediately vest. If Ms.&#160;Simosko&#8217;s employment is terminated by Akerna
without cause or by her with good reason, she is entitled to her base salary through the date of termination and the immediate vesting
of 33% of the restricted stock units that are unvested on the date of termination. Ms. Simosko is entitled to reimbursement of reasonable
expense incurred with her relocation to Denver, Colorado, in amount not to exceed $5,000. Ms. Simosko is entitled to participate in employee
benefits.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

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

</div><!-- Field: Page; Sequence: 83; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->78<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Akerna entered into an Employee Covenant Agreement
with Ms. Simosko, which obligates Ms. Simosko from disclosing any confidential information, including without limitation, trade secrets.
The agreement also prohibits Ms. Simosko during the term of her employment and for a period of two years after her employment from soliciting
any customer, client, employee, supplier or vendor of Akerna, and rendering any services or giving advice to any competitor or affiliate
of a competitor. The agreement also requires Ms. Simosko to return all Akerna property and disclose all work product to Akerna.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Ms. Simosko ceased to be the Chief Commercial
Officer on January 31, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A summary of the number and the value of the outstanding
equity awards as of December 31, 2021 held by the named executive officers is set out in the table below.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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="17" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Stock Awards<sup>(1)</sup></b></span></td></tr>
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; font-weight: bold; border-bottom: Black 1.5pt solid">Name</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number<br/>
 of Shares<br/> or Units <br/>
of Stock<br/> That <br/>
Have Not <br/> Vested (#)</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Market <br/>
Value of<br/> Shares or <br/>
Units of<br/> Stock <br/>
That<br/>
 Have<br/> Not <br/>
Vested ($)</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Equity<br/> Incentive<br/> Plan<br/>
 Awards:<br/> Number of<br/> Unearned<br/> Shares,<br/>
 Units<br/> or Other<br/> Rights <br/>
That<br/> Have Not<br/> Vested(#)</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Equity<br/> Incentive<br/> Plan<br/>
 Awards:<br/> Market or <br/>
Payout<br/> Value of <br/>
Unearned<br/> Shares,<br/> Units or<br/> Other <br/>
Rights<br/>
 That<br/> Have Not <br/>
Vested ($)</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%; text-align: left">Jessica Billingsley</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">5,000</td><td style="width: 1%; text-align: left"><sup>(2)</sup></td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">8,750</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-style: italic; text-align: left; padding-left: 9.25pt">Chief Executive Officer</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">15,000</td><td style="text-align: left"><sup>(3)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">26,250</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">15,000</td><td style="text-align: left"><sup>(4)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">26,250</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">22,322</td><td style="text-align: left"><sup>(12)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">25,000</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Nina Simosko</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">62,578</td><td style="text-align: left"><sup>(5)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">109,512</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-style: italic; text-align: left; padding-left: 9.25pt">Former Chief Commercial</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">15,000</td><td style="text-align: left"><sup>(3)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">26,250</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-style: italic; padding-left: 9.25pt">Officer</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">15,000</td><td style="text-align: left"><sup>(4)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">26,250</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">John Fowle</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">36,363</td><td style="text-align: left"><sup>(6)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">63,635</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-style: italic; text-align: left; padding-left: 9.25pt">Former Chief Financial Officer</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">15,000</td><td style="text-align: left"><sup>(3)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">26,250</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">15,000</td><td style="text-align: left"><sup>(4)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">26,250</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Ray Thompson</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">13,358</td><td style="text-align: left"><sup>(7)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">23,377</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,000</td><td style="text-align: left"><sup>(2)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">8,750</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-style: italic; text-align: left; padding-left: 9.25pt">Former Chief Operating Officer</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">13,358</td><td style="text-align: left"><sup>(8)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">23,377</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">12,500</td><td style="text-align: left"><sup>(9)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">21,875</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">15,000</td><td style="text-align: left"><sup>(3)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">26,250</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">15,000</td><td style="text-align: left"><sup>(4)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">26,250</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">David McCullough</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6,679</td><td style="text-align: left"><sup>(10)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">11,688</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,000</td><td style="text-align: left"><sup>(11)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">7,000</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-style: italic; text-align: left; padding-left: 9.25pt">Chief Technology Officer</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">15,000</td><td style="text-align: left"><sup>(3)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">26,250</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">15,000</td><td style="text-align: left"><sup>(4)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">26,250</td><td style="text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
RSU represents a contingent right to receive one share of Common Stock of the Company.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 84; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->79<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
5,000 RSUs, which vest as follows: 2,500 units shall vest on July 1, 2022, and 2,500 units shall vest on July 1, 2023.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
15,000 RSUs, which vest as follows: 5,000 units shall vest on July 1, 2022, 5,000 units shall vest on July 1, 2023, and 5,000 units shall
vest on July 1, 2024.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
15,000 RSUs, which vest as follows: 5,000 units shall vest on December 1, 2022, 5,000 units shall vest on December 1, 2023, and 5,000
units shall vest on December 1, 2024.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
62,578 RSUs, which vest as follows; 31,289 units shall of October 7, 2022, and 31,289 units shall on October 7, 2023; however, there
is immediate vesting in the event of a Change in Control (as defined in the award) and there is immediate vesting of 33% of the restricted
stock units that are unvested on the date that she is terminated without cause or by her with good reason.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
36,363 RSUs, which vest as follows; 18,182 shares shall vest on December 17, 2022 and 18,182 shares shall vest on December 17, 2023.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(7)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
13,358 shares of restricted stock, which vest as follows: 6,679 units shall vest on January 1, 2022, and 6,679 units shall vest on January
1, 2023.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(8)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
13,358 RSUs, which vest as follows: 6,679 units shall vest on January 1, 2022, and 6,679 units shall vest on January 1, 2023.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(9)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
12,500 RSUs, which vest as follows: 6,250 units shall vest on January 1, 2022, and 6,250 units shall vest on January 1, 2023.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(10)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
6,679 shares of restricted stock, which vest as follows: 6,679 units shall vest on January 1, 2022.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(11)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
4,000 RSUs, which vest as follows: 2,000 units shall vest on July 1, 2022, and 2,000 units shall vest on July 1, 2023.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%"></td><td style="width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(12)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
22,322 restricted shares, which vest on April 12, 2022.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Options</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There were no options granted in the fiscal year
ended December 31, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Pension Benefits</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None of our employees participate in or have account
balances in qualified or non-qualified defined benefit plans sponsored by us. Our Compensation Committee may elect to adopt qualified
or non-qualified benefit plans in the future if it determines that doing so is in our company&#8217;s best interest.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Non-qualified Deferred Compensation</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None of our employees participate in or have account
balances in non-qualified defined contribution plans or other non-qualified deferred compensation plans maintained by us. Our Compensation
Committee may elect to provide our officers and other employees with non-qualified defined contribution or other non-qualified compensation
benefits in the future if it determines that doing so is in our company&#8217;s best interest.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 85; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->80<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Director Compensation</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth the compensation
granted to our directors who are not also executive officers during the fiscal year ended December 31, 2021. Compensation to directors
that are also executive officers is detailed above and is not included on this table.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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; border-bottom: Black 1.5pt solid">Name</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Fees<br/> earned or<br/> paid in cash<br/>
    ($)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Stock<br/> awards<br/> ($)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Option<br/> award<br/> ($)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Non-equity<br/> incentive<br/> plan<br/>
    compensation<br/> ($)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Nonqualified<br/> deferred<br/> compensation<br/>
    earnings<br/> ($)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">All other<br/> compensation<br/> ($)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total<br/> ($)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 16%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Barry Fishman<sup>(1)</sup></span></td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">12,310</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">12,310</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;&#160;-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">24,620</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Matthew Kane</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">21,750</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">21,750</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">43,500</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mark Iwanowski<sup>(2)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">9,440</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">9,440</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">18,880</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Tahira Remhatullah</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">21,750</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">21,750</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">43,500</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Scott Sozio<sup>(3)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">250,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">136,937</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">386,937</td><td style="text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Fishman joined the
    Board on June 7, 2021.</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Iwanowski left the
    Board on June 7, 2021.</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Sozio receives compensation
    pursuant to his role as Head of Corporate Development and is not compensated independently as a director.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Narrative Disclosure to Director Compensation
Table</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Compensation granted to our directors who are
not also executive officers or employees during the fiscal year ended December 31, 2021 included $43,500 paid in 50% in cash and 50%
in stock. Amounts earned in cash are paid quarterly. Stock awards vest quarterly over the fiscal year.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Compensation Policies and Practices and Risk
Management</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Compensation Committee has reviewed the design
and operation of Akerna&#8217;s compensation policies and practices for all employees, including executives, as they relate to risk management
practices and risk-taking incentives. The Compensation Committee believes that Akerna&#8217;s compensation policies and practices do
not encourage unnecessary or excessive risk taking and that any risks arising from Akerna&#8217;s compensation policies and practices
for its employees are not reasonably likely to have a material adverse effect on Akerna.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Compensation Committee Interlocks and Insider
Participation</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">No member of the Compensation Committee has ever
been an officer or employee of Akerna. None of Akerna&#8217;s executive officers serve, or have served during the last fiscal year, as
a member of the board of directors, compensation committee, or other board committee performing equivalent functions of any other entity
that has one or more executive officers serving as one of Akerna&#8217;s directors or on the Compensation Committee.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="text-transform: uppercase"><b>&#160;</b></span></p><div>


</div><!-- Field: Page; Sequence: 86; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->81<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-transform: uppercase"><b>&#160;</b></span></p><div>

</div><div><a id="a_020"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth information concerning
beneficial ownership of Akerna&#8217;s capital stock outstanding as of the date of this prospectus, by: (1) each stockholder known to
be the beneficial owner of more than five percent of any class of Akerna&#8217;s voting stock then outstanding; (2) each of Akerna&#8217;s
directors and nominees to serve as director; (3) each of Akerna&#8217;s named executive officers; and (4) Akerna&#8217;s current directors
and executive officers as a group.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif">As
of June 3, 2022 there were 36,574,158 shares of Common Stock issued and outstanding. Each share entitles the holder thereof to one
vote.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The information regarding beneficial ownership
of shares of Common Stock has been presented in accordance with the rules of the SEC. Under these rules, a person may be deemed to beneficially
own any shares of capital stock as to which such person, directly or indirectly, has or shares voting power or investment power, and
as to which such person has the right to acquire voting or investment power within 60 days through the exercise of any stock option or
other right. The percentage of beneficial ownership as to any person as of a particular date is calculated by dividing (1) (i) the number
of shares beneficially owned by such person plus (ii) the number of shares as to which such person has the right to acquire voting or
investment power within 60 days by (2) the total number of shares outstanding as of such date, plus any shares that such person has the
right to acquire from Akerna within 60 days. Including those shares in the tables does not, however, constitute an admission that the
named stockholder is a direct or indirect beneficial owner of those shares. Unless otherwise indicated, each person or entity named in
the table has sole voting power and investment power (or shares that power with that person&#8217;s spouse) with respect to all shares
of capital stock listed as owned by that person or entity.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Beneficial Ownership</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 1.5pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Name and Address of Beneficial Owner<sup>(1)</sup></b></span></td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of<br/> Akerna<br/> Shares of<br/> Common<br/> Stock</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Percentage<sup>(2)</sup></b></span></td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">DIRECTORS AND OFFICERS</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jessica Billingsley<sup>(3)</sup></span></td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">1,190,661</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;&#160;3</td><td style="width: 1%; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Matthew Kane<sup>(4)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">613,307</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Scott Sozio<sup>(5)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">290,654</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tahira Rehmatullah<sup>(6)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">56,912</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mark Iwanowski<sup>(7)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6,261</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">David McCullough<sup>(8)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">64,306</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ray Thompson<sup>(9)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">63,410</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Nina Simosko</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">77,756</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">John Fowle<sup>(10)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">34,205</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Barry Fishman<sup>(11)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,646</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Larry Dean Ditto, Jr.</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">0</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">All directors and officers as a group (eleven persons)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">2,400,118</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">7</td><td style="padding-bottom: 4pt; text-align: left">%</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less than one percent.</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless otherwise noted, the address of each of the persons listed above is 1550 Larimer Street #246 Denver, Colorado 80202.</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The percentage is based on 36,574,158&#160;shares of Common Stock issued and outstanding as of June 3, 2022.</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 87; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->82<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents 1,078,290 shares held by Jessica Billingsley Living Trust and 112,371 shares held directly by Ms. Billingsley. Ms. Billingsley, the trustee of the Jessica Billingsley Living Trust, has sole and dispositive power over the shares held by the Jessica Billingsley Living Trust. Does not reflect 27,500 restricted stock units issued pursuant to Akerna&#8217;s Incentive Plan, which vest as follows: 2,500 RSUs, which vest as follows: 2,500 units shall vest on July 1, 2023, 10,000 RSUs, which vest as follows: 5,000 units shall vest on July 1, 2023, and 5,000 units shall vest on July 1, 2024, and 15,000 RSUs, which vest as follows: 5,000 units shall vest on December 1, 2022, 5,000 units shall vest on December 1, 2023, and 5,000 units shall vest on December 1, 2024.</span></td></tr>
  <tr style="vertical-align: top">
    <td style="font-size: 10pt">&#160;</td>
    <td style="text-align: justify; font-size: 10pt">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes 261,340 shares held by Seam Capital, LLC. Mr. Kane is a manager of Seam Capital, LLC, and as such, Mr. Kane has sole and dispositive power of the shares held by Seam Capital, LLC. Also, includes 351,967 shares of Common Stock held directly by Mr. Kane.</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents 290,654 shares and warrants to acquire 32,310 common shares held by Mr. Sozio. Does not reflect 58,582 restricted stock units issued pursuant to Akerna&#8217;s Incentive Plan, which vest as follows: 25,542 units shall vest on July 1, 2023 and 25,542 units shall vest on July 1, 2024, and 7,500 RSUs, which vest as follows: 2,500 units shall vest on December 1, 2022, 2,500 units shall vest on December 1, 2023, and 2,500 units shall vest on December 1, 2024.</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents 56,912 shares of Common Stock.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(7)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents 6,261 shares of Common Stock.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(8)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflects 64,306 shares of Common Stock. Does not reflect 27,000 restricted stock units issued pursuant to Akerna&#8217;s Incentive Plan, which vest as follows: 2,000 RSUs, which vest as follows: 2,000 units shall vest on July 1, 2023, 10,000 RSUs, which vest as follows: 5,000 units shall vest on July 1, 2023, and 5,000 units shall vest on July 1, 2024, and 15,000 RSUs, which vest as follows: 5,000 units shall vest on December 1, 2022, 5,000 units shall vest on December 1, 2023, and 5,000 units shall vest on December 1, 2024.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(9)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflects 63,410 shares of Common Stock. Does not reflect 39,792 restricted stock units issued pursuant to Akerna&#8217;s Incentive Plan, which vest as follows: 2,500 RSUs, which vest as follows: 2,500 units shall vest on July 1, 2023, 6,679 RSUs, which vest as follows: 6,679 units shall vest on January 1, 2023. 6,250 RSUs, which vest as follows: 6,250 units shall vest on January 1, 2023, 10,000 RSUs, which vest as follows: 5,000 units shall vest on July 1, 2023, and 5,000 units shall vest on July 1, 2024, and 15,000 RSUs, which vest as follows: 5,000 units shall vest on December 1, 2022, 5,000 units shall vest on December 1, 2023, and 5,000 units shall vest on December 1, 2024.</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(10)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents 34,205 shares of Common Stock. </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(11)</span></td>
    <td style="font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents 2,646 shares of Common Stock.</span></td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Change in Control</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are not aware of any arrangement that might
result in a change in control in the future. We have no knowledge of any arrangements, including any pledge by any person of our securities,
the operation of which may at a subsequent date result in a change in Akerna&#8217;s control.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>


</div><!-- Field: Page; Sequence: 88; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->83<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-transform: uppercase"><b>&#160;</b></span></p><div>

</div><div><a id="a_021"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
AND DIRECTOR INDEPENDENCE</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Employment of Scott Sozio</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In July 2019, we hired Mr. Scott Sozio, at will,
to serve as our Head of Corporate Development. As restructured in August 2020, Mr. Sozio receives an annual base salary of $150,000,
a one-time grant of $600,000 in restricted stock units (92,166 restricted stock units) issued in August 2020 vesting over 4 years, as
discussed below, and deal related compensation of 0.5% of the transaction value of acquisition completed by Akerna, payable one-half
in restricted stock units of Akerna at the option of the Board.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In April 2020, Mr. Sozio was granted 1,230 restricted
stock units of the Akerna under our 2019 Equity Incentive Plan in relation to the closing of our acquisition of Trellis, which vested
immediately. In August of 2020, Mr. Sozio&#8217;s compensation was restructured and he was granted 92,166 restricted stock units, which
vest one quarter each year beginning on July 1, 2021. In September 2020, Mr. Sozio was granted 10,000 restricted stock units as part
of our annual employee grants, which vest one quarter each year beginning on July 1, 2021 and 38,527 restricted stock units in connection
with the closing of our acquisition of Ample, which vested immediately. In April 2021, Mr. Sozio was granted 2,976 restricted stock units
of the Akerna under our 2019 Equity Incentive Plan in relation to the closing of our acquisition of Viridian, which vested immediately.
In October 2021, Mr. Sozio was granted 29,210 restricted stock units of the Akerna under our 2019 Equity Incentive Plan in relation to
the closing of our acquisition of 365 Cannabis, which vested immediately. In April 2021, Mr. Sozio was granted 10,000 restricted stock
units as part of our annual employee grants, which vest one quarter each year beginning on December 1, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>TechMagic</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the fiscal year ended June 30, 2020, we
have been invoiced through our wholly-owned subsidiary Solo by TechMagic USA LLC, a Massachusetts limited liability, in an amount of
approximately $657,000. When we acquired Solo in January 2020, there was an open balance payable to TechMagic of approximately $265,000.
Subsequently, during the remainder of our fiscal year ended June 30, 2020, we received invoices totaling an aggregate additional amount
of approximately $392,000. After our year ended June 30, 2020, through to the date hereof, we have received invoices totaling an aggregate
amount of approximately $375,000. Currently, there are outstanding invoices totaling approximately $767,000. The invoices set forth services
that TechMagic USA LLC purports to have provided to Solo regarding development of mobile software applications for MJF and Solo between
March and November 2020. Mr. Ashesh Shah, formerly the president of Solo and currently the beneficial holder of 6.2% of our issued and
outstanding shares of Common Stock is, to our knowledge, the founder and one of the principal managers of TechMagic USA LLC. The invoices
state that the services were rendered pursuant to the terms of an agreement regarding the development of mobile software products for
Solo, entered into between Solo and TechMagic at a time when Mr. Shah was a principal at both entities. On December 4, 2020, TechMagic
filed suit against Solo in Massachusetts Superior Court seeking recovery of up to approximately $1.07 million. Akerna provided a notice
of termination of the Master Services Agreement on November 23, 2020 and the parties dispute the effective date of the termination. Solo
disputes the validity of the invoices, in whole or in part, and intends to defend the suit vigorously. Mr. Ashesh Shah, formerly the
president of Solo and currently the holder of less than 5% of our issued and outstanding shares of common stock is, to our knowledge,
the founder and one of the principal managers of TechMagic USA LLC. As of December 31, 2021 and December 31, 2020, we recognized a loss
contingency of $0.5 million and $0.6 million, respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Indemnification </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Akerna&#8217;s amended and restated certificate
of incorporation contains provisions limiting the liability of directors, and its amended and restated bylaws provides that it will indemnify
the directors and executive officers to the fullest extent permitted under Delaware law. Akerna&#8217;s amended and restated certificate
of incorporation and bylaws also provides the board of directors with discretion to indemnify the other officers, employees, and agents
when determined appropriate by the board of directors. In addition, Akerna entered into an indemnification agreement with each of its
directors and executive officers, which requires it to indemnify them.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 89; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->84<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Related Person Transactions Policy and Procedure</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Akerna&#8217;s Code of Ethics requires it to
avoid, wherever possible, all related party transactions that could result in actual or potential conflicts of interests, except under
guidelines approved by the Board (or the audit committee). Related-party transactions are defined as transactions in which (1) the aggregate
amount involved will or may be expected to exceed $120,000 in any calendar year, (2) Akerna or any of its subsidiaries is a participant,
and (3) any (a) executive officer, director or nominee for election as a director, (b) greater than 5% beneficial owner of Akerna&#8217;s
shares of common stock, or (c) immediate family member, of the persons referred to in clauses (a) and (b), has or will have a direct
or indirect material interest (other than solely as a result of being a director or a less than 10% beneficial owner of another entity).
A conflict of interest situation can arise when a person takes actions or has interests that may make it difficult to perform his or
her work objectively and effectively. Conflicts of interest may also arise if a person, or a member of his or her family, receives improper
personal benefits as a result of his or her position.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Ours audit committee, pursuant to its written
charter, is responsible for reviewing and approving related-party transactions to the extent we enter into such transactions. The audit
committee will consider all relevant factors when determining whether to approve a related party transaction, including whether the related
party transaction is on terms no less favorable to us than terms generally available from an unaffiliated third-party under the same
or similar circumstances and the extent of the related party&#8217;s interest in the transaction.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Director Independence</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board evaluates the independence of each
nominee for election as a director of our Company in accordance with the Nasdaq Listing Rules.&#160;Pursuant to these rules, a majority
of our Board must be &#8220;independent directors&#8221; within the meaning of the Nasdaq Listing Rules, and all directors who sit on
our Audit Committee, Nominating Committee and Compensation Committee must also be independent directors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Nasdaq definition of &#8220;independence&#8221;
includes a series of objective tests, such as the director or director nominee is not, and was not during the last three years, an employee
of Akerna or our subsidiaries and has not received certain payments from, or engaged in various types of business dealings with us.&#160;In
addition, as further required by the Nasdaq Listing Rules, the Board has made a subjective determination as to each independent director
that no relationships exist, which, in the opinion of the Board, would interfere with such individual&#8217;s exercise of independent
judgment in carrying out his or her responsibilities as a director.&#160;In making these determinations, the Board reviewed and discussed
information provided by the directors with regard to each director&#8217;s business and personal activities as they may relate to Company
and its management.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result, the Board has affirmatively determined
that each of Matthew R. Kane, Tahira Rehmatullah, and Barry Fishman are independent in accordance with the Nadsaq Listing Rules. The
Board has also affirmatively determined that all members of our Audit Committee, Nominating Committee and Compensation Committee are
independent directors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_022"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">CERTAIN MATERIAL U.S. FEDERAL INCOME TAX
CONSIDERATIONS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following is a general discussion of certain
material U.S. federal income tax considerations relating to the purchase, ownership and disposition of units, consisting of shares of
common stock and warrants, and pre-funded units, consisting of pre-funded warrants and warrants, the acquisition, ownership, and disposition
of shares of common stock acquired as part of the units, the acquisition, ownership, and disposition of pre-funded warrants acquired
as part of the pre-funded units, the exercise, disposition, or expiration of warrants acquired as part of the units or pre-funded units,
the acquisition, ownership, and disposition of shares of common stock received upon exercise of the pre-funded warrants, and the acquisition,
ownership, and disposition of shares of common stock received upon exercise of the warrants (the &#8220;warrant shares&#8221;), all as
acquired pursuant to this prospectus. This discussion is based on current provisions of the Internal Revenue Code of 1986, as amended
(the &#8220;Internal Revenue Code&#8221;), existing and proposed U.S. Treasury Regulations promulgated or proposed thereunder and current
administrative and judicial interpretations thereof, all as in effect as of the date of this prospectus and all of which are subject
to change or to differing interpretation, possibly with retroactive effect. This summary does not discuss the potential effects, whether
adverse or beneficial, of any proposed legislation that, if enacted, could be applied on a retroactive or prospective basis. We have
not sought and will not seek any rulings from the Internal Revenue Service (the &#8220;IRS&#8221;), regarding the matters discussed below.
There can be no assurance that the IRS or a court will not take a contrary position.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 90; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->85<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This discussion is limited to U.S. holders and
non-U.S. holders who hold units, pre-funded units, shares of common stock, pre-funded warrants, warrants, or warrant shares, as applicable,
as a capital asset within the meaning of Section 1221 of the Internal Revenue Code (generally, as property held for investment). This
discussion does not address all aspects of U.S. federal income taxation, such as the U.S. alternative minimum income tax and the additional
tax on net investment income, nor does it address any aspect of state, local or non-U.S. taxes, or U.S. federal taxes other than income
taxes, such as federal estate and gift taxes. Except as provided below, this summary does not address tax reporting requirements. This
discussion does not consider any specific facts or circumstances that may apply to a holder and does not address the special tax considerations
that may be applicable to particular holders, such as:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">insurance companies;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">tax-exempt organizations
    and governmental organizations;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">banks or other financial
    institutions;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">brokers or dealers in securities
    or foreign currency;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">traders in securities who
    elect to apply a mark-to-market method of accounting;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">real estate investment
    trusts, regulated investment companies or mutual funds;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">pension plans;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">controlled foreign corporations;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">passive foreign investment
    companies;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">corporations organized
    outside the United States, any state thereof, or the District of Columbia that are nonetheless treated as U.S. persons for U.S. federal
    income tax purposes;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons that own (directly,
    indirectly or constructively) more than 5% of the total voting power or total value of our common stock;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">corporations that accumulate
    earnings to avoid U.S. federal income tax;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons subject to the
    alternative minimum tax;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S. expatriates and certain
    former citizens or long-term residents of the United States;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons that have a &#8220;functional
    currency&#8221; other than the U.S. dollar;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons that acquire units,
    pre-funded units, shares of common stock, pre-funded warrants, warrants or warrant shares as compensation for services;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">owners that hold our stock
    as part of a straddle, hedge, conversion transaction, synthetic security or other integrated investment;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">holders subject to special
    accounting rules;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">S corporations (and shareholders
    thereof); </span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">partnerships or other entities
    treated as partnerships for U.S. federal income tax purposes (and partners or other owners thereof); and</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S. holders that are subject
    to taxing jurisdictions other than, or in addition to, the United States.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 91; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->86<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If any entity taxable as a partnership for U.S.
federal income tax purposes holds our units, pre-funded units, shares of common stock, pre-funded warrants, warrants or warrant shares,
the U.S. federal income tax treatment of a partner in the partnership generally will depend on the status of the partner, the activities
of the partnership and certain determinations made at the partner level. A partner in a partnership or other pass-through entity that
holds our units, pre-funded units, shares of common stock, pre-funded warrants, warrants or warrant shares should consult its own tax
advisor regarding the applicable tax consequences.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For purposes of this discussion, the term &#8220;U.S.
holder&#8221; means a beneficial owner of our common stock that is, for U.S. federal income tax purposes:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">an individual who is a
    citizen or resident of the United States;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">a corporation created or
    organized in or under the laws of the United States, any state thereof or the District of Columbia;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">an estate the income of
    which is subject to U.S. federal income taxation regardless of its source; or</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">a trust, if (1) a U.S.
    court is able to exercise primary supervision over the administration of the trust and one or more U.S. persons have authority to
    control all substantial decisions of the trust or (2) the trust has a valid election to be treated as a U.S. person under applicable
    U.S. Treasury Regulations.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A &#8220;non-U.S. holder&#8221; is a beneficial
owner of our common stock that is neither a U.S. holder nor a partnership (or other entity treated as a partnership for U.S. federal
income tax purposes).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES
ONLY AND IS NOT, AND IS NOT INTENDED TO BE, LEGAL OR TAX ADVICE. PROSPECTIVE INVESTORS SHOULD CONSULT THEIR OWN TAX ADVISORS REGARDING
THE U.S. FEDERAL, STATE, LOCAL, AND NON-U.S. INCOME, ESTATE AND OTHER TAX CONSIDERATIONS OF ACQUIRING, HOLDING AND DISPOSING OF OUR UNITS,
PRE-FUNDED UNITS, SHARES OF COMMON STOCK, PRE-FUNDED WARRANTS, WARRANTS OR WARRANT SHARES.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>U.S. Federal Income Tax Consequences of the
Acquisition of Units or Pre-Funded Units</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For U.S. federal income tax purposes, the acquisition
by a U.S. holder or a non-U.S. holder of a unit will be treated as the acquisition of one share of common stock (&#8220;Share&#8221;)
and one warrant. The purchase price for each unit will be allocated between these two components in proportion to their relative fair
market values at the time the unit is purchased by the U.S. holder or non-U.S. holder. This allocation of the purchase price for each
unit will establish a U.S. holder&#8217;s or non-U.S. holder&#8217;s initial tax basis for U.S. federal income tax purposes in the one
Share and one warrant that comprise each unit.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For this purpose, we will allocate US$____ of
the purchase price for the unit to the Share and US$____ of the purchase price for each unit to the warrant. However, the IRS will not
be bound by such allocation of the purchase price for the units, and therefore, the IRS or a U.S. court may not respect the allocation
set forth above. Each U.S. holder and non-U.S. holder should consult its own tax advisor regarding the allocation of the purchase price
for the units.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For U.S. federal income tax purposes, the acquisition
by a U.S. holder or a non-U.S. holder of a pre-funded unit will be treated as the acquisition of one pre-funded warrant and one warrant.
The purchase price for each pre-funded unit will be allocated between these two components in proportion to their relative fair market
values at the time the pre-funded unit is purchased by the U.S. holder or non-U.S. holder. This allocation of the purchase price for
each pre-funded unit will establish a U.S. holder&#8217;s or non-U.S. holder&#8217;s initial tax basis for U.S. federal income tax purposes
in the one pre-funded warrant and one warrant that comprise each pre-funded unit.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For this purpose, we will allocate US$____ of
the purchase price for the pre-funded unit to the pre-funded warrant and US$____ of the purchase price for each pre-funded unit to the
warrant. However, the IRS will not be bound by such allocation of the purchase price for the pre-funded units, and therefore, the IRS
or a U.S. court may not respect the allocation set forth above. Each U.S. holder and non-U.S. holder should consult its own tax advisor
regarding the allocation of the purchase price for the pre-funded units.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 92; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->87<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Treatment of Pre-Funded Warrants</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Although it is not entirely free from doubt,
we believe that a pre-funded warrant should be treated as a separate class of our common shares for U.S. federal income tax purposes
and a U.S. holder or non-U.S. holder of pre-funded warrants should generally be taxed in the same manner as a holder of shares of common
stock except as described below. Accordingly, no gain or loss should be recognized upon the exercise of a pre-funded warrant and, upon
exercise, the holding period of a pre-funded warrant should carry over to the shares of common stock received. Similarly, the tax basis
of the pre-funded warrant should carry over to the shares of common stock received upon exercise, increased by the exercise price of
$0.0001 per share. However, such characterization is not binding on the IRS, and the IRS may treat the pre-funded warrants as warrants
to acquire shares of common stock. If so, the amount and character of a U.S. holder&#8217;s or non-U.S. holder&#8217;s gain with respect
to an investment in pre-funded warrants could change. Accordingly, each U.S. holder and non-U.S. holder should consult its own tax advisors
regarding the risks associated with the acquisition of a pre-funded warrant pursuant to this prospective (including potential alternative
characterizations). The balance of this discussion generally assumes that the characterization described above is respected for U.S.
federal income tax purposes.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>U.S. Holders</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>U.S. Federal Income Tax Consequences of the Exercise, Disposition
or Expiration of Warrants</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration:underline">Exercise of Warrants</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A U.S. holder should not recognize gain or loss
on the exercise of a warrant and related receipt of a warrant share (unless cash is received in lieu of the issuance of a fractional
warrant share). A U.S. holder&#8217;s initial tax basis in the warrant share received on the exercise of a warrant should be equal to
the sum of (a) such U.S. holder&#8217;s tax basis in such warrant plus (b) the exercise price paid by such U.S. holder on the exercise
of such warrant. It is unclear whether a U.S. holder's holding period for the warrant share received on the exercise of a warrant would
commence on the date of exercise of the warrant or the day following the date of exercise of the warrant.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In certain limited circumstances, a U.S. holder
may be permitted to undertake a cashless exercise of warrants into warrant shares. The U.S. federal income tax treatment of a cashless
exercise of warrants into warrant shares is unclear, and the tax consequences of a cashless exercise could differ from the consequences
upon the exercise of a warrant described in the preceding paragraph. U.S. holders should consult their own tax advisors regarding the
U.S. federal income tax consequences of a cashless exercise of warrants.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration:underline">Disposition of Warrants</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A U.S. holder will recognize gain or loss on
the sale or other taxable disposition of a warrant in an amount equal to the difference, if any, between (a) the amount of cash plus
the fair market value of any property received and (b) such U.S. holder&#8217;s tax basis in the warrant sold or otherwise disposed of.
Any such gain or loss generally will be a capital gain or loss, which will be long-term capital gain or loss if the warrant is held for
more than one year. Deductions for capital losses are subject to complex limitations under the Internal Revenue Code.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration:underline">Expiration of Warrants Without Exercise</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the lapse or expiration of a warrant, a
U.S. holder will recognize a loss in an amount equal to such U.S. holder&#8217;s tax basis in the Common Stock Warrant. Any such loss
generally will be a capital loss and will be long-term capital loss if the warrants are held for more than one year. Deductions for capital
losses are subject to complex limitations under the Internal Revenue Code.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration:underline">Certain Adjustments to the Warrants</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under Section 305 of the Internal Revenue Code,
an adjustment to the number of warrant shares that will be issued on the exercise of the warrants, or an adjustment to the exercise price
of the warrants, may be treated as a constructive distribution to a U.S. holder of the warrants if, and to the extent that, such adjustment
has the effect of increasing such U.S. holder&#8217;s proportionate interest in the &#8220;earnings and profits&#8221; or our assets,
depending on the circumstances of such adjustment (for example, if such adjustment is to compensate for a distribution of cash or other
property to the shareholders). Adjustments to the exercise price of warrants made pursuant to a bona fide reasonable adjustment formula
that has the effect of preventing dilution of the interest of the holders of the warrants should generally not be considered to result
in a constructive distribution. Any such constructive distribution would be taxable whether or not there is an actual distribution of
cash or other property. (See more detailed discussion of the rules applicable to distributions made by us at &#8220;<i>Distributions
on Shares of Common Stock, Pre-Funded Warrants and Warrant Shares</i>&#8221; below).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 93; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->88<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>U.S. Federal Income Tax Consequences of
the Acquisition, Ownership, and Disposition of Shares of Common Stock, Pre-Funded Warrants and Warrant Shares</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration:underline">Distributions on Shares of Common Stock, Pre-Funded Warrants and
Warrant Shares</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A U.S. holder that receives a distribution, including
a constructive distribution, with respect to a Share, pre-funded warrant or warrant share (as well as any constructive distribution on
a warrant as described above) will be required to include the amount of such distribution in gross income as a dividend to the extent
of our current and accumulated &#8220;earnings and profits&#8221;, as computed under U.S. federal income tax principles. To the extent
that a distribution exceeds our current and accumulated &#8220;earnings and profits&#8221;, such distribution will be treated first as
a tax-free return of capital to the extent of a U.S. holder&#8217;s tax basis in the shares of common stock, pre-funded warrants or warrant
shares and thereafter as gain from the sale or exchange of such shares of common stock, pre-funded warrants or warrant shares (see &#8220;<i>Sale
or Other Taxable Disposition of Shares of Common Stock, Pre-Funded Warrants and/or Warrant Shares</i>&#8221; below). Dividends received
on shares of common stock, pre-funded warrants or warrant shares may be eligible for a dividends received deduction, subject to certain
restrictions relating to, among others, the corporate U.S. holder&#8217;s taxable income, holding period and debt financing. Dividends
paid by us to non-corporate U.S. holders, including individuals, generally will be eligible for the preferential tax rates applicable
to long-term capital gains for dividends, provided certain holding period and other conditions are satisfied. The dividend rules are
complex, and each U.S. holder should consult its own tax advisor regarding the application of such rules.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration:underline">Sale or Other Taxable Disposition of Shares of Common Stock, Pre-Funded
Warrants and/or Warrant Shares</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the sale or other taxable disposition of
shares of common stock, pre-funded warrants or warrant shares, a U.S. holder generally will recognize capital gain or loss in an amount
equal to the difference between (a) the amount of cash plus the fair market value of any property received and (b) such U.S. holder&#8217;s
tax basis in such shares of common stock, pre-funded warrants or warrant shares sold or otherwise disposed of. Gain or loss recognized
on such sale or other taxable disposition generally will be long-term capital gain or loss if, at the time of the sale or other taxable
disposition, the shares of common stock, pre-funded warrants or warrant shares have been held for more than one year. Preferential tax
rates may apply to long-term capital gain of a U.S. holder that is an individual, estate, or trust. There are no preferential tax rates
for long-term capital gain of a U.S. holder that is a corporation. Deductions for capital losses are subject to significant limitations
under the Internal Revenue Code.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Non-U.S. Holders</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>U.S. Federal Income Tax Consequences of the Exercise, Disposition
or Expiration of Warrants</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Exercise of Warrants</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A non-U.S. holder generally will not recognize
gain or loss on the exercise of a warrant and related receipt of a warrant share (unless cash is received in lieu of the issuance of
a fractional warrant share and certain other conditions are present, as discussed below under &#8220;<i>Gain on Sale, Exchange or Other
Taxable Disposition of Shares of Common Stock, Pre-Funded Warrants, Warrants and Warrant Shares</i>&#8221;). A non-U.S. holder&#8217;s
initial tax basis in the warrant share received on the exercise of a warrant should be equal to the sum of (i) the non-U.S. holder&#8217;s
tax basis in the warrant, plus (ii) the exercise price paid by the non-U.S. holder on the exercise of the warrant. It is unclear whether
a non-U.S. holder's holding period for the warrant share received on the exercise of a warrant would commence on the date of exercise
of the warrant or the day following the date of exercise of the warrant.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In certain limited circumstances, a non-U.S.
holder may be permitted to undertake a cashless exercise of warrants into warrant shares. The U.S. federal income tax treatment of a
cashless exercise of warrants into warrant shares is unclear, and the tax consequences of a cashless exercise could differ from the consequences
upon the exercise of a warrant described in the preceding paragraph. Non-U.S. holders should consult their own tax advisors regarding
the U.S. federal income tax consequences of a cashless exercise of warrants.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 94; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->89<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration:underline">Disposition of Warrants </span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A non-U.S. Holder will recognize gain or loss
on the sale or other taxable disposition of a warrant in an amount equal to the difference, if any, between (a) the amount of cash plus
the fair market value of any property received and (b) such non-U.S. holder&#8217;s tax basis in the warrant sold or otherwise disposed
of. Any such gain or loss generally will be a capital gain or loss, which will be long-term capital gain or loss if the warrant is held
for more than one year. Any such gain recognized by a non-U.S. holder will be taxable for U.S. federal income tax purposes according
to rules discussed under the heading &#8220;<i>Gain on Sale, Exchange or Other Taxable Disposition of Shares of Common Stock, Pre-Funded
Warrants, Warrants and Warrant Shares</i>&#8221; below.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration:underline">Expiration of Warrants without Exercise </span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Upon the lapse or expiration of a warrant, a
non-U.S. holder will recognize loss in an amount equal to such non-U.S. holder&#8217;s tax basis in the warrant. Any such loss generally
will be a capital loss and will be long-term capital loss if the warrants are held for more than one year. Deductions for capital losses
are subject to complex limitations under the Internal Revenue Code.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration:underline">Certain Adjustments to the Warrants </span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under Section 305 of the Internal Revenue Code,
an adjustment to the number of warrant shares that will be issued on the exercise of the warrants, or an adjustment to the exercise price
of the warrants, may be treated as a constructive distribution to a non-U.S. holder of the warrants if, and to the extent that, such
adjustment has the effect of increasing such non-U.S. holder&#8217;s proportionate interest in the &#8220;earnings and profits&#8221;
or assets, of the Company, depending on the circumstances of such adjustment (for example, if such adjustment is to compensate for a
distribution of cash or other property to the Company&#8217;s shareholders). Adjustments to the exercise price of a warrant made pursuant
to a bona fide reasonable adjustment formula that has the effect of preventing dilution of the interest of the holders of the warrants
should generally not result in a constructive distribution. See the more detailed discussion of the rules applicable to distributions
made by the Company under the heading &#8220;<i>Distributions on Shares of Common Stock, Pre-Funded Warrants and Warrant Shares</i>&#8221;
below.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>U.S. Federal Income Tax Consequences of
the Acquisition, Ownership, and Disposition of Shares of Common Stock, Pre-Funded Warrants and Warrant Shares</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Distributions on Shares of Common Stock, Pre-Funded
Warrants and Warrant Shares</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we pay distributions of cash or property with
respect to our shares of common stock, pre-funded warrants or warrant shares, those distributions generally will constitute dividends
for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S.
federal income tax principles. If a distribution exceeds our current and accumulated earnings and profits, the excess will be treated
as a tax-free return of the non-U.S. holder&#8217;s investment, up to such holder&#8217;s tax basis in its shares of our common stock.
Any remaining excess will be treated as capital gain, subject to the tax treatment described below under the heading &#8220;&#8212; <i>Gain
on Sale, Exchange or Other Taxable Disposition of Shares of Common Stock, Pre-Funded Warrants, Warrants and Warrant Shares</i>.&#8221;
Dividends paid to a non-U.S. holder generally will be subject to withholding of U.S. federal income tax at a 30% rate, or such lower
rate as may be specified by an applicable income tax treaty between the United States and such holder&#8217;s country of residence. In
the case of any constructive distribution, it is possible that this tax would be withheld from any amount owed to the non-U.S. holder,
including, but not limited to, distributions of cash, shares of common stock or sales proceeds subsequently paid or credited to that
holder. If we are unable to determine, at the time of payment of a distribution, whether the distribution will constitute a dividend,
we may nonetheless choose to withhold any U.S. federal income tax on the distribution as permitted by U.S. Treasury Regulations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Distributions that are treated as effectively
connected with a trade or business conducted by a non-U.S. holder within the United States are generally not subject to the 30% (or lower
rate as may be specified by an applicable tax treaty) withholding tax if the non-U.S. holder provides a properly executed IRS Form W-8ECI
stating that the distributions are not subject to withholding because they are effectively connected with the non-U.S. holder&#8217;s
conduct of a trade or business in the United States. If a non-U.S. holder is engaged in a trade or business in the United States and
the distribution is effectively connected with the conduct of that trade or business, the distribution will generally have the consequences
described above for a U.S. holder (subject to any modification provided under an applicable income tax treaty). Any U.S. effectively
connected income received by a non-U.S. holder that is treated as a corporation for U.S. federal income tax purposes may also, under
certain circumstances, be subject to an additional &#8220;branch profits tax&#8221; at a 30% rate (or such lower rate as may be specified
by an applicable income tax treaty).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 95; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->90<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A non-U.S. holder who claims the benefit of an
applicable income tax treaty between the United States and such holder&#8217;s country of residence generally will be required to provide
a properly executed IRS Form W-8BEN or W-8BEN-E, as applicable, and satisfy applicable certification and other requirements. A non-U.S.
holder that is eligible for a reduced rate of U.S. withholding tax under an income tax treaty generally may obtain a refund or credit
of any excess amounts withheld by timely filing an appropriate claim with the IRS. Non-U.S. holders should consult their own tax advisors
regarding their entitlement to benefits under a relevant income tax treaty.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration:underline">Gain on Sale, Exchange or Other Taxable Disposition of Shares of
Common Stock, Pre-Funded Warrants, Warrants and Warrant Shares</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the discussions below in <i>&#8220;&#8212;Information
Reporting and Backup Withholding</i>&#8221; and <i>&#8220;&#8212;Foreign Account Tax Compliance Act</i>,&#8221; a non-U.S. holder generally
will not be subject to U.S. federal income tax on gain recognized on a sale, exchange or other taxable disposition of our shares of common
stock, pre-funded warrants, warrants, or warrant shares unless:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the gain is effectively
    connected with the non-U.S. holder&#8217;s conduct of a trade or business in the United States and, if an applicable income tax treaty
    so provides, the gain is attributable to a permanent establishment maintained by the non-U.S. holder in the United States; in these
    cases, the non-U.S. holder will be taxed on a net income basis at the regular graduated rates and in the manner applicable to a U.S.
    holder, and, if the non-U.S. holder is a corporation, an additional branch profits tax at a rate of 30%, or a lower rate as may be
    specified by an applicable income tax treaty, may also apply;</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the non-U.S. holder is
    an individual present in the United States for 183 days or more in the taxable year of the disposition and certain other conditions
    are met, in which case the non-U.S. holder will be subject to a 30% tax (or such lower rate as may be specified by an applicable
    income tax treaty) on the amount by which such non-U.S. holder&#8217;s capital gains allocable to U.S. sources exceed capital losses
    allocable to U.S. sources during the taxable year of the disposition; or</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the Company is or has been
    a &#8220;U.S. real property holding corporation&#8221; (&#8220;<b>USRPHC</b>&#8221;) for U.S. federal income tax purposes at any
    time during the shorter of the non-U.S. holder&#8217;s holding period or the 5-year period ending on the date of disposition of shares
    of common stock, pre-funded warrants, warrants or warrant shares; provided, with respect to the shares of common stock and warrant
    shares, that as long as the Company&#8217;s shares of common stock are regularly traded on an established securities market as determined
    under the Treasury Regulations (the &#8220;<b>Regularly Traded Exception</b>&#8221;), a non-U.S. holder would not be subject to taxation
    on the gain on the sale of shares of common stock or warrant shares under this rule unless the non-U.S. holder has owned: (i) more
    than 5% of the Company&#8217;s shares of common stock at any time during such 5-year or shorter period; (ii) pre-funded warrants
    with a fair market value on the date acquired by such holder greater than the fair market value on that date of 5% of the Company&#8217;s
    shares of common stock; (iii) warrants with a fair market value on the date acquired by such holder greater than the fair market
    value on that date of 5% of the Company&#8217;s shares of common stock; or (iv) aggregate equity securities of the Company with a
    fair market value on the date acquired in excess of 5% of the fair market value of the Company&#8217;s shares of common stock on
    such date (in any case, a &#8220;<b>5% Shareholder</b>&#8221;). Since the warrants are not expected to be listed on a securities
    market, the warrants are unlikely to qualify for the Regularly Traded Exception. Special rules apply to the pre-funded warrants.
    Non-U.S. holders holding pre-funded warrants should consult their own tax advisors regarding such rules. In determining whether a
    non-U.S. holder is a 5% Shareholder, certain attribution rules apply in determining ownership for this purpose. The Company believes
    that it is not currently, and it does not anticipate becoming in the future, a USRPHC for U.S. federal income tax purposes. The Company
    can provide no assurances that it is not currently, or will not become, a USRPHC, or if it is or becomes a USRPHC, that the shares
    of common stock, pre-funded warrants, warrants or warrant shares will meet the Regularly Traded Exception at the time a non-U.S.
    holder purchases such securities or sells, exchanges or otherwise disposes of such securities. Non-U.S. holders should consult with
    their own tax advisors regarding the consequences to them of investing in a USRPHC. If the Company is a USRPHC, a non-U.S. holder
    will be taxed as if any gain or loss were effectively connected with the conduct of a trade or business as described above in &#8220;<i>Distributions
    on Shares of Common Stock, Pre-Funded Warrants and Warrant Shares</i>&#8221; in the event that (i) such holder is a 5% Shareholder,
    or (ii) the Regularly Traded Exception is not satisfied during the relevant period. </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 96; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->91<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Information Reporting and Backup Withholding</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Distributions on, and the payment of the proceeds
of a disposition of, our shares of common stock, pre-funded warrants and warrant shares generally will be subject to information reporting
if made within the United States or through certain U.S.-related financial intermediaries. Information returns are required to be filed
with the IRS and copies of information returns may be made available to the tax authorities of the country in which a holder resides
or is incorporated under the provisions of a specific treaty or agreement.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Backup withholding may also apply if the holder
fails to provide certification of exempt status or a correct U.S. taxpayer identification number and otherwise comply with the applicable
backup withholding requirements. Generally, a holder will not be subject to backup withholding if it provides a properly completed and
executed IRS Form W-9 or appropriate IRS Form W-8, as applicable. Backup withholding is not an additional tax. Amounts withheld under
the backup withholding rules may be refunded or credited against the holder&#8217;s U.S. federal income tax liability, if any, provided
certain information is timely filed with the IRS.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Foreign Account Tax Compliance Act</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sections 1471 through 1474 of the Internal Revenue
Code (commonly referred to as &#8220;<b>FATCA</b>&#8221;) impose a separate reporting regime and potentially a 30% withholding tax on
certain payments, including payments of dividends on our shares of common stock, pre-funded warrants and warrant shares. Withholding
under FATCA generally applies to payments made to or through a foreign entity if such entity fails to satisfy certain disclosure and
reporting rules. These rules generally require (i) in the case of a foreign financial institution, that the financial institution agree
to identify and provide information in respect of financial accounts held (directly or indirectly) by U.S. persons and U.S.-owned entities,
and, in certain instances, to withhold on payments to account holders that fail to provide the required information, and (ii) in the
case of a non-financial foreign entity, that the entity either identify and provide information in respect of its substantial U.S. owners
or certify that it has no such U.S. owners.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">FATCA withholding also potentially applies to
payments of gross proceeds from the sale or other disposition of our shares of common stock, pre-funded warrants and warrant shares.
Proposed regulations, however, would eliminate FATCA withholding on such payments, and the U.S. Treasury Department has indicated that
taxpayers may rely on this aspect of the proposed regulations until final regulations are issued.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Non-U.S. holders typically will be required to
furnish certifications (generally on the applicable IRS Form W-8) or other documentation to provide the information required by FATCA
or to establish compliance with or an exemption from withholding under FATCA. FATCA withholding may apply where payments are made through
a non-U.S. intermediary that is not FATCA compliant, even where the non-U.S. holder satisfies the holder&#8217;s own FATCA obligations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The United States and a number of other jurisdictions
have entered into intergovernmental agreements to facilitate the implementation of FATCA. Any applicable intergovernmental agreement
may alter one or more of the FATCA information reporting and withholding requirements. You are encouraged to consult with your own tax
advisor regarding the possible implications of FATCA on your investment in our shares of common stock, pre-funded warrants or warrant
shares, including the applicability of any intergovernmental agreements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>


</div><!-- Field: Page; Sequence: 97; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->92<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-transform: uppercase"><b>&#160;</b></span></p><div>

</div><div><a id="a_023"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">UNDERWRITING</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-transform: uppercase"><b>&#160;</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A.G.P./Alliance Global Partners, or A.G.P., is
acting as the sole book-running manager in connection with this offering. Subject to the terms and conditions of the underwriting agreement
dated ____, 2022, A.G.P., as the underwriter, has agreed to purchase from us, and we have agreed to sell, ____ units and/or pre-funded
units at the public offering price, less the underwriting discount and commissions set forth on the cover page of this prospectus.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The underwriting agreement provides that the
obligation of the underwriter to purchase all of the shares, warrants, and pre-funded warrants being offered to the public, other than
those covered by the over-allotment option, is subject to certain conditions, and the underwriter is obligated to purchase all of the
shares of common stock, warrants, and pre-funded warrants offered hereby if any of the shares, warrants, and pre-funded warrants are
purchased.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Underwriting Discounts, Commissions and Expenses</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed to sell the securities to the underwriter
at the offering price of $____ per unit or $____ per pre-funded unit, as applicable, which represents the offering price of such securities
set forth on the cover page of this prospectus, less the applicable 7% underwriting discount and a cash fee equal to 7% of the aggregate
gross proceeds received by us upon the exercise of any warrants.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table shows the underwriting discounts
and commissions payable to the underwriter by us in connection with this offering (assuming both the exercise and non-exercise of the
over-allotment option to purchase additional shares of common stock and/or warrants, or pre-funded units that we have granted to the
underwriter):</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td style="padding-bottom: 1.5pt; white-space: nowrap; text-align: center">&#160;</td>
    <td style="padding-bottom: 1.5pt; white-space: nowrap">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>No
    Exercise</b></span></td>
    <td style="padding-bottom: 1.5pt; white-space: nowrap">&#160;</td>
    <td style="padding-bottom: 1.5pt; white-space: nowrap">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Full
    Exercise</b></span></td>
    <td style="padding-bottom: 1.5pt; white-space: nowrap">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 78%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Per Unit</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="width: 8%; text-align: right">&#160;&#160;&#160;&#160;&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="width: 8%; text-align: right">&#160;&#160;&#160;&#160;&#160;</td>
    <td style="width: 1%">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Per Pre-Funded Unit</span></td>
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td>
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have also agreed to reimburse the underwriter
for legal and other expenses incurred by them in connection with the Offering in an amount not to exceed $70,000 and to pay the underwriter
a non-accountable expense allowance up to $15,000. We estimate the total offering expenses of this offering that will be payable by us,
excluding the underwriting discount and commissions, will be approximately $____.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Underwriter Warrants</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have also agreed to issue to the underwriter
warrants (the &#8220;Underwriter Warrants&#8221;) to purchase that number of shares of common stock equal to 5% of the aggregate number
of the shares of common stock (including shares underlying warrants and/or pre-funded warrants, but excluding shares issued upon the exercise
of the underwriter&#8217;s over-allotment option) issued in this offering, subject to any reductions necessary to comply with the rules
and regulations of the Financial Industry Regulatory Authority (&#8220;FINRA&#8221;). The Underwriter Warrants shall be exercisable, in
whole or in part, immediately upon the closing of this offering and expire on the ____-year anniversary of the date of issuance at an
initial exercise price per share of $____.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 98; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->93<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Underwriter Warrants and underlying shares
of common stock are being registered pursuant to the registration statement of which this prospectus is a part, and we have agreed to
maintain such registration during the term of the Underwriter Warrants. Pursuant to FINRA Rule 5110(g), the Underwriter Warrants and
any shares issued upon exercise of the Underwriter Warrants shall not 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
the securities by any person for a period of 180 days immediately following the date of effectiveness or commencement of sales of this
offering, except the transfer of any security: (i) by operation of law or by reason of our reorganization; (ii) to any FINRA member firm
participating in the offering and the officers or partners thereof, if all securities so transferred remain subject to the lock-up restriction
set forth below for the remainder of the time period; (iii) if the aggregate amount of our securities held by the underwriter or related
persons do not exceed 1% of the securities being offered; (iv) that is beneficially owned on a pro rata basis by all equity owners of
an investment fund, provided that no participating member manages or otherwise directs investments by the fund and the participating members
in the aggregate do not own more than 10% of the equity in the fund; or (v) the exercise or conversion of any security, if all securities
remain subject to the lock-up restriction set forth below for the remainder of the time period.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Over-Allotment Option</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have granted the underwriter an over-allotment
option. This option, which is exercisable for up to 45 days after the date of this prospectus, permits the underwriter to purchase up
to (i) ________ shares of our common stock and/or warrants to purchase up to ________ shares of common stock, in any combination thereof;
and/or (ii) ________ pre-funded units, consisting of ____________ warrants to purchase up to ________ shares of common stock and ____________
pre-funded warrants to purchase up to __________ shares of common stock, from us to cover over-allotments, in each case at the public
offering price that appears on the cover page of this prospectus, less the underwriting discounts and commissions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Indemnification</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed to indemnify the underwriter against
liabilities under the Securities Act. We have also agreed to contribute to payments the underwriter may be required to make in respect
of such liabilities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Listing</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our common stock is listed on the Nasdaq Capital
Market under the trading symbol &#8220;KERN&#8221;.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Lock-up Agreements </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our executive officers, directors and certain
of our significant stockholders have agreed, subject to certain exceptions, to a ____-day &#8220;lock-up&#8221; from the date of this
prospectus relating to shares of our common stock that they beneficially own, including the issuance of shares of common stock upon the
exercise of currently outstanding options and options which may be issued without the prior written consent of A.G.P. This means that,
for a period of ____ days following the date of this prospectus, such persons may not offer, sell, pledge or otherwise dispose of these
securities without the prior written consent of A.G.P., subject to certain exceptions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, the underwriting agreement provides
that we will not, for a period of ____ days following the date of this prospectus, offer, sell or distribute any of our securities, without
the prior written consent of A.G.P.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Stabilization </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The rules of the SEC generally prohibit the underwriter
from trading in our securities on the open market during this offering. However, the underwriter is allowed to engage in some open market
transactions and other activities during this offering that may cause the market price of our securities to be above or below that which
would otherwise prevail in the open market. These activities may include stabilization, short sales and over-allotments, syndicate covering
transactions and penalty bids in accordance with Regulation M.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><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"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stabilizing
                                            transactions consist of bids or purchases made by the representative for the purpose of preventing
                                            or slowing a decline in the market price of our securities while this offering is in progress.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><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"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Short
                                            sales and over-allotments occur when the representative sells more of our shares of common
                                            stock than it purchases from us in this offering. To cover the resulting short position,
                                            the representative may exercise the over-allotment option described above or may engage in
                                            syndicate covering transactions. There is no contractual limit on the size of any syndicate
                                            covering transaction. The representative will make available a prospectus in connection with
                                            any such short sales. Purchasers of shares sold short by the representative are entitled
                                            to the same remedies under the federal securities laws as any other purchaser of shares covered
                                            by the registration statement.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 99; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->94<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><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"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Syndicate
                                            covering transactions are bids for or purchases of our securities on the open market by the
                                            representative in order to reduce a short position.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><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"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Penalty
                                            bids permit the representative to reclaim a selling concession from a syndicate member when
                                            the shares of Common Stock originally sold by the syndicate member are purchased in a syndicate
                                            covering transaction to cover syndicate short positions.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Neither we nor the underwriter make any representation
or prediction as to the effect that the transactions described above may have on the prices of our securities. These transactions may
occur on any trading market. If any of these transactions are commenced, they may be discontinued without notice at any time.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Other Activities and Relationships</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From time to time, the underwriter and/or its
affiliates have provided, and may in the future provide, various investment banking, financial advisory and other services to us and
our affiliates for which services they have received, and may in the future receive, customary fees. In the course of its business, the
underwriter and its affiliates may actively trade our securities or loans for its own account or for the accounts of customers, and,
accordingly, the underwriter and its affiliates may at any time hold long or short positions in such securities or loans. Except for
services provided in connection with this offering, the underwriter has not provided any investment banking or other financial services
during the 180-day period preceding the date of this prospectus and we do not expect to retain the underwriter to perform any investment
banking or other financial services for at least 90 days after the date of this prospectus.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Offer and Sale Restrictions Outside the United
States</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><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 underwriter that would permit a public offering of the securities offered by this prospectus in any jurisdiction
where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly,
nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities
be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules
and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and
to observe any restrictions relating to the Offering and the distribution of this prospectus. This prospectus does not constitute an
offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer
or a solicitation is unlawful.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Electronic Distribution</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This prospectus may be made available in electronic
format on websites or through other online services maintained by the underwriter, or by its affiliates. Other than this prospectus in
electronic format, the information on the underwriter&#8217;s website and any information contained in any other website maintained by
the underwriter is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved
and/or endorsed by us or the underwriter, and should not be relied upon by any purchaser of the securities offered pursuant to the registration
statement of which this prospectus forms a part.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>


</div><!-- Field: Page; Sequence: 100; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->95<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="a_024"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">EXPERTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The consolidated financial statements of Akerna
as of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive loss, changes in equity and cash flows
for the year ended December 31, 2021, for the transitional six months ended December 31, 2020, and for the year ended June 30, 2020 included
herein have been audited by Marcum LLP, independent registered public accounting firm, as set forth in their report thereon and are included
in reliance upon such report given on the authority of such firm as experts in accounting and auditing.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The&#160;financial statements of
The&#160;Nav&#160;People,&#160;Inc. &amp; Subsidiary, which comprise the consolidated<b>&#160;</b>balance sheet as of December 31,
2020, and the related consolidated<b>&#160;</b>statements of operations and comprehensive loss, changes in stockholders&#8217;
deficit and cash flows for the year then ended, and the related notes to the financial statements included herein have been audited
by Marcum LLP, independent auditors, as set forth in their report thereon and are included in reliance upon such report given on the
authority of such firm as experts in accounting and auditing.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">No expert or counsel named in this prospectus
as having prepared or having certified any part of this prospectus or having given an opinion upon the validity of the securities being
registered or upon other legal matters in connection with the registration or offering of the common stock was employed on a contingency
basis or had, or is to receive, in connection with the offering, a substantial interest, direct or indirect, in the registrant or any
of its parents or subsidiaries. Nor was any such person connected with the registrant or any of its parent or subsidiaries as a promoter,
managing or principal underwriter, voting trustee, director, officer or employee.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><div><a id="a_025"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">LEGAL MATTERS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The validity of the securities offered by this
prospectus and other legal matters concerning this offering relating to United States federal law and New York law has been passed upon
for us by Dorsey &amp; Whitney LLP, Denver, Colorado. Certain legal matters in connection with this offering will be passed upon for
the underwriter by Thompson Hine LLP, New York, New York.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_026"></a></div><p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">WHERE YOU CAN FIND MORE INFORMATION</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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. The registration statement, including
the attached exhibits and schedules, contains additional relevant information about us and the securities. This prospectus does not contain
all of the information set forth in the registration statement and the exhibits and schedules thereto. For further information respecting
our company and the shares offered by this prospectus, you should refer to the registration statement, including the exhibits and schedules
thereto.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We file annual, quarterly and other reports,
proxy statements and other information with the SEC. Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports
on Form 8-K, including any amendments to those reports, and other information that we file with or furnish to the SEC pursuant to Section
13(a) or 15(d) of the Exchange Act can be accessed free of charge through the Internet. These reports and other information will be available
at the website of the SEC at http://www.sec.gov. We also maintain a website at www.akerna.com, at which you may access these materials
free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. However, the information
contained in or accessible through our website is not part of this prospectus or the registration statement of which this prospectus
forms a part, and you should not rely on such information in making a decision to purchase our securities in this offering.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>


</div><!-- Field: Page; Sequence: 101; Value: 1 --><div>
    </div><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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->96<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="text-transform: uppercase"><b>INDEX
TO AKERNA&#8217;S FINANCIAL STATEMENTS</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-transform: uppercase"><b>&#160;</b></span></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td style="width: 90%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Unaudited
    Condensed Consolidated Quarterly Financial Statements</b></span></td>
    <td style="width: 10%; text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(Please note unless
    otherwise indicated, dollar amounts refer to U.S. dollars)</i></span></td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F1_001">Condensed Consolidated Balance Sheets (unaudited)</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-2</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F1_002">Condensed Consolidated Statements of Operations (unaudited)</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>3</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F1_003">Condensed Consolidated Statements of Comprehensive Loss (unaudited)</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>4</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F1_004">Condensed Consolidated Statements of Changes in Equity (unaudited)</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>5</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F1_005">Condensed Consolidated Statements of Cash Flows (unaudited)</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>7</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F1_006">Notes</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-8</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td style="width: 90%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Annual Financial
    Statements</b></span></td>
    <td style="width: 10%; text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(Please note unless
    otherwise indicated, dollar amounts refer to U.S. dollars)</i></span></td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F2_001">Report of Independent Registered Public Accounting Firm</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-22</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F2_002">Consolidated Balance Sheets</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>23</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F2_003">Consolidated Statements of Operations</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>24</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F2_004">Consolidated Statements of Comprehensive Loss</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>25</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F2_005">Consolidated Statements of Stockholders&#8217; Equity</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>26</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F2_006">Consolidated Statements of Cash Flows</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>27</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F2_007">Notes</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>28</td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="text-transform: uppercase"><b>INDEX
TO THE NAV PEOPLE&#8217;S FINANCIAL STATEMENTS</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="text-transform: uppercase"><b>&#160;</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Unaudited Condensed Consolidated Quarterly Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="background-color: #CCEEFF">
    <td style="width: 90%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FINANCIAL STATEMENTS</b></span></td>
    <td style="width: 10%">&#160;</td></tr>
  <tr>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="padding-left: 22.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F3_001">Consolidated Balance Sheet</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-65</span></td></tr>
  <tr>
    <td style="padding-left: 22.5pt">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="padding-left: 22.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F3_002">Consolidated Statement of Operations and Comprehensive Income</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>66</td></tr>
  <tr>
    <td style="padding-left: 22.5pt">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="padding-left: 22.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F3_003">Consolidated Statement of Stockholders&#8217; Deficit</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>67</td></tr>
  <tr>
    <td style="padding-left: 22.5pt">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="padding-left: 22.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F3_004">Consolidated Statement of Cash Flows</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>68</td></tr>
  <tr>
    <td style="padding-left: 22.5pt">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="padding-left: 22.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F3_005">Notes to the Consolidated Financial Statements</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>69</td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Annual
Financial Statements</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="width: 90%"></td>
    <td style="border-bottom: Black 1.5pt solid; width: 10%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Page</b></span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#F4_001">INDEPENDENT AUDITORS&#8217; REPORT</a></b></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-79</span></td></tr>
  <tr>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FINANCIAL STATEMENTS&#160;</b></span></td>
    <td>&#160;</td></tr>
  <tr>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="padding-left: 22.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F4_002">Consolidated Balance Sheet</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>80</td></tr>
  <tr>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="padding-left: 22.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F4_003">Consolidated Statement of Operations and Comprehensive Loss</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>81</td></tr>
  <tr>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="padding-left: 22.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F4_004">Consolidated Statement of Stockholders&#8217; Deficit</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>82</td></tr>
  <tr>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="padding-left: 22.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F4_005">Consolidated Statement of Cash Flows</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>83</td></tr>
  <tr>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="padding-left: 22.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#F4_006">Notes to the Consolidated Financial Statements</a></span></td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-</span>84</td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 102; Options: NewSection; Value: 1 --><div>
    </div><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 -->1<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="F1_001"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Condensed Consolidated
Balance Sheets</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>(unaudited)</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">March 31,<br/>
</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">December 31,<br/>
</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Assets</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Current assets:</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; width: 76%">Cash</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashAndCashEquivalentsAtCarryingValue" scale="0" unitRef="usd">9,687,690</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashAndCashEquivalentsAtCarryingValue" scale="0" unitRef="usd">13,934,265</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Restricted cash</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCash" scale="0" unitRef="usd">508,261</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCash" scale="0" unitRef="usd">508,261</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Accounts receivable, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableNetCurrent" scale="0" unitRef="usd">2,579,187</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableNetCurrent" scale="0" unitRef="usd">1,403,774</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Prepaid expenses and other current assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidExpenseAndOtherAssetsCurrent" scale="0" unitRef="usd">2,492,089</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidExpenseAndOtherAssetsCurrent" scale="0" unitRef="usd">2,383,764</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Total current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsCurrent" scale="0" unitRef="usd">15,267,227</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsCurrent" scale="0" unitRef="usd">18,230,064</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Fixed assets, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">159,159</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">153,151</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Investment, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EquityMethodInvestments" scale="0" unitRef="usd">226,101</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EquityMethodInvestments" scale="0" unitRef="usd">226,101</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Capitalized&#160;software,&#160;net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CapitalizedComputerSoftwareNet" scale="0" unitRef="usd">8,012,387</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CapitalizedComputerSoftwareNet" scale="0" unitRef="usd">7,311,676</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Intangible assets, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsNet" scale="0" unitRef="usd">20,708,046</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsNet" scale="0" unitRef="usd">21,609,794</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in">Goodwill</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Goodwill" scale="0" unitRef="usd">29,964,160</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Goodwill" scale="0" unitRef="usd">46,942,681</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Other noncurrent assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssetsNoncurrent" scale="0" unitRef="usd">9,700</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssetsNoncurrent" scale="0" unitRef="usd">9,700</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Total Assets</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Assets" scale="0" unitRef="usd">74,346,780</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Assets" scale="0" unitRef="usd">94,483,167</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Liabilities and Equity</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Current liabilities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Accounts payable, accrued expenses and other accrued liabilities</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent" scale="0" unitRef="usd">7,463,341</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent" scale="0" unitRef="usd">6,063,520</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Contingent consideration payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationLiabilityCurrent" scale="0" unitRef="usd">6,300,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationLiabilityCurrent" scale="0" unitRef="usd">6,300,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Current portion of deferred revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenueCurrent" scale="0" unitRef="usd">3,369,631</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenueCurrent" scale="0" unitRef="usd">3,543,819</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Current portion of long-term debt</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LongTermDebtCurrent" scale="0" unitRef="usd">13,200,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LongTermDebtCurrent" scale="0" unitRef="usd">13,200,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Derivative liability</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DerivativeLiabilitiesCurrent" scale="0" unitRef="usd">45,127</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DerivativeLiabilitiesCurrent" scale="0" unitRef="usd">63,178</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Total current liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesCurrent" scale="0" unitRef="usd">30,378,099</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesCurrent" scale="0" unitRef="usd">29,170,517</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Long-term portion of deferred revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenueNoncurrent" scale="0" unitRef="usd">486,201</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenueNoncurrent" scale="0" unitRef="usd">582,676</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Long-term debt, less current portion</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LongTermDebtNoncurrent" scale="0" unitRef="usd">2,137,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LongTermDebtNoncurrent" scale="0" unitRef="usd">4,105,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Deferred tax liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredIncomeTaxLiabilitiesNet" scale="0" unitRef="usd">565,184</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredIncomeTaxLiabilitiesNet" scale="0" unitRef="usd">675,291</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Total liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Liabilities" scale="0" unitRef="usd">33,566,484</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Liabilities" scale="0" unitRef="usd">34,533,484</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Commitments and contingencies (Note 7)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-0">&#160;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-1">&#160;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Equity:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-indent: -0.125in; text-align: left">Preferred stock, par value $<ix:nonFraction contextRef="c1" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares"><ix:nonFraction contextRef="c2" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares">0.0001</ix:nonFraction></ix:nonFraction>; <ix:nonFraction contextRef="c1" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesAuthorized" scale="0" unitRef="shares"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesAuthorized" scale="0" unitRef="shares">5,000,000</ix:nonFraction></ix:nonFraction> shares authorized, <ix:nonFraction contextRef="c1" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c1" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesOutstanding" scale="0" unitRef="shares"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesOutstanding" scale="0" unitRef="shares">1</ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction>&#160;share special voting preferred stock issued and outstanding at March 31, 2022 and&#160;December 31, 2021</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-2">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-3">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-indent: -0.125in; text-align: left">Special voting preferred stock, par value&#160;$<ix:nonFraction contextRef="c3" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares"><ix:nonFraction contextRef="c4" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares">0.0001</ix:nonFraction></ix:nonFraction>;&#160;<ix:nonFraction contextRef="c3" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesAuthorized" scale="0" unitRef="shares"><ix:nonFraction contextRef="c4" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesAuthorized" scale="0" unitRef="shares"><ix:nonFraction contextRef="c3" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c4" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c3" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesOutstanding" scale="0" unitRef="shares"><ix:nonFraction contextRef="c4" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesOutstanding" scale="0" unitRef="shares">1</ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction>&#160;share authorized,&#160;issued and outstanding as of March 31, 2022&#160;and December 31, 2021,&#160;with $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockLiquidationPreference" scale="0" unitRef="usdPershares"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockLiquidationPreference" scale="0" unitRef="usdPershares">1</ix:nonFraction></ix:nonFraction>&#160;preference in liquidation; exchangeable shares, <ix:nonFraction contextRef="c5" decimals="0" format="ixt-sec:numwordsen" name="us-gaap:PreferredStockNoParValue" scale="0" unitRef="usdPershares"><ix:nonFraction contextRef="c6" decimals="0" format="ixt-sec:numwordsen" name="us-gaap:PreferredStockNoParValue" scale="0" unitRef="usdPershares">no</ix:nonFraction></ix:nonFraction> par value, <ix:nonFraction contextRef="c5" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c5" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesOutstanding" scale="0" unitRef="shares">306,852</ix:nonFraction></ix:nonFraction> and&#160;<ix:nonFraction contextRef="c6" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c6" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesOutstanding" scale="0" unitRef="shares">309,286</ix:nonFraction></ix:nonFraction>&#160;shares issued and outstanding as of&#160;March 31, 2022&#160;and December 31, 2021&#160;respectively</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="kern:ExchangablePreferredsStock" scale="0" unitRef="usd">2,347,418</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:ExchangablePreferredsStock" scale="0" unitRef="usd">2,366,038</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-indent: -0.125in; text-align: left">Common stock, par value $<ix:nonFraction contextRef="c1" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:CommonStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares"><ix:nonFraction contextRef="c2" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:CommonStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares">0.0001</ix:nonFraction></ix:nonFraction>; <ix:nonFraction contextRef="c1" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesAuthorized" scale="0" unitRef="shares"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesAuthorized" scale="0" unitRef="shares">75,000,000</ix:nonFraction></ix:nonFraction> shares authorized, <ix:nonFraction contextRef="c1" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c1" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesOutstanding" scale="0" unitRef="shares">34,175,088</ix:nonFraction></ix:nonFraction> and <ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesOutstanding" scale="0" unitRef="shares">31,001,884</ix:nonFraction></ix:nonFraction>&#160;issued and outstanding at March 31, 2022 and December 31, 2021, respectively</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockValue" scale="0" unitRef="usd">3,417</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockValue" scale="0" unitRef="usd">3,100</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Additional paid-in capital</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalPaidInCapital" scale="0" unitRef="usd">148,761,867</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalPaidInCapital" scale="0" unitRef="usd">146,027,258</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Accumulated other comprehensive loss</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax" scale="0" unitRef="usd">128,723</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax" scale="0" unitRef="usd">61,523</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Accumulated deficit</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RetainedEarningsAccumulatedDeficit" scale="0" sign="-" unitRef="usd">110,461,129</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RetainedEarningsAccumulatedDeficit" scale="0" sign="-" unitRef="usd">88,508,236</ix:nonFraction></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="padding-left: 0.25in; text-align: left">Total equity</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">40,780,296</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">59,949,683</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total liabilities and equity</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesAndStockholdersEquity" scale="0" unitRef="usd">74,346,780</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesAndStockholdersEquity" scale="0" unitRef="usd">94,483,167</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><i>The accompanying notes are an integral part
of these condensed consolidated financial statements</i></p><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr>
    <td style="text-align: center"></td></tr>
  </table><div>





</div><!-- Field: Page; Sequence: 103; Value: 1 --><div>
    </div><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 -->2<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="F1_002"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Condensed Consolidated Statements of Operations</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>(unaudited)</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><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">&#160;</td><td style="white-space: nowrap; font-weight: bold">&#160;</td>
    <td colspan="6" style="white-space: nowrap; font-weight: bold; text-align: center">For&#160;the&#160;Three Months Ended<br/>
</td><td style="white-space: nowrap; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Revenue:</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; width: 76%">Software</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c10" decimals="0" format="ixt:num-dot-decimal" name="kern:RevenuesFromSoftware" scale="0" unitRef="usd">6,508,513</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c11" decimals="0" format="ixt:num-dot-decimal" name="kern:RevenuesFromSoftware" scale="0" unitRef="usd">3,795,153</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in">Consulting</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c12" decimals="0" format="ixt:num-dot-decimal" name="kern:RevenueFromeConsulting" scale="0" unitRef="usd">427,009</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c13" decimals="0" format="ixt:num-dot-decimal" name="kern:RevenueFromeConsulting" scale="0" unitRef="usd">172,747</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Other revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c14" decimals="0" format="ixt:num-dot-decimal" name="kern:RevenueFromOther" scale="0" unitRef="usd">15,319</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c15" decimals="0" format="ixt:num-dot-decimal" name="kern:RevenueFromOther" scale="0" unitRef="usd">46,124</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Total revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">6,950,841</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">4,014,024</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Cost of revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="0" unitRef="usd">2,203,671</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="0" unitRef="usd">1,454,167</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Gross profit</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GrossProfit" scale="0" unitRef="usd">4,747,170</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GrossProfit" scale="0" unitRef="usd">2,559,857</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Operating expenses:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Product development</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ResearchAndDevelopmentExpense" scale="0" unitRef="usd">2,105,361</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ResearchAndDevelopmentExpense" scale="0" unitRef="usd">1,424,100</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Sales and marketing</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SellingAndMarketingExpense" scale="0" unitRef="usd">3,236,113</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SellingAndMarketingExpense" scale="0" unitRef="usd">1,735,915</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">General and administrative</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="0" unitRef="usd">2,570,432</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="0" unitRef="usd">1,852,962</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">1,993,391</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">1,052,883</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Impairment of long-lived assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentOfLongLivedAssetsHeldForUse" scale="0" unitRef="usd">15,478,521</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-12">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Total operating expenses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">25,383,818</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">6,065,860</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Loss from operations</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" sign="-" unitRef="usd">20,636,648</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" sign="-" unitRef="usd">3,506,003</ix:nonFraction></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">Other (expense) income:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Interest (expense)&#160;income, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestIncomeExpenseNonoperatingNet" scale="0" sign="-" unitRef="usd">740</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestIncomeExpenseNonoperatingNet" scale="0" sign="-" unitRef="usd">774,380</ix:nonFraction></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">Change in fair value of convertible notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueOfConvertibleNotes" scale="0" unitRef="usd">1,433,000</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueOfConvertibleNotes" scale="0" unitRef="usd">1,991,272</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Change in fair value of derivative liability</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DerivativeGainLossOnDerivativeNet" scale="0" unitRef="usd">18,051</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DerivativeGainLossOnDerivativeNet" scale="0" sign="-" unitRef="usd">175,996</ix:nonFraction></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="padding-left: 0.25in; text-align: left">Total other (expense) income</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NonoperatingIncomeExpense" scale="0" sign="-" unitRef="usd">1,415,689</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NonoperatingIncomeExpense" scale="0" sign="-" unitRef="usd">2,941,648</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net loss before income taxes and equity in losses of investee</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments" scale="0" sign="-" unitRef="usd">22,052,337</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments" scale="0" sign="-" unitRef="usd">6,447,651</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Income tax (expense) benefit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" sign="-" unitRef="usd">99,444</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">6,270</ix:nonFraction></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">Equity in losses of investee</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-13">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromEquityMethodInvestments" scale="0" sign="-" unitRef="usd">3,782</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net loss</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">21,952,893</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">6,457,703</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Basic and diluted weighted average common stock outstanding</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" unitRef="usdPershares">31,605,783</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" unitRef="usdPershares">22,209,072</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Basic and diluted net loss per common share</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareDiluted" scale="0" sign="-" unitRef="usdPershares">0.69</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c16" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareDiluted" scale="0" sign="-" unitRef="usdPershares">0.29</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>






</div><!-- Field: Page; Sequence: 104; Value: 1 --><div>
    </div><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 -->3<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; ">&#160;</p><div>

</div><div><a id="F1_003"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Condensed Consolidated Statements of Comprehensive
Loss</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>(unaudited)</b>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; ">&#160;</p><div>

</div><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">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Three Months Ended<br/>
 March 31,</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Net loss</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">21,952,893</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">6,457,703</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Other comprehensive (loss) income:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Foreign currency translation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" sign="-" unitRef="usd">33,800</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" sign="-" unitRef="usd">230</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Unrealized (loss) gain on convertible notes</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" scale="0" unitRef="usd">101,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" scale="0" sign="-" unitRef="usd">13,000</ix:nonFraction></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">Comprehensive loss</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">21,885,693</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">6,470,933</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><i>The accompanying notes
are an integral part of these condensed consolidated financial statements</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>






</div><!-- Field: Page; Sequence: 105; Value: 1 --><div>
    </div><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 -->4<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="F1_004"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Condensed Consolidated Statements of Changes
in Equity</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>For the&#160;Three Months Ended March 31, 2022</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>(unaudited)</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><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-indent: -0.125in; padding-left: 0.125in">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Special Voting Preferred Stock</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Common</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Additional<br/> Paid-In<br/>
</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Accumulated Other<br/>
 Comprehensive<br/>
</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Accumulated<br/>
</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Total<br/>
</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Share</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Capital</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Income</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Deficit</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Equity</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 28%">Balance &#8211; January 1, 2022</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 6%; text-align: right"><ix:nonFraction contextRef="c29" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">309,286</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right"><ix:nonFraction contextRef="c29" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">2,366,038</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 6%; text-align: right"><ix:nonFraction contextRef="c30" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">31,001,884</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right"><ix:nonFraction contextRef="c30" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">3,100</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right"><ix:nonFraction contextRef="c31" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">146,027,258</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right"><ix:nonFraction contextRef="c32" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">61,523</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(<ix:nonFraction contextRef="c33" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">88,508,236</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">59,949,683</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Conversion of Exchangeable Shares to common stock</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c34" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfUnits" scale="0" sign="-" unitRef="shares">2,434</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c34" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" scale="0" sign="-" unitRef="usd">18,620</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c35" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfUnits" scale="0" unitRef="shares">2,434</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-20">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c36" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" scale="0" unitRef="usd">18,620</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-21">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-22">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-23">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Settlement of convertible debt</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-24">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-25">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c35" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities" scale="0" unitRef="shares">3,396,842</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c35" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" scale="0" unitRef="usd">340</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c36" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" scale="0" unitRef="usd">3,299,660</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-26">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-27">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" scale="0" unitRef="usd">3,300,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Shares withheld for withholding taxes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-28">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-29">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c35" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesPaidForTaxWithholdingForShareBasedCompensation" scale="0" sign="-" unitRef="shares">4,421</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-30">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c36" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" scale="0" unitRef="usd">5,615</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-31">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-32">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" scale="0" unitRef="usd">5,615</ix:nonFraction></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; padding-left: 0.125in; text-align: left">Shares returned in connection with 365 Cannabis acquisition</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-33">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-34">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c35" decimals="INF" format="ixt:num-dot-decimal" name="kern:StcckIssuedDuringSharesReturnedInConnectionWithCannabisAcquisition" scale="0" sign="-" unitRef="shares">279,762</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c35" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringSharesReturnedInConnectionWith365CannabisAcquisition" scale="0" sign="-" unitRef="usd">28</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c36" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringSharesReturnedInConnectionWith365CannabisAcquisition" scale="0" sign="-" unitRef="usd">939,972</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-35">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-36">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringSharesReturnedInConnectionWith365CannabisAcquisition" scale="0" sign="-" unitRef="usd">940,000</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Stock-based compensation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-37">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-38">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c36" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" scale="0" unitRef="usd">316,855</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-39">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-40">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" scale="0" unitRef="usd">316,855</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Restricted stock vesting</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-41">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-42">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c35" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardGross" scale="0" unitRef="shares">43,479</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c35" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" scale="0" unitRef="usd">4</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c36" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" scale="0" sign="-" unitRef="usd">4</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-43">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-44">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-45">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Liabilities settled with shares</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-46">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-47">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c35" decimals="INF" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodSharesSettlementOfLiabilities" scale="0" unitRef="shares">14,632</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c35" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" scale="0" unitRef="usd">1</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c36" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" scale="0" unitRef="usd">45,065</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-48">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-49">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" scale="0" unitRef="usd">45,066</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Foreign currency translation adjustments</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-50">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-51">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-52">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c37" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" sign="-" unitRef="usd">33,800</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-53">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" sign="-" unitRef="usd">33,800</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Unrealized (loss) gain on convertible notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-54">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-55">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-56">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c37" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" scale="0" unitRef="usd">101,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-57">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" scale="0" unitRef="usd">101,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Net loss</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-58">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-59">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-60">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-61">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c38" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">21,952,893</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">21,952,893</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">Balance &#8211; March 31, 2022</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c39" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">306,852</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c39" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">2,347,418</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c40" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">34,175,088</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c40" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">3,417</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c41" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">148,761,867</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c42" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">128,723</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c43" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">110,461,129</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">40,780,296</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><i>The accompanying notes
are an integral part of these condensed consolidated financial statements</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; ">&#160;</p><div>






</div><!-- Field: Page; Sequence: 106; Value: 1 --><div>
    </div><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 -->5<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><b>Condensed Consolidated
Statements of Changes in&#160;Equity</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><b>For the&#160;Three
Months Ended March 31, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><b>(unaudited)</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; ">&#160;</p><div>

</div><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-indent: -0.125in; padding-left: 0.125in">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Special Voting Preferred Stock</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Common</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Additional<br/> Paid-In<br/>
</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Accumulated Other<br/>
 Comprehensive<br/>
</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Accumulated<br/>
</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Total<br/>
</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Share</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Capital</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Income</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Deficit</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Equity</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 28%">Balance &#8211; January 1, 2021</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 6%; text-align: right"><ix:nonFraction contextRef="c44" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">2,667,349</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right"><ix:nonFraction contextRef="c44" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">20,405,219</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 6%; text-align: right"><ix:nonFraction contextRef="c45" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">19,901,248</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right"><ix:nonFraction contextRef="c45" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">1,990</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right"><ix:nonFraction contextRef="c46" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">94,086,433</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(<ix:nonFraction contextRef="c47" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">91,497</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">(<ix:nonFraction contextRef="c48" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">57,179,525</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">57,222,620</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Conversion of Exchangeable Shares to common stock</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c49" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfUnits" scale="0" sign="-" unitRef="shares">1,020,062</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c49" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" scale="0" sign="-" unitRef="usd">7,803,475</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c50" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfUnits" scale="0" unitRef="shares">1,020,062</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c50" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" scale="0" unitRef="usd">102</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" scale="0" unitRef="usd">7,803,373</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-62">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-63">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-64">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Settlement of convertible debt</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-65">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-66">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c50" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities" scale="0" unitRef="shares">2,080,140</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c50" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" scale="0" unitRef="usd">208</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" scale="0" unitRef="usd">8,467,292</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-67">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-68">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" scale="0" unitRef="usd">8,467,500</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Shares withheld for withholding taxes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-69">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-70">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c50" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesPaidForTaxWithholdingForShareBasedCompensation" scale="0" sign="-" unitRef="shares">48,948</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c50" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" scale="0" unitRef="usd">5</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" scale="0" unitRef="usd">333,842</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-71">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-72">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" scale="0" unitRef="usd">333,847</ix:nonFraction></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; padding-left: 0.125in; text-align: left">Stock-based compensation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-73">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-74">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" scale="0" unitRef="usd">503,379</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-75">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-76">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" scale="0" unitRef="usd">503,379</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">Settlement of liabilities with shares</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-77">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-78">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c50" decimals="INF" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodSharesSettlementOfLiabilities" scale="0" unitRef="shares">101,705</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c50" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" scale="0" unitRef="usd">10</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" scale="0" unitRef="usd">377,315</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-79">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-80">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" scale="0" unitRef="usd">377,325</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Restricted stock vesting</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-81">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-82">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c50" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardGross" scale="0" unitRef="shares">13,978</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c50" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" scale="0" unitRef="usd">1</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" scale="0" sign="-" unitRef="usd">1</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-83">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-84">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-85">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">Forfeitures of restricted shares</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c50" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures" scale="0" sign="-" unitRef="shares">668</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Foreign currency translation adjustments</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-86">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-87">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-88">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" sign="-" unitRef="usd">230</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-89">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" sign="-" unitRef="usd">230</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Unrealized (loss) gains on convertible notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-90">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-91">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-92">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" scale="0" sign="-" unitRef="usd">13,000</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-93">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" scale="0" sign="-" unitRef="usd">13,000</ix:nonFraction></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; padding-left: 0.125in; text-align: left">Net loss</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-94">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-95">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-96">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-97">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c53" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">6,457,703</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">6,457,703</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">Balance &#8211; March 31, 2021</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c54" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">1,647,287</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c54" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">12,601,744</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c55" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">23,067,517</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c55" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">2,306</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c56" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">110,903,949</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c57" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">104,727</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c58" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">63,637,228</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c59" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">59,766,044</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><i>The accompanying notes are an integral part
of these condensed consolidated financial statements</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>






</div><!-- Field: Page; Sequence: 107; Value: 1 --><div>
    </div><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 -->6<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><div><a id="F1_005"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Condensed Consolidated Statements of Cash Flows</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>(unaudited)</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center">For the Three Months Ended<br/>
</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Cash flows from operating activities:</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Net loss</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">21,952,893</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">6,457,703</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Adjustment to reconcile net loss to net cash used in operating activities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Equity in losses of investment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-265">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LossOnSaleOfInvestments" scale="0" unitRef="usd">3,782</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Bad debt</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProvisionForDoubtfulAccounts" scale="0" unitRef="usd">174,794</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProvisionForDoubtfulAccounts" scale="0" sign="-" unitRef="usd">10,516</ix:nonFraction></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">Stock-based compensation expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensation" scale="0" unitRef="usd">304,237</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensation" scale="0" unitRef="usd">503,379</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Amortization of deferred contract cost</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:AmortizationOfDeferredContractCost" scale="0" unitRef="usd">113,251</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="kern:AmortizationOfDeferredContractCost" scale="0" unitRef="usd">118,519</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Non-cash interest expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-266">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherNoncashExpense" scale="0" unitRef="usd">769,773</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationDepletionAndAmortization" scale="0" unitRef="usd">1,993,391</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationDepletionAndAmortization" scale="0" unitRef="usd">1,052,882</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Foreign currency loss (gain)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:ForeignCurrencyLossesgain" scale="0" unitRef="usd">5,596</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="kern:ForeignCurrencyLossesgain" scale="0" sign="-" unitRef="usd">18,801</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Impairment of long-lived assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentOfLongLivedAssetsToBeDisposedOf" scale="0" unitRef="usd">15,478,521</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-267">&#8212;</div></td><td style="text-align: left">&#160;</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 convertible notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueOfConvertibleDebt" scale="0" unitRef="usd">1,433,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueOfConvertibleDebt" scale="0" unitRef="usd">1,991,272</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Change in fair value of derivative liability</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueOfDerivativeLiability" scale="0" sign="-" unitRef="usd">18,051</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueOfDerivativeLiability" scale="0" unitRef="usd">175,996</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Changes in operating assets and liabilities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Accounts receivable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsReceivable" scale="0" unitRef="usd">1,335,939</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsReceivable" scale="0" unitRef="usd">177,832</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Prepaid expenses and other current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:PrepaidExpensesAndOtherCurrentAsset" scale="0" unitRef="usd">178,869</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="kern:PrepaidExpensesAndOtherCurrentAsset" scale="0" unitRef="usd">236,339</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Accounts payable and accrued liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccruedLiabilities" scale="0" unitRef="usd">445,969</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccruedLiabilities" scale="0" unitRef="usd">152,455</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Deferred tax liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInDeferredLiabilities" scale="0" sign="-" unitRef="usd">110,107</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-268">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Deferred revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInDeferredRevenue" scale="0" sign="-" unitRef="usd">296,032</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInDeferredRevenue" scale="0" unitRef="usd">286,637</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-align: left">Net cash used in operating activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" sign="-" unitRef="usd">3,585,394</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" sign="-" unitRef="usd">1,373,818</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Cash flows from investing activities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Developed software additions</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToDevelopSoftware" scale="0" unitRef="usd">647,022</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToDevelopSoftware" scale="0" unitRef="usd">704,637</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-align: left">Net cash used in investing activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" scale="0" sign="-" unitRef="usd">647,022</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" scale="0" sign="-" unitRef="usd">704,637</ix:nonFraction></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">Cash flows from financing activities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Value of shares withheld related to tax withholdings</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsRelatedToTaxWithholdingForShareBasedCompensation" scale="0" unitRef="usd">5,615</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsRelatedToTaxWithholdingForShareBasedCompensation" scale="0" unitRef="usd">333,847</ix:nonFraction></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="padding-left: 0.375in; text-align: left">Net cash used in financing activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" sign="-" unitRef="usd">5,615</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" sign="-" unitRef="usd">333,847</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Effect of exchange rate changes on cash and restricted cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" sign="-" unitRef="usd">8,544</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" sign="-" unitRef="usd">1,579</ix:nonFraction></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">Net change in cash and restricted cash</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" scale="0" sign="-" unitRef="usd">4,246,575</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" scale="0" sign="-" unitRef="usd">2,413,881</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Cash and restricted cash - beginning of period</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">14,442,526</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">18,340,640</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Cash and restricted cash - end of period</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">10,195,951</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c59" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">15,926,759</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Cash paid for interest</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-269">&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-270">&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Cash paid for taxes</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxesPaidNet" scale="0" unitRef="usd">5,210</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-271">&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Supplemental Disclosure of non-cash investing and financing activity:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Settlement of convertible notes in common stock</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConversionOfStockAmountIssued1" scale="0" unitRef="usd">3,300,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConversionOfStockAmountIssued1" scale="0" unitRef="usd">8,467,292</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Conversion of exchangeable&#160;shares to common stock</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConversionOfStockAmountConverted1" scale="0" unitRef="usd">18,620</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConversionOfStockAmountConverted1" scale="0" unitRef="usd">7,803,475</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Settlement of other liabilities in common stock</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtConversionOriginalDebtAmount1" scale="0" unitRef="usd">45,065</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtConversionOriginalDebtAmount1" scale="0" unitRef="usd">377,325</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Stock-based compensation capitalized as software development</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:StockBasedCompensationCapitalizedAsSoftwareDevelopment" scale="0" unitRef="usd">12,618</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-272">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Vesting of restricted stock units</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:VestingOfRestrictedStockUnits" scale="0" unitRef="usd">4</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-273">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Capitalized software included in accrued expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:CapitalizedSoftwareIncludedInAccruedExpense" scale="0" unitRef="usd">1,114,108</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-274">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Fixed asset purchases accrued or in accounts payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:FixedAssetPurchasesAccruedOrInAccountsPayable" scale="0" unitRef="usd">24,614</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-275">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Shares returned in connection with 365 Cannabis acquisition</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:SharesReturnedInConnectionWith365CannabisAcquisition" scale="0" unitRef="usd">940,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-276">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">365 Cannabis working capital funds released from accrued expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:CapitalFundsReleasedFromAccruedExpenses" scale="0" unitRef="usd">160,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-277">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">365 Cannabis working capital adjustment funds recorded in other current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:CapitalAdjustmentFundsRecordedInOtherCurrentAssets" scale="0" unitRef="usd">400,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-278">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><i>The accompanying notes are an integral part
of these condensed consolidated financial statements</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><i>&#160;</i></p><div>






</div><!-- Field: Page; Sequence: 108; Value: 1 --><div>
    </div><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 -->7<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><div><a id="F1_006"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Notes to Condensed Consolidated Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>(Unaudited)</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_NatureOfOperations-c0_cont_1" escape="true" name="us-gaap:NatureOfOperations"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 1 - Description of Business</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c0_cont_2" id="_NatureOfOperations-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Description of Business</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c0_cont_3" id="_NatureOfOperations-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">Akerna Corp., herein referred
to as we, us, our or Akerna, through our wholly-owned subsidiaries MJ Freeway, LLC, or MJF, Trellis Solutions, Inc., or Trellis, Ample
Organics, Inc, or Ample, solo sciences, inc., or Solo, Viridian Sciences Inc., or Viridian, and The NAV People, Inc. d.b.a. 365 Cannabis,
or 365 Cannabis, provides enterprise software solutions that enable regulatory compliance and inventory management. Our proprietary, broad
and growing suite of solutions are adaptable for industries in which interfacing with government regulatory agencies for compliance purposes
is required, or where the tracking of organic materials from seed or plant to end products is desired. We develop products intended to
assist states in monitoring licensed businesses&#8217; compliance with state regulations and to help state-licensed businesses operate
in compliance with such law. We provide our commercial software platform, MJ Platform&#174;, Trellis&#174;, Ample, Viridian and 365 Cannabis
to state-licensed businesses, and our regulatory software platform, Leaf Data Systems&#174;, to state government regulatory agencies. Through
Solo, we provide an innovative, next-generation solution for state and national governments to securely track product and waste throughout
the supply chain with solo*TAG&#8482;. The integration of MJ Platform&#174; and solo*CODE&#8482; results in technology for consumers and
brands that brings a consumer-facing mark designed to highlight the authenticity and signify transparency.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c0_cont_4" id="_NatureOfOperations-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Viridian and 365 Cannabis
offerings are considered enterprise offerings and all other solutions are considered non-enterprise offerings that meet the needs of our
small and medium business customers.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c0_cont_5" id="_NatureOfOperations-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We consult with clients
on a wide range of areas to help them successfully maintain compliance with state laws and regulations. We provide project-focused consulting
services to clients who are initiating or expanding their cannabis business operations or are interested in data consulting engagements
with respect to the legal cannabis industry. Our advisory engagements include service offerings focused on compliance requirement assessments,
readiness and best practices, compliance monitoring systems, application processes, inspection readiness, and business plan and compliance
reviews. We typically provide our consulting services to clients in emerging markets that are seeking consultation on newly introduced
licensing regimes and assistance with the regulatory compliant build-out of operations.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c0_cont_6" id="_NatureOfOperations-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Going Concern and Management's Liquidity
Plans</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c0_cont_7" id="_NatureOfOperations-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In accordance with the Financial
Accounting Standards Board&#8217;s (&#8220;FASB&#8221;) standard on going concern, Accounting Standard Update No. 2014-15, or ASU No.
2014-15, the Company assesses going concern uncertainty in its consolidated financial statements to determine if it has sufficient cash,
cash equivalents and working capital on hand, including marketable equity securities, and any available borrowings on loans, to operate
for a period of at least one year from the date the consolidated financial statements are issued, which is referred to as the &#8220;look-forward
period&#8221; as defined by ASU No. 2014-15. As part of this assessment, based on conditions that are known and reasonably knowable to
the Company, it will consider various scenarios, forecasts, projections, estimates and will make certain key assumptions, including the
timing and nature of projected cash expenditures or programs, and its ability to delay or curtail expenditures or programs, if necessary,
among other factors. Based on this assessment, as necessary or applicable, the Company makes certain assumptions around implementing curtailments
or delays in the nature and timing of programs and expenditures to the extent The Company deems probable those implementations can be
achieved and it has the proper authority to execute them within the look-forward period in accordance with ASU No. 2014-15.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c0_cont_8" id="_NatureOfOperations-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span>The
accompanying condensed consolidated financial statements have been prepared on the basis that we will continue as a going concern, which
contemplates realization of assets and the satisfaction of liabilities in the normal course of business. However, since our inception
we have incurred recurring operating losses, used cash from operations, and relied on capital raising transactions to continue ongoing
operations. During the three months ended March 31, 2022 and March 31, 2021, we incurred a loss from operations of $<ix:nonFraction contextRef="c0" decimals="-5" format="ixt:num-dot-decimal" name="kern:LossFromOperations" scale="6" unitRef="usd">20.6</ix:nonFraction> million and $<ix:nonFraction contextRef="c16" decimals="-5" format="ixt:num-dot-decimal" name="kern:LossFromOperations" scale="6" unitRef="usd">3.5</ix:nonFraction>
million, respectively,&#160;and used cash in operations of $<ix:nonFraction contextRef="c0" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivitiesContinuingOperations" scale="6" unitRef="usd">3.6</ix:nonFraction> million and $<ix:nonFraction contextRef="c16" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivitiesContinuingOperations" scale="6" unitRef="usd">1.4</ix:nonFraction> million, respectively. As of March 31, 2022, a working
capital deficit of $<ix:nonFraction contextRef="c1" decimals="-5" format="ixt:num-dot-decimal" name="kern:WorkingCapital" scale="6" unitRef="usd">15.1</ix:nonFraction> million with&#160;$<ix:nonFraction contextRef="c1" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:Cash" scale="6" unitRef="usd">9.7</ix:nonFraction>&#160;million in cash available to fund future operations. &#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c0_cont_9" id="_NatureOfOperations-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Management&#8217;s
plan for the Company to continue as a going concern includes raising additional capital from our ATM program, subject to certain effects
on the Senior Convertible Notes should we utilize the program, including resetting the conversion price of the Senior Convertible Notes
should we raise more than $<ix:nonFraction contextRef="c100" decimals="-6" format="ixt:num-dot-decimal" name="us-gaap:ConversionOfStockAmountConverted1" scale="6" unitRef="usd">5</ix:nonFraction>&#160;million&#160;under the ATM program and an increase of <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="kern:PercentageCanBeIncreasedOfAmountPayableOnMonthlyInstallmentPayments" scale="-2" unitRef="pure">10</ix:nonFraction>% in the amount payable on the monthly installment
payments if they are paid in cash and we have used the ATM program in the 12 months prior to the installment date, settling our contingent
consideration and Senior Convertible Notes&#160;in common stock rather than cash as it comes due, to the extent that this is permissible,
and implementing certain cost cutting strategies throughout the organization, while continuing to seek to grow our customer base and realize
synergies as we continue to integrate our recent acquisitions. If the Company is unable to raise sufficient additional funds through the
ATM Program and make it's convertible debt payments in stock, it will have to develop and implement a plan to extend payables, reduce
expenditures (including by laying off employees and reducing or eliminating the funding of certain business units and initiatives of the
Company), or scale back our business plan until sufficient additional capital is raised through other equity or debt offerings to support
further operations and satisfaction of the debt, and the Company may be subject to additional risks, including retention of key employees.
Such offerings may include the issuance of shares of common stock, warrants to purchase common stock, preferred stock, convertible debt
or other instruments that may dilute our current stockholders.&#160; If we are required to raise additional capital as discussed above
and if we cannot timely raise additional funds, we may also be unable to meet the financial covenants of the Senior Convertible Notes,
which could result in an event of default under those instruments which could negatively impact the Company. See the risks detailed in
our Form 10-K under &#8220;Item 1A. Risk Factors &#8211; Risks Relating to our Convertible Debt&#8221;.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>



</div><div>





</div><!-- Field: Page; Sequence: 109; Value: 1 --><div>
    </div><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 -->8<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><ix:continuation id="_NatureOfOperations-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">The
ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in
the preceding paragraph and eventually secure other sources of financing and attain profitable operations. We will require additional
financing in the second quarter of 2022 to meet our ongoing operational working capital requirements and continue to meet the financial
covenants of the Senior Convertible Notes. As noted above, we plan to meet those requirements in part through the use of our ATM Facility,
but there are no guarantees that the ATM Facility will permit us to raise sufficient cash to meet our ongoing requirements. <ix:nonNumeric contextRef="c0" name="us-gaap:DebtInstrumentCovenantCompliance">We also assume
that we will be able to pay our convertible debt in common stock rather than cash, however if at any point our stock price is below $2.00(which
it is as of the date hereof),&#160; the debt holders may request the payments in cash rather than stock.</ix:nonNumeric> These factors raise substantial
doubt about the Company&#8217;s ability to continue as a going concern for one year from the issuance of the consolidated financial statements.
If we are unable to raise sufficient capital we may have to reduce operations which could significantly affect our results of operations.
If we fail to meet the financial covenants of the Senior Convertible Notes and cannot obtain a waiver from such provisions or otherwise
come to an agreement with the holders of our debt, such holders may declare a default on the debt which could subject our assets to seizure
and sale, negatively impacting our business. The accompanying consolidated financial statements do not include any adjustments relating
to the recoverability and classification of assets and liabilities that might be necessary if the Company is unable to continue as a going
concern.</p></ix:continuation><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_1" escape="true" name="us-gaap:SignificantAccountingPoliciesTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 2 - Summary of Significant Accounting
Policies</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_2" id="_SignificantAccountingPoliciesTextBlock-c0_cont_1"><ix:nonNumeric contextRef="c0" continuedAt="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:BasisOfAccountingPolicyPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Basis of Presentation</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_3" id="_SignificantAccountingPoliciesTextBlock-c0_cont_2"><ix:continuation continuedAt="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_2" id="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The accompanying unaudited
condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America (&#8220;GAAP&#8221;) and with the instructions to the Quarterly Report on Form 10-Q and Article 8 of Regulation S-X
for interim financial information. Accordingly, these financial statements do not include all of the information normally required by
GAAP or Securities and Exchange Commission rules and regulations for complete financial statements.&#160;In management&#8217;s opinion,
these condensed consolidated financial statements include all adjustments, consisting of normal recurring items, considered necessary
for the fair presentation of the results of operations for the interim periods presented. The operating results for the&#160;three months
ended&#160;March 31, 2022&#160;are not necessarily indicative of the results that may be expected for the fiscal year ending December
31, 2022.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_4" id="_SignificantAccountingPoliciesTextBlock-c0_cont_3"><ix:continuation id="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The&#160;condensed consolidated
balance sheet as of and for the period ended December 31, 2021, has been derived from our audited financial statements at that date but
does not include all disclosures and financial information required by GAAP for complete financial statements.&#160;The information included
in this quarterly report on Form 10-Q should be read in conjunction with our consolidated financial statements and notes thereto for the
period ended&#160;December 31, 2021,&#160;which were included in our report on&#160;Form 10-K filed on March 31, 2022.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_5" id="_SignificantAccountingPoliciesTextBlock-c0_cont_4"><ix:nonNumeric contextRef="c0" continuedAt="_ConsolidationPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:ConsolidationPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Principles of Consolidation</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_6" id="_SignificantAccountingPoliciesTextBlock-c0_cont_5"><ix:continuation id="_ConsolidationPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our accompanying consolidated
financial statements include the accounts of Akerna, our wholly-owned subsidiaries, and those entities in which we otherwise have a controlling
financial interest. All significant intercompany balances and transactions have been eliminated in consolidation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_7" id="_SignificantAccountingPoliciesTextBlock-c0_cont_6"><ix:nonNumeric contextRef="c0" continuedAt="_UseOfEstimates-c0_cont_1" escape="true" name="us-gaap:UseOfEstimates"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Use of Estimates</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_8" id="_SignificantAccountingPoliciesTextBlock-c0_cont_7"><ix:continuation id="_UseOfEstimates-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The preparation of our consolidated
financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included
in the consolidated financial statements and accompanying notes thereto. Our most significant estimates and assumptions are related to
the valuation of acquisition-related assets&#160;and liabilities, capitalization of internal costs associated with software development,
fair value measurements, impairment assessments, loss contingencies, valuation allowance associated with deferred tax assets, stock based
compensation expenses, and useful lives of long-lived intangible assets. We base our estimates on historical experience and on various
other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results could differ from those estimates.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_9" id="_SignificantAccountingPoliciesTextBlock-c0_cont_8"><ix:nonNumeric contextRef="c0" continuedAt="_ReceivablesPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:ReceivablesPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Accounts Receivable, Net</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_10" id="_SignificantAccountingPoliciesTextBlock-c0_cont_9"><ix:continuation id="_ReceivablesPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We maintain an allowance for
doubtful accounts equal to the estimated uncollectible amounts based on our historical collection experience and review of the current
status of trade accounts receivable. Receivables&#160;are written-off and charged against the recorded allowance when we have exhausted
collection efforts without success.&#160;The allowance for doubtful accounts was&#160;$<ix:nonFraction contextRef="c1" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsReceivableCurrent" scale="6" unitRef="usd">0.6</ix:nonFraction> million&#160;and $<ix:nonFraction contextRef="c2" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsReceivableCurrent" scale="6" unitRef="usd">0.3</ix:nonFraction> million as of March 31,
2022 and&#160;December 31, 2021, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_11" id="_SignificantAccountingPoliciesTextBlock-c0_cont_10"><ix:nonNumeric contextRef="c0" continuedAt="_ConcentrationRiskCreditRisk-c0_cont_1" escape="true" name="us-gaap:ConcentrationRiskCreditRisk"><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">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_12" id="_SignificantAccountingPoliciesTextBlock-c0_cont_11"><ix:continuation continuedAt="_ConcentrationRiskCreditRisk-c0_cont_2" id="_ConcentrationRiskCreditRisk-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We grant credit in the normal
course of business to customers in the United States. We periodically perform credit analysis and monitor the financial condition of our
customers to reduce credit risk.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_13" id="_SignificantAccountingPoliciesTextBlock-c0_cont_12"><ix:continuation id="_ConcentrationRiskCreditRisk-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months
ended March 31, 2022 and 2021, <ix:nonFraction contextRef="c101" decimals="0" format="ixt-sec:numwordsen" name="kern:NumberOfCustomer" scale="0" unitRef="pure"><ix:nonFraction contextRef="c102" decimals="0" format="ixt-sec:numwordsen" name="kern:NumberOfCustomer" scale="0" unitRef="pure">one</ix:nonFraction></ix:nonFraction> government client accounted for <ix:nonFraction contextRef="c101" decimals="2" format="ixt:num-dot-decimal" name="kern:ConcentrationRiskPercentage" scale="-2" unitRef="pure">12</ix:nonFraction>% and <ix:nonFraction contextRef="c102" decimals="2" format="ixt:num-dot-decimal" name="kern:ConcentrationRiskPercentage" scale="-2" unitRef="pure">12</ix:nonFraction>% of total revenues, respectively.&#160;&#160;As of March
31, 2022,&#160;<ix:nonFraction contextRef="c103" decimals="0" format="ixt-sec:numwordsen" name="kern:NumberOfCustomer" scale="0" unitRef="pure"><ix:nonFraction contextRef="c104" decimals="0" format="ixt-sec:numwordsen" name="kern:NumberOfCustomer" scale="0" unitRef="pure">one</ix:nonFraction></ix:nonFraction>&#160;government client accounted for&#160;<ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="kern:ConcentrationRiskPercentage" scale="-2" unitRef="pure">19</ix:nonFraction>% of net accounts receivable and as of December 31, 2021 <ix:nonFraction contextRef="c105" decimals="0" format="ixt-sec:numwordsen" name="kern:NumberOfCustomer" scale="0" unitRef="pure">two</ix:nonFraction> government
clients accounted for <ix:nonFraction contextRef="c105" decimals="2" format="ixt:num-dot-decimal" name="kern:ConcentrationRiskPercentage" scale="-2" unitRef="pure">34</ix:nonFraction>%&#160;of net accounts receivable.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>





</div><!-- Field: Page; Sequence: 110; Value: 1 --><div>
    </div><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 -->9<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_14" id="_SignificantAccountingPoliciesTextBlock-c0_cont_13"><ix:nonNumeric contextRef="c0" continuedAt="_SegmentReportingPolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:SegmentReportingPolicyPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Segment Reporting</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_15" id="_SignificantAccountingPoliciesTextBlock-c0_cont_14"><ix:continuation continuedAt="_SegmentReportingPolicyPolicyTextBlock-c0_cont_2" id="_SegmentReportingPolicyPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company operates its
business as one operating segment. Operating segments are defined as components of an enterprise about which separate financial information
is evaluated regularly by the chief operating decision maker, the Company&#8217;s Chief Executive Officer, in deciding how to allocate
resources and assess performance. The Company&#8217;s chief operating decision maker allocates resources and assesses performance based
upon discrete financial information at the consolidated level.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_16" id="_SignificantAccountingPoliciesTextBlock-c0_cont_15"><ix:continuation continuedAt="_SegmentReportingPolicyPolicyTextBlock-c0_cont_3" id="_SegmentReportingPolicyPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the following table,
we disclose the combined gross balance of our fixed assets, capitalized software, and intangible assets by geographical location (in thousands):</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_17" id="_SignificantAccountingPoliciesTextBlock-c0_cont_16"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfRevenuesFromExternalCustomersAndLongLivedAssetsByGeographicalAreasTableTextBlock"><ix:continuation id="_SegmentReportingPolicyPolicyTextBlock-c0_cont_3"><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">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">As of<br/>
 March&#160;31,<br/>

    2022</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">As of<br/>
 December&#160;
    31,<br/>
 2021</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Long-lived assets:</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">United States</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c106" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:NoncurrentAssets" scale="3" unitRef="usd">33,793</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c107" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:NoncurrentAssets" scale="3" unitRef="usd">32,356</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Canada</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c108" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:NoncurrentAssets" scale="3" unitRef="usd">5,590</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c109" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:NoncurrentAssets" scale="3" unitRef="usd">5,229</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Total</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c1" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:NoncurrentAssets" scale="3" unitRef="usd">39,383</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:NoncurrentAssets" scale="3" unitRef="usd">37,585</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_18" id="_SignificantAccountingPoliciesTextBlock-c0_cont_17"><ix:nonNumeric contextRef="c0" continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Recent Accounting Pronouncements</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_19" id="_SignificantAccountingPoliciesTextBlock-c0_cont_18"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_2" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>ASU 2016-02</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_20" id="_SignificantAccountingPoliciesTextBlock-c0_cont_19"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_3" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Financial Accounting Standards
Board, or the FASB, has issued new guidance related to the accounting for leases. The new standard establishes a right-of-use model that
requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months.
Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement
of operations. We&#160;have adopted this new standard on January 1, 2022 and due to the immaterial impact of applying this standard to
our limited assets subject to operating leases, there was no&#160;material impact to our results of operations.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_21" id="_SignificantAccountingPoliciesTextBlock-c0_cont_20"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_4" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>ASU 2016-13</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_22" id="_SignificantAccountingPoliciesTextBlock-c0_cont_21"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_5" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FASB has issued guidance
to introduce a new model for recognizing credit losses on financial instruments based on estimated current expected credit losses, or
CECL. Under the new standard, an entity is required to estimate CECL on trade receivables at inception, based on historical information,
current conditions, and reasonable and supportable forecasts. Following our change in fiscal year-end effective December 31, 2020, the
new guidance is effective for us beginning&#160;on January 1, 2023. We are evaluating the impact of adoption of the new standard on our
consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_23" id="_SignificantAccountingPoliciesTextBlock-c0_cont_22"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_6" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>ASU 2020-01</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_24" id="_SignificantAccountingPoliciesTextBlock-c0_cont_23"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_7" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FASB has issued guidance
clarifying the interactions between various standards governing investments in equity securities. The new guidance addresses accounting
for the transition into and out of the equity method and measurement of certain purchased options and forward contracts to acquire investments.
The standard is effective for us for annual and interim periods beginning on January 1, 2022. We&#160;have adopted this new standard on
January 1, 2022 and there was no material impact to our results of operations as a result.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>


</div><div>






</div><!-- Field: Page; Sequence: 111; Value: 1 --><div>
    </div><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 -->10<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_25" id="_SignificantAccountingPoliciesTextBlock-c0_cont_24"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_8" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><i>ASU 2020-06</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_26" id="_SignificantAccountingPoliciesTextBlock-c0_cont_25"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_9" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In August 2020, the FASB
issued ASU 2020-06, Debt - Debt with Conversion and Other Options and Derivative and Hedging - Contracts in Entity&#8217;s Own Equity,
which simplifies the accounting for convertible instruments. This guidance eliminates certain models that require separate accounting
for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminates certain of the conditions
for equity classification for contracts in an entity&#8217;s own equity. The guidance also requires entities to use the if-converted method
for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments
that may be settled in cash or shares, except for certain liability-classified share-based payment awards. This guidance is required to
be adopted by us in the first quarter of 2023 and must be applied using either a modified or full retrospective approach. We are currently
evaluating the impact this guidance will have on our consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_27" id="_SignificantAccountingPoliciesTextBlock-c0_cont_26"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_10" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>ASU 2021-04</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_28" id="_SignificantAccountingPoliciesTextBlock-c0_cont_27"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_11" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 3, 2021, FASB issued
ASU 2021-04, Earnings Per Share (Topic 260), Debt&#8212;Modifications and Extinguishments (Subtopic 470-50), Compensation&#8212;Stock
Compensation (Topic 718), and Derivatives and Hedging&#8212;Contracts in Entity&#8217;s Own Equity (Subtopic 815-40): Issuer&#8217;s Accounting
for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This new standard provides clarification
and reduces diversity in an issuer&#8217;s accounting for modifications or exchanges of freestanding equity-classified written call options
(such as warrants) that remain equity classified after modification or exchange. This standard is effective for fiscal years beginning
after December 15, 2021, including interim periods within those fiscal years. Issuers should apply the new standard prospectively to modifications
or exchanges occurring after the effective date of the new standard. We&#160;have adopted this new standard on January 1, 2022 and there
was no material impact to our results of operations as a result.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_29" id="_SignificantAccountingPoliciesTextBlock-c0_cont_28"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_12" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>ASU 2021-08</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation id="_SignificantAccountingPoliciesTextBlock-c0_cont_29"><ix:continuation id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In October 2021, the FASB issued
ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,
which amends the accounting related to contract assets and&#160;liabilities acquired in business combinations. Under current GAAP, an
entity generally recognizes assets and liabilities acquired in a business combination, including contract assets and contract liabilities
arising from revenue contracts with customers, at fair value on the acquisition date. ASU 2021-08 requires that entities recognize and
measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contracts
with Customers. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal
years, and should be applied prospectively to businesses combinations occurring on or after the effective date of the amendment.&#160;We
are currently evaluating the impact this guidance will have on our consolidated financial statements.</p></ix:continuation></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_1" escape="true" name="us-gaap:RevenueFromContractWithCustomerTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 3 &#8211; Revenue</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_2" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In accordance with ASC 606,
revenue is recognized when a customer obtains the benefit of promised services, in an amount that reflects the consideration the Company
expects to be entitled to receive in exchange for those services. In determining the amount of revenue to be recognized, the Company performs
the following steps: (i) identification of the contract with a customer; (ii) identification of the promised services in the contract
and determination of whether the promised services are performance obligations, including whether they are distinct in the context of
the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations based
on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_3" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Software Revenue.</i>&#160;Our
software revenue is generated from subscriptions and services related to the use of our commercial software platforms, MJ Platform&#174;,
Ample, Trellis, Viridian,&#160;365&#160;Cannabis, and our government regulatory platform, Leaf Data Systems, and the sale of business
intelligence, data analytics and other software related services. For our SMB customers, software contracts are generally annual contracts
paid monthly in advance of service and typically cancellable upon&#160;30&#160;days&#8217; notice after the end of the contract period.
Leaf Data Systems contracts are generally multi-year contracts payable annually or quarterly in advance of service. Commercial software
and Leaf Data Systems contracts generally may only be terminated early for breach of contract as defined in the respective agreements.
Our enterprise contracts are typically multi-year contracts paid monthly in advance of services and are generally cancellable with at
least a month's notice before the end of the contract period. Amounts that have been invoiced are initially recorded as deferred revenue
or contract liabilities. Subscription revenue is recognized on a straight-line basis over the service term of the arrangement beginning
on the date that our solution is made available to the customer and ending at the expiration of the subscription term.&#160;We typically
invoice customers at the beginning of the term, in multi-year, annual, quarterly, or monthly installments. When a collection of fees occurs
in advance of service delivery, revenue recognition is deferred until such services commence. Revenue for implementation fees is recognized
ratably over the expected term of the contract, including expected renewals.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>





</div><!-- Field: Page; Sequence: 112; Value: 1 --><div>
    </div><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 -->11<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_4" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">We
include service level commitments to customers warranting certain levels of uptime reliability and performance and permitting those customers
to receive credits if those levels are not met. In addition, customer contracts often include: specific obligations that require us to
maintain the availability of the customer&#8217;s data through the service and that customer content is secured against unauthorized access
or loss, and indemnity provisions whereby we indemnify customers from third-party claims asserted against them that result from our failure
to maintain the availability of their content or securing the same from unauthorized access or loss. To date, we have not incurred any
material costs as a result of such commitments. Any such credits or payments made to customers under these arrangements are recorded as
a reduction of revenue.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_5" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><i>Consulting
Revenue.</i>&#160;Consulting services revenue is generated by providing solutions for operators in the pre-application of&#160;licensures&#160;and
pre-operational phases of development and&#160;consists of contracts with fixed terms and fee structures based upon the volume and activity
or fixed-price contracts for consulting and strategic services.&#160;These services include application and business plan preparation
as they seek licenses to be granted. Consulting projects completed during the pre-application phase generally solidify us as the software
vendor of choice for subsequent operational phases once the operator is granted the license. As a result, our consulting revenue is driven
as new emerging states pass legislation, and as our client-operators gain licenses. Accordingly, we expect our consulting services to
continue to grow as more states emerge with legalization reform.&#160;When these services are not combined with subscription revenues
as a single unit of account, these revenues are recognized as services are rendered and accepted by the customer.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_6" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Other Revenue. </i>Our other
revenue is derived primarily from&#160;point-of-sale hardware and other non-recurring revenue. We recognize revenue as these products
are delivered.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_7" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Cost of Revenue.&#160;</i>Cost
of revenue consists primarily of costs related to providing subscription and other services to our customers, including employee compensation
and related expenses for data center&#160;operations, customer support and professional services personnel, payments to outside technology
service providers, security services, and other tools.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_8" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Deferred Revenue.&#160;</i>Deferred
revenue consists of payments received in advance of revenue recognition from subscription, implementation and consulting services. The
deferred revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, contract duration,
and invoice frequency.&#160;Deferred revenue that will be recognized during the succeeding&#160;twelve-month period is recorded as deferred
revenue, which is a current liability on the accompanying consolidated balance sheets.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_9" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Disaggregation of Revenue</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_10" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company derives the majority
of its revenue from subscription fees paid for access to and usage of its SaaS solutions for a specified period of time, typically one&#160;to
three years. In addition to subscription fees, contracts with customers may include implementation fees for launch assistance and training.
Fixed subscription and implementation fees are billed in advance of the subscription term and are due in accordance with contract terms,
which generally provide for payment within 30 days. The Company's contracts typically have a&#160;one&#160;to three year&#160;term. The
Company's contractual arrangements include performance, termination and cancellation provisions, but do not provide for refunds. Customers
do not have the contractual right to take possession of the Company's software at any time.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_11" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Sales&#160;taxes collected from customers and remitted
to government authorities are excluded from revenue.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>





</div><!-- Field: Page; Sequence: 113; Value: 1 --><div>
    </div><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 -->12<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_12" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following&#160;table&#160;summarizes
our revenue disaggregation of enterprise offerings and non-enterprise offerings for the following periods (in thousands):</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_13" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_12"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:DisaggregationOfRevenueTableTextBlock"><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: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the Three&#160;Months Ended&#160;<br/> March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left"><span style="font-size: 10pt">Enterprise</span></td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c110" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">3,035</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-340">&#8212;</div></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; text-align: left"><span style="font-size: 10pt">Non-enterprise</span></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c112" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">3,916</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c113" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">4,014</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c0" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">6,951</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c16" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">4,014</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_14" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_13"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:RevenueFromExternalCustomersByGeographicAreasTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the Three Months Ended&#160;<br/> March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left; padding-left: 0.1pt">United States</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c114" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">4,989</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c115" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">2,659</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; padding-left: 0.1pt">Canada</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c116" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">1,962</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c117" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">1,355</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt; padding-left: 0.1pt">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c0" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">6,951</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c16" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">4,014</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_15" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Contracts with Multiple Performance Obligations</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_16" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Customers may elect to purchase
a subscription to multiple modules, multiple modules with multiple service levels, or, for certain of the Company's solutions. We evaluate
such contracts to determine whether the services to be provided are distinct and accordingly should be accounted for as separate performance
obligations. If we determine that a contract has multiple performance obligations, the transaction price, which is the total price of
the contract, is allocated to each performance obligation based on a relative standalone selling price method. We estimate standalone
selling price based on observable prices in past transactions for which the product offering subject to the performance obligation has
been sold separately. As the performance obligations are satisfied, revenue is recognized as discussed above in the product descriptions.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>







</div><!-- Field: Page; Sequence: 114; Value: 1 --><div>
    </div><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 -->13<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_17" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_16"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Transaction Price Allocated to Future Performance
Obligation</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_18" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_17"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">ASC 606&#160;provides certain
practical expedients that limit the required disclosure of the aggregate amount of transaction price that is allocated to performance
obligations that have not yet been satisfied. As many of the contracts the Company has entered into with customers are for a twelve-month
subscription term, a significant portion of performance obligations that have not yet been satisfied as of&#160;March 31, 2022&#160;are
part of a contract that has an original expected duration of&#160;one&#160;year or less. For contracts with an original expected duration
of greater than&#160;one&#160;year, for which the practical expedient does not apply, the aggregate transaction price allocated to the
unsatisfied performance obligations was&#160;$<ix:nonFraction contextRef="c1" decimals="-5" format="ixt:num-dot-decimal" name="kern:UnsatisfiedPerformanceObligations" scale="6" unitRef="usd">15.1</ix:nonFraction> million&#160;as of&#160;March 31, 2022, of which&#160;$<ix:nonFraction contextRef="c0" decimals="-5" format="ixt:num-dot-decimal" name="kern:Revenueexpectedtoberecognized" scale="6" unitRef="usd">8.4</ix:nonFraction> million&#160;is expected
to be recognized as revenue over the next&#160;twelve&#160;months.&#160; &#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_19" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_18"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Deferred Revenue</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_20" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_19"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Deferred revenue represents
the unearned portion of subscription and implementation fees. Deferred revenue is recorded when cash payments are received in advance
of performance. Deferred amounts are generally recognized within one&#160;to three years. Deferred revenue is included in the accompanying
consolidated balance sheets under Total current liabilities, net of any long-term portion that is included in Other long-term liabilities.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_21" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_20"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table summarizes
deferred revenue activity for the three months ended March 31, 2022&#160;(in thousands):</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_22" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_21"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:DeferredRevenueByArrangementDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">As of<br/> December&#160; 31,<br/>
2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Net additions</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Revenue recognized</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of<br/> March&#160;31,<br/>
 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%; text-align: left">Deferred revenue</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenue" scale="3" unitRef="usd">4,126</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c0" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenueAdditions" scale="3" unitRef="usd">6,069</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c0" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenueRevenueRecognized1" scale="3" unitRef="usd">6,339</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c1" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenue" scale="3" unitRef="usd">3,856</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_23" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_22"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">O<span>f
the&#160;$<ix:nonFraction contextRef="c0" decimals="-5" format="ixt:num-dot-decimal" name="kern:RevenueRecognized" scale="6" unitRef="usd">7.0</ix:nonFraction> million&#160;of</span> revenue recognized in the three months ended&#160;March 31, 2022,&#160;<span>$</span><ix:nonFraction contextRef="c2" decimals="-5" format="ixt:num-dot-decimal" name="kern:DeferredRevenueAmount" scale="6" unitRef="usd">2.4</ix:nonFraction><span>&#160;million&#160;w</span>as
included in deferred revenue at December 31, 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_24" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_23"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Costs to Obtain Contracts</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_25" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_24"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In accordance with ASC 606,
we capitalize sales commissions that are directly related to obtaining customer contracts and that would not have been incurred if the
contract had not been obtained. These costs are included in the accompanying consolidated balance sheets and are classified as Prepaid
expenses and other current assets. Deferred contract costs are amortized to sales and marketing expense over the expected period of benefit,
which we have determined to be&#160;one&#160;to three years based on the estimated customer relationship period.&#160; &#160;&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_26" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_25"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table summarizes
deferred contract cost activity for the three months ended&#160;March 31, 2022 (in thousand):</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_27" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_26"><ix:nonNumeric contextRef="c0" continuedAt="_ScheduleOfDeferredContractCostActivityTableTextBlock-c0_cont_1" escape="true" name="kern:ScheduleOfDeferredContractCostActivityTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">As of<br/> December&#160;31,<br/>
2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amortized costs&#160;(1)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of <br/> March&#160;31,<br/>
 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%; text-align: left">Deferred contract costs</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:ContractWithCustomerLiability" scale="3" unitRef="usd">301</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c0" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:AdditionsToContractHoldersFunds" scale="3" unitRef="usd">112</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c0" decimals="-3" format="ixt:num-dot-decimal" id="ix_0_fact" name="kern:AmortizedCosts" scale="3" sign="-" unitRef="usd">113</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c1" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:ContractWithCustomerLiability" scale="3" unitRef="usd">300</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation id="_RevenueFromContractWithCustomerTextBlock-c0_cont_27"><ix:continuation id="_ScheduleOfDeferredContractCostActivityTableTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(1) <ix:footnote id="ix_0_footnote" xml:lang="en-US">Includes contract costs&#160;amortized
to sales and marketing expense during the period.</ix:footnote></p></ix:continuation></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>







</div><!-- Field: Page; Sequence: 115; Value: 1 --><div>
    </div><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 -->14<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:BusinessCombinationDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 4 &#8211; Significant&#160;Transactions</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_2" id="_BusinessCombinationDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>2021 Transactions&#160;</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_3" id="_BusinessCombinationDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><i>Viridian Sciences</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_4" id="_BusinessCombinationDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 1, 2021, we completed
the acquisition of Viridian Sciences Inc. (&#8220;Viridian&#8221;), a cannabis business management software provider that is built on
SAP Business One. We acquired Viridian in exchange for <ix:nonFraction contextRef="c118" decimals="-5" format="ixt:num-dot-decimal" name="kern:ExchangeableShares" scale="6" unitRef="shares">1.0</ix:nonFraction> million shares of our common stock valued at $<ix:nonFraction contextRef="c119" decimals="-5" format="ixt:num-dot-decimal" name="kern:SharesOfCommonStock" scale="6" unitRef="usd">6.0</ix:nonFraction> million. In addition to the
stock consideration, the agreement provides for contingent consideration of up to $<ix:nonFraction contextRef="c119" decimals="-5" format="ixt:num-dot-decimal" name="kern:ContingentConsiderationPrice" scale="6" unitRef="usd">1.0</ix:nonFraction> million, payable in additional common stock, if
Viridian meets certain revenue criteria. We finalized our purchase price accounting during the three months ended March 31, 2022 and there
were no changes to the previously disclosed purchase price accounting.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_5" id="_BusinessCombinationDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; "><i>365&#160;Cannabis</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_6" id="_BusinessCombinationDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">On
October 1, 2021, we acquired all the issued and outstanding shares of&#160;365&#160;Cannabis. Under the terms of the Agreement, the aggregate
consideration for the 365 Cannabis shares consisted&#160;of an initial&#160;purchase price of (1) $<ix:nonFraction contextRef="c120" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents" scale="0" unitRef="usd">5,000,000</ix:nonFraction>&#160;in cash, (2) $<ix:nonFraction contextRef="c121" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueAcquisitions" scale="0" unitRef="usd">12,000,000</ix:nonFraction>&#160;in
stock, which was to be settled by issuing&#160;<ix:nonFraction contextRef="c121" decimals="-5" format="ixt:num-dot-decimal" name="kern:SharesOfCommonStock" scale="6" unitRef="usd">3.6</ix:nonFraction>&#160;million&#160;shares of our common stock, and (3) contingent value rights to be
issued pursuant to a rights indenture entitling the holders thereof to receive, subject to certain adjustments as set forth in the Agreement,
an aggregate of up to $<ix:nonFraction contextRef="c121" decimals="0" format="ixt:num-dot-decimal" name="kern:AggregateOfStock" scale="0" unitRef="usd">8,000,000</ix:nonFraction>&#160;in stock, in the event that 365 Cannabis achieves certain revenue targets as specified in the Agreement.&#160;These
rights are accounted for as contingent consideration and are currently recorded at preliminary fair value which will be updated upon finalization
of purchase accounting.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_7" id="_BusinessCombinationDisclosureTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">We
reached a working capital settlement agreement during the three months ended March 31, 2022 in the amount of $<ix:nonFraction contextRef="c122" decimals="-5" format="ixt:num-dot-decimal" name="kern:WorkingCapitalSettlement" scale="6" unitRef="usd">1.5</ix:nonFraction> million. As a result
of this post-close adjustment, the 365 Cannabis purchase price was reduced by $<ix:nonFraction contextRef="c123" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:BusinessAcquisitionsPurchasePriceAllocationYearOfAcquisitionNetEffectOnIncome" scale="6" unitRef="usd">1.5</ix:nonFraction> million during the first quarter of 2022. This was
recorded as follows: 1) a receivable of $<ix:nonFraction contextRef="c122" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ReceivablesNetCurrent" scale="0" unitRef="usd">400,000</ix:nonFraction> was booked in other current assets in our condensed consolidated balance sheet as of
March 31, 2022 and was received subsequent to March 31, 2022, 2) a reduction of $<ix:nonFraction contextRef="c124" decimals="0" format="ixt:num-dot-decimal" name="kern:ReductionOfWorkingCapital" scale="0" unitRef="usd">160,000</ix:nonFraction> was made to the working capital accrual that
was booked as of December 31, 2021, and 3) <ix:nonFraction contextRef="c123" decimals="0" format="ixt:num-dot-decimal" name="kern:SharesHeldInEscrow" scale="0" unitRef="shares">279,762</ix:nonFraction> shares worth $<ix:nonFraction contextRef="c122" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EscrowDeposit" scale="0" unitRef="usd">940,000</ix:nonFraction> that were held in escrow were released back to Akerna&#160;to
cover the remainder of the working capital adjustment. The&#160;updated consideration transferred is reflected in the table below (in&#160;thousands):&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_8" id="_BusinessCombinationDisclosureTextBlock-c0_cont_7"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfBusinessAcquisitionsByAcquisitionContingentConsiderationTextBlock"><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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Preliminary<br/> Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: justify">Shares issued</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c123" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable" scale="3" unitRef="usd">11,060</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Cash</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c123" decimals="-3" format="ixt:num-dot-decimal" name="kern:BusinessCombinationConsiderationTransferredCash" scale="3" unitRef="usd">4,982</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Contingent consideration</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c123" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationConsiderationTransferredLiabilitiesIncurred" scale="3" unitRef="usd">6,300</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Total preliminary fair value of consideration transferred</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c123" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationConsiderationTransferred1" scale="3" unitRef="usd">22,342</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_9" id="_BusinessCombinationDisclosureTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; ">The opening balance
sheet presented below reflects our updated purchase price allocation,&#160;summarizing the preliminary fair values of assets acquired
and liabilities assumed as of the date of acquisition (in&#160;thousands):&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_10" id="_BusinessCombinationDisclosureTextBlock-c0_cont_9"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock"><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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Preliminary<br/> Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%">Cash</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c122" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:Cash" scale="3" unitRef="usd">527</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Accounts receivable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c122" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsReceivables" scale="3" unitRef="usd">486</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Prepaid expenses and other current asset</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c122" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsPrepaidExpenseAndOtherAssets" scale="3" unitRef="usd">261</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Fixed Assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c123" decimals="-3" format="ixt:num-dot-decimal" name="kern:FixedAssets" scale="3" unitRef="usd">93</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Non-compete&#160;agreement</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c122" decimals="-3" format="ixt:num-dot-decimal" name="kern:NoncompeteAgreement" scale="3" unitRef="usd">80</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Acquired technology</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c122" decimals="-3" format="ixt:num-dot-decimal" name="kern:AcquiredTechnology" scale="3" unitRef="usd">1,040</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Customer relationships</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c122" decimals="-3" format="ixt:num-dot-decimal" name="kern:CustomerRelationships" scale="3" unitRef="usd">13,810</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Acquired trade name</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c122" decimals="-3" format="ixt:num-dot-decimal" name="kern:AcquiredTradeName" scale="3" unitRef="usd">270</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Goodwill</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c122" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet" scale="3" unitRef="usd">12,543</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Accounts payable and accrued expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c122" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesAccountsPayable" scale="3" unitRef="usd">826</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Deferred tax liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c122" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilities" scale="3" unitRef="usd">2,642</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Deferred revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c122" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesDeferredRevenue" scale="3" unitRef="usd">3,300</ix:nonFraction></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="padding-left: 0.25in; text-align: justify">Net assets acquired</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c122" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets" scale="3" unitRef="usd">22,342</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>








</div><div>

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

</div><!-- Field: Page; Sequence: 116; Value: 1 --><div>
    </div><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>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

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

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_11" id="_BusinessCombinationDisclosureTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The excess of purchase consideration
over the fair value of assets acquired and liabilities assumed was recorded as goodwill, which is primarily attributed to the assembled
workforce and expanded market opportunities, for which there is no basis for U.S. income tax purposes. The fair values assigned to identifiable
assets acquired and liabilities assumed are based on management&#8217;s estimates and assumptions. We expect to finalize the valuation
as soon as practicable, but no later than&#160;one&#160;year from the acquisition date.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_12" id="_BusinessCombinationDisclosureTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Pro Forma Financial Information</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_13" id="_BusinessCombinationDisclosureTextBlock-c0_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following unaudited pro
forma consolidated operating results give effect to the Viridian and 365 Cannabis acquisitions, as if they had been completed as of January
1, 2020 (in thousands):&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_14" id="_BusinessCombinationDisclosureTextBlock-c0_cont_13"><ix:nonNumeric contextRef="c0" escape="true" name="kern:ScheduleOfProFormaFinancialInformationTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">Three Months<br/>
 Ended<br/>
 March&#160;31,</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%">Revenue</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c125" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessAcquisitionsProFormaRevenue" scale="3" unitRef="usd">7,407</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net loss</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c125" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessAcquisitionsProFormaNetIncomeLoss" scale="3" sign="-" unitRef="usd">6,574</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_15" id="_BusinessCombinationDisclosureTextBlock-c0_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The pro forma financial information
for the period presented above has been calculated after adjusting the results of Viridian and 365 Cannabis to reflect the business combination
accounting effects resulting from this acquisition, including the amortization expense from acquired intangible assets as though the acquisition
occurred as of the beginning of the periods indicated above as well as direct acquisition costs. The pro forma financial information is
for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had
taken place at the beginning of the years indicated above.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_16" id="_BusinessCombinationDisclosureTextBlock-c0_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Special Voting Preferred Stock and Exchangeable&#160;Shares</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_17" id="_BusinessCombinationDisclosureTextBlock-c0_cont_16"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with the Ample
acquisition, which was completed on July 7, 2020, we entered into agreements with our wholly-owned subsidiary and the Ample shareholder
representative that resulted in the issuance of a single share of our special voting preferred stock, for the purpose of ensuring that
each Exchangeable Share is substantially the economic and voting equivalent of a share of Akerna&#160;common stock, and, following the
registration of the Akerna&#160;shares issuable upon exchange of the Exchangeable Shares under the Securities Act of 1933, ensuring that
each Exchangeable Share is exchangeable on a one-for-one basis for a share of Akerna&#160;common stock, subject to certain limitations.
As a result of these agreements and the issuance of the special voting preferred stock, each holder of Exchangeable Shares effectively
has the ability to cast votes along with holders of Akerna&#160;common stock. Additionally, these agreements grant exchange rights to
the holders of exchangeable shares upon the event of our liquidation, dissolution or winding up.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_18" id="_BusinessCombinationDisclosureTextBlock-c0_cont_17"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The special voting preferred
stock has a par value of $<ix:nonFraction contextRef="c1" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares">0.0001</ix:nonFraction> per share and a preference in liquidation of $<ix:nonFraction contextRef="c1" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockLiquidationPreference" scale="0" unitRef="usdPershares">1.00</ix:nonFraction>. The special voting preferred stock entitles the holder
to an aggregate number of votes equal to the number of the exchangeable shares issued and outstanding from time to time and which we do
not own. The holder of the special voting preferred stock and the holders of shares of&#160;Akerna&#160;common stock will both&#160;together
as a single class on all matters submitted to a vote of our shareholders. At such time as the special voting preferred stock has no votes
attached to it, the share shall be automatically cancelled. The exchangeable shares do not have a par value.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_BusinessCombinationDisclosureTextBlock-c0_cont_18"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the&#160;three months
ended March 31, 2022, several Ample shareholders exchanged a total of <ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="kern:ExchangeableShares" scale="0" unitRef="shares">2,434</ix:nonFraction> exchangeable shares with a value of $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:ExchangeableSharesWithValue" scale="0" unitRef="usd">18,620</ix:nonFraction> for the same number
of shares of&#160;Akerna&#160;common stock. The exchange was accounted for as an equity transaction and we did not recognize a gain or
loss on this transaction. As of March 31, 2022, there were a total of <ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:ExchangeableSharesIssuedAndOutstanding" scale="0" unitRef="shares">306,852</ix:nonFraction> exchangeable shares issued and outstanding.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_SupplementalBalanceSheetDisclosuresTextBlock-c0_cont_1" escape="true" name="us-gaap:SupplementalBalanceSheetDisclosuresTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 5 - Balance Sheet
Disclosures</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_SupplementalBalanceSheetDisclosuresTextBlock-c0_cont_2" id="_SupplementalBalanceSheetDisclosuresTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prepaid expenses and other current assets
consisted of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 32pt; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SupplementalBalanceSheetDisclosuresTextBlock-c0_cont_3" id="_SupplementalBalanceSheetDisclosuresTextBlock-c0_cont_2"><ix:nonNumeric contextRef="c0" escape="true" name="kern:ScheduleOfPrepaidExpensesTableTextBlock"><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">&#160;</td><td style="text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">As of<br/>
 March 31,</td><td style="text-align: center; font-weight: bold">&#160;</td><td style="text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">As of<br/>
 December 31,</td><td style="text-align: center; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>2022</b></span></td><td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>2021</b></span></td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Software and technology</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="kern:PrepaidExpensesSoftwareAndTechnology" scale="0" unitRef="usd">723,513</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:PrepaidExpensesSoftwareAndTechnology" scale="0" unitRef="usd">687,740</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Professional services, dues and subscriptions</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="kern:PrepaidProfessionalFees" scale="0" unitRef="usd">284,333</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:PrepaidProfessionalFees" scale="0" unitRef="usd">546,126</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Insurance</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidInsurance" scale="0" unitRef="usd">143,355</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidInsurance" scale="0" unitRef="usd">264,097</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Deferred contract costs</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherPrepaidExpenseCurrent" scale="0" unitRef="usd">254,771</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherPrepaidExpenseCurrent" scale="0" unitRef="usd">260,899</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Unbilled receivables</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:UnbilledContractsReceivable" scale="0" unitRef="usd">547,675</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:UnbilledContractsReceivable" scale="0" unitRef="usd">506,984</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Other</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">538,442</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">117,918</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Total prepaid expenses and other current assets</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidExpenseCurrent" scale="0" unitRef="usd">2,492,089</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidExpenseCurrent" scale="0" unitRef="usd">2,383,764</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

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

</div><!-- Field: Page; Sequence: 117; Value: 1 --><div>
    </div><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 -->16<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><ix:continuation continuedAt="_SupplementalBalanceSheetDisclosuresTextBlock-c0_cont_4" id="_SupplementalBalanceSheetDisclosuresTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Accounts payable, accrued
expenses, and other accrued liabilities consisted of the following:&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_SupplementalBalanceSheetDisclosuresTextBlock-c0_cont_4"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfAccruedLiabilitiesTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">As of<br/>
 March 31,</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">As of<br/>
 December 31,</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Accounts payable</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableCurrent" scale="0" unitRef="usd">3,065,862</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableCurrent" scale="0" unitRef="usd">1,943,457</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Professional fees</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedProfessionalFeesCurrent" scale="0" unitRef="usd">230,127</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedProfessionalFeesCurrent" scale="0" unitRef="usd">319,590</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Sales taxes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SalesAndExciseTaxPayableCurrent" scale="0" unitRef="usd">422,580</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SalesAndExciseTaxPayableCurrent" scale="0" unitRef="usd">360,361</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Compensation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedEmployeeBenefitsCurrent" scale="0" unitRef="usd">1,217,392</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedEmployeeBenefitsCurrent" scale="0" unitRef="usd">1,123,467</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Contractors</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="kern:AccruedContractors" scale="0" unitRef="usd">1,158,447</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:AccruedContractors" scale="0" unitRef="usd">1,288,730</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Settlements and legal</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SettlementLiabilitiesCurrent" scale="0" unitRef="usd">1,189,561</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SettlementLiabilitiesCurrent" scale="0" unitRef="usd">681,045</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Other</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAccruedLiabilitiesCurrent" scale="0" unitRef="usd">179,372</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAccruedLiabilitiesCurrent" scale="0" unitRef="usd">346,870</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total accounts payable, accrued expenses, and other accrued liabilities</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent" scale="0" unitRef="usd">7,463,341</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent" scale="0" unitRef="usd">6,063,520</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_FairValueDisclosuresTextBlock-c0_cont_1" escape="true" name="us-gaap:FairValueDisclosuresTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note&#160;6- Fair Value</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_2" id="_FairValueDisclosuresTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Fair Value Option&#160;Election &#8211; Convertible Notes</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_3" id="_FairValueDisclosuresTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We issued convertible notes
with a principal amount of $<ix:nonFraction contextRef="c126" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ConvertibleDebt" scale="6" unitRef="usd">17.0</ix:nonFraction> million at a purchase price of $<ix:nonFraction contextRef="c126" decimals="-5" format="ixt:num-dot-decimal" name="kern:DebtPurchasePrice" scale="6" unitRef="usd">15.0</ix:nonFraction> million (the "2020 Notes")&#160;on June 9, 2020. The 2020
Notes were paid in full on <ix:nonNumeric contextRef="c127" format="ixt:date-monthname-day-year-en" name="us-gaap:DebtInstrumentMaturityDate">October 5, 2021</ix:nonNumeric> and were replaced by convertible notes of $<ix:nonFraction contextRef="c128" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ConvertibleDebt" scale="6" unitRef="usd">20.0</ix:nonFraction>&#160;million at a purchase price of $<ix:nonFraction contextRef="c128" decimals="-5" format="ixt:num-dot-decimal" name="kern:DebtPurchasePrice" scale="6" unitRef="usd">18.0</ix:nonFraction>&#160;million
(the "2021 Notes") on the same date. We elected to account for both the 2020 Notes and the 2021 Notes&#160;using the fair value
option. Under the fair value option, the financial liability is initially measured at its issue-date estimated fair value and subsequently
remeasured&#160;at its estimated fair value on a recurring basis at each reporting period date. The change in estimated fair value resulting
from changes in instrument-specific credit risk is recorded in other comprehensive income as a component of equity. The remaining estimated
fair value adjustment is presented as a single line item within other (expense) income in our condensed consolidated statement of operations
under the caption, change in fair value of convertible notes<span style="font-family: Times New Roman, Times, Serif">.&#160;&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_4" id="_FairValueDisclosuresTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For the 2020 Note and 2021
Notes, which are measured at fair value categorized within Level&#160;3&#160;of the fair value hierarchy, the following is a reconciliation
of the fair values for the three months ended&#160;March 31, 2022&#160;and three months ended March 31, 2021:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_5" id="_FairValueDisclosuresTextBlock-c0_cont_4"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended<br/>
 March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%">Fair value balance at beginning of period</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConvertibleDebtFairValueDisclosures" scale="0" unitRef="usd">17,305,000</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConvertibleDebtFairValueDisclosures" scale="0" unitRef="usd">13,398,000</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Payments on Convertible Notes</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RepaymentsOfConvertibleDebt" scale="0" unitRef="usd">3,300,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RepaymentsOfConvertibleDebt" scale="0" unitRef="usd">7,697,727</ix:nonFraction></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">Change in fair value reported in the statements of operations</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangesInFairValueReportedInStatementsOfOperations" scale="0" unitRef="usd">1,433,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangesInFairValueReportedInStatementsOfOperations" scale="0" unitRef="usd">1,991,272</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Change in fair value reported in other comprehensive loss</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueReportedInOtherComprehensiveIncome" scale="0" sign="-" unitRef="usd">101,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueReportedInOtherComprehensiveIncome" scale="0" unitRef="usd">13,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Fair value balance at end of period</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c1" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConvertibleDebtFairValueDisclosures" scale="0" unitRef="usd">15,337,000</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c59" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConvertibleDebtFairValueDisclosures" scale="0" unitRef="usd">7,704,545</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_6" id="_FairValueDisclosuresTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The estimated fair value
of the Convertible Notes as of March 31, 2022 and December 31, 2021, was computed using a Monte Carlo simulation, which incorporates significant
inputs that are not observable in the market, and thus represents a Level&#160;3&#160;measurement as defined by GAAP. The unobservable
inputs utilized for measuring the fair value of the Convertible Notes reflect our assumptions about the assumptions that market participants
would use in valuing the Convertible Notes as of the issuance date and subsequent reporting period.&#160; &#160;&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_7" id="_FairValueDisclosuresTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We estimated the fair value
by using the following key inputs to the Monte Carlo Simulation Model:&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 64pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_8" id="_FairValueDisclosuresTextBlock-c0_cont_7"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Fair Value Assumptions - Convertible Notes</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">March 31,<br/> 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, <br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Face value principal payable</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c138" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentFaceAmount" scale="0" unitRef="usd">16,700,000</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c139" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentFaceAmount" scale="0" unitRef="usd">20,000,000</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Original conversion price</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c138" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPrice1" scale="0" unitRef="usdPershares">4.05</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c139" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPrice1" scale="0" unitRef="usdPershares">4.05</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Value of Common Stock</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c138" decimals="2" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsValueOfCommonStock" scale="0" unitRef="usdPershares">1.14</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c139" decimals="2" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsValueOfCommonStock" scale="0" unitRef="usdPershares">1.75</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Expected term (years)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonNumeric contextRef="c140" format="ixt-sec:duryear" name="kern:FairValueAssumptionExpectedTerms">2.5</ix:nonNumeric></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonNumeric contextRef="c141" format="ixt-sec:duryear" name="kern:FairValueAssumptionExpectedTerms">2.8</ix:nonNumeric></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Volatility</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c140" decimals="2" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsVolatilityRate" scale="-2" unitRef="pure">79</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c141" decimals="2" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsVolatilityRate" scale="-2" unitRef="pure">75</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Market yield</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c140" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsMarketYieldRate" scale="-2" unitRef="pure">40.2</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c141" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsMarketYieldRate" scale="-2" unitRef="pure">37.1</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Risk free rate</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c140" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionRiskFreeInterestRate" scale="-2" unitRef="pure">2.4</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c141" decimals="2" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionRiskFreeInterestRate" scale="-2" unitRef="pure">1</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Issue date</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="white-space: nowrap; text-align: right"><ix:nonNumeric contextRef="c140" format="ixt:date-monthname-day-year-en" name="us-gaap:DebtInstrumentIssuanceDate1"><span style="font-size: 10pt">October 5, 2021</span></ix:nonNumeric></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="white-space: nowrap; text-align: right"><ix:nonNumeric contextRef="c141" format="ixt:date-monthname-day-year-en" name="us-gaap:DebtInstrumentIssuanceDate1"><span style="font-size: 10pt">October 5, 2021</span></ix:nonNumeric></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Maturity date</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonNumeric contextRef="c140" format="ixt:date-monthname-day-year-en" name="us-gaap:DebtInstrumentMaturityDate"><span style="font-size: 10pt">October 5, 2024</span></ix:nonNumeric></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonNumeric contextRef="c141" format="ixt:date-monthname-day-year-en" name="us-gaap:DebtInstrumentMaturityDate"><span style="font-size: 10pt">October 5, 2024</span></ix:nonNumeric></td><td style="text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>







</div><!-- Field: Page; Sequence: 118; Value: 1 --><div>
    </div><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 -->17<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_9" id="_FairValueDisclosuresTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Fair Value Measurement &#8211; Warrants</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_10" id="_FairValueDisclosuresTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with MTech Acquisition
Corp.'s ("MTech") initial public offering, MTech sold <ix:nonFraction contextRef="c129" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights" scale="0" unitRef="shares">5,750,000</ix:nonFraction>&#160;units at a purchase price of $<ix:nonFraction contextRef="c130" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">10.00</ix:nonFraction> per unit, inclusive
of <ix:nonFraction contextRef="c131" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">750,000</ix:nonFraction> units sold to the underwriters on February 8, 2018, upon the underwriters&#8217; election to fully exercise their over-allotment
option. Each unit consisted of <ix:nonFraction contextRef="c132" decimals="0" format="ixt-sec:numwordsen" name="us-gaap:ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight" scale="0" unitRef="shares">one</ix:nonFraction> share of MTech&#8217;s common stock and <ix:nonFraction contextRef="c133" decimals="0" format="ixt-sec:numwordsen" name="us-gaap:ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight" scale="0" unitRef="shares">one</ix:nonFraction> warrant of MTech (&#8220;MTech Public Warrant&#8221;).
Each MTech Public Warrant entitled the holder to purchase <ix:nonFraction contextRef="c130" decimals="0" format="ixt-sec:numwordsen" name="us-gaap:ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight" scale="0" unitRef="shares">one</ix:nonFraction> share of MTech&#8217;s common stock at an exercise price of $<ix:nonFraction contextRef="c130" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">11.50</ix:nonFraction>. Concurrently
with MTech&#8217;s initial public offering, MTech sold <ix:nonFraction contextRef="c134" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">243,750</ix:nonFraction> units at a purchase price of $<ix:nonFraction contextRef="c134" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">10.00</ix:nonFraction> per unit on a private offering basis.&#160;
Each unit consisted of <ix:nonFraction contextRef="c135" decimals="0" format="ixt-sec:numwordsen" name="us-gaap:ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight" scale="0" unitRef="shares">one</ix:nonFraction> share of MTech&#8217;s common stock and <ix:nonFraction contextRef="c136" decimals="0" format="ixt-sec:numwordsen" name="us-gaap:ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight" scale="0" unitRef="shares">one</ix:nonFraction> warrant of MTech (&#8220;MTech Private Warrant&#8221;). Each MTech
Private Warrant entitled the holder to purchase <ix:nonFraction contextRef="c134" decimals="0" format="ixt-sec:numwordsen" name="us-gaap:ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight" scale="0" unitRef="shares">one</ix:nonFraction> share of MTech&#8217;s common stock at an exercise price of $<ix:nonFraction contextRef="c134" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">11.50</ix:nonFraction>.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_11" id="_FairValueDisclosuresTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon completion of the mergers
between MTech and MJF on June 17, 2019, as contemplated by the Merger Agreement dated October 10, 2018, as amended ("Mergers"),
the MTech Public Warrants and the MTech Private Warrants were converted, respectively, at an exchange ratio of one-for-one to a warrant
to purchase <ix:nonFraction contextRef="c0" decimals="0" format="ixt-sec:numwordsen" name="kern:EquityInstrumentConvertibleConversionRatio" scale="0" unitRef="pure">one</ix:nonFraction> share of Akerna&#8217;s common stock with identical terms and conditions as the MTech Public Warrants (&#8220;Public Warrant&#8221;)
and the MTech Private Warrants (&#8220;Private Warrant&#8221;, collectively with the Public Warrants, &#8220;Warrants&#8221;)&#160; In
connection with the completion of the Mergers, we also issued <ix:nonFraction contextRef="c137" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights" scale="0" unitRef="shares">189,365</ix:nonFraction> common stock purchase warrants upon the cashless exercise of a unit
purchase option, which warrants have identical terms to the Public Warrants and are included in references to Public Warrants and Warrants
herein.&#160; &#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 64pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_12" id="_FairValueDisclosuresTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For the Private Warrants classified
as derivative liabilities, which are measured at fair value categorized within Level 3&#160;of the fair value hierarchy, the following
is a reconciliation of the fair values for the three months ended March 31, 2022 and March 31, 2021:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 64pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_13" id="_FairValueDisclosuresTextBlock-c0_cont_12"><ix:nonNumeric contextRef="c142" escape="true" name="us-gaap:FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended<br/>
 March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%">Fair value balance at beginning of period</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c143" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs" scale="0" unitRef="usd">63,178</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c144" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs" scale="0" unitRef="usd">311,376</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Change in fair value reported in the statements of operations</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c142" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationGainLossIncludedInEarnings" scale="0" sign="-" unitRef="usd">18,051</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c145" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationGainLossIncludedInEarnings" scale="0" unitRef="usd">175,996</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Fair value balance at end of period</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c146" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs" scale="0" unitRef="usd">45,127</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c147" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs" scale="0" unitRef="usd">487,372</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 64pt">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_14" id="_FairValueDisclosuresTextBlock-c0_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We utilized a binomial lattice
model, which incorporates significant inputs, specifically the expected volatility, that are not observable in the market, and thus represents
a Level 3 measurement as defined in GAAP. The unobservable inputs utilized for measuring the fair value of the Private Warrants reflect
our estimates regarding the assumptions that market participants would use in valuing the Warrants as of the end of the reporting periods.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_15" id="_FairValueDisclosuresTextBlock-c0_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We record the fair value of
the Private&#160;Warrants in the consolidated balance sheets under the caption &#8220;derivative liability&#8221; and recognize changes
to the liability against earnings or loss each reporting period. Upon exercise of the Private&#160;Warrants, holders will receive a delivery
of Akerna shares on a net or gross share basis per the terms of the Private&#160;Warrants and any exercise will reclassify the Private&#160;Warrants,
at the time of exercise, to shareholder&#8217;s equity to reflect the equity transaction.&#160; There are no periodic settlements prior
to the holder exercising the Private&#160;Warrants. There were no transfers in or out of Level 3 from other levels for the fair value
hierarchy.&#160; &#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_16" id="_FairValueDisclosuresTextBlock-c0_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We estimated the fair value
by using the following key inputs:&#160;&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 64pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_FairValueDisclosuresTextBlock-c0_cont_16"><ix:nonNumeric contextRef="c142" escape="true" name="us-gaap:FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Fair Value Assumptions - Private Warrants</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">March 31,<br/>
 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, <br/>
2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Number of Private&#160;Warrants</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c146" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">225,635</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c143" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">225,635</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Original conversion price</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c146" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">11.50</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c143" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">11.50</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Value of Common Stock</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c146" decimals="2" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsValueOfCommonStock" scale="0" unitRef="usdPershares">1.14</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c143" decimals="2" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsValueOfCommonStock" scale="0" unitRef="usdPershares">1.75</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Expected term (years)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonNumeric contextRef="c142" format="ixt-sec:duryear" name="kern:FairValueAssumptionExpectedTerms">2.21</ix:nonNumeric></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonNumeric contextRef="c148" format="ixt-sec:duryear" name="kern:FairValueAssumptionExpectedTerms">2.46</ix:nonNumeric></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Volatility</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c142" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsVolatilityRate" scale="-2" unitRef="pure">114.4</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c148" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsVolatilityRate" scale="-2" unitRef="pure">93.9</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Risk free rate</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c142" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionRiskFreeInterestRate" scale="-2" unitRef="pure">2.3</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c148" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionRiskFreeInterestRate" scale="-2" unitRef="pure">0.8</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>







</div><!-- Field: Page; Sequence: 119; Value: 1 --><div>
    </div><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 -->18<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:CommitmentsAndContingenciesDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 7 - Commitments and Contingencies</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_2" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Litigation</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_3" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On December 4, 2020, TechMagic
USA LLC filed suit against our wholly-owned subsidiary, Solo, in Massachusetts Superior Court, Department Business Litigation, seeking
recovery of up to approximately $<ix:nonFraction contextRef="c149" decimals="-4" format="ixt:num-dot-decimal" name="us-gaap:LitigationReserve" scale="6" unitRef="usd">1.07</ix:nonFraction> million for unpaid invoices pursuant to a Master Services Agreement dated February 5, 2018 by and
between TechMagic and Solo. The invoices set forth services that TechMagic USA LLC purports to have provided to Solo regarding development
of mobile software applications for MJF and Solo between March and November 2020 totaling approximately $<ix:nonFraction contextRef="c150" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LitigationSettlementExpense" scale="0" unitRef="usd">787,000</ix:nonFraction>. The suit seeks continued
fees under the Master Services Agreement through the end of January 2021. Akerna provided a notice of termination of the Master Services
Agreement on November 23, 2020 and the parties dispute the effective date of the termination. Solo disputes the validity of the invoices,
in whole or in part, and intends to defend the suit vigorously. Mr. Ashesh Shah, formerly the president of Solo and currently the holder
of less than <ix:nonFraction contextRef="c149" decimals="2" format="ixt:num-dot-decimal" name="kern:IssuedAndOutstandingSharesPercentage" scale="-2" unitRef="pure">5</ix:nonFraction>% of our issued and outstanding shares of common stock is, to our knowledge, the founder and one of the principal managers
of TechMagic USA LLC. As of December 31, 2021 and March 31, 2022, we recognized a loss contingency of $<ix:nonFraction contextRef="c151" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:LossContingencyAccrualPayments" scale="6" unitRef="usd"><ix:nonFraction contextRef="c0" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:LossContingencyAccrualPayments" scale="6" unitRef="usd">0.5</ix:nonFraction></ix:nonFraction> million.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_4" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 2, 2021, TreCom Systems
Group, Inc. (&#8220;TreCom&#8221;) filed suit against Akerna and our wholly-owned subsidiary, MJ Freeway, LLC, in federal District Court
for the Eastern District of Pennsylvania, seeking recovery of up to approximately $<ix:nonFraction contextRef="c152" decimals="-6" format="ixt:num-dot-decimal" name="us-gaap:LitigationReserve" scale="6" unitRef="usd">2</ix:nonFraction> million for services&#160;allegedly provided pursuant
to a Subcontractor Agreement between MJ Freeway and TreCom. MJ Freeway provided a notice of termination of the operative Subcontractor
Agreement on August 4, 2020. MJ Freeway disputes the validity of TreCom&#8217;s invoices&#160;and the enforceability of the alleged agreement
that TreCom submitted to the court. Akerna filed counterclaims against TreCom for breach of contract, a declaratory judgment, commercial
disparagement, and defamation.&#160;TreCom failed to return Akerna&#8217;s intellectual property and issued numerous disparaging statements
to&#160;one&#160;of Akerna&#8217;s clients.&#160;TreCom&#160;subsequently&#160;filed a motion to dismiss these counterclaims, which was
denied by the court.&#160;Akerna intends to vigorously defend against TreCom&#8217;s claims, and pursue its own claims.&#160;As of December
31, 2021 and March 31, 2022, we recognized a loss contingency of $<ix:nonFraction contextRef="c153" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:LossContingencyAccrualPayments" scale="6" unitRef="usd"><ix:nonFraction contextRef="c154" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:LossContingencyAccrualPayments" scale="6" unitRef="usd">0.2</ix:nonFraction></ix:nonFraction>&#160;million.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_5" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 21, 2021, our wholly-owned
subsidiary, Solo, filed suit against two of Solo&#8217;s former directors, Ashesh Shah and Palle Pedersen.&#160;&#160;Solo seeks recovery
for Mr. Shah&#8217;s intentional interference with contractual relations, and the defendants&#8217; breaches of various fiduciary duties
owed to Solo.&#160;&#160;Defendant Shah engaged in improper communications with Solo&#8217;s customers with the intent that those customers
cease their contractual relations with Solo.&#160;&#160;The defendants also entered into an improper contract with a contractual counter
party that the defendants had a conflict of interest with. The defendants have filed a motion to dismiss, which the court found unpersuasive
and denied. Defendants have not asserted any counterclaims, and we therefore have not recognized a loss contingency.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_6" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">From time to time, we may
be involved in litigation relating to claims arising out of our operations in the normal course of business. We will accrue a liability
for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range
of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate
than any other amount within the range, the minimum amount in the range is accrued. The accrual for a litigation loss contingency might
include, for example, estimates of potential damages, outside legal fees and other directly related costs expected to be incurred. As
of March 31, 2022, and&#160;through the date these consolidated financial statements were issued, there were no other legal proceedings
requiring recognition or disclosure in the consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>





</div><!-- Field: Page; Sequence: 120; Value: 1 --><div>
    </div><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 -->19<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_7" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Operating Leases</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months
ended March 31, 2022, we began negotiations to terminate the 365 Cannabis office lease in Las Vegas, Nevada. We booked a liability and
lease termination expense of $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="kern:TerminationFee" scale="0" unitRef="usd">564,234</ix:nonFraction> which is management&#8217;s best estimate of the costs to exit our existing lease. The lease termination
expense is included within the General and Administrative expense line item on the condensed consolidated statement of operations.&#160;</p></ix:continuation><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_EarningsPerShareTextBlock-c0_cont_1" escape="true" name="us-gaap:EarningsPerShareTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 8 - Loss Per Share</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_EarningsPerShareTextBlock-c0_cont_2" id="_EarningsPerShareTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months
ended March 31, 2022&#160;and 2021, we used the two-class method to compute net loss per share because we issued securities other than
common stock that is economically equivalent to a common share in that the class of stock has the right to participate in dividends should
a dividend be declared payable to holders of&#160;Akerna&#160;common stock. These participating securities were the Exchangeable Shares
issued by our wholly owned subsidiary in exchange for interest in Ample. The two-class method requires earnings for the period to be allocated
between common stock and participating securities based on their respective rights to receive distributed and undistributed earnings.
Under the two-class method, for periods with net income, basic net income per common share is computed by dividing the net income attributable
to common stockholders by the weighted average number of shares of common stock outstanding during the period. Net income attributable
to common stockholders is computed by subtracting from net income&#160;the portion of current period earnings that the participating securities&#160;would
have been entitled to receive pursuant to their dividend rights had all of the period's earnings been distributed. No such adjustment
to earnings is made during periods with a net loss, as the holders of the Exchangeable Shares have no obligation to fund losses.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_EarningsPerShareTextBlock-c0_cont_3" id="_EarningsPerShareTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Diluted net loss per common
share is calculated under the two-class method by giving effect to all potentially dilutive&#160;common stock, including warrants, restricted
stock awards, restricted stock units, and shares of common stock issuable upon conversion of our Convertible Notes. We analyzed the potential
dilutive effect of any outstanding convertible securities under the "if-converted" method, in which it is assumed that the outstanding
Exchangeable Shares and Convertible Notes are converted to shares of common stock at the beginning of the period or date of issuance,
if later. We report the more dilutive of the approaches (two-class or "if-converted") as the diluted net loss per share during
the period. The dilutive effect of unvested restricted stock awards and restricted stock units is reflected in diluted loss per share
by application of the treasury stock method and is excluded when the effect would be anti-dilutive.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_EarningsPerShareTextBlock-c0_cont_4" id="_EarningsPerShareTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span>The
weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of potential
outstanding common shares that would have been anti-dilutive for the period.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

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

</div><!-- Field: Page; Sequence: 121; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><ix:continuation continuedAt="_EarningsPerShareTextBlock-c0_cont_5" id="_EarningsPerShareTextBlock-c0_cont_4"><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 -->20<!-- Field: /Sequence --></p></ix:continuation></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><ix:continuation continuedAt="_EarningsPerShareTextBlock-c0_cont_6" id="_EarningsPerShareTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span>The
table below details potentially outstanding shares on a fully diluted basis that were not included in the calculation of diluted earnings
per share:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_EarningsPerShareTextBlock-c0_cont_6"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of <br/>
March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%">Shares issuable upon exchange of Exchangeable Shares</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c155" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" scale="0" unitRef="shares">306,852</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c156" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" scale="0" unitRef="shares">1,647,287</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Shares of common stock issuable upon conversion of Convertible Notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c157" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" scale="0" unitRef="shares">12,370,370</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c158" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" scale="0" unitRef="shares">612,609</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Warrants</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c159" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" scale="0" unitRef="shares">5,813,804</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c160" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" scale="0" unitRef="shares">5,813,804</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Unvested restricted stock units</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c161" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" scale="0" unitRef="shares">627,840</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c162" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" scale="0" unitRef="shares">664,258</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Unvested restricted stock awards</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c163" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" scale="0" unitRef="shares">6,679</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c164" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" scale="0" unitRef="shares">33,062</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: justify">Total</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c0" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" scale="0" unitRef="shares">19,125,545</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c16" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" scale="0" unitRef="shares">8,771,020</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 9 - Goodwill and Intangible Assets, net</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_2" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Impairment</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_3" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Based on our qualitative assessment of goodwill, we determined it was necessary to perform&#160;a quantitative valuation of goodwill
as of March 31, 2022. Unchanged from the year ended December 31, 2021, we determined there were&#160;two&#160;reporting units: the enterprise&#160;reporting
unit which is comprised of the enterprise software offerings and the non-enterprise&#160;reporting unit which is comprised of&#160;the
non-enterprise software offerings. The valuation of our goodwill was determined with the assistance of an independent valuation firm using
the income approach (discounted cash flows method) and the market approach (guideline public company method). Our significant assumptions
in these analyses include, but are not limited to, future cash flow projections, the weighted average cost of capital, the discount rate,
the implied control premium, the terminal growth rate, and the tax rate. The Company&#8217;s estimates of future cash flows are based
on current regulatory and economic climates, recent operating results, and planned business strategies. These estimates could be negatively
affected by changes in federal, state, or local regulations or economic downturns. Future cash flow estimates are, by their nature, subjective
and actual results may differ materially from the Company&#8217;s estimates. If the Company&#8217;s ongoing estimates of future cash flows
are not met, the Company may have to record additional impairment charges in future periods. The Company also uses the Guideline Public
Company Method, a form of the market approach (utilizing Level&#160;3&#160;unobservable inputs), which is derived from metrics of publicly
traded companies or historically completed transactions of comparable businesses. The selection of comparable businesses is based on the
markets in which the reporting units operate giving consideration to risk profiles, size, geography, and diversity of products and services.
As such, we believe the current assumptions and estimates utilized are both reasonable and appropriate.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_4" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Enterprise Reporting Unit</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_5" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For the three
months ended March 31, 2022, no&#160;impairment to goodwill was recorded for our enterprise reporting unit as the fair value exceeded
the carrying value as of March 31, 2022.&#160;To perform our analysis, we applied a&#160;<ix:nonFraction contextRef="c1" decimals="2" format="ixt:num-dot-decimal" name="kern:WeightingToTheMarketApproach" scale="-2" unitRef="pure">50</ix:nonFraction>% weighting to the market approach and&#160;<ix:nonFraction contextRef="c1" decimals="2" format="ixt:num-dot-decimal" name="kern:WeightedToTheIncomeApproach" scale="-2" unitRef="pure">50</ix:nonFraction>%
weighted to the income approach.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_6" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><i>Non-Enterprise Reporting Unit&#160;&#160;</i></p><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_7" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For
the three months ended March 31, 2022, primarily&#160;due to a continued decline in market valuation from December 31, 2021, we recorded
an impairment expense of $<ix:nonFraction contextRef="c0" decimals="-5" format="ixt:num-dot-decimal" name="kern:ImpairmentExpenses" scale="6" unitRef="usd">15.5</ix:nonFraction> million related&#160;to our non-enterprise reporting unit. To perform our analysis, we&#160;applied a&#160;<ix:nonFraction contextRef="c165" decimals="2" format="ixt:num-dot-decimal" name="kern:WeightingToTheMarketApproach" scale="-2" unitRef="pure">25</ix:nonFraction>%
weighting to the income approach and a&#160;<ix:nonFraction contextRef="c165" decimals="2" format="ixt:num-dot-decimal" name="kern:WeightedToTheIncomeApproach" scale="-2" unitRef="pure">75</ix:nonFraction>% weighting to the market approach.&#160;&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_8" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><i>Finite-lived Intangible Assets, Net</i></p><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We performed a&#160;two&#160;step impairment test for the asset groups
that had indicators of impairment during the three months ended March 31, 2022 under ASC&#160;360&#160;and as a result of this analysis
we did not identify any impairment.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:IncomeTaxDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b>Note 10- Income Taxes&#160;</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b>&#160;</b></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation id="_IncomeTaxDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The
Company's effective tax rate was <ix:nonFraction contextRef="c0" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate" scale="-2" unitRef="pure">0.45</ix:nonFraction>% and <ix:nonFraction contextRef="c16" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate" scale="-2" unitRef="pure">0.00</ix:nonFraction>% for the three months ended March 31, 2022 and 2021, respectively. Differences between
the statutory rate and the Company's effective tax rate resulted from changes in valuation allowance and permanent differences for tax
purposes in the treatment of certain nondeductible expenses. The Company's effective tax rate is impacted by activity related to deferred
tax liabilities, resulting primarily from the acquisition&#160;of 365 Cannabis, which cannot be considered as a source of future taxable
income available to utilize recorded deferred tax assets based on the Company's scheduling and the&#160;<ix:nonNumeric contextRef="c0" name="us-gaap:OperatingLossCarryforwardsLimitationsOnUse">80%</ix:nonNumeric> limit on the utilization of
net operating loss carry forwards under current US tax law.&#160;</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>





</div><!-- Field: Page; Sequence: 122; Value: 1 --><div>
    </div><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 -->21<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><div><a id="F2_001"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the Stockholders and Board of Directors of</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Akerna Corp.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Opinion on the Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have audited the accompanying consolidated
balance sheets of Akerna Corp. (the &#8220;Company&#8221;) as of December 31, 2021 and 2020, the related consolidated statements of operations,
comprehensive loss, changes in equity and cash flows for the year ended December 31, 2021, for the transitional six months ended December
31, 2020, and for the year ended June 30, 2020, and the related notes (collectively referred to as the &#8220;financial statements&#8221;).
&#160;In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December
31, 2021 and 2020, and the results of its operations and its cash flows for the year ended December 31, 2021, for the transitional six
months ended December 31, 2020, and for the year ended June 30, 2020, in conformity with accounting principles generally accepted in the
United States of America.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Explanatory Paragraph &#8211; Going Concern</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><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 a significant
working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in
regard to these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might
result from the outcome of this uncertainty.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Basis for Opinion</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We
are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("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.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal
control over financial reporting. Accordingly, we express no such opinion.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our audits included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">/s/ Marcum <span style="font-variant: small-caps">llp</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-variant: small-caps">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Marcum&#160;<span style="font-variant: small-caps">llp</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-variant: small-caps">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have served as the Company&#8217;s auditor since 2018.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Los Angeles, CA</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">March 31, 2022</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>





</div><!-- Field: Page; Sequence: 123; Value: 1 --><div>
    </div><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 -->22<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="F2_002"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Consolidated Balance Sheets</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">December&#160;31,</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">December&#160;31,</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Assets</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Current assets:</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-indent: -0.125in; padding-left: 0.25in">Cash</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashAndCashEquivalentsAtCarryingValue" scale="0" unitRef="usd">13,934,265</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashAndCashEquivalentsAtCarryingValue" scale="0" unitRef="usd">17,840,640</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Restricted cash</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCash" scale="0" unitRef="usd">508,261</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCash" scale="0" unitRef="usd">500,000</ix:nonFraction></td><td style="text-align: left">&#160;</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 receivable, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableNetCurrent" scale="0" unitRef="usd">1,403,774</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableNetCurrent" scale="0" unitRef="usd">1,753,547</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.25in">Prepaid expenses and other current assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidExpenseAndOtherAssetsCurrent" scale="0" unitRef="usd">2,383,764</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidExpenseAndOtherAssetsCurrent" scale="0" unitRef="usd">2,458,727</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.375in">Total current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsCurrent" scale="0" unitRef="usd">18,230,064</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsCurrent" scale="0" unitRef="usd">22,552,914</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</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">Fixed assets, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">153,151</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">1,193,433</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Investment, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EquityMethodInvestments" scale="0" unitRef="usd">226,101</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EquityMethodInvestments" scale="0" unitRef="usd">233,664</ix:nonFraction></td><td style="text-align: left">&#160;</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">Capitalized software, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CapitalizedComputerSoftwareNet" scale="0" unitRef="usd">7,311,676</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CapitalizedComputerSoftwareNet" scale="0" unitRef="usd">3,925,739</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Intangible assets, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsNet" scale="0" unitRef="usd">21,609,794</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsNet" scale="0" unitRef="usd">7,388,795</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.25in">Goodwill</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Goodwill" scale="0" unitRef="usd">46,942,681</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Goodwill" scale="0" unitRef="usd">41,874,527</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.25in">Other noncurrent assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssetsNoncurrent" scale="0" unitRef="usd">9,700</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-4">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</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 assets</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Assets" scale="0" unitRef="usd">94,483,167</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Assets" scale="0" unitRef="usd">77,169,072</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Liabilities and Equity</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</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">Current liabilities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Accounts payable, accrued expenses and other current liabilities</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent" scale="0" unitRef="usd">6,063,520</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent" scale="0" unitRef="usd">3,188,576</ix:nonFraction></td><td style="text-align: left">&#160;</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">Contingent consideration payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationLiabilityCurrent" scale="0" unitRef="usd">6,300,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-5">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Deferred revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenueCurrent" scale="0" unitRef="usd">3,543,819</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenueCurrent" scale="0" unitRef="usd">843,900</ix:nonFraction></td><td style="text-align: left">&#160;</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">Current portion of long-term debt</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LongTermDebtCurrent" scale="0" unitRef="usd">13,200,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LongTermDebtCurrent" scale="0" unitRef="usd">11,707,363</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.25in">Derivative liability</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DerivativeLiabilitiesCurrent" scale="0" unitRef="usd">63,178</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DerivativeLiabilitiesCurrent" scale="0" unitRef="usd">311,376</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</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: 0.375in">Total current liabilities</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesCurrent" scale="0" unitRef="usd">29,170,517</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesCurrent" scale="0" unitRef="usd">16,051,215</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</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">Long-term portion of deferred revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenueNoncurrent" scale="0" unitRef="usd">582,676</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-6">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Long-term debt, less current portion</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LongTermDebtNoncurrent" scale="0" unitRef="usd">4,105,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LongTermDebtNoncurrent" scale="0" unitRef="usd">3,895,237</ix:nonFraction></td><td style="text-align: left">&#160;</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">Deferred tax liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredIncomeTaxLiabilitiesNet" scale="0" unitRef="usd">675,291</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-7">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</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">Total liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Liabilities" scale="0" unitRef="usd">34,533,484</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Liabilities" scale="0" unitRef="usd">19,946,452</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</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">Commitments and contingencies (Note 14)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-8">&#160;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-9">&#160;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in">Equity:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Preferred stock, par value $<ix:nonFraction contextRef="c2" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares"><ix:nonFraction contextRef="c7" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares">0.0001</ix:nonFraction></ix:nonFraction>; <ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesAuthorized" scale="0" unitRef="shares"><ix:nonFraction contextRef="c7" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesAuthorized" scale="0" unitRef="shares">5,000,000</ix:nonFraction></ix:nonFraction> shares authorized, <ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c7" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesOutstanding" scale="0" unitRef="shares"><ix:nonFraction contextRef="c7" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesOutstanding" scale="0" unitRef="shares">1</ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction> share special voting preferred stock issued and outstanding at December 31, 2021 and December 31, 2020</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-10">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-11">&#8212;</div></td><td style="text-align: left">&#160;</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">Special voting preferred stock, par value $<ix:nonFraction contextRef="c4" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares"><ix:nonFraction contextRef="c8" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares">0.0001</ix:nonFraction></ix:nonFraction>; <ix:nonFraction contextRef="c4" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesAuthorized" scale="0" unitRef="shares"><ix:nonFraction contextRef="c8" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesAuthorized" scale="0" unitRef="shares"><ix:nonFraction contextRef="c4" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c8" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c4" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesOutstanding" scale="0" unitRef="shares"><ix:nonFraction contextRef="c8" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesOutstanding" scale="0" unitRef="shares">1</ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction> share authorized, issued and outstanding as of December 31, 2021 and December 31, 2020, with $<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockLiquidationPreference" scale="0" unitRef="usdPershares"><ix:nonFraction contextRef="c8" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockLiquidationPreference" scale="0" unitRef="usdPershares">1</ix:nonFraction></ix:nonFraction> preference in liquidation; exchangeable shares, <ix:nonFraction contextRef="c6" decimals="0" format="ixt-sec:numwordsen" name="us-gaap:PreferredStockNoParValue" scale="0" unitRef="usdPershares"><ix:nonFraction contextRef="c9" decimals="0" format="ixt-sec:numwordsen" name="us-gaap:PreferredStockNoParValue" scale="0" unitRef="usdPershares">no</ix:nonFraction></ix:nonFraction> par value, <ix:nonFraction contextRef="c6" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c6" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesOutstanding" scale="0" unitRef="shares">309,286</ix:nonFraction></ix:nonFraction> and <ix:nonFraction contextRef="c9" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c9" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesOutstanding" scale="0" unitRef="shares">2,667,349</ix:nonFraction></ix:nonFraction> shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively (See Note 4)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:ExchangablePreferredsStock" scale="0" unitRef="usd">2,366,038</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="kern:ExchangablePreferredsStock" scale="0" unitRef="usd">20,405,219</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Common stock, par value $<ix:nonFraction contextRef="c2" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:CommonStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares"><ix:nonFraction contextRef="c7" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:CommonStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares">0.0001</ix:nonFraction></ix:nonFraction>; <ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesAuthorized" scale="0" unitRef="shares"><ix:nonFraction contextRef="c7" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesAuthorized" scale="0" unitRef="shares">75,000,000</ix:nonFraction></ix:nonFraction> shares authorized, <ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesOutstanding" scale="0" unitRef="shares">31,001,884</ix:nonFraction></ix:nonFraction> and <ix:nonFraction contextRef="c7" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c7" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesOutstanding" scale="0" unitRef="shares">19,901,248</ix:nonFraction></ix:nonFraction>, issued and outstanding at December 31, 2021 and December 31, 2020, respectively</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockValue" scale="0" unitRef="usd">3,100</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockValue" scale="0" unitRef="usd">1,990</ix:nonFraction></td><td style="text-align: left">&#160;</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">Additional paid-in capital</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalPaidInCapital" scale="0" unitRef="usd">146,027,258</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalPaidInCapital" scale="0" unitRef="usd">94,086,433</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Accumulated other comprehensive loss</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax" scale="0" unitRef="usd">61,523</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax" scale="0" sign="-" unitRef="usd">91,497</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.25in">Accumulated deficit</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RetainedEarningsAccumulatedDeficit" scale="0" sign="-" unitRef="usd">88,508,236</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RetainedEarningsAccumulatedDeficit" scale="0" sign="-" unitRef="usd">57,179,525</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.375in">Total equity</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">59,949,683</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">57,222,620</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</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 equity</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesAndStockholdersEquity" scale="0" unitRef="usd">94,483,167</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesAndStockholdersEquity" scale="0" unitRef="usd">77,169,072</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><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><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>






</div><!-- Field: Page; Sequence: 124; Value: 1 --><div>
    </div><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 -->23<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="F2_003"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Consolidated Statements
of Operations</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Year Ended<br/> December&#160;31,</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Six Months<br/>
 Ended<br/>
 December&#160;31,</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Year Ended<br/> June 30,</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Revenue</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-indent: 7.5pt; padding-left: 0.1pt">Software</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c17" decimals="0" format="ixt:num-dot-decimal" name="kern:RevenuesFromSoftware" scale="0" unitRef="usd">18,998,409</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c18" decimals="0" format="ixt:num-dot-decimal" name="kern:RevenuesFromSoftware" scale="0" unitRef="usd">6,766,985</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c19" decimals="0" format="ixt:num-dot-decimal" name="kern:RevenuesFromSoftware" scale="0" unitRef="usd">9,976,580</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: 7.5pt">Consulting</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c20" decimals="0" format="ixt:num-dot-decimal" name="kern:RevenueFromeConsulting" scale="0" unitRef="usd">1,510,413</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c21" decimals="0" format="ixt:num-dot-decimal" name="kern:RevenueFromeConsulting" scale="0" unitRef="usd">916,099</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c22" decimals="0" format="ixt:num-dot-decimal" name="kern:RevenueFromeConsulting" scale="0" unitRef="usd">2,379,947</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: 7.5pt">Other revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c23" decimals="0" format="ixt:num-dot-decimal" name="kern:RevenueFromOther" scale="0" unitRef="usd">176,152</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c24" decimals="0" format="ixt:num-dot-decimal" name="kern:RevenueFromOther" scale="0" unitRef="usd">141,700</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c25" decimals="0" format="ixt:num-dot-decimal" name="kern:RevenueFromOther" scale="0" unitRef="usd">216,749</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left; text-indent: 7.5pt">Total revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">20,684,974</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">7,824,784</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">12,573,276</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; text-indent: 7.5pt; padding-left: 0in">Cost of revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="0" unitRef="usd">8,119,487</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="0" unitRef="usd">3,141,041</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="0" unitRef="usd">6,209,724</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: 7.5pt">Gross profit</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GrossProfit" scale="0" unitRef="usd">12,565,487</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GrossProfit" scale="0" unitRef="usd">4,683,743</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GrossProfit" scale="0" unitRef="usd">6,363,552</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Total Operating expenses:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: 7.5pt">Product development</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ResearchAndDevelopmentExpense" scale="0" unitRef="usd">6,271,966</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ResearchAndDevelopmentExpense" scale="0" unitRef="usd">3,166,088</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ResearchAndDevelopmentExpense" scale="0" unitRef="usd">3,206,310</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: 7.5pt">Sales and marketing</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SellingAndMarketingExpense" scale="0" unitRef="usd">9,108,173</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SellingAndMarketingExpense" scale="0" unitRef="usd">3,928,028</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SellingAndMarketingExpense" scale="0" unitRef="usd">7,792,480</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: 7.5pt">General and administrative</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="0" unitRef="usd">10,422,207</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="0" unitRef="usd">4,435,067</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="0" unitRef="usd">11,320,715</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: 7.5pt">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">5,735,150</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">2,007,237</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">1,315,898</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: 7.5pt">Impairment of long-lived assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentOfLongLivedAssetsHeldForUse" scale="0" unitRef="usd">14,383,310</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentOfLongLivedAssetsHeldForUse" scale="0" unitRef="usd">6,887,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-14">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: 7.5pt; padding-left: 0.125in">Total operating expenses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">45,920,806</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">20,423,420</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">23,635,403</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.1pt">Loss from operations</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" sign="-" unitRef="usd">33,355,319</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" sign="-" unitRef="usd">15,739,677</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" sign="-" unitRef="usd">17,271,851</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Other (expense) income:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: 7.5pt">Interest (expense) income, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestIncomeExpenseNonoperatingNet" scale="0" sign="-" unitRef="usd">1,531,497</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestIncomeExpenseNonoperatingNet" scale="0" sign="-" unitRef="usd">193,084</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestIncomeExpenseNonoperatingNet" scale="0" unitRef="usd">156,678</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: 7.5pt">Change in fair value of convertible notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueOfConvertibleNotes" scale="0" unitRef="usd">1,365,904</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueOfConvertibleNotes" scale="0" unitRef="usd">961,273</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueOfConvertibleNotes" scale="0" sign="-" unitRef="usd">766,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: 7.5pt">Change in fair value of derivative liability</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DerivativeGainLossOnDerivativeNet" scale="0" unitRef="usd">248,198</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DerivativeGainLossOnDerivativeNet" scale="0" unitRef="usd">746,852</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DerivativeGainLossOnDerivativeNet" scale="0" unitRef="usd">1,962,034</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: 7.5pt">Gain on forgiveness of PPP Loan</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GainsLossesOnExtinguishmentOfDebt" scale="0" unitRef="usd">2,234,730</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-15">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-16">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: 7.5pt">Other (expense) income</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherNonoperatingIncomeExpense" scale="0" unitRef="usd">186,420</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherNonoperatingIncomeExpense" scale="0" sign="-" unitRef="usd">59,273</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherNonoperatingIncomeExpense" scale="0" sign="-" unitRef="usd">254</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Total other (expense) income</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NonoperatingIncomeExpense" scale="0" sign="-" unitRef="usd">228,053</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NonoperatingIncomeExpense" scale="0" sign="-" unitRef="usd">466,778</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NonoperatingIncomeExpense" scale="0" unitRef="usd">2,884,458</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net loss before income taxes and equity in losses of investee</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments" scale="0" sign="-" unitRef="usd">33,583,372</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments" scale="0" sign="-" unitRef="usd">16,206,455</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments" scale="0" sign="-" unitRef="usd">14,387,393</ix:nonFraction></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: 7.5pt">Income tax (expense) benefit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" sign="-" unitRef="usd">2,262,225</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">200</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">30,985</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: 7.5pt">Equity in losses of investee</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromEquityMethodInvestments" scale="0" sign="-" unitRef="usd">7,564</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromEquityMethodInvestments" scale="0" sign="-" unitRef="usd">12,641</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromEquityMethodInvestments" scale="0" sign="-" unitRef="usd">3,692</ix:nonFraction></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: 1.5pt">Net Loss</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">31,328,711</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">16,219,296</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">14,422,070</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net loss attributable to noncontrolling interest in consolidated subsidiary</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-17">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">8,815</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">849,759</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt; text-indent: 7.5pt">Net loss attributable to Akerna shareholders</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">31,328,711</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">16,210,481</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">13,572,311</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt; text-indent: 7.5pt">Basic and diluted weighted average common shares outstanding</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" unitRef="usdPershares">25,641,950</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" unitRef="usdPershares">16,056,030</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" unitRef="usdPershares">11,860,212</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Basic and diluted net loss per common share</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c26" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareDiluted" scale="0" sign="-" unitRef="usdPershares">1.22</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c27" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareDiluted" scale="0" sign="-" unitRef="usdPershares">1.01</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c28" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareDiluted" scale="0" sign="-" unitRef="usdPershares">1.14</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><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><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>






</div><!-- Field: Page; Sequence: 125; Value: 1 --><div>
    </div><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 -->24<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="F2_004"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; "><b>AKERNA&#160;CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; "><b>Consolidated Statements
of Comprehensive Loss</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; ">&#160;</p><div>

</div><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">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Year Ended<br/> December&#160;31,</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Six Months<br/> Ended<br/> December&#160;31,</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Year Ended <br/> June 30,</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left; padding-left: 0.75pt">Net loss</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">31,328,711</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">16,219,296</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">14,422,070</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0.75pt">Other comprehensive (loss) income:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 22.5pt">Foreign currency translation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" unitRef="usd">53,020</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" sign="-" unitRef="usd">21,497</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-18">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 22.5pt">Unrealized (loss) gain on convertible notes</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" scale="0" unitRef="usd">100,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" scale="0" sign="-" unitRef="usd">133,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" scale="0" unitRef="usd">63,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 0.75pt">Comprehensive loss</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">31,175,691</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">16,373,793</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">14,359,070</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 22.5pt">Comprehensive loss attributable to the noncontrolling interest</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-19">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">8,815</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">849,759</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt; padding-left: 0.75pt">Comprehensive loss attributable to Akerna&#160;shareholders</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTax" scale="0" sign="-" unitRef="usd">31,175,691</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTax" scale="0" sign="-" unitRef="usd">16,364,978</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTax" scale="0" sign="-" unitRef="usd">13,509,311</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><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><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>






</div><!-- Field: Page; Sequence: 126; Value: 1 --><div>
    </div><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 -->25<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="F2_005"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&#160;<b>Consolidated Statements of Changes in
Equity</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><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">&#160;</td><td>&#160;</td>
    <td colspan="6" style="text-align: center"><b>Special Voting</b></td><td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Common Stock</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Additional<br/> Paid-In</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Accumulated<br/> Other<br/> Comprehensive</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Accumulated</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Total<br/> Stockholder's</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Noncontrolling<br/> Interest in<br/>
 Consolidated</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Total</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> Preferred Stock</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Capital</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Loss</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Deficit</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Equity</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Subsidiary</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Equity</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 45%; font-weight: bold; text-indent: -0.125in; padding-left: 0.125in">Balance as&#160;of&#160;June 30, 2019</td><td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%; text-align: left">&#160;</td><td style="width: 4%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-98">&#8212;</div></td><td style="width: 0.5%; text-align: left">&#160;</td><td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%; text-align: left">$</td><td style="width: 4%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-99">&#8212;</div></td><td style="width: 0.5%; text-align: left">&#160;</td><td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%; text-align: left">&#160;</td><td style="width: 4%; text-align: right"><ix:nonFraction contextRef="c61" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">10,589,746</ix:nonFraction></td><td style="width: 0.5%; text-align: left">&#160;</td><td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%; text-align: left">$</td><td style="width: 4%; text-align: right"><ix:nonFraction contextRef="c61" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">1,059</ix:nonFraction></td><td style="width: 0.5%; text-align: left">&#160;</td><td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%; text-align: left">$</td><td style="width: 4%; text-align: right"><ix:nonFraction contextRef="c62" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">46,299,233</ix:nonFraction></td><td style="width: 0.5%; text-align: left">&#160;</td><td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%; text-align: left">$</td><td style="width: 4%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-100">&#8212;</div></td><td style="width: 0.5%; text-align: left">&#160;</td><td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%; text-align: left">$</td><td style="width: 4%; text-align: right">(<ix:nonFraction contextRef="c64" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">27,582,558</ix:nonFraction></td><td style="width: 0.5%; text-align: left">)</td><td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%; text-align: left">$</td><td style="width: 4%; text-align: right"><ix:nonFraction contextRef="c65" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">18,717,734</ix:nonFraction></td><td style="width: 0.5%; text-align: left">&#160;</td><td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%; text-align: left">$</td><td style="width: 4%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-101">&#8212;</div></td><td style="width: 0.5%; text-align: left">&#160;</td><td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%; text-align: left">$</td><td style="width: 4%; text-align: right"><ix:nonFraction contextRef="c67" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">18,717,734</ix:nonFraction></td><td style="width: 0.5%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Common stock issued upon warrant exercise</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-102">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-103">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c69" decimals="INF" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodSharesWarrantExercise" scale="0" unitRef="shares">369,311</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c69" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodValueWarrantExercise" scale="0" unitRef="usd">37</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c70" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodValueWarrantExercise" scale="0" unitRef="usd">4,247,028</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-104">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-105">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c73" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodValueWarrantExercise" scale="0" unitRef="usd">4,247,065</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-106">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodValueWarrantExercise" scale="0" unitRef="usd">4,247,065</ix:nonFraction></td><td style="text-align: left">&#160;</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">Common stock issued in business combinations</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-107">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-108">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c69" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesAcquisitions" scale="0" unitRef="shares">2,299,650</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c69" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueAcquisitions" scale="0" unitRef="usd">230</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c70" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueAcquisitions" scale="0" unitRef="usd">20,081,236</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-109">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-110">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c73" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueAcquisitions" scale="0" unitRef="usd">20,081,466</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-111">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueAcquisitions" scale="0" unitRef="usd">20,081,466</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Non-controlling&#160;interest in acquired subsidiary</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-112">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-113">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-114">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-115">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c74" decimals="0" format="ixt:num-dot-decimal" name="kern:NoncontrollingInterestInAcquiredSubsidiary" scale="0" unitRef="usd">5,554,011</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="kern:NoncontrollingInterestInAcquiredSubsidiary" scale="0" unitRef="usd">5,554,011</ix:nonFraction></td><td style="text-align: left">&#160;</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">Stock-based compensation amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c70" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" scale="0" unitRef="usd">1,253,234</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-116">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-117">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c73" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" scale="0" unitRef="usd">1,253,234</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-118">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" scale="0" unitRef="usd">1,253,234</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">Forfeitures of restricted shares</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-119">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c69" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures" scale="0" sign="-" unitRef="shares">54,901</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c69" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures" scale="0" sign="-" unitRef="usd">5</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c70" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures" scale="0" unitRef="usd">5</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-120">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-121">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-122">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-123">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-124">&#8212;</div></td><td style="text-align: left">&#160;</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">Change in fair value of Convertible Notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-125">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-126">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-127">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c71" decimals="0" format="ixt:num-dot-decimal" name="kern:IncreaseDecreaseInFairValueOfConvertibleNotes" scale="0" unitRef="usd">63,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-128">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c73" decimals="0" format="ixt:num-dot-decimal" name="kern:IncreaseDecreaseInFairValueOfConvertibleNotes" scale="0" unitRef="usd">63,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-129">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="kern:IncreaseDecreaseInFairValueOfConvertibleNotes" scale="0" unitRef="usd">63,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Warrant Adjustment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-130">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-131">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c70" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueAdjustmentOfWarrants" scale="0" unitRef="usd">21,738</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-132">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-133">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c73" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueAdjustmentOfWarrants" scale="0" unitRef="usd">21,738</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-134">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueAdjustmentOfWarrants" scale="0" unitRef="usd">21,738</ix:nonFraction></td><td style="text-align: left">&#160;</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">Net loss</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-135">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-136">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-137">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-138">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c72" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">13,572,311</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c73" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">13,572,311</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c74" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">849,759</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">14,422,070</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-indent: -0.125in; padding-left: 0.125in">Balance as of&#160;June 30, 2020</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">13,203,806</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">1,321</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">71,902,474</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">63,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(41,154,869</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">30,811,926</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">4,704,252</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">35,516,178</td><td style="text-align: left">&#160;</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">Adoption of ASC&#160;606&#160;Adjustment</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-139">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-140">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-141">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-142">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c79" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings" scale="0" unitRef="usd">185,825</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c80" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings" scale="0" unitRef="usd">185,825</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-143">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings" scale="0" unitRef="usd">185,825</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-indent: -0.125in; padding-left: 0.125in">Balance as of July 1, 2020</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-144">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-145">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c83" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">13,203,806</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c83" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">1,321</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c84" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">71,902,474</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c85" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">63,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c86" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">40,969,044</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c87" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">30,997,751</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c88" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">4,704,252</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c89" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">35,702,003</ix:nonFraction></td><td style="text-align: left">&#160;</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">Issuance of common stock</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-146">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c76" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" scale="0" unitRef="shares">5,000,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c76" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">500</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c77" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">11,031,880</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-147">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-148">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c80" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">11,032,380</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-149">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">11,032,380</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Special voting preferred stock issued in business combination</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c75" decimals="INF" format="ixt:num-dot-decimal" name="kern:SpecialVotingPreferredStockIssueInBusinessCombinationShares" scale="0" unitRef="shares">3,294,574</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c75" decimals="0" format="ixt:num-dot-decimal" name="kern:SpecialVotingPreferredStockIssuedInBusinessCombination" scale="0" unitRef="usd">25,203,490</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-150">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-151">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-152">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-153">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-154">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c80" decimals="0" format="ixt:num-dot-decimal" name="kern:SpecialVotingPreferredStockIssuedInBusinessCombination" scale="0" unitRef="usd">25,203,490</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-155">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:SpecialVotingPreferredStockIssuedInBusinessCombination" scale="0" unitRef="usd">25,203,490</ix:nonFraction></td><td style="text-align: left">&#160;</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">Conversion of exchangable shares to common</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c75" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfUnits" scale="0" sign="-" unitRef="shares">627,225</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c75" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" scale="0" sign="-" unitRef="usd">4,798,271</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c76" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfUnits" scale="0" unitRef="shares">627,225</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c76" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" scale="0" unitRef="usd">63</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c77" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" scale="0" unitRef="usd">4,798,208</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-156">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-157">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-158">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-159">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-160">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Acquisition&#160;of&#160;noncontrolling&#160;interest</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-161">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-162">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c76" decimals="INF" format="ixt:num-dot-decimal" name="kern:NoncontrollingInterestInAcquiredSubsidiaryinShares" scale="0" unitRef="shares">800,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c76" decimals="0" format="ixt:num-dot-decimal" name="kern:NoncontrollingInterestInAcquiredSubsidiary" scale="0" unitRef="usd">80</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c77" decimals="0" format="ixt:num-dot-decimal" name="kern:NoncontrollingInterestInAcquiredSubsidiary" scale="0" unitRef="usd">4,695,357</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-163">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-164">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c80" decimals="0" format="ixt:num-dot-decimal" name="kern:NoncontrollingInterestInAcquiredSubsidiary" scale="0" unitRef="usd">4,695,437</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c81" decimals="0" format="ixt:num-dot-decimal" name="kern:NoncontrollingInterestInAcquiredSubsidiary" scale="0" sign="-" unitRef="usd">4,695,437</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-165">&#8212;</div></td><td style="text-align: left">&#160;</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">Stock-based compensation amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-166">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-167">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c77" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" scale="0" unitRef="usd">1,298,540</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-168">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-169">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c80" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" scale="0" unitRef="usd">1,298,540</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-170">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" scale="0" unitRef="usd">1,298,540</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Settlement of convertible debt</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-171">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-172">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c76" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities" scale="0" unitRef="shares">112,867</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c76" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" scale="0" unitRef="usd">11</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c77" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" scale="0" unitRef="usd">359,989</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-173">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-174">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c80" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" scale="0" unitRef="usd">360,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-175">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" scale="0" unitRef="usd">360,000</ix:nonFraction></td><td style="text-align: left">&#160;</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">Restricted stock unit vesting</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-176">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-177">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c76" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardGross" scale="0" unitRef="shares">157,350</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c76" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" scale="0" unitRef="usd">15</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c77" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" scale="0" sign="-" unitRef="usd">15</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-178">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-179">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-180">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-181">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-182">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Unrealized loss (gains) on Convertible Notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-183">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-184">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-185">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c78" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" scale="0" sign="-" unitRef="usd">133,000</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-186">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c80" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" scale="0" sign="-" unitRef="usd">133,000</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-187">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" scale="0" sign="-" unitRef="usd">133,000</ix:nonFraction></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: -0.125in; padding-left: 0.125in">Foreign currency translation adjustments</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-188">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-189">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-190">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c78" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" sign="-" unitRef="usd">21,497</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-191">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c80" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" sign="-" unitRef="usd">21,497</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-192">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" sign="-" unitRef="usd">21,497</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Net loss</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-193">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-194">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-195">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-196">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c79" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">16,210,481</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c80" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">16,210,481</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c81" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">8,815</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">16,219,296</ix:nonFraction></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="font-weight: bold; text-indent: -0.125in; padding-left: 0.125in">Balance &#8211;&#160;December 31, 2020</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c44" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">2,667,349</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c44" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">20,405,219</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c45" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">19,901,248</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c45" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">1,990</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c46" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">94,086,433</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c47" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">91,497</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c48" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">57,179,525</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c90" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">57,222,620</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">57,222,620</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Conversion of Exchangeable Shares to common stock</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c91" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfUnits" scale="0" sign="-" unitRef="shares">2,358,063</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c91" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" scale="0" sign="-" unitRef="usd">18,039,181</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfUnits" scale="0" unitRef="shares">2,358,063</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" scale="0" unitRef="usd">237</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c93" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" scale="0" unitRef="usd">18,038,944</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-197">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-198">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-199">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-200">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-201">&#8212;</div></td><td style="text-align: left">&#160;</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">Settlement of convertible debt</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-202">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-203">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities" scale="0" unitRef="shares">3,094,129</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" scale="0" unitRef="usd">309</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c93" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" scale="0" unitRef="usd">11,610,277</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-204">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-205">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" scale="0" unitRef="usd">11,610,586</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-206">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" scale="0" unitRef="usd">11,610,586</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Shares withheld for withholding taxes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-207">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-208">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c92" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesPaidForTaxWithholdingForShareBasedCompensation" scale="0" sign="-" unitRef="shares">121,786</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c92" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" scale="0" unitRef="usd">12</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c93" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" scale="0" unitRef="usd">520,383</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-209">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-210">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" scale="0" unitRef="usd">520,395</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-211">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" scale="0" unitRef="usd">520,395</ix:nonFraction></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: -0.125in; padding-left: 0.125in">Shares issued in connection with Viridian Acquisition</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-212">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-213">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="INF" format="ixt:num-dot-decimal" name="kern:SharesIssuedInConnectionWithViridianAcquisitionShares" scale="0" unitRef="shares">1,031,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="0" format="ixt:num-dot-decimal" name="kern:SharesIssuedInConnectionWithViridianAcquisition" scale="0" unitRef="usd">103</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c93" decimals="0" format="ixt:num-dot-decimal" name="kern:SharesIssuedInConnectionWithViridianAcquisition" scale="0" unitRef="usd">6,187,897</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-214">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-215">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="kern:SharesIssuedInConnectionWithViridianAcquisition" scale="0" unitRef="usd">6,188,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-216">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:SharesIssuedInConnectionWithViridianAcquisition" scale="0" unitRef="usd">6,188,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Shares issued in connection with Asset Purchase</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-217">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-218">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesPurchaseOfAssets" scale="0" unitRef="shares">83,333</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValuePurchaseOfAssets" scale="0" unitRef="usd">8</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c93" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValuePurchaseOfAssets" scale="0" unitRef="usd">299,992</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-219">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-220">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValuePurchaseOfAssets" scale="0" unitRef="usd">300,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-221">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValuePurchaseOfAssets" scale="0" unitRef="usd">300,000</ix:nonFraction></td><td style="text-align: left">&#160;</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">Shares issued in connection with 365 Cannabis Acquisition</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-222">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-223">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="INF" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringSharesIssuedInConnectionWith365CannabisAcquisitioninShares" scale="0" unitRef="shares">3,571,429</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringSharesIssuedInConnectionWithCannabisAcquisition" scale="0" unitRef="usd">357</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c93" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringSharesIssuedInConnectionWithCannabisAcquisition" scale="0" unitRef="usd">11,995,704</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-224">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-225">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringSharesIssuedInConnectionWithCannabisAcquisition" scale="0" unitRef="usd">11,996,061</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-226">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringSharesIssuedInConnectionWithCannabisAcquisition" scale="0" unitRef="usd">11,996,061</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Stock-based compensation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-227">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c93" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" scale="0" unitRef="usd">2,070,358</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-228">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-229">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" scale="0" unitRef="usd">2,070,358</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-230">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" scale="0" unitRef="usd">2,070,358</ix:nonFraction></td><td style="text-align: left">&#160;</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">Shares issued in connection with the ATM program</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-231">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-232">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="INF" format="ixt:num-dot-decimal" name="kern:CashReceivedInConnectionWithExerciseOfWarrantsShares" scale="0" unitRef="shares">556,388</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="0" format="ixt:num-dot-decimal" name="kern:CashReceivedInConnectionWithExerciseOfWarrants" scale="0" unitRef="usd">56</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c93" decimals="0" format="ixt:num-dot-decimal" name="kern:CashReceivedInConnectionWithExerciseOfWarrants" scale="0" unitRef="usd">1,828,063</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-233">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-234">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="kern:CashReceivedInConnectionWithExerciseOfWarrants" scale="0" unitRef="usd">1,828,119</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-235">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:CashReceivedInConnectionWithExerciseOfWarrants" scale="0" unitRef="usd">1,828,119</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">Settlement of liabilities with shares</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-236">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-237">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="INF" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodSharesSettlementOfLiabilities" scale="0" unitRef="shares">101,705</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" scale="0" unitRef="usd">10</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c93" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" scale="0" unitRef="usd">430,015</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-238">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-239">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" scale="0" unitRef="usd">430,025</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-240">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" scale="0" unitRef="usd">430,025</ix:nonFraction></td><td style="text-align: left">&#160;</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">Restricted stock vesting</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-241">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-242">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardGross" scale="0" unitRef="shares">427,711</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c92" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" scale="0" unitRef="usd">42</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c93" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" scale="0" sign="-" unitRef="usd">42</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-243">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-244">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-245">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-246">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-247">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">Forfeitures of restricted shares</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-248">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c92" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures" scale="0" sign="-" unitRef="shares">1,336</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</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">Foreign currency translation adjustments</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-249">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-250">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-251">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c94" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" unitRef="usd">53,020</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-252">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" unitRef="usd">53,020</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-253">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" unitRef="usd">53,020</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Unrealized loss (gains) on convertible notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-254">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-255">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-256">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c94" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" scale="0" unitRef="usd">100,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-257">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" scale="0" unitRef="usd">100,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-258">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" scale="0" unitRef="usd">100,000</ix:nonFraction></td><td style="text-align: left">&#160;</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">Net loss</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-259">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8212;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-260">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-261">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-262">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c95" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">31,328,711</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">31,328,711</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-263">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">31,328,711</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; padding-bottom: 4pt; text-indent: -0.125in; padding-left: 0.125in">Balance &#8211; December 31, 2021</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c29" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">309,286</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c29" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">2,366,038</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c30" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">31,001,884</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c30" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">3,100</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c31" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">146,027,258</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c32" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">61,523</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c33" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">88,508,236</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c98" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">59,949,683</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-264">&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">59,949,683</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>






</div><!-- Field: Page; Sequence: 127; Value: 1 --><div>
    </div><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 -->26<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="F2_006"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><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><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Year Ended<br/> December&#160;31,</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Six Months<br/> Ended<br/> December&#160;31,</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Year Ended<br/> June 30,</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Cash flows from operating activities</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; width: 64%; text-align: left">Net Loss</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">31,328,711</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">16,219,296</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">14,422,070</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Adjustment to reconcile net loss to net cash used in operating activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Equity in losses of investment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LossOnSaleOfInvestments" scale="0" unitRef="usd">7,564</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LossOnSaleOfInvestments" scale="0" unitRef="usd">12,643</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LossOnSaleOfInvestments" scale="0" unitRef="usd">3,692</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Bad debt expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProvisionForDoubtfulAccounts" scale="0" unitRef="usd">556,890</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProvisionForDoubtfulAccounts" scale="0" unitRef="usd">72,832</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProvisionForDoubtfulAccounts" scale="0" unitRef="usd">1,094,507</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Stock-based compensation expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensation" scale="0" unitRef="usd">2,070,359</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensation" scale="0" unitRef="usd">1,197,589</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensation" scale="0" unitRef="usd">1,166,130</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Loss on write off of fixed assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:LossOnWriteOffOfFixedAsset" scale="0" unitRef="usd">1,045,179</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-279">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-280">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Gain on forgiveness&#160;of PPP loan</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:GainOnForgivenessOfPPPLoan" scale="0" sign="-" unitRef="usd">2,234,730</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-281">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-282">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationDepletionAndAmortization" scale="0" unitRef="usd">5,735,150</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationDepletionAndAmortization" scale="0" unitRef="usd">2,007,237</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationDepletionAndAmortization" scale="0" unitRef="usd">1,315,898</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Amortization of deferred contract costs</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:AmortizationOfDeferredContractCost" scale="0" unitRef="usd">492,683</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:AmortizationOfDeferredContractCost" scale="0" unitRef="usd">228,766</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-283">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Non-cash interest expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherNoncashExpense" scale="0" unitRef="usd">1,009,331</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherNoncashExpense" scale="0" unitRef="usd">32,727</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-284">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Foreign currency gain</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:ForeignCurrencyLossesgain" scale="0" sign="-" unitRef="usd">3,312</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-285">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-286">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Impairment of long-lived assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentOfLongLivedAssetsToBeDisposedOf" scale="0" unitRef="usd">14,383,310</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentOfLongLivedAssetsToBeDisposedOf" scale="0" unitRef="usd">6,887,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-287">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Gain on debt extinguishment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:GainOnDebtExtinguishments" scale="0" unitRef="usd">186,177</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-288">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-289">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Loss on sale of fixed asset</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-290">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:LossOnSaleOfFixedAsset" scale="0" unitRef="usd">84,835</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-291">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Debt issuance costs</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-292">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-293">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AmortizationOfFinancingCosts" scale="0" unitRef="usd">1,177,390</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Change in fair value of convertible notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueOfConvertibleDebt" scale="0" unitRef="usd">1,365,904</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueOfConvertibleDebt" scale="0" unitRef="usd">961,273</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueOfConvertibleDebt" scale="0" sign="-" unitRef="usd">766,000</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Change in fair value of derivative liability</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueOfDerivativeLiability" scale="0" sign="-" unitRef="usd">248,198</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueOfDerivativeLiability" scale="0" sign="-" unitRef="usd">746,852</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueOfDerivativeLiability" scale="0" sign="-" unitRef="usd">1,962,034</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Change in fair value of contingent consideration</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-294">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationAsset1" scale="0" unitRef="usd">993,000</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationAsset1" scale="0" unitRef="usd">998,000</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Changes in operating assets and liabilities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-align: left">Accounts receivable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsReceivable" scale="0" sign="-" unitRef="usd">849,785</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsReceivable" scale="0" sign="-" unitRef="usd">1,008,775</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsReceivable" scale="0" unitRef="usd">1,621,262</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-align: left">Prepaid expenses and other current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:PrepaidExpensesAndOtherCurrentAsset" scale="0" sign="-" unitRef="usd">8,988</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:PrepaidExpensesAndOtherCurrentAsset" scale="0" sign="-" unitRef="usd">689,729</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="kern:PrepaidExpensesAndOtherCurrentAsset" scale="0" sign="-" unitRef="usd">592,807</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-align: left">Other assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-295">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:OtherAssetsAmount" scale="0" unitRef="usd">41,925</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="kern:OtherAssetsAmount" scale="0" sign="-" unitRef="usd">58,925</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-align: left">Accounts payable, accrued expenses and other current liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsPayableAndAccruedLiabilities" scale="0" unitRef="usd">1,610,470</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsPayableAndAccruedLiabilities" scale="0" sign="-" unitRef="usd">2,498,375</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsPayableAndAccruedLiabilities" scale="0" unitRef="usd">1,602,751</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-align: left">Deferred tax liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInDeferredLiabilities" scale="0" sign="-" unitRef="usd">2,274,295</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-296">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-297">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-align: left; padding-bottom: 1.5pt">Deferred revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInDeferredRevenue" scale="0" sign="-" unitRef="usd">1,010,118</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInDeferredRevenue" scale="0" sign="-" unitRef="usd">94,088</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInDeferredRevenue" scale="0" sign="-" unitRef="usd">286,922</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.5in; text-align: left; padding-bottom: 1.5pt">Net cash used in operating activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" sign="-" unitRef="usd">8,167,904</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" sign="-" unitRef="usd">8,705,738</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" sign="-" unitRef="usd">14,347,652</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Cash flows from investing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Developed software additions</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToDevelopSoftware" scale="0" unitRef="usd">5,427,230</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToDevelopSoftware" scale="0" unitRef="usd">1,847,710</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToDevelopSoftware" scale="0" unitRef="usd">3,102,728</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Furniture, fixtures, and equipment additions</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquireFurnitureAndFixtures" scale="0" unitRef="usd">39,263</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquireFurnitureAndFixtures" scale="0" unitRef="usd">12,203</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquireFurnitureAndFixtures" scale="0" unitRef="usd">156,636</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Cash paid for business combinations, net of cash acquired</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquireBusinessesNetOfCashAcquired" scale="0" unitRef="usd">5,018,592</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquireBusinessesNetOfCashAcquired" scale="0" unitRef="usd">5,279,134</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquireBusinessesNetOfCashAcquired" scale="0" unitRef="usd">88,720</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt">Investment in equity method investee</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-298">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-299">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquireEquityMethodInvestments" scale="0" unitRef="usd">250,000</ix:nonFraction></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="padding-left: 0.5in; text-align: left; padding-bottom: 1.5pt">Net cash used by investing activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" scale="0" sign="-" unitRef="usd">10,485,085</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" scale="0" sign="-" unitRef="usd">7,139,047</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" scale="0" sign="-" unitRef="usd">3,598,084</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.5in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Cash flows from financing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Value of shares withheld related to tax withholdings</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsRelatedToTaxWithholdingForShareBasedCompensation" scale="0" unitRef="usd">520,395</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-300">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-301">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Proceeds&#160;from stock offering, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromContributedCapital" scale="0" unitRef="usd">1,828,119</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-302">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-303">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Proceeds from the issuance of long term debt</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromIssuanceOfLongTermDebt" scale="0" unitRef="usd">18,000,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-304">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromIssuanceOfLongTermDebt" scale="0" unitRef="usd">17,164,600</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Payments of principal amounts of debt</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-305">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-306">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-307">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Payments&#160;on&#160;debt</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RepaymentsOfLongTermDebt" scale="0" unitRef="usd">4,571,472</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RepaymentsOfLongTermDebt" scale="0" unitRef="usd">1,500,000</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-308">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Cash paid for debt issuance costs</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-309">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-310">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsOfDebtIssuanceCosts" scale="0" unitRef="usd">1,177,390</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Proceeds from the exercise of warrants</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-311">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-312">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromWarrantExercises" scale="0" unitRef="usd">4,247,065</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Proceeds from the issuance of common stock</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-313">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromIssuanceOfCommonStock" scale="0" unitRef="usd">12,000,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-314">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt">Offering costs from the issuance of common stock</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-315">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsOfStockIssuanceCosts" scale="0" unitRef="usd">967,620</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-316">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.5in; text-align: left; padding-bottom: 1.5pt">Net cash provided by financing activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" unitRef="usd">14,736,252</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" unitRef="usd">9,532,380</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" unitRef="usd">20,234,275</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Effect&#160;of&#160;exchange&#160;rate&#160;changes&#160;on&#160;cash&#160;and&#160;restricted&#160;cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">18,623</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" sign="-" unitRef="usd">2,783</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-317">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</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 (decrease) increase in cash and restricted cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" scale="0" sign="-" unitRef="usd">3,898,114</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" scale="0" sign="-" unitRef="usd">6,315,188</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" scale="0" unitRef="usd">2,288,539</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Cash and restricted cash - beginning of period</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">18,340,640</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c89" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">24,655,828</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c67" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">22,367,289</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</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">Cash and restricted cash - end of period</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">14,442,526</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">18,340,640</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c89" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">24,655,828</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Cash paid for taxes</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxesPaidNet" scale="0" unitRef="usd">10,570</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-318">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-319">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</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">Cash paid for interest</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestPaidNet" scale="0" unitRef="usd">507,941</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestPaidNet" scale="0" unitRef="usd">150,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-320">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Supplemental disclosure of non-cash investing and financing activity:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Adjustments due to the adoption of ASC 606</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-321">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:AdjustmentsDueToTheAdoptionOfASC606" scale="0" unitRef="usd">185,826</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-322">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Vesting of restricted stock units</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:VestingOfRestrictedStockUnits" scale="0" unitRef="usd">42</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:VestingOfRestrictedStockUnits" scale="0" unitRef="usd">15</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-323">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Settlement of convertible notes in common stock</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConversionOfStockAmountIssued1" scale="0" unitRef="usd">11,610,586</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConversionOfStockAmountIssued1" scale="0" unitRef="usd">327,273</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-324">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Stock-based compensation capitalized as software development</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:StockBasedCompensationCapitalizedAsSoftwareDevelopment" scale="0" unitRef="usd">36,915</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:StockBasedCompensationCapitalizedAsSoftwareDevelopment" scale="0" unitRef="usd">100,951</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="kern:StockBasedCompensationCapitalizedAsSoftwareDevelopment" scale="0" unitRef="usd">87,104</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Acquisition of noncontrolling&#160;interest</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-325">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:AcquisitionOfNoncontrollingInterest" scale="0" unitRef="usd">4,695,437</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-326">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Capitalized software included in accrued expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:CapitalizedSoftwareIncludedInAccruedExpense" scale="0" unitRef="usd">554,127</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:CapitalizedSoftwareIncludedInAccruedExpense" scale="0" unitRef="usd">189,198</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-327">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Special voting preferred stock issued in business combination</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-328">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:SpecialVotingPreferredStockIssuedInBusinessCombinations" scale="0" unitRef="usd">25,203,490</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-329">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Conversion of exchangeable shares to common stock</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConversionOfStockAmountConverted1" scale="0" unitRef="usd">18,038,944</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConversionOfStockAmountConverted1" scale="0" unitRef="usd">4,798,271</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-330">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Adjustment to Trellis purchase price allocation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-331">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:AdjustmentToTrellisPurchasePriceAllocation" scale="0" unitRef="usd">14,300</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-332">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Settlement of liabilities with common stock</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtConversionOriginalDebtAmount1" scale="0" unitRef="usd">430,015</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-333">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-334">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Shares issued in connection with an asset purchase</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:SharesIssuedInConnectionWithAnAssetPurchase" scale="0" unitRef="usd">8</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-335">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-336">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Assets acquired and liabilities assumed in business combinations:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in">Cash</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents" scale="0" unitRef="usd">527,346</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents" scale="0" unitRef="usd">445,269</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-337">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Accounts receivable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsReceivables" scale="0" unitRef="usd">1,041,912</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsReceivables" scale="0" unitRef="usd">917,205</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c89" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsReceivables" scale="0" unitRef="usd">77,505</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Prepaid expenses and other current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsPrepaidExpenseAndOtherAssets" scale="0" unitRef="usd">408,973</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsPrepaidExpenseAndOtherAssets" scale="0" unitRef="usd">596,233</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c89" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsPrepaidExpenseAndOtherAssets" scale="0" unitRef="usd">27,860</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Fixed assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment" scale="0" unitRef="usd">93,365</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment" scale="0" unitRef="usd">1,326,996</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c89" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment" scale="0" unitRef="usd">2,410</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Intangible assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill" scale="0" unitRef="usd">16,933,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill" scale="0" unitRef="usd">3,795,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c89" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill" scale="0" unitRef="usd">8,010,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in">Goodwill</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:AcquisitionOfGoodwill" scale="0" unitRef="usd">19,451,464</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:AcquisitionOfGoodwill" scale="0" unitRef="usd">25,805,615</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="kern:AcquisitionOfGoodwill" scale="0" unitRef="usd">20,254,309</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Accounts payable and accrued liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:AccountsPayableAndAccruedLiabilitiesAmount" scale="0" unitRef="usd">1,174,961</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:AccountsPayableAndAccruedLiabilitiesAmount" scale="0" unitRef="usd">805,114</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="kern:AccountsPayableAndAccruedLiabilitiesAmount" scale="0" unitRef="usd">1,441,062</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Deferred tax liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilities" scale="0" unitRef="usd">2,949,586</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-338">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-339">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Deferred revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesDeferredRevenue" scale="0" unitRef="usd">4,301,514</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesDeferredRevenue" scale="0" unitRef="usd">549,311</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c89" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesDeferredRevenue" scale="0" unitRef="usd">31,220</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Contingent consideration</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:ContingentConsideration" scale="0" unitRef="usd">6,300,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:ContingentConsideration" scale="0" unitRef="usd">604,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="kern:ContingentConsideration" scale="0" unitRef="usd">1,387,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center">&#160;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center">&#160;</p><div>






</div><!-- Field: Page; Sequence: 128; Value: 1 --><div>
    </div><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 -->27<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="F2_007"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Notes to Consolidated
Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>December 31, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_NatureOfOperations-c26_cont_1" escape="true" name="us-gaap:NatureOfOperations"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 1 </b> - <b>Description of Business,
Liquidity, and Capital Resources</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c26_cont_2" id="_NatureOfOperations-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Description of Business</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c26_cont_3" id="_NatureOfOperations-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Akerna Corp., herein referred
to as we, us, our or Akerna, through our wholly-owned subsidiaries MJ Freeway, LLC, or MJF, Trellis Solutions, Inc., or Trellis, Ample
Organics, Inc, or Ample, solo sciences, inc., or Solo, Viridian Sciences Inc., or Viridian, and The NAV People, Inc. d.b.a. 365 Cannabis,
or 365 Cannabis, provides enterprise software solutions that enable regulatory compliance and inventory management. Our proprietary, broad
and growing suite of solutions are adaptable for industries in which interfacing with government regulatory agencies for compliance purposes
is required, or where the tracking of organic materials from seed or plant to end products is desired. We develop&#160;products intended
to assist states in monitoring licensed businesses&#8217; compliance with state regulations and to help state-licensed businesses operate
in compliance with such law. We provide our commercial software platform, MJ Platform&#174;, Trellis&#174;, Ample, Viridian and 365 Cannabis
to state-licensed businesses, and&#160;our regulatory software platform, Leaf Data Systems&#174;, to state government regulatory agencies.
Through Solo,&#160;we provide an innovative, next-generation solution for state and national governments to securely track product and
waste throughout the supply chain with solo*TAG<sup>&#8482;</sup>. The integration of MJ Platform&#174; and solo*CODE<sup>&#8482;&#160;</sup>results
in technology for consumers and brands that brings a consumer-facing mark designed to highlight the authenticity and signify transparency.
Our Viridian and 365 Cannabis offerings are considered enterprise offerings and all other solutions are considered non-enterprise offerings
that meet the needs of our small and medium business customers.&#160;&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c26_cont_4" id="_NatureOfOperations-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We consult with clients on
a wide range of areas to help them successfully maintain compliance with state laws and regulations. We provide project-focused consulting
services to clients who are initiating or expanding their cannabis business operations or are interested in data consulting engagements
with respect to the legal cannabis industry. Our advisory engagements include service offerings focused on compliance requirement assessments,
readiness and best practices, compliance monitoring systems, application processes, inspection readiness, and business plan and compliance
reviews. We typically provide our consulting services to clients in emerging markets that are seeking consultation on newly introduced
licensing regimes and assistance with the regulatory compliant build-out of operations.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c26_cont_5" id="_NatureOfOperations-c26_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Going Concern and Management's Liquidity Plans</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c26_cont_6" id="_NatureOfOperations-c26_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">In
accordance with the Financial Accounting Standards Board&#8217;s (&#8220;FASB&#8221;) standard on going concern, Accounting Standard Update,
or ASU No. 2014-15, The Company assesses going concern uncertainty in its consolidated financial statements to determine if it has sufficient
cash, cash equivalents and working capital on hand, including marketable equity securities, and any available borrowings on loans, to
operate for a period of at least one year from the date the consolidated financial statements are issued, which is referred to as the
&#8220;look-forward period&#8221; as defined by ASU No. 2014-15. As part of this assessment, based on conditions that are known and reasonably
knowable to The Company, it will consider various scenarios, forecasts, projections, estimates and will make certain key assumptions,
including the timing and nature of projected cash expenditures or programs, and its ability to delay or curtail expenditures or programs,
if necessary, among other factors. Based on this assessment, as necessary or applicable, The Company makes certain assumptions around
implementing curtailments or delays in the nature and timing of programs and expenditures to the extent The Company deems probable those
implementations can be achieved and it has the proper authority to execute them within the look-forward period in accordance with ASU
No. 2014-15.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c26_cont_7" id="_NatureOfOperations-c26_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">The
accompanying consolidated financial statements have been prepared on the basis that we will continue as a going concern, which contemplates
realization of assets and the satisfaction of liabilities in the normal course of business.&#160; However, since&#160;our inception we
have incurred recurring operating losses, used cash from operations, and relied on capital raising transactions to continue ongoing operations.&#160;During
the year ended&#160;December 31, 2021, six months ended December 31, 2020, and year ended June 30, 2020, we incurred a loss from operations
of $<ix:nonFraction contextRef="c166" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="6" unitRef="usd">33.4</ix:nonFraction>&#160;million,&#160;$<ix:nonFraction contextRef="c167" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="6" unitRef="usd">15.7</ix:nonFraction>&#160;million, and&#160;$<ix:nonFraction contextRef="c168" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="6" unitRef="usd">17.3</ix:nonFraction>&#160;million, respectively, and&#160;used cash in operations of&#160;$<ix:nonFraction contextRef="c166" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="6" unitRef="usd">8.2</ix:nonFraction>&#160;million,
$<ix:nonFraction contextRef="c167" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="6" unitRef="usd">8.7</ix:nonFraction>&#160;million, and $<ix:nonFraction contextRef="c168" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="6" unitRef="usd">14.3</ix:nonFraction>&#160;million, respectively. At December 31, 2021, the Company had a working capital&#160;deficit of $<ix:nonFraction contextRef="c2" decimals="-5" format="ixt:num-dot-decimal" name="kern:WorkingCapitalDeficit" scale="6" unitRef="usd">10.9</ix:nonFraction>&#160;million
with $<ix:nonFraction contextRef="c2" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:Cash" scale="6" unitRef="usd">13.9</ix:nonFraction>&#160;million in&#160;cash available to fund future operations.&#160;These factors raise substantial doubt, as defined by generally
accepted accounting principles in the United States of America ("GAAP"), about the ability of the Company to continue to operate
as a going concern for the&#160;twelve&#160;months following the issuance of these consolidated financial statements. These consolidated
financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification
of liabilities that might be necessary should the Company be unable to continue as a going concern.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c26_cont_8" id="_NatureOfOperations-c26_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">On
July 23, 2021, we entered into an Equity Distribution Agreement with Oppenheimer &amp; Co.&#160;Inc. and A.G.P./Alliance Global Partners
("ATM Program"). Pursuant to the terms of the ATM Program, we may offer and sell from time to time, up to $<ix:nonFraction contextRef="c169" decimals="-6" format="ixt:num-dot-decimal" name="kern:CommonStockValueIssued" scale="6" unitRef="usd">25</ix:nonFraction>&#160;million of
shares of our common stock. As of December 31, 2021, we have raised gross proceeds of $<ix:nonFraction contextRef="c26" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:SaleLeasebackTransactionGrossProceedsInvestingActivities" scale="6" unitRef="usd">1.9</ix:nonFraction>&#160;million through the issuance of&#160;<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" scale="0" unitRef="shares">556,388</ix:nonFraction>&#160;shares
through the ATM program. While no assurance can be provided that we will be able to raise further capital under the program, we intend
to use the net proceeds from the sale of our shares of common stock, if any, for general corporate purposes, including working capital,
marketing, product development, capital expenditures and merger and acquisition activities.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p></ix:continuation><div>

</div><div>





</div><!-- Field: Page; Sequence: 129; Value: 1 --><div>
    </div><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 -->28<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Notes to Consolidated
Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>December 31, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c26_cont_9" id="_NatureOfOperations-c26_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">On
October 5, 2021, we entered into a securities purchase agreement with the&#160;two&#160;institutional investors that held the Company's
convertible notes issued in June of&#160;2020&#160;(the "2020&#160;Notes") to sell senior secured notes in a private placement
(the "Senior Convertible Notes"). The Senior Convertible Notes have an aggregate principal amount of $<ix:nonFraction contextRef="c170" decimals="-6" format="ixt:num-dot-decimal" name="kern:AggregatePrincipalAmount" scale="6" unitRef="usd">20</ix:nonFraction> million, an aggregate
original issue discount of&#160;<ix:nonFraction contextRef="c170" decimals="2" format="ixt:num-dot-decimal" name="kern:AggregateOriginalIssueDiscountRate" scale="-2" unitRef="pure">10</ix:nonFraction>%, and rank senior to all our other outstanding and future indebtedness. Approximately $<ix:nonFraction contextRef="c170" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromConvertibleDebt" scale="6" unitRef="usd">3.3</ix:nonFraction>&#160;million
of the proceeds from the Senior Convertible Notes were used to payoff the&#160;2020&#160;Notes, which were then to be cancelled. The net
proceeds from the issuance of the Senior Convertible Notes was approximately $<ix:nonFraction contextRef="c171" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromConvertibleDebt" scale="6" unitRef="usd">14.6</ix:nonFraction>&#160;million, following the original issue discount
and deductions for expenses and&#160;paydown&#160;of the&#160;2020&#160;Notes. These net proceeds will be used to support&#160;Akerna's&#160;ongoing
growth initiatives and continued investment in current and future technology infrastructure. The Senior Convertible Notes are convertible
into shares of common stock of&#160;Akerna&#160;at a conversion price of $<ix:nonFraction contextRef="c170" decimals="2" format="ixt:num-dot-decimal" name="kern:ConversionPricepershare" scale="0" unitRef="usdPershares">4.05</ix:nonFraction> per share.&#160;<ix:nonNumeric contextRef="c170" name="us-gaap:DebtInstrumentMaturityDateDescription">The Senior Convertible Notes mature on
October 5, 2024 and are to be repaid in monthly installments beginning on January 1, 2022. The Senior Convertible Notes can be repaid
in common shares or cash.</ix:nonNumeric></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_NatureOfOperations-c26_cont_10" id="_NatureOfOperations-c26_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Management&#8217;s plan for
the Company to continue as a going concern includes raising additional capital from our ATM program, subject to certain effects on the
Senior Convertible Notes should we utilize the program, including resetting the conversion price of the Senior Convertible Notes should
we raise more than $<ix:nonFraction contextRef="c172" decimals="-6" format="ixt:num-dot-decimal" name="us-gaap:ConversionOfStockAmountConverted1" scale="6" unitRef="usd">5</ix:nonFraction> million under the ATM program, settling our contingent consideration and Senior Convertible Notes&#160;in common
stock rather than cash as it comes due, and implementing certain cost cutting strategies throughout the organization, while continuing
to seek to grow our customer base and realize synergies as we continue to integrate our recent acquisitions. If the Company is unable
to raise sufficient additional funds through the ATM Program, it will have to develop and implement a plan to extend payables, reduce
expenditures, or scale back our business plan until sufficient additional capital is raised through other equity or debt offerings to
support further operations. Such offerings may include the issuance of shares of common stock, warrants to purchase common stock, preferred
stock, convertible debt or other instruments that may dilute our current stockholders.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_NatureOfOperations-c26_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The ability of the Company
to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph
and eventually secure other sources of financing and attain profitable operations. We will require additional financing in the second
quarter of 2022 to meet our ongoing operational working capital requirements and continue to meet the financial covenants of the Senior
Convertible Notes. As noted above, we plan to meet those requirements in part through the use of our ATM Facility, but there are no guarantees
that the ATM Facility will permit us to raise sufficient cash to meet our ongoing requirements. These factors raise substantial doubt
about the Company&#8217;s ability to continue as a going concern for one year from the issuance of the consolidated financial statements.
If we are unable to raise sufficient capital we may have to reduce operations which could significantly affect our results of operations.
If we fail to meet the financial covenants of the Senior Convertible Notes and cannot obtain a waiver from such provisions or otherwise
come to an agreement with the holders of our debt, such holders may declare a default on the debt which could subject our assets to seizure
and sale, negatively impacting our business. The accompanying consolidated financial statements do not include any adjustments relating
to the recoverability and classification of assets and liabilities that might be necessary if the Company is unable to continue as a going
concern.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_1" escape="true" name="us-gaap:SignificantAccountingPoliciesTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 2 - Summary of Significant Accounting
Policies</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_2" id="_SignificantAccountingPoliciesTextBlock-c26_cont_1"><ix:nonNumeric contextRef="c26" continuedAt="_BasisOfAccountingPolicyPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:BasisOfAccountingPolicyPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Basis of Presentation</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_3" id="_SignificantAccountingPoliciesTextBlock-c26_cont_2"><ix:continuation continuedAt="_BasisOfAccountingPolicyPolicyTextBlock-c26_cont_2" id="_BasisOfAccountingPolicyPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The accompanying consolidated
financial statements have been prepared in accordance with GAAP.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_4" id="_SignificantAccountingPoliciesTextBlock-c26_cont_3"><ix:continuation id="_BasisOfAccountingPolicyPolicyTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In September 2020, the Company
changed its fiscal year from June 30 to December 31. As a result, this annual report on Form 10-K includes the consolidated financial
statements as of December 31, 2021 and December 31, 2020 and for (i) the calendar year ended December 31, 2021, (ii) the transitional
six months ended December 31, 2020; and (iii) the fiscal year ended June 30, 2020.&#160;&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_5" id="_SignificantAccountingPoliciesTextBlock-c26_cont_4"><ix:nonNumeric contextRef="c26" continuedAt="_ConsolidationPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:ConsolidationPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Principles of Consolidation</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_6" id="_SignificantAccountingPoliciesTextBlock-c26_cont_5"><ix:continuation id="_ConsolidationPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our accompanying consolidated
financial statements include the accounts of Akerna, our wholly-owned subsidiaries, and those entities in which we otherwise have a controlling
financial interest. All significant intercompany balances and transactions have been eliminated in consolidation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_7" id="_SignificantAccountingPoliciesTextBlock-c26_cont_6"><ix:nonNumeric contextRef="c26" continuedAt="_UseOfEstimates-c26_cont_1" escape="true" name="us-gaap:UseOfEstimates"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Use of Estimates</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_8" id="_SignificantAccountingPoliciesTextBlock-c26_cont_7"><ix:continuation id="_UseOfEstimates-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The preparation of our consolidated
financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included
in the consolidated financial statements and accompanying notes thereto. Our most significant estimates and assumptions are related to
the valuation of acquisition-related assets&#160;and liabilities, capitalization of internal costs associated with software development,
fair value measurements, impairment assessments, loss contingencies, valuation allowance associated with deferred tax assets, stock based
compensation expenses, and useful lives of long-lived intangible assets. We base our estimates on historical experience and on various
other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results could differ from those estimates.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_9" id="_SignificantAccountingPoliciesTextBlock-c26_cont_8"><ix:nonNumeric contextRef="c26" continuedAt="_PriorPeriodReclassificationAdjustmentDescription-c26_cont_1" escape="true" name="us-gaap:PriorPeriodReclassificationAdjustmentDescription"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Reclassifications</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_10" id="_SignificantAccountingPoliciesTextBlock-c26_cont_9"><ix:continuation id="_PriorPeriodReclassificationAdjustmentDescription-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Certain prior year amounts
have been reclassified to conform to the current year presentation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>





</div><!-- Field: Page; Sequence: 130; Value: 1 --><div>
    </div><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 -->29<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Notes to Consolidated Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>December 31, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_11" id="_SignificantAccountingPoliciesTextBlock-c26_cont_10"><ix:nonNumeric contextRef="c26" continuedAt="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Foreign Currency</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_12" id="_SignificantAccountingPoliciesTextBlock-c26_cont_11"><ix:continuation id="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The functional currency of
the Company's non-U.S. operations is the local currency. Monetary assets and liabilities denominated in foreign currencies are translated
into U.S. dollars at exchange rates prevailing at the balance sheet dates. Non-monetary assets and liabilities are translated at the historical
rates in effect when the assets were acquired or obligations incurred. Revenue and expenses are translated into U.S. dollars using the
average rates of exchange prevailing during the period. Translation gains or losses are included as a component of accumulated other comprehensive
loss in stockholders' equity. Gains and losses resulting from foreign currency transactions are recognized as other income (expense).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_13" id="_SignificantAccountingPoliciesTextBlock-c26_cont_12"><ix:nonNumeric contextRef="c26" continuedAt="_CashAndCashEquivalentsPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:CashAndCashEquivalentsPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Cash and Cash Equivalents&#160;</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_14" id="_SignificantAccountingPoliciesTextBlock-c26_cont_13"><ix:continuation id="_CashAndCashEquivalentsPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We consider liquid instruments
purchased with an original maturity of three months or less to be cash equivalents. There were no cash equivalents as of December 31,
2021, and 2020. We continually monitor our positions with, and the credit quality of, the financial institutions with which we invest.
As of the balance sheet date, and periodically throughout the year, we have maintained balances in various operating accounts in excess
of federally insured limits.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_15" id="_SignificantAccountingPoliciesTextBlock-c26_cont_14"><ix:nonNumeric contextRef="c26" continuedAt="_CashAndCashEquivalentsRestrictedCashAndCashEquivalentsPolicy-c26_cont_1" escape="true" name="us-gaap:CashAndCashEquivalentsRestrictedCashAndCashEquivalentsPolicy"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Restricted Cash</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_16" id="_SignificantAccountingPoliciesTextBlock-c26_cont_15"><ix:continuation id="_CashAndCashEquivalentsRestrictedCashAndCashEquivalentsPolicy-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Restricted cash consists of
funds that are contractually or legally restricted as to usage or withdrawal and is presented separately from cash and cash equivalents
on our consolidated balance sheets. Our restricted cash serves as collateral for a letter of credit.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_17" id="_SignificantAccountingPoliciesTextBlock-c26_cont_16"><ix:nonNumeric contextRef="c26" continuedAt="_ReceivablesPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:ReceivablesPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Accounts Receivable, Net </i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_18" id="_SignificantAccountingPoliciesTextBlock-c26_cont_17"><ix:continuation continuedAt="_ReceivablesPolicyTextBlock-c26_cont_2" id="_ReceivablesPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We maintain an allowance for
doubtful accounts equal to the estimated uncollectible amounts based on our historical collection experience and review of the current
status of trade accounts receivable. Receivables&#160;are written-off and charged against the recorded allowance when we have exhausted
collection efforts without success. The allowance for doubtful accounts was $<ix:nonFraction contextRef="c2" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsReceivableCurrent" scale="6" unitRef="usd">0.3</ix:nonFraction> million&#160;and $<ix:nonFraction contextRef="c7" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsReceivableCurrent" scale="6" unitRef="usd">0.2</ix:nonFraction> million as of December 31, 2021,&#160;and
2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_19" id="_SignificantAccountingPoliciesTextBlock-c26_cont_18"><ix:continuation continuedAt="_ReceivablesPolicyTextBlock-c26_cont_3" id="_ReceivablesPolicyTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The allowance for doubtful
accounts consists of the following activity:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_20" id="_SignificantAccountingPoliciesTextBlock-c26_cont_19"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:AccountsReceivableAllowanceForCreditLossTableTextBlock"><ix:continuation id="_ReceivablesPolicyTextBlock-c26_cont_3"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Year Ended<br/> December&#160;31,</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Six Months<br/> Ended<br/> December&#160;31,</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left; padding-left: 0.75pt">Allowance for doubtful accounts, balance at beginning of period</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableGross" scale="0" unitRef="usd">153,500</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c89" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableGross" scale="0" unitRef="usd">208,422</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 15pt">Bad debt expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:BadDebtExpense" scale="0" unitRef="usd">556,890</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:BadDebtExpense" scale="0" unitRef="usd">72,832</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 15pt">Write-off uncollectable accounts</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsReceivableWriteOffs" scale="0" unitRef="usd">393,306</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsReceivableWriteOffs" scale="0" unitRef="usd">127,754</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt; padding-left: 0.75pt">Allowance for doubtful accounts, balance at end of period</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableGross" scale="0" unitRef="usd">317,084</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableGross" scale="0" unitRef="usd">153,500</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; ">&#160;</p></ix:continuation></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_21" id="_SignificantAccountingPoliciesTextBlock-c26_cont_20"><ix:nonNumeric contextRef="c26" continuedAt="_ConcentrationRiskCreditRisk-c26_cont_1" escape="true" name="us-gaap:ConcentrationRiskCreditRisk"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Concentrations&#160;of Credit Risk</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_22" id="_SignificantAccountingPoliciesTextBlock-c26_cont_21"><ix:continuation continuedAt="_ConcentrationRiskCreditRisk-c26_cont_2" id="_ConcentrationRiskCreditRisk-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We grant credit in the normal
course of business to customers in the United States. We periodically perform credit analysis and monitor the financial condition of our
customers to reduce credit risk.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_23" id="_SignificantAccountingPoliciesTextBlock-c26_cont_22"><ix:continuation id="_ConcentrationRiskCreditRisk-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the year ended December
31, 2021, the six months ended December 31, 2020&#160;and the year ended June 30, 2020,&#160;<ix:nonFraction contextRef="c104" decimals="0" format="ixt-sec:numwordsen" name="kern:NumberOfCustomer" scale="0" unitRef="pure"><ix:nonFraction contextRef="c173" decimals="0" format="ixt-sec:numwordsen" name="kern:NumberOfCustomer" scale="0" unitRef="pure"><ix:nonFraction contextRef="c174" decimals="0" format="ixt-sec:numwordsen" name="kern:NumberOfCustomer" scale="0" unitRef="pure">one</ix:nonFraction></ix:nonFraction></ix:nonFraction>&#160;government client accounted for
<ix:nonFraction contextRef="c104" decimals="2" format="ixt:num-dot-decimal" name="kern:ConcentrationRiskPercentage" scale="-2" unitRef="pure">11</ix:nonFraction>%,&#160;<ix:nonFraction contextRef="c173" decimals="2" format="ixt:num-dot-decimal" name="kern:ConcentrationRiskPercentage" scale="-2" unitRef="pure">14</ix:nonFraction>% and <ix:nonFraction contextRef="c174" decimals="2" format="ixt:num-dot-decimal" name="kern:ConcentrationRiskPercentage" scale="-2" unitRef="pure">25</ix:nonFraction>% of total revenues, respectively. As of&#160;December 31, 2020,&#160;<ix:nonFraction contextRef="c175" decimals="0" format="ixt-sec:numwordsen" name="kern:NumberOfCustomer" scale="0" unitRef="pure">two</ix:nonFraction> government clients accounted for a total
of&#160;<ix:nonFraction contextRef="c175" decimals="2" format="ixt:num-dot-decimal" name="kern:ConcentrationRiskPercentage" scale="-2" unitRef="pure">36</ix:nonFraction>% of net accounts&#160;receivable.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>






</div><!-- Field: Page; Sequence: 131; Value: 1 --><div>
    </div><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 -->30<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Notes to Consolidated Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>December 31, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_24" id="_SignificantAccountingPoliciesTextBlock-c26_cont_23"><ix:nonNumeric contextRef="c26" continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:PropertyPlantAndEquipmentPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Property and Equipment</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_25" id="_SignificantAccountingPoliciesTextBlock-c26_cont_24"><ix:continuation continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c26_cont_2" id="_PropertyPlantAndEquipmentPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Property and equipment are
recorded at cost. Expenditures for major additions and improvements are capitalized. Depreciation and amortization is provided over the
estimated useful lives of the related assets using the straight-line method.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_26" id="_SignificantAccountingPoliciesTextBlock-c26_cont_25"><ix:continuation continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c26_cont_3" id="_PropertyPlantAndEquipmentPolicyTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The estimated useful lives for significant property
and equipment categories are generally as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_27" id="_SignificantAccountingPoliciesTextBlock-c26_cont_26"><ix:nonNumeric contextRef="c26" escape="true" name="kern:ScheduleOfPropertyAndEquipmentEstimatedUsefulLivesPolicyTextBlock"><ix:continuation continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c26_cont_4" id="_PropertyPlantAndEquipmentPolicyTextBlock-c26_cont_3"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; width: 60%; font-size: 10pt"><span style="font-size: 10pt">Furniture and computer equipment </span></td>
    <td style="vertical-align: bottom; width: 40%; font-size: 10pt; text-align: right"><span style="font-size: 10pt"><ix:nonNumeric contextRef="c176" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">3</ix:nonNumeric>&#160;to <ix:nonNumeric contextRef="c26" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">7</ix:nonNumeric>&#160;years </span></td></tr>
  <tr>
    <td style="vertical-align: top; font-size: 10pt"><span style="font-size: 10pt">Leasehold improvements </span></td>
    <td style="vertical-align: bottom; font-size: 10pt; text-align: right"><span style="font-size: 10pt"><ix:nonNumeric contextRef="c177" name="kern:LeaseholdImprovements">Lesser of remaining lease term or useful life</ix:nonNumeric> </span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_28" id="_SignificantAccountingPoliciesTextBlock-c26_cont_27"><ix:continuation id="_PropertyPlantAndEquipmentPolicyTextBlock-c26_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Repairs and maintenance costs are expensed as incurred.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_29" id="_SignificantAccountingPoliciesTextBlock-c26_cont_28"><ix:nonNumeric contextRef="c26" continuedAt="_DerivativesPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:DerivativesPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Warrant Liabilities</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_30" id="_SignificantAccountingPoliciesTextBlock-c26_cont_29"><ix:continuation id="_DerivativesPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Company&#8217;s Private Warrants
are not indexed to the Company&#8217;s common stock in the manner contemplated by ASC Section 815-40. As a result, these warrants are
precluded from equity classification and are recorded as derivative liabilities. At the end of each reporting period, changes in fair
value during the period are recognized within the condensed consolidated statements of operations and comprehensive loss. We will continue
to adjust the warrant liability for changes in the fair value until the earlier of a) the exercise or expiration of the warrants or b)
the redemption of the warrants, at which time the warrants will be reclassified to additional paid-in capital.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_31" id="_SignificantAccountingPoliciesTextBlock-c26_cont_30"><ix:nonNumeric contextRef="c26" continuedAt="_InvestmentPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:InvestmentPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Investment</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_32" id="_SignificantAccountingPoliciesTextBlock-c26_cont_31"><ix:continuation id="_InvestmentPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We hold an equity security
in Zoltrain, Inc. (Zoltrain) for which the fair value is not readily determinable. Accordingly, we measure this investment at cost minus
impairment, plus or minus changes resulting from observable price changes. When indicators of impairment exist, we estimate the fair value
and record an impairment charge if the carrying value of the investment exceeds its estimated fair value. Any impairment charges are recorded
in other (expense) income, net, in our consolidated statements of operations. Prior to the quarter ended September 30, 2021, we had determined
we could exert significant influence over Zoltrain's operations through voting rights and representation on the board of directors and
we accounted for our investment in Zoltrain using the equity method of accounting, recording our share in the investee&#8217;s earnings
and losses in the consolidated statement of operations.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_33" id="_SignificantAccountingPoliciesTextBlock-c26_cont_32"><ix:nonNumeric contextRef="c26" continuedAt="_IntangibleAssetsArisingFromInsuranceContractsAcquiredInBusinessCombinationPolicyPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:IntangibleAssetsArisingFromInsuranceContractsAcquiredInBusinessCombinationPolicyPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Intangible Assets Acquired through Business Combinations</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_34" id="_SignificantAccountingPoliciesTextBlock-c26_cont_33"><ix:continuation id="_IntangibleAssetsArisingFromInsuranceContractsAcquiredInBusinessCombinationPolicyPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Intangible assets are amortized
over their estimated useful lives. We evaluate the estimated remaining useful life of our intangible assets when events or changes in
circumstances indicate an adjustment to the remaining amortization may be needed. We similarly evaluate the recoverability of these assets
upon events or changes in circumstances indicate a potential impairment. Recoverability of these assets is measured by comparing the carrying
amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the
test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value.
We recorded an impairment of $<ix:nonFraction contextRef="c27" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:AssetImpairmentCharges" scale="6" unitRef="usd">2.7</ix:nonFraction> million during the six months ended December 31, 2020 related to the intangible assets acquired in the
Solo transaction. There were&#160;no&#160;impairments of intangible assets during the years ended December 31, 2021 or June 30,&#160;2020.
See Note 6 &#8211; Goodwill and Intangible Assets, Net for further discussion on the impairment.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_35" id="_SignificantAccountingPoliciesTextBlock-c26_cont_34"><ix:nonNumeric contextRef="c26" continuedAt="_GoodwillAndIntangibleAssetsPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:GoodwillAndIntangibleAssetsPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Goodwill Impairment Assessment</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_36" id="_SignificantAccountingPoliciesTextBlock-c26_cont_35"><ix:continuation id="_GoodwillAndIntangibleAssetsPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Goodwill represents the excess
purchase consideration of an acquired business over the fair value of the net tangible and identifiable intangible assets. Goodwill is
evaluated for impairment annually on October 31, and whenever events or changes in circumstances indicate the carrying value of goodwill
may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in
customer demand or business climate or a significant decrease in expected cash flows. An impairment loss is recognized to the extent that
the carrying amount exceeds the reporting unit&#8217;s fair value, not to exceed the carrying amount of goodwill. The Company has the
option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that
the fair value of a reporting unit is less than its carrying amount and determine whether further action is needed. If, after assessing
the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit
is less than its carrying amount, then performing the quantitative impairment test is unnecessary. Due to a continued decline in market
conditions and declines in the operating results of our non-enterprise reporting unit, we recognized an impairment to&#160;goodwil<span>l
of $</span><ix:nonFraction contextRef="c26" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:GoodwillAndIntangibleAssetImpairment" scale="6" unitRef="usd">14.4</ix:nonFraction> <span>million</span> during the year ended December 31, 2021&#160;and we recorded an impairment
to goodwill of $<ix:nonFraction contextRef="c27" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:GoodwillAndIntangibleAssetImpairment" scale="6" unitRef="usd">4.2</ix:nonFraction> million during the six months ended December 31, 2020. There were no impairments of goodwill during the year ended
June 30, 2020. See Note 6 &#8211; Goodwill and Intangible Assets, Net for further discussion on the impairment.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>






</div><!-- Field: Page; Sequence: 132; Value: 1 --><div>
    </div><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 -->31<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Notes to Consolidated Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>December 31, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_37" id="_SignificantAccountingPoliciesTextBlock-c26_cont_36"><ix:nonNumeric contextRef="c26" continuedAt="_ResearchDevelopmentAndComputerSoftwarePolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:ResearchDevelopmentAndComputerSoftwarePolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Software Development Costs</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_38" id="_SignificantAccountingPoliciesTextBlock-c26_cont_37"><ix:continuation id="_ResearchDevelopmentAndComputerSoftwarePolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Costs incurred during&#160;the
application development stage of a newly developed application and costs we incur to enhance our existing platforms that meet certain
criteria are subject to capitalization and subsequent amortization. Capitalized software development costs were approximately $<ix:nonFraction contextRef="c26" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DevelopmentCosts" scale="6" unitRef="usd">5.9</ix:nonFraction> million
during the year ended December 31, 2021, $<ix:nonFraction contextRef="c27" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DevelopmentCosts" scale="6" unitRef="usd">2.1</ix:nonFraction>&#160;million during the six months ended December 31, 2020, and $<ix:nonFraction contextRef="c28" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DevelopmentCosts" scale="6" unitRef="usd">3.1</ix:nonFraction>&#160;million&#160;during
the&#160;year ended June 30, 2020.&#160;Product development costs are primarily comprised of personnel costs such as payroll and benefits,
vendor costs, and other costs directly attributable to the project. We capitalize costs only during the development phase. Any costs in
connection to planning, design, and maintenance subsequent to release are expensed as incurred. We amortize software development costs
over the expected useful life of the specific application, generally 2-5 years. We evaluate capitalized software development costs for
impairment when there is an indication that the unamortized cost may not be recoverable.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_39" id="_SignificantAccountingPoliciesTextBlock-c26_cont_38"><ix:nonNumeric contextRef="c26" continuedAt="_FairValueOfFinancialInstrumentsPolicy-c26_cont_1" escape="true" name="us-gaap:FairValueOfFinancialInstrumentsPolicy"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Fair Value of Financial Instruments</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_40" id="_SignificantAccountingPoliciesTextBlock-c26_cont_39"><ix:continuation continuedAt="_FairValueOfFinancialInstrumentsPolicy-c26_cont_2" id="_FairValueOfFinancialInstrumentsPolicy-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">GAAP defines&#160;fair value&#160;as
the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. Under this guidance, we are required to classify certain assets and liabilities based on the&#160;fair value&#160;hierarchy,
which groups&#160;fair value-measured assets and liabilities based upon the following levels of inputs:&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_41" id="_SignificantAccountingPoliciesTextBlock-c26_cont_40"><ix:continuation continuedAt="_FairValueOfFinancialInstrumentsPolicy-c26_cont_3" id="_FairValueOfFinancialInstrumentsPolicy-c26_cont_2"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Level 1 &#8211; Unadjusted quoted
prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;</span></td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_42" id="_SignificantAccountingPoliciesTextBlock-c26_cont_41"><ix:continuation continuedAt="_FairValueOfFinancialInstrumentsPolicy-c26_cont_4" id="_FairValueOfFinancialInstrumentsPolicy-c26_cont_3"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Level 2 &#8211; Quoted prices
in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the
asset or liability;</span></td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_43" id="_SignificantAccountingPoliciesTextBlock-c26_cont_42"><ix:continuation continuedAt="_FairValueOfFinancialInstrumentsPolicy-c26_cont_5" id="_FairValueOfFinancialInstrumentsPolicy-c26_cont_4"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Level 3 &#8211; Prices or valuation
techniques that require inputs that are both significant to the&#160;fair value&#160;measurement and unobservable (i.e. supported by
little or no market activity).</span></td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_44" id="_SignificantAccountingPoliciesTextBlock-c26_cont_43"><ix:continuation id="_FairValueOfFinancialInstrumentsPolicy-c26_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The fair value of financial
instruments is the amount at which the instrument could be exchanged in a current transaction between willing parties. The carrying values
of financial instruments such as accounts receivable, accounts payable and accrued liabilities approximate fair value based on their short
maturities. Please refer to Note 13- Fair Value Measurements for additional&#160;information regarding the fair value of financial instruments
that we measure at fair value, including senior secured convertible notes and contingent consideration.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_45" id="_SignificantAccountingPoliciesTextBlock-c26_cont_44"><ix:nonNumeric contextRef="c26" continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:FairValueMeasurementPolicyPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Fair Value Option</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 48pt">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_46" id="_SignificantAccountingPoliciesTextBlock-c26_cont_45"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c26_cont_2" id="_FairValueMeasurementPolicyPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The fair value option provides
an election that allows a company to irrevocably elect to record certain financial assets and liabilities at fair value on an instrument-by-instrument
basis at initial recognition. We have elected to apply the fair value option to certain convertible notes due to the complexity of the
various conversion and settlement&#160;options available to both the Note Holders and Akerna.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_47" id="_SignificantAccountingPoliciesTextBlock-c26_cont_46"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c26_cont_3" id="_FairValueMeasurementPolicyPolicyTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The convertible notes accounted
for under the fair value option election are each a debt host financial instrument containing embedded features that would otherwise be
required to be bifurcated from the debt-host and recognized as separate&#160;derivative liabilities subject to initial and subsequent
periodic estimated fair value measurements in accordance with GAAP. Notwithstanding, when the fair value option election is applied to
financial liabilities, bifurcation of an embedded derivative is not required, and the financial liability is initially&#160;measured at
its issue-date estimated fair value and then subsequently remeasured&#160;at estimated fair value on a recurring basis as of each reporting
period date.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_48" id="_SignificantAccountingPoliciesTextBlock-c26_cont_47"><ix:continuation id="_FairValueMeasurementPolicyPolicyTextBlock-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The portion&#160;of the change
in fair value attributed to a change in the instrument-specific credit risk is recognized as a component of other comprehensive income
and the remaining amount of the fair value adjustment is recognized as other income (expense) in our consolidated statement of operations.
The estimated fair value adjustment is presented in a respective single line item&#160;within other income (expense) in the accompanying
consolidated statement of operations because the change in fair value of the convertible notes was not attributable to instrument-specific
credit risk.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 48pt">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_49" id="_SignificantAccountingPoliciesTextBlock-c26_cont_48"><ix:nonNumeric contextRef="c26" continuedAt="_RevenueRecognitionPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:RevenueRecognitionPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Revenue Recognition</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_50" id="_SignificantAccountingPoliciesTextBlock-c26_cont_49"><ix:continuation id="_RevenueRecognitionPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">See Note 3 for further&#160;
discussion of our revenue recognition policies.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>







</div><!-- Field: Page; Sequence: 133; Value: 1 --><div>
    </div><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 -->32<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Notes to Consolidated Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>December 31, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_51" id="_SignificantAccountingPoliciesTextBlock-c26_cont_50"><ix:nonNumeric contextRef="c26" continuedAt="_CostOfSalesPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:CostOfSalesPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Cost of Revenue</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_52" id="_SignificantAccountingPoliciesTextBlock-c26_cont_51"><ix:continuation id="_CostOfSalesPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Cost of revenue
consists primarily of costs related to providing subscription and other services to our customers, including employee compensation and
related expenses for data center&#160;operations, customer support and professional services personnel, payments to outside technology
service providers, security services, and other tools.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_53" id="_SignificantAccountingPoliciesTextBlock-c26_cont_52"><ix:nonNumeric contextRef="c26" continuedAt="_ResearchAndDevelopmentExpensePolicy-c26_cont_1" escape="true" name="us-gaap:ResearchAndDevelopmentExpensePolicy"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Product Development</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_54" id="_SignificantAccountingPoliciesTextBlock-c26_cont_53"><ix:continuation id="_ResearchAndDevelopmentExpensePolicy-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Product development&#160;expenses consist primarily of employee-related costs for the design and development
of the Company's platform, contractor costs to supplement staff levels, third-party web services, consulting services, and allocated overhead.
Product development expenses, other than software development costs qualifying for capitalization, are expensed as incurred.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_55" id="_SignificantAccountingPoliciesTextBlock-c26_cont_54"><ix:nonNumeric contextRef="c26" continuedAt="_SalesAndMarketingExpensesPolicyTextBlock-c26_cont_1" escape="true" name="kern:SalesAndMarketingExpensesPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Sales and Marketing Expenses</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_56" id="_SignificantAccountingPoliciesTextBlock-c26_cont_55"><ix:continuation id="_SalesAndMarketingExpensesPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Sales and marketing expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, commissions,
travel, and stock-based compensation. Other costs included in this expense are marketing and promotional events, online marketing, product
marketing, information technology costs, and facility costs.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; ">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_57" id="_SignificantAccountingPoliciesTextBlock-c26_cont_56"><ix:nonNumeric contextRef="c26" continuedAt="_SellingGeneralAndAdministrativeExpensesPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:SellingGeneralAndAdministrativeExpensesPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>General and Administrative Expenses</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_58" id="_SignificantAccountingPoliciesTextBlock-c26_cont_57"><ix:continuation id="_SellingGeneralAndAdministrativeExpensesPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">General and administrative
expenses consist primarily of personnel and related costs for our executive, finance, legal, human resources, and administrative personnel,
including salaries, benefits, bonuses, and stock-based compensation; legal, accounting, and other professional service fees; other corporate
expenses; information technology costs; restructuring charges such as lease termination costs; and facility costs.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_59" id="_SignificantAccountingPoliciesTextBlock-c26_cont_58"><ix:nonNumeric contextRef="c26" continuedAt="_LegalAndOtherContingenciesPolicyTextBlock-c26_cont_1" escape="true" name="kern:LegalAndOtherContingenciesPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Legal and Other Contingencies</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_60" id="_SignificantAccountingPoliciesTextBlock-c26_cont_59"><ix:continuation id="_LegalAndOtherContingenciesPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">From time to time, the Company
may be a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims,
labor and employment claims, breach of contract claims and other asserted and unasserted claims. The Company investigates these claims
as they arise and accrues estimates for resolution of legal and other contingencies when losses are probable and estimable.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_61" id="_SignificantAccountingPoliciesTextBlock-c26_cont_60"><ix:nonNumeric contextRef="c26" continuedAt="_ShareBasedCompensationOptionAndIncentivePlansPolicy-c26_cont_1" escape="true" name="us-gaap:ShareBasedCompensationOptionAndIncentivePlansPolicy"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Stock-Based Compensation</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_62" id="_SignificantAccountingPoliciesTextBlock-c26_cont_61"><ix:continuation id="_ShareBasedCompensationOptionAndIncentivePlansPolicy-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">We&#160;measured stock-based compensation based
on the fair value of the share-based awards on the date of grant and recognize the related costs on a straight-line basis over the requisite
service period, which is generally the vesting period.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_63" id="_SignificantAccountingPoliciesTextBlock-c26_cont_62"><ix:nonNumeric contextRef="c26" continuedAt="_IncomeTaxPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:IncomeTaxPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Income Taxes&#160;</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_64" id="_SignificantAccountingPoliciesTextBlock-c26_cont_63"><ix:continuation continuedAt="_IncomeTaxPolicyTextBlock-c26_cont_2" id="_IncomeTaxPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Income taxes are accounted
for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future
tax consequences of temporary differences between the carrying amounts and the tax basis of other assets and liabilities. We provide for
income taxes at the current and future enacted tax rates and laws applicable in each taxing jurisdiction. We use a two-step approach for
recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income
tax positions. We recognize interest and penalties related to income tax matters in selling, general and administrative expenses in the
consolidated statement of operations.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_65" id="_SignificantAccountingPoliciesTextBlock-c26_cont_64"><ix:continuation id="_IncomeTaxPolicyTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We recognize deferred tax assets
to the extent that its assets are more likely than not to be realized. In making such a determination, we consider all available positive
and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning
strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in
excess of its net recorded amount, we&#160;will make an adjustment to the deferred tax asset valuation allowance, which would reduce the
provision for income taxes.&#160;As of December 31, 2021, management has applied&#160;a valuation allowance to deferred tax assets when
it is determined&#160;that the benefit from the deferred tax asset will not be able to be utilized in a future period.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>





</div><!-- Field: Page; Sequence: 134; Value: 1 --><div>
    </div><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 -->33<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Notes to Consolidated Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>December 31, 2021</b></p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_66" id="_SignificantAccountingPoliciesTextBlock-c26_cont_65"><ix:nonNumeric contextRef="c26" continuedAt="_SegmentReportingPolicyPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:SegmentReportingPolicyPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Segments</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_67" id="_SignificantAccountingPoliciesTextBlock-c26_cont_66"><ix:continuation continuedAt="_SegmentReportingPolicyPolicyTextBlock-c26_cont_2" id="_SegmentReportingPolicyPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our chief operating decision
maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance
and information for different revenue streams is not evaluated separately. As such, the Company has&#160;one&#160;operating segment, and
the decision-making group is the senior executive management team.&#160;In the following table, we disclose our long-lived assets by geographical
location (in thousands):</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_68" id="_SignificantAccountingPoliciesTextBlock-c26_cont_67"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:ScheduleOfRevenuesFromExternalCustomersAndLongLivedAssetsByGeographicalAreasTableTextBlock"><ix:continuation id="_SegmentReportingPolicyPolicyTextBlock-c26_cont_2"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Long-lived assets:</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">United States</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c107" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:NoncurrentAssets" scale="3" unitRef="usd">32,356</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c178" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:NoncurrentAssets" scale="3" unitRef="usd">9,994</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt">Canada</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c109" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:NoncurrentAssets" scale="3" unitRef="usd">5,229</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c179" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:NoncurrentAssets" scale="3" unitRef="usd">5,074</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</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">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:NoncurrentAssets" scale="3" unitRef="usd">37,585</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c7" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:NoncurrentAssets" scale="3" unitRef="usd">15,068</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b><i>&#160;</i></b></p></ix:continuation></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_69" id="_SignificantAccountingPoliciesTextBlock-c26_cont_68"><ix:nonNumeric contextRef="c26" continuedAt="_SubsequentEventsPolicyPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:SubsequentEventsPolicyPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Subsequent Events</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_70" id="_SignificantAccountingPoliciesTextBlock-c26_cont_69"><ix:continuation id="_SubsequentEventsPolicyPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company performs a review
of events subsequent to the balance sheet date through the date the consolidated financial statements were issued. If we determine there
are events requiring recognition or disclosure in the consolidated financial statements., we disclose&#160;the subsequent event.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_71" id="_SignificantAccountingPoliciesTextBlock-c26_cont_70"><ix:nonNumeric contextRef="c26" continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_1" escape="true" name="us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Recently Issued Accounting Pronouncements</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_72" id="_SignificantAccountingPoliciesTextBlock-c26_cont_71"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_2" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>ASU 2016-02</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_73" id="_SignificantAccountingPoliciesTextBlock-c26_cont_72"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_3" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Financial Accounting Standards
Board, or the FASB, has issued new guidance related to the accounting for leases. The new standard establishes a right-of-use model that
requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months.
Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement
of operations. We have adopted this new standard on January 1, 2022 and due to the immaterial impact of applying this standard to our
limited assets subject to operating leases, there was no impact to our results of operations.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_74" id="_SignificantAccountingPoliciesTextBlock-c26_cont_73"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_4" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>ASU 2016-13</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_75" id="_SignificantAccountingPoliciesTextBlock-c26_cont_74"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_5" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FASB has issued guidance
to introduce a new model for recognizing credit losses on financial instruments based on estimated current expected credit losses, or
CECL. Under the new standard, an entity is required to estimate CECL on trade receivables at inception, based on historical information,
current conditions, and reasonable and supportable forecasts. Following our change in fiscal year-end effective December 31, 2020, the
new guidance is effective for us beginning on January 1, 2023. We are evaluating the impact of adoption of the new standard on our consolidated
financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_76" id="_SignificantAccountingPoliciesTextBlock-c26_cont_75"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_6" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>ASU 2018-15</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_77" id="_SignificantAccountingPoliciesTextBlock-c26_cont_76"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_7" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FASB has issued guidance
to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing
guidance for determining when the arrangement includes a software license. ASU 2018-15 aligns the requirements for capitalizing implementation
costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred
to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance (i)
provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs
to expense, (ii) requires an entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service
contract over the term of the hosting arrangement and (iii) clarifies the presentation requirements for reporting such costs in the entity&#8217;s
consolidated financial statements. We have adopted this standard effective December 15, 2021, and there is currently no impact to our
consolidated&#160;financial statements&#160;as a result of this guidance.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>






</div><!-- Field: Page; Sequence: 135; Value: 1 --><div>
    </div><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 -->34<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Notes to Consolidated Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>December 31, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_78" id="_SignificantAccountingPoliciesTextBlock-c26_cont_77"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_8" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>ASU 2019-12</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_79" id="_SignificantAccountingPoliciesTextBlock-c26_cont_78"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_9" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">In December 2019, the FASB issued ASU No. 2019-12,
Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (&#8220;ASU 2019-12&#8221;), which aims to reduce complexity in
accounting standards by improving certain areas of U.S. Generally Accepted Accounting Principles (&#8220;U.S. GAAP&#8221;) without compromising
information provided to users of financial statements. ASU 2019-12 is effective for public entities for fiscal years beginning after December
15, 2020, and interim periods within those fiscal years. For all other entities, the standard is effective for fiscal years beginning
after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company
has adopted ASU 2019-12&#160;effective December 15, 2021 and the adoption of this guidance did not have a significant effect on our consolidated
financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_80" id="_SignificantAccountingPoliciesTextBlock-c26_cont_79"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_10" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>ASU 2020-01</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_81" id="_SignificantAccountingPoliciesTextBlock-c26_cont_80"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_11" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FASB has issued guidance
clarifying the interactions between various standards governing investments in equity securities. The new guidance addresses accounting
for the transition into and out of the equity method and measurement of certain purchased options and forward contracts to acquire investments.
The standard is effective for us for annual and interim periods beginning on January 1, 2022, with early adoption permitted. Adoption
of the standard requires changes to be made prospectively. We do not anticipate a significant impact to our consolidated financial statements
as a result of this new guidance.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_82" id="_SignificantAccountingPoliciesTextBlock-c26_cont_81"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_12" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><i>ASU 2020-06</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_83" id="_SignificantAccountingPoliciesTextBlock-c26_cont_82"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_13" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt">In August 2020, the FASB
issued ASU 2020-06, Debt - Debt with Conversion and Other Options and Derivative and Hedging - Contracts in Entity&#8217;s Own Equity,
which simplifies the accounting for convertible instruments. This guidance eliminates certain models that require separate accounting
for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminates certain of the conditions
for equity classification for contracts in an entity&#8217;s own equity. The guidance also requires entities to use the if-converted method
for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments
that may be settled in cash or shares, except for certain liability-classified share-based payment awards. This guidance is required to
be adopted by us in the first quarter of 2023 and must be applied using either a modified or full retrospective approach. We are currently
evaluating the impact this guidance will have on our consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_84" id="_SignificantAccountingPoliciesTextBlock-c26_cont_83"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_14" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>ASU 2021-04</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_85" id="_SignificantAccountingPoliciesTextBlock-c26_cont_84"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_15" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 3, 2021, FASB issued
ASU 2021-04, Earnings Per Share (Topic 260), Debt&#8212;Modifications and Extinguishments (Subtopic 470-50), Compensation&#8212;Stock
Compensation (Topic 718), and Derivatives and Hedging&#8212;Contracts in Entity&#8217;s Own Equity (Subtopic 815-40): Issuer&#8217;s Accounting
for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This new standard provides clarification
and reduces diversity in an issuer&#8217;s accounting for modifications or exchanges of freestanding equity-classified written call options
(such as warrants) that remain equity classified after modification or exchange. This standard is effective for fiscal years beginning
after December 15, 2021, including interim periods within those fiscal years. Issuers should apply the new standard prospectively to modifications
or exchanges occurring after the effective date of the new standard. We are currently evaluating the impact this guidance will have on
our consolidated financial statements..</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; ">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c26_cont_86" id="_SignificantAccountingPoliciesTextBlock-c26_cont_85"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_16" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>ASU 2021-08</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation id="_SignificantAccountingPoliciesTextBlock-c26_cont_86"><ix:continuation id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c26_cont_16"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In October 2021, the FASB issued
ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,
which amends the accounting related to contract assets and liabilities acquired in business combinations. Under current GAAP, an entity
generally recognizes assets and liabilities acquired in a business combination, including contract assets and contract liabilities arising
from revenue contracts with customers, at fair value on the acquisition date. ASU 2021-08 requires that entities recognize and measure
contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contracts with
Customers. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal
years, and should be applied prospectively to businesses combinations occurring on or after the effective date of the amendment. We are
currently evaluating the impact this guidance will have on our consolidated financial statements.</p></ix:continuation></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>





</div><!-- Field: Page; Sequence: 136; Value: 1 --><div>
    </div><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 -->35<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Notes to Consolidated Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>December 31, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_1" escape="true" name="us-gaap:RevenueFromContractWithCustomerTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 3&#160;- Revenue</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_2" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Financial Statement Impact of Adopting ASC 606, "Revenue
from Contracts with Customers"</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_3" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On July 1, 2020, we adopted
ASC 606 using the modified retrospective transition method and applied this method to all contracts that were not complete as of the date
of adoption. The reported results as of&#160;December 31, 2021 and December 31, 2020, and for the year ended December 31, 2021 and the
six months ended&#160;December 31, 2020 in the accompanying consolidated financial statements are presented under ASC 606, while the year
ended June 30, 2020 has not been adjusted and is reported in accordance with historical accounting guidance in effect for that period.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_4" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The most significant impacts
of this standard relate to the timing of revenue recognition of fixed fees under our contracts, as well as the accounting for costs to
obtain contracts. Under ASC 606, revenue recognition for subscription and implementation fees begins on the launch date and is recognized
over time through the term of the contract. We then recognized the remaining balance of the fixed fees ratably over the remaining term
of the contract. Additionally, under ASC 606, we now defer recognition of expense for sales commissions ("contract costs").
These contract costs are amortized to expense over the expected period of benefit. Before the adoption of ASC 606, we expensed these contract
costs as incurred.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_5" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The adoption of ASC&#160;606&#160;under
the modified retrospective transition method resulted in a net adjustment reducing the accumulated deficit by $<ix:nonFraction contextRef="c180" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:RetainedEarningsAccumulatedDeficit" scale="6" unitRef="usd">0.2</ix:nonFraction>&#160;million at July
1, 2020 and an increase to capitalized commissions, which&#160; are included in prepaid expenses and other current assets on the&#160;
accompanying balance sheet. The adjustment consisted of&#160;$<ix:nonFraction contextRef="c26" decimals="-5" format="ixt:num-dot-decimal" name="kern:DeferralOfContractCosts" scale="6" unitRef="usd">0.2</ix:nonFraction>&#160;million&#160;related to the deferral of contract costs that were
historically expensed as incurred</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_6" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><b><i>Revenue Recognition Policies for the year ended December 31,
2021 and the six months ended December 31, 2020&#160;&#160;</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_7" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In accordance with ASC&#160;606,
revenue is recognized when a customer obtains the benefit of promised services, in an amount that reflects the consideration the Company
expects to be entitled to receive in exchange for those services. In determining the amount of revenue to be recognized, the Company performs
the following steps: (i) identification of the contract with a customer; (ii) identification of the promised services in the contract
and determination of whether the promised services are performance obligations, including whether they are distinct in the context of
the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations based
on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_8" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Software Revenue.</i>&#160;Our
software revenue is generated from subscriptions and services related to the use of our commercial software platforms, MJ Platform&#174;,
Ample, Trellis, Viridian,&#160;365&#160;Cannabis, and our government regulatory platform, Leaf Data Systems, and the sale of business
intelligence, data analytics and other software related services. Software contracts are annual or multi-year contracts paid monthly in
advance of service and typically cancellable upon&#160;30&#160;days&#8217; notice after the end of the contract period. Leaf Data Systems
contracts are generally multi-year contracts payable annually or quarterly in advance of service. Commercial software and Leaf Data Systems
contracts generally may only be terminated early for breach of contract as defined in the respective agreements. Amounts that have been
invoiced are initially recorded as deferred revenue or contract liabilities. Subscription revenue is recognized on a straight-line basis
over the service term of the arrangement beginning on the date that our solution is made available to the customer and ending at the expiration
of the subscription term.&#160;We typically invoice customers at the beginning of the term, in multi-year, annual, quarterly, or monthly
installments. When a collection of fees occurs in advance of service delivery, revenue recognition is deferred until such services commence.
Revenue for implementation fees is recognized ratably over the expected term of the contract, including expected renewals.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_9" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">We
include service level commitments to customers warranting certain levels of uptime reliability and performance and permitting those customers
to receive credits if those levels are not met. In addition, customer contracts often include: specific obligations that require us to
maintain the availability of the customer&#8217;s data through the service and that customer content is secured against unauthorized access
or loss, and indemnity provisions whereby we indemnify customers from third-party claims asserted against them that result from our failure
to maintain the availability of their content or securing the same from unauthorized access or loss. To date, we have not incurred any
material costs as a result of such commitments. Any such credits or payments made to customers under these arrangements are recorded as
a reduction of revenue.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_10" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><i>Consulting
Revenue.</i>&#160;Consulting services revenue is generated by providing solutions for operators in the pre-application of&#160;licensures&#160;and
pre-operational phases of development and&#160;consists of contracts with fixed terms and fee structures based upon the volume and activity
or fixed-price contracts for consulting and strategic services.&#160;These services include application and business plan preparation
as they seek licenses to be granted. Consulting projects completed during the pre-application phase generally solidify us as the software
vendor of choice for subsequent operational phases once the operator is granted the license. As a result, our consulting revenue is driven
as new emerging states pass legislation, and as our client-operators gain licenses. Accordingly, we expect our consulting services to
continue to grow as more states emerge with legalization reform.&#160;Consulting services revenue&#160; When these services are not combined
with subscription revenues as a single unit of account, these revenues are recognized as services are rendered and accepted by the customer.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p></ix:continuation><div>

</div><div>





</div><!-- Field: Page; Sequence: 137; Value: 1 --><div>
    </div><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 -->36<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Notes to Consolidated Financial
Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>December 31, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_11" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><i>Other
Revenue.&#160;</i>Our other revenue is derived primarily from point-of-sale hardware and other non-recurring revenue.&#160;We sell solo*TAG<span><sup>&#8482;&#160;</sup></span>s
and solo*CODE<span><sup>&#8482;</sup></span>s to customers by the roll of printed labels or as a digital
code that allows customers to print directly their packing. When customers active a solo*TAG<span><sup>&#8482;&#160;</sup></span>or
solo*CODE<span><sup>&#8482;</sup></span>, we receive an activation fee, which is recognized upon activation
by the customer.&#160;From time to time, we may purchase equipment for resale to customers. Such equipment is generally drop-shipped to
our customers. We recognize revenue as these products are delivered.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_12" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><i>Cost
of Revenue.&#160;&#160;</i>Cost of revenue consists primarily of costs related to providing subscription and other services to our customers,
including employee compensation and related expenses for data center&#160;operations, customer support and professional services personnel,
payments to outside technology service providers, security services, and other tools.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_13" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><i>Unbilled
Receivables. </i>Unbilled receivables are booked when services are delivered to our customers but not yet invoiced. Once invoiced, the
unbilled receivables are reclassified to accounts receivable.&#160;&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_14" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Revenue Recognition Policies for the year
ended June 30, 2020</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_15" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We derive our revenues primarily
from the following sources: software revenues, which are primarily comprised of subscription fees from government and commercial customers
accessing our enterprise cloud computing services and from customers paying for additional support beyond the standard support that is
included in the basic subscription fees; and consulting services provided to operators interested in integrating our platform into their
respective operations, such services include: assessing compliance requirements, monitoring systems and readiness; assisting with the
application process; and evaluating the operator&#8217;s inspection readiness and business plan.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_16" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We commence revenue recognition
when there is persuasive evidence of an arrangement, the service has been or is being provided to the customer, the collection of the
fees is reasonably assured, and the amount of fees to be paid by the customer is fixed or determinable.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_17" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_16"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Deferred Revenue&#160;&#160;</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_18" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_17"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Deferred revenue consists of
payments received in advance of revenue recognition from subscription services. The deferred revenue balance is influenced by several
factors, including seasonality, the compounding effects of renewals, contract duration, and invoice frequency.&#160;Deferred revenue that
will be recognized during the succeeding&#160;twelve-month period is recorded as deferred revenue, which is a current liability on the
accompanying consolidated balance sheets.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_19" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_18"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Disaggregation of Revenue</i></b>&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_20" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_19"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company derives the majority
of its revenue from subscription fees paid for access to and usage of its SaaS solutions for a specified period of time, typically one&#160;to
three years. In addition to subscription fees, contracts with customers may include implementation fees for launch assistance and training.
Fixed subscription and implementation fees are billed in advance of the subscription term and are due in accordance with contract terms,
which generally provide for payment within 30 days. The Company's contracts typically have a&#160;one&#160;to three year&#160;term. The
Company's contractual arrangements include performance, termination and cancellation provisions, but do not provide for refunds. Customers
do not have the contractual right to take possession of the Company's software at any time.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_21" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_20"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Sales&#160;taxes collected from customers and remitted
to government authorities are excluded from revenue.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>





</div><!-- Field: Page; Sequence: 138; Value: 1 --><div>
    </div><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 -->37<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Notes to Consolidated Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; "><b>December 31, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_22" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_21"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following&#160;table summarizes revenue disaggregation
by product for the following periods (in thousands):</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_23" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_22"><ix:nonNumeric contextRef="c26" continuedAt="_DisaggregationOfRevenueTableTextBlock-c26_cont_1" escape="true" name="us-gaap:DisaggregationOfRevenueTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended<br/> December&#160;31, <br/>
2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months<br/> Ended<br/> December&#160;31,<br/> 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended<br/> June 30,<br/> 2020 (1)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%">Government</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c181" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">3,258</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c182" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">1,939</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c183" decimals="-3" format="ixt:num-dot-decimal" id="ix_1_fact" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">4,906</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt">Non-government</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c184" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">17,427</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c185" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">5,886</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c186" decimals="-3" format="ixt:num-dot-decimal" id="ix_2_fact" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">7,667</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c26" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">20,685</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c27" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">7,825</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c28" decimals="-3" format="ixt:num-dot-decimal" id="ix_3_fact" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="3" unitRef="usd">12,573</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_24" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_23"><ix:continuation id="_DisaggregationOfRevenueTableTextBlock-c26_cont_1"><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: 0in"></td><td style="width: 0.25in; text-align: left">(1)</td><td style="text-align: justify"><ix:footnote id="ix_1_footnote" xml:lang="en-US">As noted above, prior periods have not been adjusted for the
adoption of ASC 606 and are presented in accordance with&#160;<span style="font-family: Times New Roman, Times, Serif">historical&#160;accounting
guidance in effect for those periods.</span></ix:footnote></td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_25" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_24"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:RevenueFromExternalCustomersByGeographicAreasTableTextBlock"><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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended<br/> December&#160;31,<br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months<br/> Ended<br/> December&#160;31,<br/> 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year&#160;Ended<br/> June 30,<br/> 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">United States</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c187" decimals="-3" format="ixt:num-dot-decimal" name="kern:AdjustedForAdoption" scale="3" unitRef="usd">15,800</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c188" decimals="-3" format="ixt:num-dot-decimal" name="kern:AdjustedForAdoption" scale="3" unitRef="usd">5,212</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c189" decimals="-3" format="ixt:num-dot-decimal" name="kern:AdjustedForAdoption" scale="3" unitRef="usd">12,573</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt">Canada</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c190" decimals="-3" format="ixt:num-dot-decimal" name="kern:AdjustedForAdoption" scale="3" unitRef="usd">4,885</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c191" decimals="-3" format="ixt:num-dot-decimal" name="kern:AdjustedForAdoption" scale="3" unitRef="usd">2,613</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-341">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c26" decimals="-3" format="ixt:num-dot-decimal" name="kern:AdjustedForAdoption" scale="3" unitRef="usd">20,685</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c27" decimals="-3" format="ixt:num-dot-decimal" name="kern:AdjustedForAdoption" scale="3" unitRef="usd">7,825</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c28" decimals="-3" format="ixt:num-dot-decimal" name="kern:AdjustedForAdoption" scale="3" unitRef="usd">12,573</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_26" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_25"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Contracts with Multiple Performance Obligations</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_27" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_26"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Customers may elect to purchase
a subscription to multiple modules, multiple modules with multiple service levels, or, for certain of the Company's solutions. We evaluate
such contracts to determine whether the services to be provided are distinct and accordingly should be accounted for as separate performance
obligations. If we determine that a contract has multiple performance obligations, the transaction price, which is the total price of
the contract, is allocated to each performance obligation based on a relative standalone selling price method. We estimate standalone
selling price based on observable prices in past transactions for which the product offering subject to the performance obligation has
been sold separately. As the performance obligations are satisfied, revenue is recognized as discussed above in the product descriptions.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p></ix:continuation><div>

</div><div>







</div><!-- Field: Page; Sequence: 139; Value: 1 --><div>
    </div><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 -->38<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Notes to Consolidated Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>December 31, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b><i>&#160;</i></b></p><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_28" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_27"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Transaction Price Allocated to Future Performance
Obligations</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_29" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_28"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span>ASC
</span>606 <span>provides certain practical expedients that limit the required disclosure of the aggregate
amount of transaction price that is allocated to performance obligations that have not yet been satisfied. As many of the contracts the
Company has entered into with customers are for a&#160;</span>twelve<span>-month subscription term, a
significant portion of performance obligations that have not yet been satisfied as of&#160;December 31, 2021 are part of a contract that
has an original expected duration of </span>one <span>year or less. For contracts with an original expected
duration of greater than </span>one <span>year, for which the practical expedient does not apply, the
aggregate transaction price allocated to the unsatisfied performance obligations was&#160;$</span><ix:nonFraction contextRef="c2" decimals="-5" format="ixt:num-dot-decimal" name="kern:UnsatisfiedPerformanceObligations" scale="6" unitRef="usd">16.6</ix:nonFraction> <span>million&#160;as
of&#160;December 31, 2021, of which&#160;$</span><ix:nonFraction contextRef="c26" decimals="-5" format="ixt:num-dot-decimal" name="kern:Revenueexpectedtoberecognized" scale="6" unitRef="usd">11.1</ix:nonFraction> <span>million&#160;is expected</span> to be recognized
as revenue over the next&#160;twelve months.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_30" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_29"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Deferred Revenue&#160;</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_31" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_30"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Deferred revenue represents
the unearned portion of subscription and implementation fees. Deferred revenue is recorded when cash payments are received in advance
of performance. Deferred amounts are generally recognized within one year. Deferred revenue is included in the accompanying consolidated
balance sheets under Total current liabilities, net of any long-term portion that is included in Other long-term liabilities. The following
table summarizes deferred revenue activity for the&#160;year ended&#160;December 31, 2021 (in thousands):</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_32" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_31"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:DeferredRevenueByArrangementDisclosureTextBlock"><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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of <br/> January 1,<br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Net<br/> additions</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Revenue<br/> recognized</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of <br/> December&#160;31,<br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%; text-align: left">Deferred revenue</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c7" decimals="-3" format="ixt:num-dot-decimal" name="kern:DeferredRevenues" scale="3" unitRef="usd">844</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c26" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenueAdditions" scale="3" unitRef="usd">12,657</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c26" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenueRevenueRecognized1" scale="3" unitRef="usd">9,375</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="-3" format="ixt:num-dot-decimal" name="kern:DeferredRevenues" scale="3" unitRef="usd">4,126</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 27pt">&#160;</p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_33" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_32"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Of the&#160;$<ix:nonFraction contextRef="c26" decimals="-5" format="ixt:num-dot-decimal" name="kern:RevenueRecognized" scale="6" unitRef="usd">20.7</ix:nonFraction> million&#160;of
revenue recognized during the year ended&#160;December 31, 2021,&#160;$<ix:nonFraction contextRef="c7" decimals="-5" format="ixt:num-dot-decimal" name="kern:DeferredRevenueAmount" scale="6" unitRef="usd">0.7</ix:nonFraction> million&#160;was included in deferred revenue as of&#160;December
31, 2020.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_34" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_33"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Costs to Obtain Contracts</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_35" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_34"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In accordance with ASC 606,
we capitalize sales commissions that are directly related to obtaining customer contracts and that would not have been incurred if the
contract had not been obtained. These costs are included in the accompanying consolidated balance sheets and are classified as Prepaid
expenses and other current assets. Deferred contract costs are amortized to sales and marketing expense over the expected period of benefit,
which we have determined to be&#160;one year&#160;based on the estimated customer relationship period. The following table summarizes
deferred contract cost activity for the year ended&#160;December 31, 2021 (in thousand):</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c26_cont_36" id="_RevenueFromContractWithCustomerTextBlock-c26_cont_35"><ix:nonNumeric contextRef="c26" continuedAt="_ScheduleOfDeferredContractCostActivityTableTextBlock-c26_cont_1" escape="true" name="kern:ScheduleOfDeferredContractCostActivityTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of<br/> January 1,<br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amortized<br/> costs&#160;(1)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of<br/> December&#160;31,<br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%; text-align: left">Deferred contract costs</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c7" decimals="-3" format="ixt:num-dot-decimal" name="kern:ContractWithCustomerLiabilities" scale="3" unitRef="usd">228</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c26" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:AdditionsToContractHoldersFunds" scale="3" unitRef="usd">512</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c26" decimals="-3" format="ixt:num-dot-decimal" id="ix_4_fact" name="kern:AmortizedCosts" scale="3" sign="-" unitRef="usd">479</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="-3" format="ixt:num-dot-decimal" name="kern:ContractWithCustomerLiabilities" scale="3" unitRef="usd">261</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&#160;</p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation id="_RevenueFromContractWithCustomerTextBlock-c26_cont_36"><ix:continuation id="_ScheduleOfDeferredContractCostActivityTableTextBlock-c26_cont_1"><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: 0in"></td><td style="width: 0.25in; text-align: left">(1)</td><td style="text-align: justify"><ix:footnote id="ix_2_footnote" xml:lang="en-US">Includes contract costs amortized to sales and marketing expense
during the period.</ix:footnote></td>
</tr></table></ix:continuation></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>







</div><!-- Field: Page; Sequence: 140; Value: 1 --><div>
    </div><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 -->39<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; "><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; "><b>Notes to Consolidated
Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; "><b>December 31, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_AssetAcquisitionTextBlock-c26_cont_1" escape="true" name="us-gaap:AssetAcquisitionTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 4 - Acquisitions</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_2" id="_AssetAcquisitionTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>2021 Acquisitions</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 33.35pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_3" id="_AssetAcquisitionTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><i>Viridian Sciences&#160;</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_4" id="_AssetAcquisitionTextBlock-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 1, 2021, we completed
the acquisition of Viridian, a cannabis business management software provider that is built on SAP Business&#160;One. We acquired Viridian
in exchange for&#160;<ix:nonFraction contextRef="c118" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="6" unitRef="shares">1.0</ix:nonFraction>&#160;million shares of our common stock valued at approximately&#160;$<ix:nonFraction contextRef="c118" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:CommonStockValue" scale="6" unitRef="usd">6.0</ix:nonFraction>&#160;million. In addition to the stock
consideration, the agreement provides for contingent consideration of up to $<ix:nonFraction contextRef="c118" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationAsset" scale="6" unitRef="usd">1.0</ix:nonFraction>&#160;million, payable in additional common stock, if
Viridian meets certain revenue criteria. The contingent consideration will be recorded as the estimated fair value on the acquisition
date and adjusted to estimated fair value in each subsequent reporting period until settlement.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_5" id="_AssetAcquisitionTextBlock-c26_cont_4"><ix:nonNumeric contextRef="c26" continuedAt="_ScheduleOfSubsequentReportingPeriodUntilSettlementTableTextBlock-c26_cont_1" escape="true" name="kern:ScheduleOfSubsequentReportingPeriodUntilSettlementTableTextBlock"><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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Preliminary<br/> Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: justify">Shares issued</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c215" decimals="-3" format="ixt:num-dot-decimal" name="kern:SharesIssuedAmount" scale="3" unitRef="usd">6,186</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Contingent consideration</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c215" decimals="-3" format="ixt:num-dot-decimal" name="kern:ContingentConsiderations" scale="3" unitRef="usd">2</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt; padding-left: 8.25pt">Total preliminary fair value of consideration transferred</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c215" decimals="-3" format="ixt:num-dot-decimal" name="kern:TotalPreliminaryFairValueOfConsiderationTransferred" scale="3" unitRef="usd">6,188</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_6" id="_AssetAcquisitionTextBlock-c26_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table summarizes
the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_7" id="_AssetAcquisitionTextBlock-c26_cont_6"><ix:nonNumeric contextRef="c26" continuedAt="_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock-c26_cont_1" escape="true" name="us-gaap:ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock"><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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Preliminary<br/> Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: justify">Accounts receivable</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c215" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableGrossCurrent" scale="3" unitRef="usd">556</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Prepaid expenses and other current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c215" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsPrepaidExpenseAndOtherAssets" scale="3" unitRef="usd">148</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Capitalized software</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c215" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:CapitalizedComputerSoftwareNet" scale="3" unitRef="usd">423</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Acquired technology</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c215" decimals="-3" format="ixt:num-dot-decimal" name="kern:AcquiredTechnology" scale="3" unitRef="usd">470</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Customer relationships</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c215" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedCustomerRelationshipsGross" scale="3" unitRef="usd">820</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Acquired trade name</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c215" decimals="-3" format="ixt:num-dot-decimal" name="kern:AcquiredTradeNames" scale="3" unitRef="usd">20</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Goodwill</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c215" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:Goodwill" scale="3" unitRef="usd">5,408</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Accounts payable and accrued expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c215" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesAccountsPayable" scale="3" unitRef="usd">350</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Deferred tax liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c215" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:DeferredIncomeTaxLiabilities" scale="3" unitRef="usd">307</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0in; text-align: justify; padding-bottom: 1.5pt">Deferred revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c215" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenueCurrent" scale="3" unitRef="usd">1,000</ix:nonFraction></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="padding-left: 0.125in; text-align: justify; padding-bottom: 4pt">Net assets acquired</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c215" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets" scale="3" unitRef="usd">6,188</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_8" id="_AssetAcquisitionTextBlock-c26_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The excess of purchase consideration
over the fair value of assets acquired and liabilities assumed was recorded as goodwill, which is primarily attributed to the assembled
workforce and expanded market opportunities, for which there is no basis for U.S. income tax purposes. The fair values assigned to identifiable
assets acquired and liabilities assumed are based on management&#8217;s estimates and assumptions. We expect to finalize the valuation
as soon as practicable, but no later than&#160;one&#160;year from the acquisition date.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_9" id="_AssetAcquisitionTextBlock-c26_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The amounts of Viridian's
revenue and net income included in our consolidated statement of operations from the acquisition date of April 1, 2021, to December 31,
2021 were $<ix:nonFraction contextRef="c193" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="6" unitRef="usd">2.4</ix:nonFraction>&#160;million and $<ix:nonFraction contextRef="c193" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:NetInvestmentIncome" scale="6" unitRef="usd">0.3</ix:nonFraction>&#160;million, respectively. &#160;&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>







</div><!-- Field: Page; Sequence: 141; Value: 1 --><div>
    </div><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 -->40<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Notes to Consolidated Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>December 31, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_10" id="_AssetAcquisitionTextBlock-c26_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; "><i>365 Cannabis</i></p><p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0.25in; margin: 0pt 0; text-align: justify; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_11" id="_AssetAcquisitionTextBlock-c26_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><ix:nonNumeric contextRef="c194" name="kern:AggregateConsiderationDescription">On
October 1, 2021, we acquired all the issued and outstanding shares of 365 Cannabis. Under the terms of the Agreement, the aggregate consideration
for the 365 Cannabis shares consists of (1) $5,000,000 in cash, (2) $12,000,000 in stock, which was settled by issuing 3.6 million shares
of our common stock, and (3) contingent value rights to be issued pursuant to a rights indenture entitling the holders thereof to receive,
subject to certain adjustments as set forth in the Agreement, an aggregate of up to $8,000,000 in stock, in the event that NAV achieves
certain revenue targets as specified in the Agreement.</ix:nonNumeric> These rights are accounted for as contingent consideration and are currently recorded
at preliminary fair value which will be updated upon finalization of purchase accounting.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_12" id="_AssetAcquisitionTextBlock-c26_cont_11"><ix:continuation continuedAt="_ScheduleOfSubsequentReportingPeriodUntilSettlementTableTextBlock-c26_cont_2" id="_ScheduleOfSubsequentReportingPeriodUntilSettlementTableTextBlock-c26_cont_1"><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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Preliminary<br/> Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: justify">Shares issued</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="kern:SharesIssuedAmount" scale="3" unitRef="usd">12,000</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Cash</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:Cash" scale="3" unitRef="usd">5,542</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Contingent consideration</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="kern:ContingentConsiderations" scale="3" unitRef="usd">6,300</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt; padding-left: 8.25pt">Total preliminary fair value of consideration transferred</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="kern:TotalPreliminaryFairValueOfConsiderationTransferred" scale="3" unitRef="usd">23,842</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_13" id="_AssetAcquisitionTextBlock-c26_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span>The
following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_14" id="_AssetAcquisitionTextBlock-c26_cont_13"><ix:continuation continuedAt="_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock-c26_cont_2" id="_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock-c26_cont_1"><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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Preliminary<br/> Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%">Cash</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents" scale="3" unitRef="usd">527</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Accounts receivable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableGrossCurrent" scale="3" unitRef="usd">486</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Prepaid expenses and other current asset</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsPrepaidExpenseAndOtherAssets" scale="3" unitRef="usd">261</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Fixed Assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:NoncurrentAssets" scale="3" unitRef="usd">93</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Non-compete agreement</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="kern:NoncompeteAgreement" scale="3" unitRef="usd">80</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Acquired technology</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="kern:AcquiredTechnology" scale="3" unitRef="usd">1,040</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Customer relationships</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedCustomerRelationshipsGross" scale="3" unitRef="usd">13,810</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Acquired trade name</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="kern:AcquiredTradeNames" scale="3" unitRef="usd">270</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Goodwill</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:Goodwill" scale="3" unitRef="usd">14,043</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Accounts payable and accrued expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesAccountsPayable" scale="3" unitRef="usd">826</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Deferred tax liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:DeferredIncomeTaxLiabilities" scale="3" unitRef="usd">2,642</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; padding-bottom: 1.5pt">Deferred revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenueCurrent" scale="3" unitRef="usd">3,300</ix:nonFraction></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: justify; padding-bottom: 4pt">Net assets acquired</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c216" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets" scale="3" unitRef="usd">23,842</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_15" id="_AssetAcquisitionTextBlock-c26_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">The
excess of purchase consideration over the fair value of assets acquired and liabilities assumed was recorded as goodwill, which is primarily
attributed to the assembled workforce and expanded market opportunities, for which there is no basis for U.S. income tax purposes. The
fair values assigned to identifiable assets acquired and liabilities assumed are based on management&#8217;s estimates and assumptions.
We expect to finalize the valuation as soon as practicable, but no later than&#160;one&#160;year from the acquisition date.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_16" id="_AssetAcquisitionTextBlock-c26_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">The
amounts of 365 Cannabis'&#160;revenue and net loss included in our consolidated statement of operations from the acquisition date of October
1, 2021, to December 31, 2021 were $<ix:nonFraction contextRef="c195" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="6" unitRef="usd">2.4</ix:nonFraction>&#160;million and $<ix:nonFraction contextRef="c195" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:NetInvestmentIncome" scale="6" unitRef="usd">0.4</ix:nonFraction> million, respectively. &#160;&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>







</div><!-- Field: Page; Sequence: 142; Value: 1 --><div>
    </div><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 -->41<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_17" id="_AssetAcquisitionTextBlock-c26_cont_16"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>2020
Acquisitions</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 42.65pt; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_18" id="_AssetAcquisitionTextBlock-c26_cont_17"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Trellis
Solutions, Inc.&#160;</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_19" id="_AssetAcquisitionTextBlock-c26_cont_18"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 8, 2020, we acquired Trellis, a&#160;cannabis cultivation management and compliance software company in an all-stock transaction.&#160;Our
estimated acquisition date fair value of the consideration transferred for Trellis was as follows (in thousands):&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_20" id="_AssetAcquisitionTextBlock-c26_cont_19"><ix:continuation continuedAt="_ScheduleOfSubsequentReportingPeriodUntilSettlementTableTextBlock-c26_cont_3" id="_ScheduleOfSubsequentReportingPeriodUntilSettlementTableTextBlock-c26_cont_2"><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%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common shares issued</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c217" decimals="-3" format="ixt:num-dot-decimal" name="kern:CommonSharesIssuedValue1" scale="3" unitRef="usd">2,531</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Contingent consideration</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c217" decimals="-3" format="ixt:num-dot-decimal" name="kern:ContingentConsiderations" scale="3" unitRef="usd">998</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total estimated fair value
    of consideration</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c218" decimals="-3" format="ixt:num-dot-decimal" name="kern:BusinessCombinationConsiderationsTransferred" scale="3" unitRef="usd">3,529</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_21" id="_AssetAcquisitionTextBlock-c26_cont_20"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
incurred $<ix:nonFraction contextRef="c196" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:BusinessAcquisitionCostOfAcquiredEntityTransactionCosts" scale="6" unitRef="usd">0.1</ix:nonFraction> million&#160;of transaction costs directly related to the acquisition that is reflected in general and administrative expenses
in our consolidated statement of operations during the year ended June 30, 2020.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_22" id="_AssetAcquisitionTextBlock-c26_cont_21"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonNumeric contextRef="c197" name="kern:CommonStockTransactionDescription">We
issued&#160;349,650&#160;shares of our common stock valued at <span>$7.24</span>&#160;per share, the
closing price of a share of our common stock on the date of acquisition in exchange for 100% of the outstanding stock of Trellis.&#160;We
have also agreed to pay additional consideration calculated as annualized revenue derived from previously identified customers for the
month of September 2020 multiplied by five.</ix:nonNumeric> The contingent consideration is payable in shares based on the 20-day volume-weighted average
price, or VWAP. At June 30, 2020, we estimated the fair value of the contingent consideration to be $<ix:nonFraction contextRef="c198" decimals="0" format="ixt:num-dot-decimal" name="kern:ContingentConsideration" scale="0" unitRef="usd">0</ix:nonFraction> and recorded a gain of $<ix:nonFraction contextRef="c198" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:GainLossOnForeignCurrencyDerivativesRecordedInEarningsNet" scale="6" unitRef="usd">1.0</ix:nonFraction> million
on the change in the fair value of contingent consideration included in general and administrative expenses in the consolidated statement
of operations during the year ended June 30, 2020.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_23" id="_AssetAcquisitionTextBlock-c26_cont_22"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table summarizes our estimated fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_24" id="_AssetAcquisitionTextBlock-c26_cont_23"><ix:continuation continuedAt="_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock-c26_cont_3" id="_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock-c26_cont_2"><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: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c217" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents" scale="3" unitRef="usd">21</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounts receivable, net</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c217" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableGrossCurrent" scale="3" unitRef="usd">91</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other assets</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c217" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:OtherAssetsNoncurrent" scale="3" unitRef="usd">6</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Acquired technology</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c217" decimals="-3" format="ixt:num-dot-decimal" name="kern:AcquiredTechnology" scale="3" unitRef="usd">210</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Acquired trade name</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c217" decimals="-3" format="ixt:num-dot-decimal" name="kern:AcquiredTradeNames" scale="3" unitRef="usd">80</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Customer relationships</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c217" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedCustomerRelationshipsGross" scale="3" unitRef="usd">220</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Goodwill</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c217" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:Goodwill" scale="3" unitRef="usd">3,216</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounts payable and accrued
    expenses</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c217" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesAccountsPayable" scale="3" unitRef="usd">284</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deferred
    revenue</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c217" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenueCurrent" scale="3" unitRef="usd">31</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: justify; padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
    assets acquired</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c217" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets" scale="3" unitRef="usd">3,529</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_25" id="_AssetAcquisitionTextBlock-c26_cont_24"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
excess of purchase consideration over the fair value of net tangible and intangible assets acquired was recorded as goodwill, which is
primarily attributed to the assembled workforce and expanded market opportunities, for which there is no basis for U.S. income tax purposes.
During the six months ended December 31, 2020, we recorded net adjustments&#160;to assets and liabilities acquired of $<ix:nonFraction contextRef="c199" decimals="-2" format="ixt:num-dot-decimal" name="us-gaap:ClosedBlockAssetsAndLiabilitiesMaximumFutureEarningsToBeRecognizedOtherAdjustments" scale="3" unitRef="usd">14.3</ix:nonFraction> thousand.&#160;The
amounts of Trellis&#8217;s revenue and net loss included in our consolidated statement of operations from the acquisition date of April
10, 2020 to June 30, 2020 were $<ix:nonFraction contextRef="c200" decimals="-2" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="3" unitRef="usd">216.0</ix:nonFraction> thousand&#160;and $<ix:nonFraction contextRef="c200" decimals="-2" format="ixt:num-dot-decimal" name="us-gaap:NetInvestmentIncome" scale="3" unitRef="usd">17.0</ix:nonFraction>&#160;thousand,&#160;respectively.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_26" id="_AssetAcquisitionTextBlock-c26_cont_25"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>solo
sciences, inc.</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_27" id="_AssetAcquisitionTextBlock-c26_cont_26"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 15, 2020, we closed on a stock purchase agreement with substantially all of the shareholders of Solo pursuant to which we acquired
all right, title, and interest in <ix:nonFraction contextRef="c201" decimals="3" format="ixt:num-dot-decimal" name="kern:IssuedAndOutstandingCapitalStock" scale="-2" unitRef="pure">80.4</ix:nonFraction>% of the issued and outstanding capital stock of Solo, calculated on a fully diluted basis.&#160;A<b>s
</b>a result of our initial investment, Solo became a controlled subsidiary and we commenced consolidation of Solo on January 15, 2020.
The estimated acquisition date fair value of the consideration transferred for Solo was $<ix:nonFraction contextRef="c201" decimals="-5" format="ixt:num-dot-decimal" name="kern:ConsiderationTransferred" scale="6" unitRef="usd">17.9</ix:nonFraction> million.&#160;During the year ended June
30, 2020, we completed the preliminary valuation of the contingent consideration and recorded a measurement period adjustment to reflect
this liability on our balance sheet. The estimated fair value of consideration recorded consisted of the following (in thousands):</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p></ix:continuation><div>

</div><div>

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

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_28" id="_AssetAcquisitionTextBlock-c26_cont_27"><ix:continuation continuedAt="_ScheduleOfSubsequentReportingPeriodUntilSettlementTableTextBlock-c26_cont_4" id="_ScheduleOfSubsequentReportingPeriodUntilSettlementTableTextBlock-c26_cont_3"><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%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common shares issued</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c219" decimals="-3" format="ixt:num-dot-decimal" name="kern:CommonSharesIssuedValue1" scale="3" unitRef="usd">17,550</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Contingent consideration</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c219" decimals="-3" format="ixt:num-dot-decimal" name="kern:ContingentConsiderations" scale="3" unitRef="usd">389</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
    estimated fair value of consideration</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c220" decimals="-3" format="ixt:num-dot-decimal" name="kern:BusinessCombinationConsiderationsTransferred" scale="3" unitRef="usd">17,939</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation></ix:continuation><div>
</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"></p><div>

</div><!-- Field: Page; Sequence: 143; Value: 1 --><div>
    </div><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 -->42<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>








</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_29" id="_AssetAcquisitionTextBlock-c26_cont_28"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
incurred $<ix:nonFraction contextRef="c202" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:BusinessAcquisitionCostOfAcquiredEntityTransactionCosts" scale="6" unitRef="usd">0.3</ix:nonFraction> million of transaction costs directly related to the acquisition, which is reflected in general and administrative expenses
in our consolidated statement of operations during the year ended June 30, 2020.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_30" id="_AssetAcquisitionTextBlock-c26_cont_29"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonNumeric contextRef="c203" name="kern:CommonStockTransactionDescription">We
exchanged&#160;1,950,000 shares of our common stock, valued at $9.00 per share, the closing price of a share of our common stock on the
date of acquisition.&#160;In addition to the stock consideration, we agreed to pay contingent consideration in the form of fees payable
to the legacy Solo shareholders equal to the lesser of (i) $0.01 per solo*TAG&#8482; and solo*CODE&#8482; sold or (ii) 7% of net revenue.
The fees were to be paid annually until the earlier of: (1) our shares trading above $12 per share for any consecutive 20 trading days
in a 30-day period; (b) upon our no longer owning a majority stake in Solo; or (c) upon expiration of the patents related to solo*TAG&#8482;
and solo*CODE&#8482;, which is December 1, 2029.</ix:nonNumeric> This fee represents contingent consideration and was recorded at fair value as of the
date of acquisition. Contingent consideration is adjusted to fair value each period with changes in fair value being recognized in earnings
at each reporting period.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_31" id="_AssetAcquisitionTextBlock-c26_cont_30"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
also acquired an option to acquire the noncontrolling interests in Solo during the 12 months following the close for either cash or shares.
Beginning with the expiration of our option, the noncontrolling interests in Solo have a 3-month option to acquire between <ix:nonFraction contextRef="c204" decimals="2" format="ixt:num-dot-decimal" name="kern:OptionToAcquirePercentage" scale="-2" unitRef="pure">40</ix:nonFraction>% and <ix:nonFraction contextRef="c205" decimals="2" format="ixt:num-dot-decimal" name="kern:OptionToAcquirePercentage" scale="-2" unitRef="pure">55</ix:nonFraction>%
of Solo back from us for cash. On July 31, 2020, we entered into an amendment to the stock purchase agreement to exercise our option
to acquire the noncontrolling&#160;interests in Solo, for <ix:nonFraction contextRef="c203" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesOther" scale="0" unitRef="shares">800,000</ix:nonFraction> shares of our common stock, this transaction will be recorded as an
equity transaction, with no effect to the value of the assets acquired or liabilities assumed. In connection with the amendment, the
selling shareholders agreed to cancel the contingent consideration in the future and waived a right to any amount that would have been
earned prior to the amendment. We recorded a gain on settlement of the contingent consideration liability during the six months ended
December 31, 2020 in general and administrative expenses in our consolidated statement of operations.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_32" id="_AssetAcquisitionTextBlock-c26_cont_31"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the year ended June 30,&#160;2020, we obtained additional information regarding the valuation of the assets acquired and liabilities
assumed. We have recorded a measurement period adjustment to allocate the acquisition price to intangible assets, goodwill, accrued liabilities,
and the fair value of noncontrolling&#160;interests. The following table summarizes the estimated fair values of assets acquired and
liabilities assumed as of the date of acquisition (in thousands):</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_33" id="_AssetAcquisitionTextBlock-c26_cont_32"><ix:continuation continuedAt="_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock-c26_cont_4" id="_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock-c26_cont_3"><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: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c219" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents" scale="3" unitRef="usd">101</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prepaid expenses and other
    assets</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c219" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsPrepaidExpenseAndOtherAssets" scale="3" unitRef="usd">22</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furniture, fixtures, and
    equipment</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c219" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="3" unitRef="usd">2</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Acquired technology</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c219" decimals="-3" format="ixt:num-dot-decimal" name="kern:AcquiredTechnology" scale="3" unitRef="usd">7,160</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Acquired trade name</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c219" decimals="-3" format="ixt:num-dot-decimal" name="kern:AcquiredTradeNames" scale="3" unitRef="usd">340</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Goodwill</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c219" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:Goodwill" scale="3" unitRef="usd">17,025</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounts payable and accrued
    liabilities</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c219" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesAccountsPayable" scale="3" unitRef="usd">1,158</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fair
    value of noncontrolling interests</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c219" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationAcquisitionOfLessThan100PercentNoncontrollingInterestFairValue" scale="3" unitRef="usd">5,553</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: justify; padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
    assets acquired</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c219" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets" scale="3" unitRef="usd">17,939</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_34" id="_AssetAcquisitionTextBlock-c26_cont_33"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
excess of purchase consideration over the fair value of net tangible and intangible assets acquired was recorded as goodwill, which is
primarily attributed to expanded market opportunities, for which there is no basis for U.S. income tax purposes.&#160;The amounts of
Solo&#8217;s revenue and net loss included in our consolidated statement of operations from the acquisition date of January 15, 2020
to June 30, 2020 were $<ix:nonFraction contextRef="c206" decimals="-2" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="3" unitRef="usd">23.0</ix:nonFraction> thousand&#160;and $<ix:nonFraction contextRef="c206" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:NetInvestmentIncome" scale="6" unitRef="usd">1.5</ix:nonFraction> million, respectively.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_35" id="_AssetAcquisitionTextBlock-c26_cont_34"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the six months ended December 31, 2020, the Company recorded an impairment of $<ix:nonFraction contextRef="c207" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:GoodwillImpairedAccumulatedImpairmentLoss" scale="6" unitRef="usd">2.7</ix:nonFraction> million related to Solo&#8217;s developed technology.
See Note 6 &#8211; Goodwill and Intangible&#160;Assets, Net for further discussion of the intangible asset impairment.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"></p><div>

</div><!-- Field: Page; Sequence: 144; Value: 1 --><div>
    </div><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 -->43<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_36" id="_AssetAcquisitionTextBlock-c26_cont_35"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Ample
Organics</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_37" id="_AssetAcquisitionTextBlock-c26_cont_36"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 7, 2020, we completed the acquisition of Ample Organics (&#8220;Ample&#8221;), Ample provides a&#160;seed-to-sale platform to clients
in Canada,&#160;which offers tracking, reporting, and compliance tools to cannabis cultivators, processors, sellers, and clinics. <ix:nonNumeric contextRef="c208" name="kern:ContingentConsiderationDescription">We
acquired 100% of the stock of Ample Organics for 3.3 million exchangeable shares of one of our wholly-owned subsidiaries. The exchangeable
shares may be exchanged, at the option of the holder, for shares of Akerna common stock on a one-for-one basis, therefore the exchangeable
shares issued were valued at $7.65 per share, the closing price of an equivalent share of Akerna common stock, $30.7 million was the
aggregate value of the exchangeable shares. In addition to the stock consideration, we paid $5.5 million in cash, which was used to settle
all of Ample's then outstanding debt. In addition to the stock and cash consideration, the agreement provides for contingent consideration
of up to CAD$10,000,000, payable in exchangeable shares, payable if Ample's Recurring Revenue recognized during the 12 months after the
acquisition date is CAD$9,000,000 or more. The contingent consideration amount is reduced by an amount equal to the product of CAD$6.67
multiplied by the difference between CAD$9,000,000 and the amount of Recurring Revenue realized during the 12 months following the acquisition.</ix:nonNumeric>&#160;The
contingent consideration will be recorded as the estimated fair value on the acquisition date and adjusted to estimated fair value in
each subsequent reporting period until settlement.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_38" id="_AssetAcquisitionTextBlock-c26_cont_37"><ix:continuation id="_ScheduleOfSubsequentReportingPeriodUntilSettlementTableTextBlock-c26_cont_4"><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: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Preliminary<br/>
    Fair Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: justify; padding-left: 0.1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exchangeable&#160;shares
    issued</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c221" decimals="-3" format="ixt:num-dot-decimal" name="kern:ExchangeableSharesValue" scale="3" unitRef="usd">25,203</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c221" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:Cash" scale="3" unitRef="usd">5,724</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Contingent
    consideration</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c221" decimals="-3" format="ixt:num-dot-decimal" name="kern:ContingentConsiderations" scale="3" unitRef="usd">604</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
    estimated fair value of consideration transferred</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c221" decimals="-3" format="ixt:num-dot-decimal" name="kern:TotalEstimatedFairValueOfConsiderationTransferred" scale="3" unitRef="usd">31,531</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_39" id="_AssetAcquisitionTextBlock-c26_cont_38"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
incurred $<ix:nonFraction contextRef="c209" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:BusinessAcquisitionCostOfAcquiredEntityTransactionCosts" scale="6" unitRef="usd">2.9</ix:nonFraction> million of total transaction costs directly related to the acquisition of Ample that is reflected in general and administrative
expenses in our consolidated statements of operations, of which $<ix:nonFraction contextRef="c210" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="6" unitRef="usd">1.1</ix:nonFraction> million and $<ix:nonFraction contextRef="c211" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="6" unitRef="usd">1.8</ix:nonFraction> million was recognized during the six months ended
December 31, 2020&#160;and the year ended June 30, 2020, respectively.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_40" id="_AssetAcquisitionTextBlock-c26_cont_39"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_41" id="_AssetAcquisitionTextBlock-c26_cont_40"><ix:continuation id="_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock-c26_cont_4"><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: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Preliminary<br/>
    Fair Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c221" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents" scale="3" unitRef="usd">445</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounts receivable</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c221" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableGrossCurrent" scale="3" unitRef="usd">917</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prepaid expenses and other
    current assets</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c221" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsPrepaidExpenseAndOtherAssets" scale="3" unitRef="usd">595</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Acquired technology</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c221" decimals="-3" format="ixt:num-dot-decimal" name="kern:AcquiredTechnology" scale="3" unitRef="usd">850</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Customer relationships</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c221" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedCustomerRelationshipsGross" scale="3" unitRef="usd">2,660</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Acquired trade name</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c221" decimals="-3" format="ixt:num-dot-decimal" name="kern:AcquiredTradeNames" scale="3" unitRef="usd">285</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Goodwill</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c221" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:Goodwill" scale="3" unitRef="usd">25,806</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furniture, fixtures and
    equipment</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c221" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="3" unitRef="usd">1,327</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounts payable and accrued
    expenses</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c221" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesAccountsPayable" scale="3" unitRef="usd">805</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deferred
    revenue</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c221" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:DeferredRevenueCurrent" scale="3" unitRef="usd">549</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: justify; padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
    assets acquired</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c221" decimals="-3" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets" scale="3" unitRef="usd">31,531</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_42" id="_AssetAcquisitionTextBlock-c26_cont_41"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
excess of purchase consideration over the preliminary fair value of assets acquired and liabilities assumed was recorded as goodwill,
which is primarily attributed to the assembled workforce and expanded market opportunities, for which there is no basis for U.S. income
tax purposes. &#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><!-- Field: Page; Sequence: 145; Value: 1 --><div>
    </div><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 -->44<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_43" id="_AssetAcquisitionTextBlock-c26_cont_42"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the six months ended December 31, 2020, the Company recorded an impairment to goodwill for $<ix:nonFraction contextRef="c212" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:GoodwillImpairedAccumulatedImpairmentLoss" scale="6" unitRef="usd">4.2</ix:nonFraction> million related to Ample. See Note 6
&#8211; Goodwill and Intangible&#160;Assets, Net for further discussion of the goodwill impairment.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_44" id="_AssetAcquisitionTextBlock-c26_cont_43"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
amounts of Ample&#8217;s revenue and net income included in our consolidated statement of operations from the acquisition date of&#160;July
7, 2020,&#160;to&#160;December 31, 2020 were&#160;$<ix:nonFraction contextRef="c210" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="6" unitRef="usd">2.6</ix:nonFraction>&#160;million and $<ix:nonFraction contextRef="c210" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:NetInvestmentIncome" scale="6" unitRef="usd">0.1</ix:nonFraction>&#160;million, respectively.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_45" id="_AssetAcquisitionTextBlock-c26_cont_44"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Pro
Forma Financial Information</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_46" id="_AssetAcquisitionTextBlock-c26_cont_45"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following unaudited pro forma consolidated operating results give effect to the Viridian and 365 Cannabis acquisitions as if they had
been completed as of January 1, 2020&#160;(in thousands):</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_47" id="_AssetAcquisitionTextBlock-c26_cont_46"><ix:nonNumeric contextRef="c26" continuedAt="_BusinessAcquisitionProFormaInformationTextBlock-c26_cont_1" escape="true" name="us-gaap:BusinessAcquisitionProFormaInformationTextBlock"><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"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Year
                                            Ended</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
                                            31,</b></span></p></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c26" decimals="-3" format="ixt:num-dot-decimal" name="kern:Revenue1" scale="3" unitRef="usd">28,847</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net loss</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="-3" format="ixt:num-dot-decimal" name="kern:NetLossesAmount" scale="3" unitRef="usd">31,423</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_48" id="_AssetAcquisitionTextBlock-c26_cont_47"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; ">The
following unaudited pro forma consolidated operating results give effect to the Viridian and 365 Cannabis acquisitions, as if they had
been completed as of January 1, 2020, and the Trellis, Solo and Ample acquisitions, as if they had been completed as of July 1, 2019
(in thousands):</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_49" id="_AssetAcquisitionTextBlock-c26_cont_48"><ix:continuation id="_BusinessAcquisitionProFormaInformationTextBlock-c26_cont_1"><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"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Six
    Months<br/>
    Ended<br/>
    December 31,</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Year
                                            Ended</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>June
                                            30,</b></span></p></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c27" decimals="-3" format="ixt:num-dot-decimal" name="kern:Revenue1" scale="3" unitRef="usd">14,026</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c28" decimals="-3" format="ixt:num-dot-decimal" name="kern:Revenue1" scale="3" unitRef="usd">27,523</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net loss</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c27" decimals="-3" format="ixt:num-dot-decimal" name="kern:NetLossesAmount" scale="3" unitRef="usd">17,650</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c28" decimals="-3" format="ixt:num-dot-decimal" name="kern:NetLossesAmount" scale="3" unitRef="usd">20,250</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_50" id="_AssetAcquisitionTextBlock-c26_cont_49"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
pro forma financial information for all periods presented above has been calculated after adjusting the results of Solo, Trellis, Ample,
Viridian, and 365 Cannabis to reflect the business combination accounting effects resulting from this acquisition, including the amortization
expense from acquired intangible assets as though the acquisition occurred as of the beginning of the periods indicated above. The pro
forma financial information is for informational purposes only and is not indicative of the results of operations that would have been
achieved if the acquisition had taken place at the beginning of the years indicated above.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_51" id="_AssetAcquisitionTextBlock-c26_cont_50"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Special
Voting Preferred Stock and Exchangeable&#160;Shares</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 42.65pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_52" id="_AssetAcquisitionTextBlock-c26_cont_51"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with the Ample acquisition, we entered into agreements with our wholly-owned subsidiary and the Ample shareholder representative
that resulted in the issuance of a single share of our special voting preferred stock, for the purpose of ensuring that each Exchangeable
Share is substantially the economic and voting equivalent of a share of Akerna&#160;common stock, and, following the registration of
the Akerna&#160;shares issuable upon exchange of the Exchangeable Shares under the Securities Act of 1933, ensuring that each Exchangeable
Share is exchangeable on a&#160;one-for-one&#160;basis for a share of Akerna&#160;common stock, subject to certain limitations. As a
result of these agreements and the issuance of the special voting preferred stock, each holder of Exchangeable Shares effectively has
the ability to cast votes along with holders of Akerna&#160;common stock. Additionally, these agreements grant exchange rights to the
holders of exchangeable shares upon the event of our liquidation, dissolution or winding up.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 42.65pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_AssetAcquisitionTextBlock-c26_cont_53" id="_AssetAcquisitionTextBlock-c26_cont_52"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The&#160;special
voting preferred stock has a par value of $<ix:nonFraction contextRef="c212" decimals="4" format="ixt:num-dot-decimal" name="kern:SpecialVotingPreferredStockPerShare" scale="0" unitRef="usdPershares">0.0001</ix:nonFraction>&#160;per share and a preference in liquidation of $<ix:nonFraction contextRef="c212" decimals="2" format="ixt:num-dot-decimal" name="kern:PreferenceInLiquidationCostPerShare" scale="0" unitRef="usdPershares">1.00</ix:nonFraction>.&#160;The special voting preferred
stock entitles the holder to an aggregate number of votes equal to the number of the exchangeable shares issued and outstanding from
time to time and which we do not own. The holder of the special voting preferred stock and the holders of shares of&#160;Akerna&#160;common
stock will both&#160;together as a single class on all matters submitted to a vote of our shareholders. At such time as the special voting
preferred stock has not votes attached to it, the share shall be automatically cancelled. The exchangeable shares do not have a par value.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 42.65pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_AssetAcquisitionTextBlock-c26_cont_53"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonNumeric contextRef="c213" name="kern:CommonStockTransactionDescription">On
September 1, 2020, several Ample shareholders exchanged a total of 627,225&#160;exchangeable shares with a value of $4,798,271&#160;for
the same number of shares of&#160;Akerna&#160;common stock.</ix:nonNumeric>The exchange was accounted for as an equity transaction and we did not recognize
a gain or loss on this transaction. As of December 31, 2021, there were a total of&#160;<ix:nonFraction contextRef="c214" decimals="0" format="ixt:num-dot-decimal" name="kern:ExchangeableShareIssuedAndOutstanding" scale="0" unitRef="shares">309,286</ix:nonFraction>&#160;Exchangeable Shares issued and outstanding.</span></p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 146; Value: 1 --><div>
    </div><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 -->45<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_SupplementalBalanceSheetDisclosuresTextBlock-c26_cont_1" escape="true" name="us-gaap:SupplementalBalanceSheetDisclosuresTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note
5 - Balance Sheet Disclosures</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_SupplementalBalanceSheetDisclosuresTextBlock-c26_cont_2" id="_SupplementalBalanceSheetDisclosuresTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prepaid
expenses and other current assets consisted of the following:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SupplementalBalanceSheetDisclosuresTextBlock-c26_cont_3" id="_SupplementalBalanceSheetDisclosuresTextBlock-c26_cont_2"><ix:nonNumeric contextRef="c26" escape="true" name="kern:ScheduleOfPrepaidExpensesTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
    of December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left; padding-left: 0.75pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Software
    and technology</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:PrepaidExpensesSoftwareAndTechnology" scale="0" unitRef="usd">687,740</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="kern:PrepaidExpensesSoftwareAndTechnology" scale="0" unitRef="usd">480,651</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0.75pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Professional
    services, dues and subscriptions</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:PrepaidProfessionalFees" scale="0" unitRef="usd">546,126</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="kern:PrepaidProfessionalFees" scale="0" unitRef="usd">826,195</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.75pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Insurance</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidInsurance" scale="0" unitRef="usd">264,097</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidInsurance" scale="0" unitRef="usd">243,222</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0.75pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deferred
    contract costs</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherPrepaidExpenseCurrent" scale="0" unitRef="usd">260,899</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherPrepaidExpenseCurrent" scale="0" unitRef="usd">227,718</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 0.75pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unbilled
    receivable</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:UnbilledReceivablesCurrent" scale="0" unitRef="usd">506,984</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:UnbilledReceivablesCurrent" scale="0" unitRef="usd">612,446</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; padding-left: 0.75pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">117,918</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">68,495</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt; padding-left: 0.75pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
    prepaid expenses and other current assets</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidExpenseCurrent" scale="0" unitRef="usd">2,383,764</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidExpenseCurrent" scale="0" unitRef="usd">2,458,727</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SupplementalBalanceSheetDisclosuresTextBlock-c26_cont_4" id="_SupplementalBalanceSheetDisclosuresTextBlock-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounts
payable, accrued expenses and other current liabilities consisted of the following:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_SupplementalBalanceSheetDisclosuresTextBlock-c26_cont_4"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:ScheduleOfAccruedLiabilitiesTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
    of December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left; padding-left: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounts
    payable</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableCurrent" scale="0" unitRef="usd">1,943,457</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableCurrent" scale="0" unitRef="usd">513,610</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -0.05in; padding-left: 0.05in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Professional
    fees</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedProfessionalFeesCurrent" scale="0" unitRef="usd">319,590</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedProfessionalFeesCurrent" scale="0" unitRef="usd">233,667</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -0.05in; padding-left: 0.05in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sales
    taxes</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SalesAndExciseTaxPayableCurrent" scale="0" unitRef="usd">360,361</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SalesAndExciseTaxPayableCurrent" scale="0" unitRef="usd">216,367</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.05in; padding-left: 0.05in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Compensation</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedEmployeeBenefitsCurrent" scale="0" unitRef="usd">1,123,467</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedEmployeeBenefitsCurrent" scale="0" unitRef="usd">311,379</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.05in; padding-left: 0.05in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Contractors</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:AccruedContractors" scale="0" unitRef="usd">1,288,730</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="kern:AccruedContractors" scale="0" unitRef="usd">538,618</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlements
    and legal</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SettlementLiabilitiesCurrent" scale="0" unitRef="usd">681,045</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SettlementLiabilitiesCurrent" scale="0" unitRef="usd">831,232</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; text-indent: -0.05in; padding-left: 0.05in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAccruedLiabilitiesCurrent" scale="0" unitRef="usd">346,870</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAccruedLiabilitiesCurrent" scale="0" unitRef="usd">543,703</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
    accounts payable, accrued expenses and other current liabilities</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedLiabilitiesCurrent" scale="0" unitRef="usd">6,063,520</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedLiabilitiesCurrent" scale="0" unitRef="usd">3,188,576</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table></ix:nonNumeric></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

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

</div><!-- Field: Page; Sequence: 147; Value: 1 --><div>
    </div><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 -->46<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_1" escape="true" name="us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note
6 - Goodwill and Intangible Assets, Net</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_2" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Goodwill</i></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_3" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table reflects the changes in the carrying amount of goodwill:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_4" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_3"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:ScheduleOfGoodwillTextBlock"><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%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Balance as of June 30, 2020</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c89" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Goodwill" scale="0" unitRef="usd">20,254,309</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adjustments to Trellis' goodwill</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GoodwillOtherIncreaseDecrease" scale="0" sign="-" unitRef="usd">14,300</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additions due to acquisition
    of Ample</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c225" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GoodwillAcquiredDuringPeriod" scale="0" unitRef="usd">25,806,518</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Goodwill
    impairment</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:GoodwillimpairmentrelatedtoAmple" scale="0" sign="-" unitRef="usd">4,172,000</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Balance as of December
    31, 2020</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Goodwill" scale="0" unitRef="usd">41,874,527</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additions due to acquisition
    of Viridian</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c226" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GoodwillAcquiredDuringPeriod" scale="0" unitRef="usd">5,408,884</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additions due to acquisition
    of 365 Cannabis</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c124" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GoodwillAcquiredDuringPeriod" scale="0" unitRef="usd">14,042,580</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Goodwill
    impairment</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:GoodwillimpairmentrelatedtoAmple" scale="0" sign="-" unitRef="usd">14,383,310</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Balance as of December
    31, 2021</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Goodwill" scale="0" unitRef="usd">46,942,681</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_5" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Impairment</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_6" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
on our qualitative assessment of goodwill, we determined it was necessary to perform a quantitative valuation of goodwill as of December
31, 2021. We determined there were two reporting units: the enterprise&#160;reporting unit which is comprised of the enterprise software
offerings and the non-enterprise&#160;reporting unit which is comprised of&#160;the non-enterprise software offerings. The valuation
of our goodwill was determined with the assistance of an independent valuation firm using the income approach (discounted cash flows
method) and the market approach (guideline public company method). Our significant assumptions in these analyses include, but are not
limited to, future cash flow projections, the weighted average cost of capital, the discount rate, the implied control premium, the terminal
growth rate, and the tax rate. The Company&#8217;s estimates of future cash flows are based on current regulatory and economic climates,
recent operating results, and planned business strategies. These estimates could be negatively affected by changes in federal, state,
or local regulations or economic downturns. Future cash flow estimates are, by their nature, subjective and actual results may differ
materially from the Company&#8217;s estimates. If the Company&#8217;s ongoing estimates of future cash flows are not met, the Company
may have to record additional impairment charges in future periods. The Company also uses the Guideline Public Company Method, a form
of the market approach (utilizing Level 3 unobservable inputs), which is derived from metrics of publicly traded companies or historically
completed transactions of comparable businesses. The selection of comparable businesses is based on the markets in which the reporting
units operate giving consideration to risk profiles, size, geography, and diversity of products and services. As such, we believe the
current assumptions and estimates utilized are both reasonable and appropriate. During the six months ended December 31, 2020, primarily
as a result of delays in executing on strategic initiatives related to acquisitions completed in 2020, we recorded a $<ix:nonFraction contextRef="c222" decimals="-5" format="ixt:num-dot-decimal" name="kern:ImpairmentAdjustment" scale="6" unitRef="usd">4.2</ix:nonFraction>&#160;million
impairment to goodwill.</span></p></ix:continuation><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_7" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; "><i>Enterprise
Reporting Unit</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; "><i>&#160;</i></span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_8" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the year ended December 31, 2021, no<span>&#160;impairment to goodwill was recorded for our enterprise
reporting unit as the fair value exceeded the carrying value as of December 31, 2021. To perform our analysis, we applied a&#160;<ix:nonFraction contextRef="c223" decimals="2" format="ixt:num-dot-decimal" name="kern:WeightingToTheMarketApproach" scale="-2" unitRef="pure">50</ix:nonFraction>%
weighting to the market approach and&#160;<ix:nonFraction contextRef="c223" decimals="2" format="ixt:num-dot-decimal" name="kern:WeightedToTheIncomeApproach" scale="-2" unitRef="pure">50</ix:nonFraction>% weighted to the income approach.&#160;</span></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_9" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Non-Enterprise
Reporting Unit&#160;&#160;</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_10" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the year ended December 31, 2021, primarily&#160;due to a continued decline in market valuation and a flattening in the operating results
of our non-enterprise reporting unit compared to acquisition assumption, we recorded an impairment expense of $<ix:nonFraction contextRef="c26" decimals="-5" format="ixt:num-dot-decimal" name="kern:ImpairmentExpenses" scale="6" unitRef="usd">14.4</ix:nonFraction>&#160;million related&#160;to
our non-enterprise reporting unit. To perform our analysis, we&#160;applied a <ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="kern:WeightingToTheMarketApproach" scale="-2" unitRef="pure">25</ix:nonFraction>% weighting to the income approach and a <ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="kern:WeightedToTheIncomeApproach" scale="-2" unitRef="pure">75</ix:nonFraction>% weighting
to the market approach.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_11" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Finite-lived
Intangible Assets, Net</i></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_12" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
performed a two step impairment test for the asset groups that had indicators of impairment in the current year under ASC 360&#160;and
as a result of this analysis we did not identify any impairment. For the six months ended December 31, 2020, we determined that the carrying
value of Solo&#8217;s developed technology and trade name exceeded it&#8217;s fair value, resulting in an impairment of $<ix:nonFraction contextRef="c224" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:GoodwillImpairmentLoss" scale="6" unitRef="usd">2.7</ix:nonFraction> million.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

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

</div><!-- Field: Page; Sequence: 148; Value: 1 --><div>
    </div><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 -->47<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_13" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intangible
assets as of December 31, 2021&#160;consist of the following:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_14" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_13"><ix:nonNumeric contextRef="c26" continuedAt="_ScheduleOfIntangibleAssetsAndGoodwillTableTextBlock-c26_cont_1" escape="true" name="us-gaap:ScheduleOfIntangibleAssetsAndGoodwillTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted average remaining amortization period <br/> (in years)</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Gross carrying amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Accumulated <br/> amortization</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Impairment</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Net carrying <br/> amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 42%; text-align: left">Acquired developed technology</td><td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: center"><ix:nonNumeric contextRef="c227" format="ixt-sec:duryear" name="us-gaap:FiniteLivedIntangibleAssetUsefulLife">3.35</ix:nonNumeric></td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c228" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">7,138,080</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c228" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" sign="-" unitRef="usd">2,815,158</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-342">&#8212;</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c228" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">4,322,922</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Acquired trade names</td><td>&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c229" format="ixt-sec:duryear" name="us-gaap:FiniteLivedIntangibleAssetUsefulLife">3.09</ix:nonNumeric></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c230" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">871,920</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c230" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" sign="-" unitRef="usd">286,799</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-343">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c230" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">585,121</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Customer relationships</td><td>&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c231" format="ixt-sec:duryear" name="us-gaap:FiniteLivedIntangibleAssetUsefulLife">10.18</ix:nonNumeric></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c232" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">17,510,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c232" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" sign="-" unitRef="usd">878,250</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-344">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c232" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">16,631,750</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Non-compete agreement</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt"><ix:nonNumeric contextRef="c233" format="ixt-sec:duryear" name="us-gaap:FiniteLivedIntangibleAssetUsefulLife">1.75</ix:nonNumeric></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c234" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">80,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c234" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" sign="-" unitRef="usd">10,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-345">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c234" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">70,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Total Intangible assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">25,600,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" sign="-" unitRef="usd">3,990,207</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-346">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">21,609,793</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Capitalized software - In-service</td><td>&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c235" format="ixt-sec:duryear" name="us-gaap:FiniteLivedIntangibleAssetUsefulLife">2.02</ix:nonNumeric></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c236" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">8,807,843</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c236" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" sign="-" unitRef="usd">4,423,887</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-347">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c236" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">4,383,956</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Capitalized software - Work in Progress</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt"><div style="-sec-ix-hidden: hidden-fact-348">N/A</div></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c238" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">3,224,203</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-349">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c238" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangiableAssetsImpairment" scale="0" sign="-" unitRef="usd">296,483</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c238" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">2,927,720</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Total Capitalized Software</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c239" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">12,032,046</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c239" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" sign="-" unitRef="usd">4,423,887</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c239" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangiableAssetsImpairment" scale="0" sign="-" unitRef="usd">296,483</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c239" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">7,311,676</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt; padding-left: 0.125in">Total finite-lived intangible assets</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c240" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">37,632,046</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c240" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" sign="-" unitRef="usd">8,414,094</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c240" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangiableAssetsImpairment" scale="0" sign="-" unitRef="usd">296,483</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c240" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">28,921,469</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_15" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intangible
assets as of December 31, 2020&#160;consist of the following:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_16" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_15"><ix:continuation id="_ScheduleOfIntangibleAssetsAndGoodwillTableTextBlock-c26_cont_1"><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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted average <br/> remaining amortization <br/> period <br/> (in years)</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Gross carrying amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Accumulated <br/> amortization</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Impairment</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Net carrying <br/> amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 42%; text-align: justify">Acquired developed technology</td><td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: center"><ix:nonNumeric contextRef="c241" format="ixt-sec:duryear" name="us-gaap:FiniteLivedIntangibleAssetUsefulLife">3.77</ix:nonNumeric></td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c242" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">8,220,000</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c242" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" sign="-" unitRef="usd">1,434,155</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c242" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangiableAssetsImpairment" scale="0" sign="-" unitRef="usd">2,591,920</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c242" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">4,193,925</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Acquired trade names</td><td>&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c243" format="ixt-sec:duryear" name="us-gaap:FiniteLivedIntangibleAssetUsefulLife">5.12</ix:nonNumeric></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c244" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">705,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c244" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" sign="-" unitRef="usd">97,676</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c244" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangiableAssetsImpairment" scale="0" sign="-" unitRef="usd">123,080</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c244" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">484,244</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Customer relationships</td><td>&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c245" format="ixt-sec:duryear" name="us-gaap:FiniteLivedIntangibleAssetUsefulLife">13.04</ix:nonNumeric></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c246" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">2,880,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c246" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" sign="-" unitRef="usd">169,374</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-350">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c246" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">2,710,626</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; padding-bottom: 1.5pt">Total Intangible assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">11,805,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" sign="-" unitRef="usd">1,701,205</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangiableAssetsImpairment" scale="0" sign="-" unitRef="usd">2,715,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">7,388,795</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Capitalized software - In-service</td><td>&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c247" format="ixt-sec:duryear" name="us-gaap:FiniteLivedIntangibleAssetUsefulLife">1.62</ix:nonNumeric></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c248" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">4,593,512</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c248" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" sign="-" unitRef="usd">1,401,953</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-351">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c248" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">3,191,559</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 1.5pt">Capitalized software - Work in Progress</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt"><div style="-sec-ix-hidden: hidden-fact-352">&#160;N/A</div></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c250" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">734,180</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-353">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-354">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c250" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">734,180</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; padding-bottom: 1.5pt">Total Capitalized Software</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c251" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">5,327,692</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c251" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" sign="-" unitRef="usd">1,401,953</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-355">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c251" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">3,925,739</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 4pt">Total finite-lived intangible assets</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c252" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsGrossAmount" scale="0" unitRef="usd">17,132,692</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c252" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" sign="-" unitRef="usd">3,103,158</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c252" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangiableAssetsImpairment" scale="0" sign="-" unitRef="usd">2,715,000</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c252" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetsNetsTotal" scale="0" unitRef="usd">11,314,534</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation></ix:continuation><div>



</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_17" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_16"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
record amortization expense associated with acquired developed technology, acquired trade names, and customer relationships. The amortization
expense of all finite-lived intangible assets, which includes capitalized software was $<ix:nonFraction contextRef="c26" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:AmortizationOfIntangibleAssets" scale="6" unitRef="usd">5.6</ix:nonFraction> million, $<ix:nonFraction contextRef="c222" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:AmortizationOfIntangibleAssets" scale="6" unitRef="usd">1.8</ix:nonFraction> million, and $<ix:nonFraction contextRef="c28" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:AmortizationOfIntangibleAssets" scale="6" unitRef="usd">1.3</ix:nonFraction> million&#160;for
the year ended December 31, 2021, six months ended&#160;December 31, 2020, and year ended June 30, 2020, respectively.&#160; The amortization
expense for the year ended December 31, 2021 includes $<ix:nonFraction contextRef="c26" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:CapitalizedComputerSoftwareAmortization1" scale="6" unitRef="usd">0.3</ix:nonFraction> million of capitalized software write offs.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 32pt"></p><div>

</div><!-- Field: Page; Sequence: 149; Value: 1 --><div>
    </div><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 -->48<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_18" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_17"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2021, expected amortization expense relating to in-service capitalized software and purchased intangible assets for each
of the next five years and thereafter is as follows:&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c26_cont_18"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Acquired
    Intangible Assets</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Capitalized
    Software- In-service</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left; padding-left: 0.75pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2022</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c253" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths" scale="0" unitRef="usd">3,445,741</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c236" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths" scale="0" unitRef="usd">2,722,663</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0.75pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2023</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c253" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo" scale="0" unitRef="usd">3,131,575</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c236" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo" scale="0" unitRef="usd">1,144,351</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 0.75pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2024</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c253" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearThree" scale="0" unitRef="usd">2,801,991</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c236" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearThree" scale="0" unitRef="usd">275,884</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0.75pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2025</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c253" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearFour" scale="0" unitRef="usd">1,973,934</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c236" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearFour" scale="0" unitRef="usd">110,215</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 0.75pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2026</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c253" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearFive" scale="0" unitRef="usd">1,851,434</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c236" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearFive" scale="0" unitRef="usd">59,112</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; padding-left: 0.75pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Thereafter</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c253" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive" scale="0" unitRef="usd">8,405,118</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c236" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive" scale="0" unitRef="usd">71,731</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; padding-bottom: 4pt; padding-left: 0.75pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c253" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetNet" scale="0" unitRef="usd">21,609,793</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c236" decimals="0" format="ixt:num-dot-decimal" name="kern:FiniteLivedIntangibleAssetNet" scale="0" unitRef="usd">4,383,956</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table></ix:nonNumeric></ix:continuation><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_PropertyPlantAndEquipmentDisclosureTextBlock-c26_cont_1" escape="true" name="us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note
7 - Fixed assets, net</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_PropertyPlantAndEquipmentDisclosureTextBlock-c26_cont_2" id="_PropertyPlantAndEquipmentDisclosureTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fixed&#160;assets
consisted of the following:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_PropertyPlantAndEquipmentDisclosureTextBlock-c26_cont_3" id="_PropertyPlantAndEquipmentDisclosureTextBlock-c26_cont_2"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:PropertyPlantAndEquipmentTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
    of<br/> December 31,</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
    of<br/> December 31,</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furniture and
    computer equipment</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c255" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">235,042</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c256" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">131,300</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Leasehold
    improvements</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c257" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">14,064</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c258" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">1,175,556</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">249,106</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">1,306,856</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less:
    accumulated depreciation</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment" scale="0" unitRef="usd">95,955</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment" scale="0" unitRef="usd">113,423</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fixed
    assets, net</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">153,151</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">1,193,433</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation id="_PropertyPlantAndEquipmentDisclosureTextBlock-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Depreciation
expense related to our fixed assets for the year ended December 31, 2021, six months ended December 31, 2020, and year ended June 30,
2020 was $<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Depreciation" scale="0" unitRef="usd">127,731</ix:nonFraction>, $<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Depreciation" scale="0" unitRef="usd">240,742</ix:nonFraction>, and $<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Depreciation" scale="0" unitRef="usd">27,951</ix:nonFraction>, respectively. During the&#160;year ended December 31, 2021, we terminated our office&#160;lease
in Toronto, Canada and wrote off $<ix:nonFraction contextRef="c2" decimals="-5" format="ixt:num-dot-decimal" name="kern:WroteOfFixedAssets" scale="6" unitRef="usd">1.2</ix:nonFraction> million of fixed assets.&#160;During the six months ended December 31, 2020, we sold furniture
and computer equipment for $<span><ix:nonFraction contextRef="c254" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromSaleOfFurnitureAndFixtures" scale="0" unitRef="usd">25,561</ix:nonFraction></span>&#160;with a cost of $<span><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FurnitureAndFixturesGross" scale="0" unitRef="usd">191,389</ix:nonFraction></span>&#160;and
accumulated depreciation of $<span><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:AccumulatedDepreciation" scale="0" unitRef="usd">106,555</ix:nonFraction></span>&#160;resulting in a $<span><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GainLossOnSaleOfPropertyPlantEquipment" scale="0" unitRef="usd">59,273</ix:nonFraction></span>&#160;loss
in the consolidated statements of operations for the six months ended December 31, 2020 related to these disposals.&#160;</span></p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_EquityMethodInvestmentsDisclosureTextBlock-c26_cont_1" escape="true" name="us-gaap:EquityMethodInvestmentsDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note
8 - Investments</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_EquityMethodInvestmentsDisclosureTextBlock-c26_cont_2" id="_EquityMethodInvestmentsDisclosureTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Investment
in and License Agreement with Zol Solutions, Inc.</i></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_EquityMethodInvestmentsDisclosureTextBlock-c26_cont_3" id="_EquityMethodInvestmentsDisclosureTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 7, 2019, we participated in an offering of preferred stock of Zol Solutions, Inc. (&#8220;ZolTrain&#8221;) along with other investors
in which we purchased <ix:nonFraction contextRef="c259" decimals="0" format="ixt:num-dot-decimal" name="kern:PreferredStockPurchasedShares" scale="0" unitRef="shares">203,000</ix:nonFraction> shares of Series Seed Preferred Stock (the &#8220;ZolTrain Preferred&#8221;) for a purchase price of $<ix:nonFraction contextRef="c259" decimals="0" format="ixt:num-dot-decimal" name="kern:PreferredStockPurchasedShareValue1" scale="0" unitRef="usd">250,000</ix:nonFraction>,
which represents a noncontrolling interest in ZolTrain.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_EquityMethodInvestmentsDisclosureTextBlock-c26_cont_4" id="_EquityMethodInvestmentsDisclosureTextBlock-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
ZolTrain Preferred is convertible into shares of common stock of ZolTrain at a conversion rate of $<ix:nonFraction contextRef="c2" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockConvertibleConversionPrice" scale="0" unitRef="usdPershares">1.232</ix:nonFraction> per share at the option of the
holder and contains certain anti-dilution protection in the event of certain future issuances of securities by ZolTrain. We are entitled
to vote the number of common shares in which the ZolTrain Preferred is convertible into at any meeting of the ZolTrain stockholders.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 32pt"></p><div>

</div><!-- Field: Page; Sequence: 150; Value: 1 --><div>
    </div><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 -->49<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:continuation continuedAt="_EquityMethodInvestmentsDisclosureTextBlock-c26_cont_5" id="_EquityMethodInvestmentsDisclosureTextBlock-c26_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
ZolTrain Preferred also provides us with rights of first refusal with respect to newly issued securities of ZolTrain as well as issued
and outstanding securities of ZolTrain that are offered to third parties. In connection with the agreement, one of Akerna's executives
was appointed as one of three members of ZolTrain&#8217;s board of directors. At that time,&#160;we had determined that&#160;ZolTrain&#160;is
a VIE for accounting purposes, given we could exercise significant influence, however we were&#160;not required to consolidate&#160;ZolTrain&#160;in
our consolidated financial statements because we are not&#160;ZolTrain&#8217;s&#160;primary beneficiary. We had concluded that the&#160;ZolTrain&#160;Preferred
was in-substance common stock because the liquidation preference provided was not substantive, and the equity method of accounting is
applicable to in-substance common stock. As a result of our representation on the board of directors, we determined that we can exert
significant influence over the day to day operations of&#160;ZolTrain and&#160;therefore; we account for this investment using the equity
method of accounting, which required us to recognize our share of the&#160;ZolTrain&#160;operations in our results of operations.&#160;For
year ended&#160;December 31, 2021,&#160;we recognized equity in loss of&#160;investee&#160;of $<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtAndEquitySecuritiesGainLoss" scale="0" unitRef="usd">12,641</ix:nonFraction>&#160;which represents our share
of&#160;ZolTrain's&#160;losses since our investment</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_EquityMethodInvestmentsDisclosureTextBlock-c26_cont_6" id="_EquityMethodInvestmentsDisclosureTextBlock-c26_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the third quarter of 2021, following the loss of our seat on the Board, we concluded that we should no longer apply the equity method
of accounting for the investment in ZolTrain. We determined that we hold an equity security in&#160;ZolTrain&#160;for which the fair
value is not readily determinable. Accordingly, starting in the third quarter we elected&#160;to measure the investment at cost minus
impairment, plus or minus changes resulting from observable price changes. When indicators of impairment exist, we estimate the fair
value and record an impairment charge if the carrying value of the investment exceeds its estimated fair value. Any impairment charges
are recorded in other (expense) income, net, in our consolidated statements of operations. The carrying amount of our investment in ZolTrain&#160;was
$<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherLongTermInvestments" scale="0" unitRef="usd">226,101</ix:nonFraction> as of December 31, 2021 and we did not recognize any impairment on the investment during the current year.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_EquityMethodInvestmentsDisclosureTextBlock-c26_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subsequent
to our initial investment, we entered into a nonexclusive license/reseller agreement with ZolTrain, effective October 24, 2019, to provide
ZolTrain&#8217;s online cannabis training platform as a co-branded integration option into our MJ Platform and Leaf Data Systems, which
was a related party transaction in the prior year. Under the term of the agreement we entered into, ZolTrain will share subscription-based
revenue generated from our customers with us. The amount of the share of the revenue for each of us and ZolTrain will depend on both
(a) the number of training modules accessed by a customer and (b) which party created the accessed content. In addition to the revenue
sharing arrangement, the license/reseller agreement provides us with the right to receive additional consideration from ZolTrain in the
form of an equity earnout if certain revenue milestones are achieved during 2020, 2021, and 2022. Our ability to recognize revenue from
the additional earnout consideration in the future will mainly depend on whether it becomes probable that such revenue milestones will
be achieved. For the year ended December 31, 2021, the six months ended December 31, 2021, and the year ended June 30, 2020, we recognized
$<ix:nonFraction contextRef="c26" decimals="-2" format="ixt:num-dot-decimal" name="kern:DeferredRevenueRevenueRecognized" scale="3" unitRef="usd">25.9</ix:nonFraction> thousand, $<ix:nonFraction contextRef="c260" decimals="0" format="ixt:num-dot-decimal" name="kern:DeferredRevenueRevenueRecognized" scale="0" unitRef="usd">0</ix:nonFraction>, and $<ix:nonFraction contextRef="c222" decimals="0" format="ixt:num-dot-decimal" name="kern:DeferredRevenueRevenueRecognized" scale="0" unitRef="usd">0</ix:nonFraction> of revenue from this agreement.&#160;</span></p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_LongTermDebtTextBlock-c26_cont_1" escape="true" name="us-gaap:LongTermDebtTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note
9 - Long Term Debt</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_2" id="_LongTermDebtTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Long-term
debt consisted of the following at December 31, 2021:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_3" id="_LongTermDebtTextBlock-c26_cont_2"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:ScheduleOfDebtInstrumentsTextBlock"><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"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Convertible
    notes (at fair value)</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConvertibleNotesPayable" scale="0" unitRef="usd">17,305,000</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less:
    current maturities</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:CurrentMaturities" scale="0" unitRef="usd">13,200,000</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
    long-term debt, less current portion</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherLongTermDebt" scale="0" unitRef="usd">4,105,000</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_4" id="_LongTermDebtTextBlock-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Senior
Secured Convertible Notes - 2020</i></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_5" id="_LongTermDebtTextBlock-c26_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 8, 2020, we entered into a Securities Purchase Agreement, or SPA, with two institutional investors (the "2020 Note Holders"),
to sell a new series of senior secured convertible notes (the "2020 Notes"), of Akerna in a private placement to the 2020 Note
Holders, in the aggregate principal amount of $<ix:nonFraction contextRef="c261" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentAnnualPrincipalPayment" scale="6" unitRef="usd">17.0</ix:nonFraction>&#160;million having an aggregate original issue discount of <ix:nonFraction contextRef="c262" decimals="2" format="ixt:num-dot-decimal" name="kern:DebtInstrumentInterestRateOriginalIssueDiscountPercentage" scale="-2" unitRef="pure">12</ix:nonFraction>%, and ranking senior
to all outstanding and future indebtedness of Akerna.&#160;The 2020 Notes were sold on June 9, 2020, with an original issue discount
pursuant to which the Note Holders paid $<ix:nonFraction contextRef="c263" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherOwnershipInterestsValue" scale="0" unitRef="usd">880</ix:nonFraction> per each $<ix:nonFraction contextRef="c264" decimals="0" format="ixt:num-dot-decimal" name="kern:PrincipalPortionOfConvertibleDebt" scale="0" unitRef="usd">1,000</ix:nonFraction> in principal amount of the 2020 Notes. The 2020 Notes do not bear interest
except upon the occurrence of an event of default, in which event the applicable rate will be <ix:nonFraction contextRef="c262" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:DebtConversionOriginalDebtInterestRateOfDebt" scale="-2" unitRef="pure">15.00</ix:nonFraction>% per annum.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_6" id="_LongTermDebtTextBlock-c26_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the SPA and the 2020 Notes, we and certain of its subsidiaries will enter into a Security and Pledge Agreement (the &#8220;Security
Agreement&#8221;) with the lead investor, in its capacity as collateral agent (in such capacity, the &#8220;Collateral Agent&#8221;)
for all holders of the Notes. The Security Agreement creates a first priority security interest in all of the personal property of the
Company and certain of its subsidiaries of every kind and description, tangible or intangible, whether currently owned and existing or
created or acquired in the future (the &#8220;Collateral&#8221;).</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

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

</div><!-- Field: Page; Sequence: 151; Value: 1 --><div>
    </div><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 -->50<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_7" id="_LongTermDebtTextBlock-c26_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Security Agreement we agree to certain conditions on its maintenance and use of the Collateral, including but not limited to the
location of equipment and inventory, the condition of equipment, the payment of taxes and prevention of liens or encumbrances, the maintenance
of insurance, the protection of intellectual property rights, and limitations on transfers and sales.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_8" id="_LongTermDebtTextBlock-c26_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
the occurrence of an &#8220;Event of Default&#8221; under the Security Agreement, the Collateral Agent will have certain rights under
the Security Agreement including taking control of the Collateral and, in certain circumstances, selling the Collateral to cover obligations
owed to the holders of the 2020 Notes pursuant to its terms. &#8220;Event of Default&#8221; under the Security Agreement means (i) any
defined event of default under any one or more of the transaction documents (including the 2020 Notes), in each instance, after giving
effect to any notice, grace, or cure periods provided for in the applicable document, (ii) the failure by us to pay any amounts when
due under the 2020 Notes or any other transaction document, or (iii) the breach of any representation, warranty or covenant by the Company
under the Security Agreement.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_9" id="_LongTermDebtTextBlock-c26_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
2020 Notes mature on June 1, 2023, are payable in installments beginning on October 1, 2020, and may not be prepaid. The 2020 Notes are
convertible at any time, at the election of the Holders and subject to certain limitations, into shares of common stock at a rate equal
to the amount of principal, interest, if any, and unpaid late charges, if any, divided by a conversion price of $<ix:nonFraction contextRef="c26" decimals="2" format="ixt:num-dot-decimal" name="kern:DebtInstrumentConvertibleConversionPrice2" scale="0" unitRef="usdPershares">11.50</ix:nonFraction>.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_10" id="_LongTermDebtTextBlock-c26_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with the occurrence of an event of default, the Holders of the 2020 Notes will be entitled to convert all or any portion of
the 2020 Notes at an alternate conversion price equal to the lower of (i) the conversion price then in effect, or (ii) <ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="kern:ConversionPricePercentage" scale="-2" unitRef="pure">80</ix:nonFraction>%&#160;of the
lower of (x) the volume-weighted average price, or VWAP, of the common stock as of the trading day immediately preceding the applicable
date of determination, or (y) the quotient of (A) the sum of the VWAP of the common stock for each of the two trading days with the lowest
VWAP of the common stock during the ten (10) consecutive trading day period ending and including the trading day immediately prior to
the applicable date of determination, divided by (B) two, but not less than $<ix:nonFraction contextRef="c26" decimals="2" format="ixt:num-dot-decimal" name="kern:DebtInstrumentConversionFloorPrice" scale="0" unitRef="usdPershares">1.92</ix:nonFraction>.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_11" id="_LongTermDebtTextBlock-c26_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
elected to use the fair value option to account for the 2020 Notes.&#160;The fair value of the 2020 Notes on issuance was recorded as
$<ix:nonFraction contextRef="c2" decimals="-5" format="ixt:num-dot-decimal" name="kern:FairValueIssuanceAmount" scale="6" unitRef="usd">15.0</ix:nonFraction> million. During the year ended June 30, 2020, the fair value of the 2020 Notes decreased by $<ix:nonFraction contextRef="c265" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentIncreaseDecreaseForPeriodNet" scale="6" unitRef="usd">0.8</ix:nonFraction> million. Of the adjustment, a
decrease of $<ix:nonFraction contextRef="c265" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ConcentrationRiskCreditRiskFinancialInstrumentMaximumExposure" scale="6" unitRef="usd">0.1</ix:nonFraction> million resulted from instrument-specific credit risk and was recognized as other comprehensive income and accumulated
in equity and a decrease of $<ix:nonFraction contextRef="c265" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseOther" scale="6" unitRef="usd">0.7</ix:nonFraction> million was recognized as current period other expense in our consolidated statement of operations.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_12" id="_LongTermDebtTextBlock-c26_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the six months ended December 31, 2020, we made $<ix:nonFraction contextRef="c7" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentAnnualPrincipalPayment" scale="6" unitRef="usd">1.8</ix:nonFraction> million in principal payments on the 2020 Notes, of which $<ix:nonFraction contextRef="c27" decimals="-5" format="ixt:num-dot-decimal" name="kern:SettledInCash" scale="6" unitRef="usd">1.5</ix:nonFraction> million was settled
in cash and the remaining $<ix:nonFraction contextRef="c27" decimals="-5" format="ixt:num-dot-decimal" name="kern:SettledInCommonStock" scale="6" unitRef="usd">0.3</ix:nonFraction> million was settled in common stock. During the six months ended December 31, 2020, the fair value of
the 2020 Notes increased by $<ix:nonFraction contextRef="c7" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleCarryingAmountOfTheEquityComponent" scale="6" unitRef="usd">1.0</ix:nonFraction> million. Of the adjustment, an increase of $<ix:nonFraction contextRef="c27" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ConcentrationRiskCreditRiskFinancialInstrumentMaximumExposure" scale="6" unitRef="usd">0.1</ix:nonFraction> million resulted from instrument-specific credit risk
and was recognized as other comprehensive income and accumulated in equity and an increase of $<ix:nonFraction contextRef="c27" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseOther" scale="6" unitRef="usd">0.9</ix:nonFraction> million was recognized as current
period other expense in our consolidated statement of operations. As of December 31, 2020, the fair value of the 2020 Notes on our consolidated
balance sheet was $<ix:nonFraction contextRef="c7" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentCarryingAmount" scale="6" unitRef="usd">13.4</ix:nonFraction> million.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_13" id="_LongTermDebtTextBlock-c26_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the year ended December 31, 2021, up until the date the 2020 Notes were paid in full and replaced by the 2021 Senior Convertible Notes,<span>&#160;we
made $</span><ix:nonFraction contextRef="c2" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentAnnualPrincipalPayment" scale="6" unitRef="usd">15.2</ix:nonFraction> <span>million in principal payments on our convertible notes, of which $</span><ix:nonFraction contextRef="c26" decimals="-5" format="ixt:num-dot-decimal" name="kern:SettledInCash" scale="6" unitRef="usd">5.1</ix:nonFraction>
<span>million was settled in cash and the remaining $</span><ix:nonFraction contextRef="c26" decimals="-5" format="ixt:num-dot-decimal" name="kern:SettledInCommonStock" scale="6" unitRef="usd">10.1</ix:nonFraction> <span>million
was settled in common stock. During the year ended December 31, 2021, the fair value of the Convertible Notes increased by $</span><ix:nonFraction contextRef="c2" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ConvertibleLongTermNotesPayable" scale="6" unitRef="usd">2.0</ix:nonFraction><span>&#160;million.
Of the adjustment, an increase of $</span><ix:nonFraction contextRef="c266" decimals="-4" format="ixt:num-dot-decimal" name="us-gaap:ConcentrationRiskCreditRiskFinancialInstrumentMaximumExposure" scale="6" unitRef="usd">0.02</ix:nonFraction> <span>million resulted from instrument-specific credit
risk and was recognized as other comprehensive income and accumulated in equity and an increase of $</span><ix:nonFraction contextRef="c26" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseOther" scale="6" unitRef="usd">2.0</ix:nonFraction> <span>million&#160;was
recognized as current period other expense in our consolidated statement of operations. On October 5, 2021, we recognized a gain of $<ix:nonFraction contextRef="c170" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:UnrealizedGainLossOnSecurities" scale="6" unitRef="usd">0.2</ix:nonFraction>
million in connection with the payoff of the 2020 Notes.</span></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_14" id="_LongTermDebtTextBlock-c26_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Amendment</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_15" id="_LongTermDebtTextBlock-c26_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 23, 2020, we entered into waivers with the Holders of the 2020 Notes, pursuant to which we and the Holders, separately and not
jointly, agreed to waive certain terms and conditions of the 2020 Notes as follows:&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

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

</div><!-- Field: Page; Sequence: 152; Value: 1 --><div>
    </div><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 -->51<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_16" id="_LongTermDebtTextBlock-c26_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Holders irrevocably waived the last sentence of Section 8(a) of the Notes requiring that all installment amounts payable under the 2020
Notes prior to April 1, 2021 be paid in cash pursuant to installment redemptions. We may now elect, in its sole discretion, to pay installment
amounts under the 2020 Notes prior to April 1, 2021, by issuing shares of common stock pursuant to installment conversions or by paying
cash pursuant to installment redemptions, in each case in accordance with the existing terms of the Convertible Notes.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_17" id="_LongTermDebtTextBlock-c26_cont_16"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
irrevocably waived the prohibition on acceleration of installment amounts in Section 8(e) of the 2020 Notes solely in relation to the
Installment Amount for January 4, 2020, to permit the Holders to accelerate the January 4, 2021 installment amount, in whole or in part,
to one or more acceleration dates from December 24, 2020 through to and including January 4, 2021, as elected by each Holder.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_18" id="_LongTermDebtTextBlock-c26_cont_17"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
and the Holders agreed that we may irrevocably waive the installment scheduled principal amount for any installment date by setting forth
in the installment notice for that installment date an installment amount greater than the installment scheduled principal amount due
and payable on the next installment date. Each Holder may then consent to all or a portion of such increased installment amount for such
installment date on the trading day immediately prior to such installment date. Any increased amount for an installment amount above
the installment scheduled principal amount for such installment date will reduce the principal amount under the 2020 Notes.&#160;&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_19" id="_LongTermDebtTextBlock-c26_cont_18"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
relation to the January 4, 2021 installment amount, the Company delivered installment notices to the Holders increasing the installment
amount for January 4, 2021, in the aggregate, by $<ix:nonFraction contextRef="c267" decimals="0" format="ixt:num-dot-decimal" name="kern:InstallmentAmount" scale="0" unitRef="usd">2,062,500</ix:nonFraction>.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_20" id="_LongTermDebtTextBlock-c26_cont_19"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Senior
Secured Convertible Notes - 2021</i></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_21" id="_LongTermDebtTextBlock-c26_cont_20"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 5, 2021, we entered into a securities purchase agreement with the two institutional investors that held the Company's 2020 Notes
to sell senior secured notes in a private placement (the "Senior Convertible Notes"). The Senior Convertible Notes have an
aggregate principal amount of $<ix:nonFraction contextRef="c170" decimals="-5" format="ixt:num-dot-decimal" name="kern:DebtInstrumentAnnualPrincipalPayments" scale="6" unitRef="usd">20.0</ix:nonFraction> million, an aggregate original issue discount of <ix:nonFraction contextRef="c170" decimals="2" format="ixt:num-dot-decimal" name="kern:DebtInstrumentInterestRateOriginalIssueDiscountPercentage" scale="-2" unitRef="pure">10</ix:nonFraction>%, and rank senior to all our other outstanding
and future indebtedness. Approximately $<ix:nonFraction contextRef="c170" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromConvertibleDebt" scale="6" unitRef="usd">3.3</ix:nonFraction> million of the proceeds from the Senior Convertible Notes were used to payoff the 2020 Notes,
which were then to be cancelled. The net proceeds from the issuance of the Senior Convertible Notes was approximately $<ix:nonFraction contextRef="c170" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromDebtNetOfIssuanceCosts" scale="6" unitRef="usd">14.6</ix:nonFraction> million,
following the original issue discount and deductions for expenses and paydown of the 2020 Notes. These net proceeds will be used to support
Akerna's ongoing growth initiatives and continued investment in current and future technology infrastructur<span>e.
The Senior Convertible Notes are convertible into shares of common stock of Akerna at a conversion price of $</span><ix:nonFraction contextRef="c170" decimals="2" format="ixt:num-dot-decimal" name="kern:ConversionPricePerShare" scale="0" unitRef="usdPershares">4.05</ix:nonFraction> <span>per
share. The Senior Convertible Notes mature on October 5, 2024 and are to be repaid in monthly installments beginning on January 1, 2022.
The Senior Convertible Notes can be repaid in common shares or cash.</span></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_22" id="_LongTermDebtTextBlock-c26_cont_21"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; ">In
connection with the occurrence of an event of default, the Holders of the Senior Convertible Notes will be entitled to convert all or
any portion of the Senior Convertible Notes at an alternate conversion price equal to the lower of</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; ">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:nonNumeric contextRef="c26" name="us-gaap:LongTermDebtDescription"><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_23" id="_LongTermDebtTextBlock-c26_cont_22"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; ">(i)
the conversion price then in effect, or (ii)&#160;80%&#160;of the lower of (x) the volume-weighted average price, or VWAP, of the common
stock as of the trading day immediately preceding the applicable date of determination, or (y) the quotient of (A) the sum of the VWAP
of the common stock for each of the&#160;</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">two<span>&#160;trading
days with the lowest VWAP of the common stock during the&#160;</span>ten<span>&#160;(</span>10<span>)
consecutive trading day period ending and including the trading day immediately prior to the applicable date of determination, divided
by (B)&#160;</span>two<span>, but not less than $</span>0.54.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation></ix:nonNumeric><div>

</div><div>

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

</div><!-- Field: Page; Sequence: 153; Value: 1 --><div>
    </div><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 -->52<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_24" id="_LongTermDebtTextBlock-c26_cont_23"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have elected to use the fair value option to account for the <span>Senior Convertible Notes</span>. The
fair value of the <span>Senior Convertible Notes</span> on issuance was recorded as $<ix:nonFraction contextRef="c268" decimals="-5" format="ixt:num-dot-decimal" name="kern:FairValueIssuanceAmount" scale="6" unitRef="usd">18.0</ix:nonFraction>&#160;million.
During the year ended December 31, 2021, the fair value of the <span>Senior Convertible Notes</span>&#160;decreased&#160;by
$<ix:nonFraction contextRef="c269" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentIncreaseDecreaseForPeriodNet" scale="6" unitRef="usd">0.7</ix:nonFraction>&#160;million. Of the adjustment,&#160;a decrease of $<ix:nonFraction contextRef="c269" decimals="-4" format="ixt:num-dot-decimal" name="us-gaap:ConcentrationRiskCreditRiskFinancialInstrumentMaximumExposure" scale="6" unitRef="usd">0.03</ix:nonFraction>&#160;million resulted from instrument-specific credit risk and was recognized
as other comprehensive income and accumulated in equity and&#160;a decrease of $<ix:nonFraction contextRef="c269" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseOther" scale="6" unitRef="usd">0.7</ix:nonFraction>&#160;million&#160;was recognized as current period
other expense in our consolidated statement of operations. As of December 31, 2020, the fair value of the <span>Senior
Convertible Notes</span> on our consolidated balance sheet was $<ix:nonFraction contextRef="c268" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentCarryingAmount" scale="6" unitRef="usd">17.3</ix:nonFraction>&#160;million.&#160;<span>During
the year ended December 31, 2021, we made no&#160;principal payments on our Senior Convertible Notes.&#160;</span></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_25" id="_LongTermDebtTextBlock-c26_cont_24"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Paycheck
Protection Program Loan</i></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_26" id="_LongTermDebtTextBlock-c26_cont_25"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; ">On
March 27, 2020, former President Trump signed the Coronavirus&#160;Aid, Relief and Economic Security (the &#8220;CARES Act&#8221;), which,
among other things, outlined the provisions of the Paycheck Protection Program (the &#8220;PPP&#8221;). On April 24, 2020, the Paycheck
Protection Program and Health Care Enhancement Act, was signed into law increasing funding provided by the CARES Act and on June 5, 2020,
the Paycheck Protection Program Flexibility Act extended the program until December 31, 2020. Under the terms of the CARES Act, PPP loan
recipients can apply for and be granted forgiveness for all, or a portion of loan granted under the program. Such forgiveness will be
determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any payments of mortgage interest,
rent, and utilities.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_27" id="_LongTermDebtTextBlock-c26_cont_26"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; ">On
April 21, 2020, <ix:nonNumeric contextRef="c270" name="us-gaap:LongTermDebtDescription">the Company issued a promissory note to KeyBank National Association (&#8220;KeyBank&#8221;) in the principal aggregate
amount of $2,204,600&#160;(the &#8220;PPP Loan&#8221;) pursuant to the Paycheck Protection Program under the CARES Act. The PPP Loan
had a&#160;two-year term bearing interest at a rate of&#160;1% per annum with principal and interest payments of $92,818&#160;to be paid
monthly on the 12th of the month beginning 7 months from the date of the PPP Loan.&#160;The PPP Loan provides for prepayment of 20% or
less of the unpaid principal balance at any time. If more than 20% is prepaid, then all accrued interest must also be paid.</ix:nonNumeric></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_28" id="_LongTermDebtTextBlock-c26_cont_27"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
August 2021, the Company submitted its application for&#160;<ix:nonFraction contextRef="c271" decimals="2" format="ixt:num-dot-decimal" name="kern:ConvertibleNotesBearInterestRate" scale="-2" unitRef="pure">100</ix:nonFraction>% loan forgiveness and on September 3, 2021, the loan was&#160;<ix:nonFraction contextRef="c272" decimals="2" format="ixt:num-dot-decimal" name="kern:PercentageOfLoanForgiven" scale="-2" unitRef="pure">100</ix:nonFraction>% forgiven
by the Small Business Administration. As a result, the Company recorded a gain on the forgiveness of the loan in the amount of $<ix:nonFraction contextRef="c273" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromLoans" scale="0" unitRef="usd">2,234,730</ix:nonFraction>.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_29" id="_LongTermDebtTextBlock-c26_cont_28"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Maturities
of Debt</i></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LongTermDebtTextBlock-c26_cont_30" id="_LongTermDebtTextBlock-c26_cont_29"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Maturities
of our debt as of December 31, 2021 are presented below.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_LongTermDebtTextBlock-c26_cont_30"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:ScheduleOfMaturitiesOfLongTermDebtTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Year ending December 31:</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; width: 88%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2022</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LongTermDebtAndCapitalLeaseObligationsRepaymentsOfPrincipalInNextTwelveMonths" scale="0" unitRef="usd">13,200,000</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2023</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LongTermDebtAndCapitalLeaseObligationsMaturitiesRepaymentsOfPrincipalInYearTwo" scale="0" unitRef="usd">6,800,000</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;Aggregate
    maturities</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:AggregateMaturities" scale="0" unitRef="usd">20,000,000</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Original
    issue discount on Convertible Notes</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConvertibleLongTermNotesPayable" scale="0" unitRef="usd">2,000,000</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unrealized
    change in fair value of Convertible Notes</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentUnamortizedDiscount" scale="0" unitRef="usd">695,000</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total debt outstanding
    as of December 31, 2021</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LongTermDebt" scale="0" unitRef="usd">17,305,000</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Current
    portion</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:CurrentPortionLongTermDebt" scale="0" unitRef="usd">13,200,000</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Noncurrent
    portion</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:LongtermDebtNonCurrentMaturities" scale="0" unitRef="usd">4,105,000</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table></ix:nonNumeric></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 154; Value: 1 --><div>
    </div><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 -->53<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_1" escape="true" name="us-gaap:StockholdersEquityNoteDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note
10 - Stockholders&#8217; Equity</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_2" id="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Common
and Preferred Stock</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_3" id="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have&#160;one&#160;single class of common stock and&#160;<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesAuthorized" scale="0" unitRef="shares">75,000,000</ix:nonFraction>&#160;authorized shares of common stock, par value $<ix:nonFraction contextRef="c2" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:CommonStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares">0.0001</ix:nonFraction>&#160;per
share.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_4" id="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
also have&#160;<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockSharesAuthorized" scale="0" unitRef="shares">5,000,000</ix:nonFraction> authorized shares of preferred stock, $<ix:nonFraction contextRef="c2" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:PreferredStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares">0.0001</ix:nonFraction> par value per share, of which none are issued and outstanding.
The holders of common stock are entitled to <ix:nonNumeric contextRef="c26" name="us-gaap:CommonStockVotingRights">one</ix:nonNumeric> vote per share on all matters submitted to a vote of stockholders of the Company. Subject
to the prior rights of all classes or series of stock at the time outstanding having prior rights as to dividends or other distributions,
all stockholders are entitled to share equally in dividends, if any, as may be declared from time to time by the Board of Directors out
of funds legally available. Subject to the prior rights of creditors of the Corporation and the holders of all classes or series of stock
at the time outstanding having prior rights as to distributions upon liquidation, dissolution, or winding up of the Corporation, in the
event of liquidation, the holders of Common Stock are entitled to share ratably in all assets remaining after payment of all liabilities.
The stockholders do not have cumulative, preemptive rights, or subscription rights.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_5" id="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 30, 2020, we issued <ix:nonFraction contextRef="c274" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonUnitIssued" scale="0" unitRef="shares">5,000,000</ix:nonFraction>&#160;shares, at a price of $<ix:nonFraction contextRef="c274" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">2.40</ix:nonFraction> per share, of Akerna&#160;common stock in a public offering&#160;for
gross proceeds of $<ix:nonFraction contextRef="c275" decimals="-5" format="ixt:num-dot-decimal" name="kern:GrossProceedsFromIssuancePublicOffering" scale="6" unitRef="usd">12.0</ix:nonFraction> million, offset by offering costs of approximately $<ix:nonFraction contextRef="c275" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:PaymentsOfStockIssuanceCosts" scale="6" unitRef="usd">1.0</ix:nonFraction> million for net proceeds&#160;$<ix:nonFraction contextRef="c275" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromIssuanceInitialPublicOffering" scale="6" unitRef="usd">11.0</ix:nonFraction>&#160;million&#160;dollars.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_6" id="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Warrants</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_7" id="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with MTech&#160;Acquisition Corp.'s ("MTech")&#160;initial public offering, MTech sold&#160;<ix:nonFraction contextRef="c276" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SaleOfStockNumberOfSharesIssuedInTransaction" scale="0" unitRef="shares">5,750,000</ix:nonFraction>&#160;units
at a purchase price of $<ix:nonFraction contextRef="c277" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">10.00</ix:nonFraction>&#160;per unit, inclusive of&#160;<ix:nonFraction contextRef="c278" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SaleOfStockNumberOfSharesIssuedInTransaction" scale="0" unitRef="shares">750,000</ix:nonFraction>&#160;units sold to the underwriters on February 8, 2018, upon
the DD&#8217; election to fully exercise their over-allotment option. Each unit consisted of&#160;one&#160;share of&#160;MTech&#8217;s&#160;common
stock and&#160;one&#160;warrant of MTech (&#8220;MTech Public Warrant&#8221;). Each Mtech Public Warrant entitled the holder to purchase&#160;one&#160;share
of&#160;MTech&#8217;s&#160;common stock at an exercise price of $<ix:nonFraction contextRef="c279" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">11.50</ix:nonFraction>. Upon the Mergers, the Public Warrants were converted to those
of&#160;Akerna&#160;at the exchange ratio of&#160;one-for-one.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 32pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_8" id="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
summary of our common stock warrants is presented in the following table:&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_9" id="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_8"><ix:nonNumeric contextRef="c26" escape="true" name="kern:ScheduleOfShareBasedCompensationStockWarrantActivityTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares
    Issuable <br/> Under Warrants</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Weighted-average
    <br/> Exercise Price</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Weighted
    Average <br/> Remaining Life</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Aggregate
    Intrinsic Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Outstanding at June 30, 2020</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c89" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">5,813,804</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c89" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">11.50</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 9%; text-align: right"><ix:nonNumeric contextRef="c89" format="ixt-sec:duryear" name="kern:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingsWeightedAverageRemainingContractualTerm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.97</span></ix:nonNumeric></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-356; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Issued</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-357; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-358; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-359; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-360; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exercised</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-361; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-362; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-363; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-364; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expired/canceled</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-365; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-366; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-367; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-368; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Outstanding at December 31, 2020</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">5,813,804</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">11.50</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><ix:nonNumeric contextRef="c7" format="ixt-sec:duryear" name="kern:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingsWeightedAverageRemainingContractualTerm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.37</span></ix:nonNumeric></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-369; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Issued</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-370; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-371; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-372; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-373; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exercised</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-374; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-375; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-376; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-377; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expired/canceled</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-378; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-379; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-380; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-381; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Outstanding at December
    31, 2021</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">5,813,804</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">11.50</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonNumeric contextRef="c2" format="ixt-sec:duryear" name="kern:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingsWeightedAverageRemainingContractualTerm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.97</span></ix:nonNumeric></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="-sec-ix-hidden: hidden-fact-382; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation id="_StockholdersEquityNoteDisclosureTextBlock-c26_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
was no aggregate intrinsic value for the warrants outstanding as of December 31, 2021 and December 31, 2020.</span></p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

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

</div><!-- Field: Page; Sequence: 155; Value: 1 --><div>
    </div><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 -->54<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>








</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_1" escape="true" name="us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note
11 - Stock-Based Compensation</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_2" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Restricted
Shares and Restricted Stock Units</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_3" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 17, 2019, our stockholders considered and approved the&#160;2019&#160;Long Term Incentive Plan, or the Equity Incentive Plan, and
reserved&#160;<ix:nonFraction contextRef="c280" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockCapitalSharesReservedForFutureIssuance" scale="0" unitRef="shares">1,040,038</ix:nonFraction>&#160;shares of common stock for issuance thereunder. The Equity Incentive Plan was previously approved, subject
to stockholder approval, by the board of directors of&#160;Akerna&#160;on January 23, 2019.&#160;The Equity Incentive Plan became effective
immediately upon the Closing of the Mergers. On June 26, 2020, the stockholders approved an amendment to the Equity Incentive Plan and
increased the shares authorized for issuance thereunder by <ix:nonFraction contextRef="c281" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfAdditionalSharesAuthorized" scale="0" unitRef="shares">525,000</ix:nonFraction> to <ix:nonFraction contextRef="c282" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfAdditionalSharesAuthorized" scale="0" unitRef="shares">1,565,038</ix:nonFraction>.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_4" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
grant restricted stock units, or RSUs, that are subject to time-based vesting and require continuous employment, typically over a period
of&#160;<span style="-sec-ix-hidden: hidden-fact-386">four</span> years&#160;from the grant date or the first day of the service period.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_5" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prior
to the Mergers, MJF had Profit Interest Incentive Plan in place whereby it could grant Profits Interest Units, or&#160;PIUs, to employees
or consultants and other independent advisors of the Company. PIUs granted under the Profits Interest Plan would generally vest once
a year over <span style="-sec-ix-hidden: hidden-fact-387">four</span> years commencing on the date granted or based on specified performance targets. MJF had the right, but not the obligation,
to repurchase vested PIUs from holders upon their termination of employment. Unvested PIUs were to be forfeited upon termination of employment.
If the holder was terminated for cause, as defined, all vested and unvested units would be forfeited. PIUs repurchased or canceled or
forfeited by the award recipient were available for reissuance. Upon completion of the Mergers, the non-vested PIUs were exchanged for
and became subject to restricted stock agreements, or Restricted Shares, with varying vesting terms that reflect the vesting conditions
applicable to the individual&#160;PIUs&#160;at the time of the merger.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_6" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
determined the&#160;PIUs represented a profit-sharing compensation arrangement that&#160;had value only upon a defined liquidating event.
Accordingly, no value was accrued for the PIUs prior to the Mergers on June 17, 2019, which met the definition of a liquidating event.
As a result, we recorded a one-time charge of approximately $<ix:nonFraction contextRef="c284" decimals="1" format="ixt:num-dot-decimal" name="us-gaap:AllocatedShareBasedCompensationExpense" scale="0" unitRef="usd">3.4</ix:nonFraction> million, which represented the charge associated with issuing fully
vested shares of common stock in exchange for the PIUs.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_7" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
summary of our unvested Restricted Shares and RSUs&#160;activity&#160;is presented in the table below:&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_8" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_7"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Restricted
    Shares</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Restricted
    Stock Units</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Weighted
    Average Grant Date Fair Value</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unvested as of June 30, 2020</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c89" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares" scale="0" unitRef="shares">72,313</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c89" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber" scale="0" unitRef="shares">534,302</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c89" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber" scale="0" unitRef="shares">606,615</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c89" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue" scale="0" unitRef="usdPershares">6.56</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Granted</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-383; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c27" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod" scale="0" unitRef="shares">429,974</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c27" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted" scale="0" unitRef="shares">429,974</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c27" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue" scale="0" unitRef="usdPershares">4.88</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vested</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c27" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod" scale="0" unitRef="shares">8,024</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c27" decimals="INF" format="ixt:num-dot-decimal" name="kern:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsRestrictedStockUnitsVestedInPeriod" scale="0" unitRef="shares">157,350</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c27" decimals="INF" format="ixt:num-dot-decimal" name="kern:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsVested" scale="0" unitRef="shares">165,374</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c27" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue" scale="0" unitRef="usdPershares">5.08</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Forfeited</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-384; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c27" decimals="INF" format="ixt:num-dot-decimal" name="kern:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsRestrictedStockUnitsForfeitedInPeriod" scale="0" unitRef="shares">43,906</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c27" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures" scale="0" unitRef="shares">43,906</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c27" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue" scale="0" unitRef="usdPershares">6.83</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unvested as of December 31, 2020</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares" scale="0" unitRef="shares">64,289</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber" scale="0" unitRef="shares">763,020</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber" scale="0" unitRef="shares">827,309</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue" scale="0" unitRef="usdPershares">6.77</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Granted</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-385; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c26" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod" scale="0" unitRef="shares">447,642</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c26" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted" scale="0" unitRef="shares">447,642</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c26" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue" scale="0" unitRef="usdPershares">4.05</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vested</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod" scale="0" unitRef="shares">30,559</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="INF" format="ixt:num-dot-decimal" name="kern:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsRestrictedStockUnitsVestedInPeriod" scale="0" unitRef="shares">427,711</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="INF" format="ixt:num-dot-decimal" name="kern:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsVested" scale="0" unitRef="shares">458,270</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c26" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue" scale="0" unitRef="usdPershares">5.55</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Forfeited</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod" scale="0" unitRef="shares">1,336</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="INF" format="ixt:num-dot-decimal" name="kern:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsRestrictedStockUnitsForfeitedInPeriod" scale="0" unitRef="shares">99,184</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures" scale="0" unitRef="shares">100,520</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c26" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue" scale="0" unitRef="usdPershares">4.51</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unvested as of December 31, 2021</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares" scale="0" unitRef="shares">32,394</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber" scale="0" unitRef="shares">683,767</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber" scale="0" unitRef="shares">716,161</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue" scale="0" unitRef="usdPershares">5.47</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c26_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the year ended December 31, 2021, six months ended&#160;December 31, 2020, and year ended June 30, 2020 we recognized stock-based compensation
expense related to the ratable amortization of the unvested Restricted Shares and RSUs of $<ix:nonFraction contextRef="c285" decimals="1" format="ixt:num-dot-decimal" name="us-gaap:AllocatedShareBasedCompensationExpense" scale="0" unitRef="usd">2.0</ix:nonFraction> million, $<ix:nonFraction contextRef="c27" decimals="1" format="ixt:num-dot-decimal" name="us-gaap:AllocatedShareBasedCompensationExpense" scale="0" unitRef="usd">2.0</ix:nonFraction> million, and $<ix:nonFraction contextRef="c286" decimals="1" format="ixt:num-dot-decimal" name="us-gaap:AllocatedShareBasedCompensationExpense" scale="0" unitRef="usd">1.3</ix:nonFraction> million,
respectively. Stock-based compensation expense is included in operating expenses and cost of sales on our consolidated statements of
operations consistent with the allocation of other compensation arrangements. During the year ended December 31, 2021, six months&#160;ended
December 31, 2020,&#160;and year ended June 30, 2020, we capitalized $<ix:nonFraction contextRef="c285" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsCapitalizedAmount" scale="0" unitRef="usd">0.04</ix:nonFraction> million, $<ix:nonFraction contextRef="c27" decimals="1" format="ixt:num-dot-decimal" name="us-gaap:EmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsCapitalizedAmount" scale="0" unitRef="usd">0.2</ix:nonFraction> million and $<ix:nonFraction contextRef="c286" decimals="1" format="ixt:num-dot-decimal" name="us-gaap:EmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsCapitalizedAmount" scale="0" unitRef="usd">0.1</ix:nonFraction> million, respectively, in stock-based
compensation costs as software development cost. <span>The $</span><ix:nonFraction contextRef="c287" decimals="1" format="ixt:num-dot-decimal" name="us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized" scale="0" unitRef="usd">3.7</ix:nonFraction> <span>million
of unrecognized costs as of December 31, 2021 related to Restricted Shares and RSUs will be ratably recognized over an estimated weighted
average remaining vesting period of </span><ix:nonNumeric contextRef="c285" format="ixt-sec:duryear" name="us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1">2.41</ix:nonNumeric><span>&#160;years.</span></span></p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

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

</div><!-- Field: Page; Sequence: 156; Value: 1 --><div>
    </div><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 -->55<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_EarningsPerShareTextBlock-c26_cont_1" escape="true" name="us-gaap:EarningsPerShareTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note
12 - Loss Per Share</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_EarningsPerShareTextBlock-c26_cont_2" id="_EarningsPerShareTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the year ended December 31, 2021, we used the&#160;two-class method to compute net loss per share because we issued securities other
than common stock that is economically equivalent to a common share in that the class of stock has the right to participate in dividends
should a dividend be declared payable to holders of&#160;Akerna&#160;common stock. These participating securities were the Exchangeable
Shares issued by our wholly owned subsidiary in exchange for interest in Ample. The&#160;two-class method requires earnings for the period
to be allocated between common stock and participating securities based on their respective rights to receive distributed and undistributed
earnings. Under the&#160;two-class method, for periods with net income, basic net income per common share is computed by dividing the
net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period.
Net income attributable to common stockholders is computed by subtracting from net income&#160;the portion of current period earnings
that the participating securities&#160;would have been entitled to receive pursuant to their dividend rights had all of the period's
earnings been distributed. No such adjustment to earnings is made during periods with a net loss, as the holders of the Exchangeable
Shares have no obligation to fund losses.&#160;&#160; &#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_EarningsPerShareTextBlock-c26_cont_3" id="_EarningsPerShareTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Diluted
net loss per common share is calculated under the&#160;two-class method by giving effect to all potentially dilutive&#160;common stock,
including warrants, restricted stock awards, restricted stock units, and shares of common stock issuable upon conversion of our Convertible
Notes. We analyzed the potential dilutive effect of any outstanding convertible securities under the "if-converted" method,
in which it is assumed that the outstanding Exchangeable Shares and Convertible Notes are converted to shares of common stock at the
beginning of the period or date of issuance, if later. We report the more dilutive of the approaches (two-class or "if-converted)
as the diluted net loss per share during the period.&#160;The dilutive effect of unvested restricted stock awards and restricted stock
units is reflected in diluted loss per share by application of the treasury stock method and is excluded when the effect would be anti-dilutive.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_EarningsPerShareTextBlock-c26_cont_4" id="_EarningsPerShareTextBlock-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of potential
outstanding common shares that would have been anti-dilutive for the period. The table below details potentially outstanding shares on
a fully diluted basis&#160;that were not included in the calculation of diluted earnings per share:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_EarningsPerShareTextBlock-c26_cont_4"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December&#160;31, <br/>
2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December&#160;31, <br/>
2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; padding-left: 0.75pt">Shares issuable upon exchange of Exchangeable Shares</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c26" decimals="INF" format="ixt:num-dot-decimal" name="kern:SharesIssuableUponExchangeOfExchangeableShares" scale="0" unitRef="shares">309,286</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c222" decimals="INF" format="ixt:num-dot-decimal" name="kern:SharesIssuableUponExchangeOfExchangeableShares" scale="0" unitRef="shares">2,667,349</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.75pt">Warrants</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="INF" format="ixt:num-dot-decimal" name="kern:Warrants" scale="0" unitRef="shares">5,813,804</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c222" decimals="INF" format="ixt:num-dot-decimal" name="kern:Warrants" scale="0" unitRef="shares">5,813,804</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 0.75pt">Restricted Stock Units</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="INF" format="ixt:num-dot-decimal" name="kern:RestrictedStockUnitsin" scale="0" unitRef="shares">683,767</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c222" decimals="INF" format="ixt:num-dot-decimal" name="kern:RestrictedStockUnitsin" scale="0" unitRef="shares">694,512</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0.75pt">Restricted Stock Awards</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c26" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardGross" scale="0" unitRef="shares">32,394</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c222" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardGross" scale="0" unitRef="shares">64,289</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.1pt">Shares of common stock issuable in upon conversion of Convertible Notes</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c26" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities" scale="0" unitRef="shares">12,484,395</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c222" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities" scale="0" unitRef="shares">1,319,368</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt; padding-left: 0.125in">Total</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c26" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:WeightedAverageNumberDilutedSharesOutstandingAdjustment" scale="0" unitRef="shares">19,323,646</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c222" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:WeightedAverageNumberDilutedSharesOutstandingAdjustment" scale="0" unitRef="shares">10,559,322</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_FairValueDisclosuresTextBlock-c26_cont_1" escape="true" name="us-gaap:FairValueDisclosuresTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note
13 - Fair Value</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_2" id="_FairValueDisclosuresTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Contingent
Consideration&#160;</i></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_3" id="_FairValueDisclosuresTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Solo</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_4" id="_FairValueDisclosuresTextBlock-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with our acquisition of Solo, the Solo selling shareholders have the potential to earn the contingent consideration, which
is calculated as the lesser of (<ix:nonNumeric contextRef="c26" name="kern:BusinessCombinationContingentConsiderationArrangementDescription">i) $0.01 per solo*TAGTM and solo*CODETM sold or (ii) 7% of net revenue. The fees were to be paid annually
until the earlier of: (1) our shares trading above $12 per share for any consecutive 20 trading days in a 30-day period; (b) upon our
no longer owning a majority stake in Solo; or (c) upon expiration of the patents related to solo*TAGTM and solo*CODETM, which is December
1, 2029.</ix:nonNumeric></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

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

</div><!-- Field: Page; Sequence: 157; Value: 1 --><div>
    </div><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 -->56<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>








</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_5" id="_FairValueDisclosuresTextBlock-c26_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
record the fair value of the liability in the consolidated balance sheets under the caption &#8220;current contingent consideration&#8221;
and recognize changes to the liability against earnings or loss&#160;each reporting period until settlement.&#160;The fair value of the
contingent consideration on the date of the acquisition of Solo&#160;was $<ix:nonFraction contextRef="c288" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationLiability" scale="0" unitRef="usd">389,000</ix:nonFraction>.&#160;In&#160;connection with our exercise of the option
to acquire the remaining interest in Solo, the selling shareholders agreed to retrospectively and prospectively relieve the contingent
consideration obligation. Therefore, the settled value of the contingent consideration&#160;was&#160;$<ix:nonFraction contextRef="c289" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationConsiderationTransferred1" scale="0" unitRef="usd">0</ix:nonFraction>.&#160;We&#160;have recorded a
gain of $<ix:nonFraction contextRef="c289" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationLiability1" scale="0" unitRef="usd">389,000</ix:nonFraction> on settlement of the contingent&#160;consideration liability during the six months ended December 31, 2020&#160;in general
and administrative expenses in our consolidated statement of operations.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_6" id="_FairValueDisclosuresTextBlock-c26_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Trellis</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_7" id="_FairValueDisclosuresTextBlock-c26_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with our acquisition of Trellis, the Trellis selling shareholders have the potential to earn contingent consideration, which
is calculated as five times the annualized revenue of certain customers generated in September 2020. The fair value of the contingent
consideration on the date of acquisition of Trellis was $<ix:nonFraction contextRef="c196" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationLiability" scale="0" unitRef="usd">998,000</ix:nonFraction>. The carrying amount at the fair value of the liability for the contingent
consideration recorded on our consolidated balance sheet as of June 30, 2020&#160;was $<ix:nonFraction contextRef="c198" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationConsiderationTransferred1" scale="0" unitRef="usd">0</ix:nonFraction>. As such, we&#160;recorded a gain of $<ix:nonFraction contextRef="c290" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationLiability" scale="0" unitRef="usd">998,000</ix:nonFraction>
due the change in the fair value of the contingent&#160;consideration during the year ended June 30, 2020&#160;in general and administrative
expenses in our consolidated statement of operations.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_8" id="_FairValueDisclosuresTextBlock-c26_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Ample</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_9" id="_FairValueDisclosuresTextBlock-c26_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to the stock and cash consideration,&#160;the agreement provides for contingent consideration of up to CAD$<ix:nonFraction contextRef="c291" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationLiability" scale="0" unitRef="cad">10,000,000</ix:nonFraction>, payable
in exchangeable shares, payable if&#160;Ample's&#160;Recurring Revenue recognized during the 12&#160;months after the acquisition&#160;date
is CAD$<ix:nonFraction contextRef="c292" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherRecurringIncome" scale="0" unitRef="cad">9,000,000</ix:nonFraction>&#160;or more. <ix:nonNumeric contextRef="c292" name="kern:BusinessCombinationContingentConsiderationArrangementDescription">The contingent consideration amount is reduced by an amount equal to the product of CAD$6.67 multiplied
by the difference between CAD$9,000,000and the amount of Recurring Revenue realized during the twelve months following the acquisition.</ix:nonNumeric></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_10" id="_FairValueDisclosuresTextBlock-c26_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
record the fair value of the liability in the consolidated balance sheets as contingent consideration payable and recognize changes to
the liability against earnings or loss in general and administrative expenses in the consolidated statements of operations. The fair
value of the contingent consideration on the date of the acquisition of Ample&#160;was $<ix:nonFraction contextRef="c214" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationLiability" scale="0" unitRef="usd">604,000</ix:nonFraction>. The carrying amount at fair value of
the aggregate liability for the contingent consideration recorded on the consolidated balance sheet as of December 31, 2020,&#160;is
$<ix:nonFraction contextRef="c293" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationConsiderationTransferred1" scale="0" unitRef="usd">0</ix:nonFraction>. We have recorded a gain of $<ix:nonFraction contextRef="c293" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationLiability1" scale="0" unitRef="usd">604,000</ix:nonFraction> due the change in the fair value of the contingent consideration during the six months ended
December 31, 2020&#160;in general and administrative expenses in our consolidated statement of operations.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_11" id="_FairValueDisclosuresTextBlock-c26_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Viridian</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_12" id="_FairValueDisclosuresTextBlock-c26_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with our acquisition of Viridian, the Viridian selling shareholders have the potential to earn contingent consideration payable
in common stock if Viridian meets certain revenue criteria.&#160;The fair value of the contingent consideration on the date of acquisition
of Viridian was $<ix:nonFraction contextRef="c294" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationLiability" scale="0" unitRef="usd">2,000</ix:nonFraction>.&#160;The carrying amount at the fair value of the liability for the contingent consideration recorded on our
consolidated balance sheet as of December 31, 2021 was unchanged at $<ix:nonFraction contextRef="c295" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationLiability" scale="0" unitRef="usd">2,000</ix:nonFraction>.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

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

</div><!-- Field: Page; Sequence: 158; Value: 1 --><div>
    </div><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 -->57<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>







</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_13" id="_FairValueDisclosuresTextBlock-c26_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>365
Cannabis</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_14" id="_FairValueDisclosuresTextBlock-c26_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with our acquisition of 365 Cannabis, the 365 Cannabis selling shareholders have the potential to earn contingent consideration
payable in common stock if certain revenue criteria is met.&#160;The fair value of the contingent consideration on the date of acquisition
of 365 Cannabis was $<ix:nonFraction contextRef="c296" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationLiability" scale="0" unitRef="usd">6,300,000</ix:nonFraction>.&#160;The carrying amount at the fair value of the liability for the contingent consideration recorded
on our consolidated balance sheet as of December 31, 2021 was unchanged at $<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationContingentConsiderationLiability" scale="0" unitRef="usd">6,300,000</ix:nonFraction>.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_15" id="_FairValueDisclosuresTextBlock-c26_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
valued the contingent consideration using a probability-weighted discounted cash flow model, which incorporates inputs that are not observable
in the market and thus represents a Level 3 measurement as defined in GAAP. The unobservable inputs utilized for measuring the fair value
of the contingent consideration reflect management's own assumptions about the assumptions that market participants would use in valuing
the contingent consideration as of the valuation date, as well as our knowledge of specific transactions that effect the calculation.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 42.65pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_16" id="_FairValueDisclosuresTextBlock-c26_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Fair
Value Option&#160;Election &#8211; Convertible Notes</i></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_17" id="_FairValueDisclosuresTextBlock-c26_cont_16"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
issued Convertible Notes with a principal amount of $<ix:nonFraction contextRef="c126" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ConvertibleDebt" scale="6" unitRef="usd">17.0</ix:nonFraction>&#160;million at a purchase price of $<ix:nonFraction contextRef="c126" decimals="-5" format="ixt:num-dot-decimal" name="kern:DebtPurchasePrice" scale="6" unitRef="usd">15.0</ix:nonFraction>&#160;million on June 9, 2020. We
elected to account for the Convertible Notes using the fair value option. Under the fair value option, the financial liability is initially
measured at its issue-date estimated fair value and subsequently&#160;remeasured&#160;at estimated fair value on a recurring basis at
each reporting period date. The remaining estimated fair value adjustment is presented as a single line item within other income (expense)
in our consolidated statement of operations under the caption, change in fair value of convertible notes.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_18" id="_FairValueDisclosuresTextBlock-c26_cont_17"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the 2020 Notes, which are measured at fair value categorized within Level 3 of the fair value hierarchy, the following is a reconciliation
of the fair values from June 30, 2020&#160;to October 5, 2021:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_19" id="_FairValueDisclosuresTextBlock-c26_cont_18"><ix:nonNumeric contextRef="c26" continuedAt="_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock-c26_cont_1" escape="true" name="us-gaap:FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock"><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%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beginning fair value balance on
    June 30, 2020</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c89" decimals="0" format="ixt:num-dot-decimal" name="kern:ConvertibleDebtFairValueDisclosure" scale="0" unitRef="usd">14,131,000</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payments
    on Convertible Notes</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RepaymentsOfConvertibleDebt" scale="0" unitRef="usd">1,827,273</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Change
    in fair value reported in the statements of operations</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangesInFairValueReportedInStatementsOfOperations" scale="0" unitRef="usd">961,273</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Change
    in fair value reported in other comprehensive income</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueReportedInOtherComprehensiveIncome" scale="0" unitRef="usd">133,000</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ending fair value balance - December 31, 2020</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="kern:ConvertibleDebtFairValueDisclosure" scale="0" unitRef="usd">13,398,000</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payments on Convertible Notes</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c299" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RepaymentsOfConvertibleDebt" scale="0" unitRef="usd">15,172,727</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Change in fair value reported
    in the statements of operations</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c299" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangesInFairValueReportedInStatementsOfOperations" scale="0" unitRef="usd">2,030,904</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Change in fair value reported
    in other comprehensive income</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c299" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueReportedInOtherComprehensiveIncome" scale="0" sign="-" unitRef="usd">70,000</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gain
    on extinguishment of debt reported on the statement of operations</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c299" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GainsLossesOnExtinguishmentOfDebt" scale="0" sign="-" unitRef="usd">186,177</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ending fair value balance
    - October 5, 2021</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="-sec-ix-hidden: hidden-fact-388; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_20" id="_FairValueDisclosuresTextBlock-c26_cont_19"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
issued the Senior Secured Notes with a principal amount of $<ix:nonFraction contextRef="c128" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ConvertibleDebt" scale="6" unitRef="usd">20.0</ix:nonFraction>&#160;million&#160;at a purchase price of $<ix:nonFraction contextRef="c128" decimals="-5" format="ixt:num-dot-decimal" name="kern:DebtPurchasePrice" scale="6" unitRef="usd">18.0</ix:nonFraction>&#160;million on October
5, 2021. We have elected to account for the Senior Secured Notes using the fair value option. Under the fair value option, the financial
liability is initially measured at its issue-date estimated fair value and subsequently&#160;remeasured&#160;at estimated fair value
on a recurring basis at each reporting period date. The change in estimated fair value resulting from changes in instrument specific
credit risk is recorded in other comprehensive income as a component of equity. The remaining estimated fair value adjustment is presented
as a single line item within other income (expense) in our consolidated statement of operations under the caption, change in fair value
of convertible notes.&#160;&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_21" id="_FairValueDisclosuresTextBlock-c26_cont_20"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the Senior Secured Notes, which are measured at fair value categorized within Level&#160;3&#160;of the fair value hierarchy, the following
is a reconciliation of the fair values from&#160;October 5, 2021&#160;to&#160;December 31, 2021:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_22" id="_FairValueDisclosuresTextBlock-c26_cont_21"><ix:continuation id="_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock-c26_cont_1"><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%; padding-bottom: 4pt">Beginning fair value balance on October 5, 2021</td><td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; padding-bottom: 4pt; text-align: left">$</td><td style="width: 9%; padding-bottom: 4pt; text-align: right"><ix:nonFraction contextRef="c300" decimals="0" format="ixt:num-dot-decimal" name="kern:ConvertibleDebtFairValueDisclosure" scale="0" unitRef="usd">18,000,000</ix:nonFraction></td><td style="width: 1%; padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Payments on Convertible Notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-389">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Change in fair value reported in the statements of operations</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c301" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangesInFairValueReportedInStatementsOfOperations" scale="0" sign="-" unitRef="usd">665,000</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Change in fair value reported in other comprehensive income</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c301" decimals="0" format="ixt:num-dot-decimal" name="kern:ChangeInFairValueReportedInOtherComprehensiveIncome" scale="0" sign="-" unitRef="usd">30,000</ix:nonFraction></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="padding-bottom: 4pt">Ending fair value balance - December 31, 2021</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c302" decimals="0" format="ixt:num-dot-decimal" name="kern:ConvertibleDebtFairValueDisclosure" scale="0" unitRef="usd">17,305,000</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation></ix:continuation><div>

</div><div>

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

</div><!-- Field: Page; Sequence: 159; Value: 1 --><div>
    </div><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 -->58<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>









</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_23" id="_FairValueDisclosuresTextBlock-c26_cont_22"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
estimated fair value of the Convertible Notes as of December 31, 2021, and&#160;December 31, 2020&#160;was computed using a Monte Carlo
simulation, which incorporates significant inputs that are not observable in the market, and thus represents a Level 3 measurement as
defined by GAAP. &#160;The unobservable inputs utilized for measuring the fair value of the Convertible Notes reflects our assumptions
about the assumptions that market participants would use in valuing the Convertible Notes as of the issuance date and subsequent reporting
period.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_24" id="_FairValueDisclosuresTextBlock-c26_cont_23"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
determined the fair value by using the following key inputs to the Monte Carlo Simulation Model:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_25" id="_FairValueDisclosuresTextBlock-c26_cont_24"><ix:nonNumeric contextRef="c26" escape="true" name="kern:ScheduleOfFairValueByUsingKeyInputsToTheMonteCarloSimulationModeltableTextBlock"><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; font-weight: bold">Fair Value Assumptions - Convertible Notes</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">December&#160;31, <br/>
2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">December&#160;31, <br/>
2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Face value principal payable</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c139" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentFaceAmount" scale="0" unitRef="usd">20,000,000</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c303" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentFaceAmount" scale="0" unitRef="usd">15,172,272</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Original conversion price</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c139" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPrice1" scale="0" unitRef="usdPershares">4.05</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c303" decimals="1" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPrice1" scale="0" unitRef="usdPershares">11.5</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Value of Common Stock</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c139" decimals="2" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsValueOfCommonStock" scale="0" unitRef="usdPershares">1.75</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c303" decimals="2" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsValueOfCommonStock" scale="0" unitRef="usdPershares">3.24</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Expected term (years)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonNumeric contextRef="c141" format="ixt-sec:duryear" name="kern:FairValueAssumptionExpectedTerms">2.8</ix:nonNumeric></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonNumeric contextRef="c304" format="ixt-sec:duryear" name="kern:FairValueAssumptionExpectedTerms">2.3</ix:nonNumeric></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Volatility</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c141" decimals="2" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsVolatilityRate" scale="-2" unitRef="pure">75</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c304" decimals="2" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsVolatilityRate" scale="-2" unitRef="pure">77</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Market yield (range)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c141" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsMarketYieldRate" scale="-2" unitRef="pure">37.1</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<ix:nonFraction contextRef="c305" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsMarketYieldRate" scale="-2" unitRef="pure">27.1</ix:nonFraction> to <ix:nonFraction contextRef="c306" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsMarketYieldRate" scale="-2" unitRef="pure">27.2</ix:nonFraction></span></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Risk free rate</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c141" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionRiskFreeInterestRate" scale="-2" unitRef="pure">1.0</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c304" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionRiskFreeInterestRate" scale="-2" unitRef="pure">0.1</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Issue date</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="white-space: nowrap; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonNumeric contextRef="c141" format="ixt:date-monthname-day-year-en" name="us-gaap:DebtInstrumentIssuanceDate1">October
5, 2021</ix:nonNumeric>&#160;</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="white-space: nowrap; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June
9, 2020&#160;</span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Maturity date</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonNumeric contextRef="c141" format="ixt:date-monthname-day-year-en" name="us-gaap:DebtInstrumentMaturityDate">October 5, 2024</ix:nonNumeric>&#160;</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 1, 2023&#160;</span></td><td style="text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_26" id="_FairValueDisclosuresTextBlock-c26_cont_25"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; "><b><i>Fair
Value Measurement &#8211; Warrants</i></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_27" id="_FairValueDisclosuresTextBlock-c26_cont_26"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with MTech Acquisition Corp.'s ("MTech") initial public offering, MTech sold <ix:nonFraction contextRef="c297" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights" scale="0" unitRef="shares">5,750,000</ix:nonFraction> units at a purchase price
of $<ix:nonFraction contextRef="c297" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">10.00</ix:nonFraction> per unit, inclusive of <ix:nonFraction contextRef="c297" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">750,000</ix:nonFraction> units sold to the underwriters on February 8, 2018, upon the underwriters&#8217; election to
fully exercise their over-allotment option. Each unit consisted of one share of MTech&#8217;s common stock and one warrant of MTech (&#8220;MTech
Public Warrant&#8221;). Each MTech Public Warrant entitled the holder to purchase one share of MTech&#8217;s common stock at an exercise
price of $<ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">11.50</ix:nonFraction>. Concurrently with MTech&#8217;s initial public offering, MTech sold <ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">243,750</ix:nonFraction> units at a purchase price of $<ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">10.00</ix:nonFraction> per
unit on a private offering basis. Each unit consisted of one share of MTech&#8217;s common stock and one warrant of MTech (&#8220;MTech
Private Warrant&#8221;). Each MTech Private Warrant entitled the holder to purchase one share of MTech&#8217;s common stock at an exercise
price of $<ix:nonFraction contextRef="c298" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">11.50</ix:nonFraction>.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_28" id="_FairValueDisclosuresTextBlock-c26_cont_27"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
completion of the mergers between MTech and MJF on June 17, 2019, as contemplated by the Merger Agreement dated October 10, 2018, as
amended ("Mergers"), the MTech Public Warrants and the MTech Private Warrants were converted, respectively, at an exchange
ratio of one-for-one to a warrant to purchase one share of Akerna&#8217;s common stock with identical terms and conditions as the MTech
Public Warrants (&#8220;Public Warrant&#8221;) and the MTech Private Warrants (&#8220;Private Warrant&#8221;, collectively with the Public
Warrants, &#8220;Warrants&#8221;) In connection with the completion of the Mergers, we also issued <ix:nonFraction contextRef="c30" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights" scale="0" unitRef="shares">189,365</ix:nonFraction> common stock purchase warrants
upon the cashless exercise of a unit purchase option, which warrants have identical terms to the Public Warrants and are included in
references to Public Warrants and Warrants herein.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_29" id="_FairValueDisclosuresTextBlock-c26_cont_28"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the Private Warrants classified as derivative liabilities, which are measured at fair value categorized within Level 3 of the fair value
hierarchy, the following is a reconciliation of the fair values for the year ended December 31, 2021 and December 31, 2020:&#160;&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_30" id="_FairValueDisclosuresTextBlock-c26_cont_29"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:FairValueAssetsMeasuredOnNonrecurringBasisTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Year
    Ended December 31,</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fair value balance at beginning
    of period</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs" scale="0" unitRef="usd">311,376</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c307" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs" scale="0" unitRef="usd">688,187</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Change
    in fair value reported in the statements of operations</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationGainLossIncludedInEarnings" scale="0" sign="-" unitRef="usd">248,198</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c222" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationGainLossIncludedInEarnings" scale="0" sign="-" unitRef="usd">376,811</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fair value balance at end
    of period</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs" scale="0" unitRef="usd">63,178</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisWithUnobservableInputs" scale="0" unitRef="usd">311,376</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_31" id="_FairValueDisclosuresTextBlock-c26_cont_30"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
utilized a binomial lattice model, which incorporates significant inputs, specifically the expected volatility, that are not observable
in the market, and thus represents a Level 3 measurement as defined in GAAP. The unobservable inputs utilized for measuring the fair
value of the Private Warrants reflect our estimates regarding the assumptions that market participants would use in valuing the Warrants
as of the end of the reporting periods.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

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

</div><!-- Field: Page; Sequence: 160; Value: 1 --><div>
    </div><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 -->59<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>









</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_32" id="_FairValueDisclosuresTextBlock-c26_cont_31"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
record the fair value of the&#160;Private&#160;Warrants in the consolidated balance sheets under the caption &#8220;derivative liability&#8221;
and recognize changes to the liability against earnings or loss each reporting period. Upon exercise of the&#160;Private&#160;Warrants,
holders will receive a delivery of Akerna shares on a net or gross share basis per the terms of the&#160;Private&#160;Warrants and any
exercise will reclassify the&#160;Private&#160;Warrants, at the time of exercise, to shareholder&#8217;s equity to reflect the equity
transaction.&#160;&#160;There are no periodic settlements prior to the holder exercising the&#160;Private&#160;Warrants. There were no
transfers in or out of Level 3 from other levels for the fair value hierarchy.&#160; &#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c26_cont_33" id="_FairValueDisclosuresTextBlock-c26_cont_32"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
estimated the fair value by using the following key inputs:&#160;&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.35pt; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_FairValueDisclosuresTextBlock-c26_cont_33"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock"><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; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fair
    Value Assumptions -&#160;Private&#160;Warrants</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">December
    31, <br/>
2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">December
    31, <br/>
2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Number of Private&#160;Warrants</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c143" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">225,635</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c144" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">225,635</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Original conversion price</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c143" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPrice1" scale="0" unitRef="usdPershares">11.50</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c144" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPrice1" scale="0" unitRef="usdPershares">11.50</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Value of Common Stock</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c143" decimals="2" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsValueOfCommonStock" scale="0" unitRef="usdPershares">1.75</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c144" decimals="2" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsValueOfCommonStock" scale="0" unitRef="usdPershares">3.24</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expected term (years)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><ix:nonNumeric contextRef="c148" format="ixt-sec:duryear" name="kern:FairValueAssumptionExpectedTerms"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.46</span></ix:nonNumeric></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><ix:nonNumeric contextRef="c308" format="ixt-sec:duryear" name="kern:FairValueAssumptionExpectedTerms"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.46</span></ix:nonNumeric></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Volatility</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c143" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsVolatilityPercentage" scale="-2" unitRef="pure">85.8</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c144" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionsVolatilityPercentage" scale="-2" unitRef="pure">102.3</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk free rate</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c148" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionRiskFreeInterestRate" scale="-2" unitRef="pure">0.8</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c308" decimals="3" format="ixt:num-dot-decimal" name="kern:FairValueAssumptionRiskFreeInterestRate" scale="-2" unitRef="pure">0.2</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td></tr>
  </table></ix:nonNumeric></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_1" escape="true" name="us-gaap:CommitmentsAndContingenciesDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note
14 - Commitments and Contingencies</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_2" id="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Operating
Leases</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_3" id="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2021, we had one facility under a non-cancelable operating leases in Las Vegas. Rent expense for the year ended December
31, 2021, six months ended December 31, 2020 and the year ended June 30, 2020 was $<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LeaseAndRentalExpense" scale="0" unitRef="usd">157,593</ix:nonFraction>, $<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LeaseAndRentalExpense" scale="0" unitRef="usd">552,861</ix:nonFraction>, and $<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LeaseAndRentalExpense" scale="0" unitRef="usd">299,629</ix:nonFraction> respectively.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 46pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_4" id="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Future
minimum lease payments under these leases are as follows:&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_5" id="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_4"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:ScheduleOfFutureMinimumLeasePaymentsForCapitalLeasesTableTextBlock"><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: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2022</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeasesFutureMinimumPaymentsDueInTwoYears" scale="0" unitRef="usd">252,525</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2023</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeasesFutureMinimumPaymentsDueInThreeYears" scale="0" unitRef="usd">260,100</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2024</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeasesFutureMinimumPaymentsDueInFourYears" scale="0" unitRef="usd">110,480</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeasesFutureMinimumPaymentsDue" scale="0" unitRef="usd">623,105</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_6" id="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the third quarter of 2021, we reached an agreement to terminate our office lease in Toronto, Canada for a termination fee of approximately
$<ix:nonFraction contextRef="c309" decimals="0" format="ixt:num-dot-decimal" name="kern:TerminationFee" scale="0" unitRef="usd">980,000</ix:nonFraction>, which is included within the General and Administrative expense line item on the condensed consolidated statement of operations
and was paid in full during the year ended December 31, 2021. In connection with the lease termination, we also wrote off certain assets,
primarily leasehold improvements, and the resulting loss of $<ix:nonFraction contextRef="c310" decimals="0" format="ixt:num-dot-decimal" name="kern:AssetsWrittenOff" scale="0" unitRef="usd">1,045,209</ix:nonFraction> was also recorded in the General and Administrative expense line
item on the condensed consolidated statement of operations.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_7" id="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the four quarter of 2020, we reached an agreement to terminate our office lease in Denver, CO. The lease termination agreement included
the forfeiture of our $<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SecurityDeposit" scale="0" unitRef="usd">41,250</ix:nonFraction> security deposit and a termination fee of $<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:TerminationFee" scale="0" unitRef="usd">402,480</ix:nonFraction>. The lease termination fee was settled in the first
quarter of 2021 by issuing&#160;<ix:nonFraction contextRef="c311" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" scale="0" unitRef="shares">113,375</ix:nonFraction> shares of common stock, calculated using a VWAP of $<ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharePrice" scale="0" unitRef="usdPershares">3.55</ix:nonFraction>/share.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 46pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_8" id="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Letter-of-Credit</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_9" id="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2021&#160;and December 31, 20<span>20, we had a standby letter-of-credit with a bank
in the amount of $</span><ix:nonFraction contextRef="c312" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LineOfCredit" scale="0" unitRef="usd">500,000</ix:nonFraction><span>. The standby letter of credit is collateralized by $</span><ix:nonFraction contextRef="c312" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCash" scale="0" unitRef="usd">500,000</ix:nonFraction>
<span>of cash, which is classified as restricted cash on our consolidated balance sheets. The beneficiary
of the letter-of-credit is an insurance company.</span></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 161; Value: 1 --><div>
    </div><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 -->60<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_10" id="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Litigation</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; "> &#160; </span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_11" id="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 4, 2020,&#160;TechMagic USA LLC filed suit against our wholly-owned subsidiary, Solo, in Massachusetts Superior Court, Department
Business Litigation, seeking recovery of up to approximately $<ix:nonFraction contextRef="c313" decimals="-4" format="ixt:num-dot-decimal" name="us-gaap:LitigationReserve" scale="6" unitRef="usd">1.07</ix:nonFraction>&#160;million for unpaid invoices pursuant to a Master Services Agreement
dated February 5, 2018 by and between TechMagic and Solo. The invoices set forth services that&#160;TechMagic USA LLC purports to have
provided to Solo regarding development of mobile software applications for MJF and Solo between March and November 2020 totaling approximately
$<ix:nonFraction contextRef="c314" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LitigationSettlementExpense" scale="0" unitRef="usd">787,000</ix:nonFraction>. The suit seeks continued fees under the Master Services Agreement through the end of January 2021. Akerna provided a notice
of termination of the Master Services Agreement on November 23, 2020 and the parties dispute the effective date of the termination. Solo
disputes the validity of the invoices, in whole or in part, and intends to defend the suit vigorously. Mr. Ashesh Shah, formerly the
president of Solo and currently the holder of less than <ix:nonFraction contextRef="c315" decimals="2" format="ixt:num-dot-decimal" name="kern:IssuedAndOutstandingSharesPercentage" scale="-2" unitRef="pure">5</ix:nonFraction>% of our issued and outstanding shares of common stock is, to our knowledge,
the founder and one of the principal managers of TechMagic USA LLC. As of December 31, 2021 and December 31, 2020, we recognized a loss
contingency of $<ix:nonFraction contextRef="c26" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:LossContingencyAccrualPayments" scale="6" unitRef="usd">0.5</ix:nonFraction> million and $<ix:nonFraction contextRef="c222" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:LossContingencyAccrualPayments" scale="6" unitRef="usd">0.6</ix:nonFraction> million, respectively.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_12" id="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 2, 2021, TreCom Systems Group, Inc. (&#8220;TreCom&#8221;) filed suit against Akerna and our wholly-owned subsidiary, MJ Freeway,
LLC, in federal District Court for the Eastern District of Pennsylvania, seeking recovery of up to approximately $<ix:nonFraction contextRef="c316" decimals="-6" format="ixt:num-dot-decimal" name="us-gaap:LitigationReserve" scale="6" unitRef="usd">2</ix:nonFraction>&#160;million for
services&#160;allegedly provided pursuant to a Subcontractor Agreement between MJ Freeway and TreCom. MJ Freeway provided a notice of
termination of the operative Subcontractor Agreement on August 4, 2020. MJ Freeway disputes the validity of TreCom&#8217;s invoices&#160;and
the enforceability of the alleged agreement that TreCom submitted to the court. Akerna filed counterclaims against TreCom for breach
of contract, a declaratory judgment, commercial disparagement, and defamation.&#160;TreCom failed to return Akerna&#8217;s intellectual
property and issued numerous disparaging statements to&#160;one&#160;of Akerna&#8217;s clients.&#160;TreCom&#160;subsequently&#160;filed
a motion to dismiss these counterclaims, which was denied by the court.&#160;Akerna intends to vigorously defend against TreCom&#8217;s
claims, and pursue its own claims. As of December 31, 2021 and December 31, 2020, we recognized a loss contingency of $<ix:nonFraction contextRef="c317" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:LossContingencyAccrualPayments" scale="6" unitRef="usd">0.2</ix:nonFraction> million and
$<ix:nonFraction contextRef="c318" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LossContingencyAccrualPayments" scale="0" unitRef="usd">0</ix:nonFraction>, respectively.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.35pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_13" id="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
May 21, 2021, our wholly-owned subsidiary, Solo, filed suit against two of Solo&#8217;s former directors, Ashesh Shah and Palle Pedersen.&#160;&#160;Solo
seeks recovery for Mr. Shah&#8217;s intentional interference with contractual relations, and the defendants&#8217; breaches of various
fiduciary duties owed to Solo.&#160;&#160;Defendant Shah engaged in improper communications with Solo&#8217;s customers with the intent
that those customers cease their contractual relations with Solo.&#160;&#160;The defendants also entered into an improper contract with
a contractual counter party that the defendants had a conflict of interest with.&#160;&#160;The defendants have not asserted any counterclaims,
and we therefore have not recognized a loss contingency.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_14" id="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. We
will accrue a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated.
When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range
is a better estimate than any other amount within the range, the minimum amount in the range is accrued. The accrual for a litigation
loss contingency might include, for example, estimates of potential damages, outside legal fees and other directly related costs expected
to be incurred. As of December 31, 2021, and&#160;through the date these consolidated financial statements were issued, there were no
other legal proceedings requiring recognition or disclosure in the consolidated financial statements.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_15" id="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Employee
Benefit Plan</i></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_CommitmentsAndContingenciesDisclosureTextBlock-c26_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have a 401(k) Plan (the &#8220;Plan&#8221;) to provide retirement benefits for our employees. Employees may contribute up to a portion
of their annual compensation to the Plan, limited to a maximum annual amount as updated annually by the IRS. We do not offer a match
of employee contributions nor any discretionary contributions.&#160;</span></p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

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

</div><!-- Field: Page; Sequence: 162; Value: 1 --><div>
    </div><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 -->61<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.&#160;</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_IncomeTaxDisclosureTextBlock-c26_cont_1" escape="true" name="us-gaap:IncomeTaxDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note
15 - Income Taxes</b>&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c26_cont_2" id="_IncomeTaxDisclosureTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since
June 17, 2019, we have been the sole owner of MJF, which is a disregarded entity for federal income taxes. Prior to June 17, 2019 MJF
was treated as a partnership for U.S income tax purposes. Accordingly, prior to the business combination, our taxable income and losses
were reported on the income tax returns of MJF&#8217;s members. Therefore, no income tax is provided prior to June 17, 2019.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c26_cont_3" id="_IncomeTaxDisclosureTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 27, 2020 the Coronavirus Aid, Relief and Economic Security Act, or the CARES Act, was enacted in response to the COVID-19 pandemic.
It was determined the CARES Act did not materially impact our tax provision as of December 31, 2021 and December 31, 2020.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c26_cont_4" id="_IncomeTaxDisclosureTextBlock-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accounting for the business combinations of Viridian and 365 Cannabis reflected in the accompanying consolidated financial statements
is preliminary and is based upon estimates and assumptions that are subject to change within the measurement period (up to one year from
the acquisition date). The measurement period remains open pending the completion of valuation procedures related to the acquired assets
and assumed liabilities, intangible assets and income taxes.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c26_cont_5" id="_IncomeTaxDisclosureTextBlock-c26_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
April 2020, we were granted a loan, or the PPP Loan, from a lender in the aggregate amount of $<ix:nonFraction contextRef="c319" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:BridgeLoan" scale="6" unitRef="usd">2.2</ix:nonFraction> million pursuant to the Paycheck Protection
Program under the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, which we obtained debt forgiveness on during
the year ended December 31, 2021.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c26_cont_6" id="_IncomeTaxDisclosureTextBlock-c26_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth the expense or benefit for income taxes:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c26_cont_7" id="_IncomeTaxDisclosureTextBlock-c26_cont_6"><ix:nonNumeric contextRef="c26" continuedAt="_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock-c26_cont_1" escape="true" name="us-gaap:ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Year
    Ended <br/>
December 31,</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Six
    Months <br/>
Ended <br/>
December 31,</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Year
    Ended <br/>
June 30,</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Income tax</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Current income taxes</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; width: 64%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S.
    federal</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-390; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-391; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;&#160;&#160;&#8212;</span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CurrentFederalTaxExpenseBenefit" scale="0" unitRef="usd">30,985</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S.
    state</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CurrentStateAndLocalTaxExpenseBenefit" scale="0" unitRef="usd">5,800</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CurrentStateAndLocalTaxExpenseBenefit" scale="0" unitRef="usd">200</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Foreign</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CurrentForeignTaxExpenseBenefit" scale="0" unitRef="usd">6,270</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-392; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
    current income taxes</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CurrentIncomeTaxExpenseBenefit" scale="0" unitRef="usd">12,070</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CurrentIncomeTaxExpenseBenefit" scale="0" unitRef="usd">200</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CurrentIncomeTaxExpenseBenefit" scale="0" unitRef="usd">30,985</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c26_cont_8" id="_IncomeTaxDisclosureTextBlock-c26_cont_7"><ix:continuation id="_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock-c26_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Year
    Ended <br/>
December 31,</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Six
    Months <br/>
Ended <br/>
December 31,</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Year
    Ended <br/>
June 30,</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deferred income tax</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; width: 64%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S.
    federal</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredFederalIncomeTaxExpenseBenefit" scale="0" sign="-" unitRef="usd">2,274,295</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-393; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;&#160;&#160;&#160;&#8212;</span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-394; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S.
    state</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-395; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-396; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-397; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total deferred income tax
    benefit</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredIncomeTaxExpenseBenefit" scale="0" sign="-" unitRef="usd">2,274,295</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="-sec-ix-hidden: hidden-fact-398; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="-sec-ix-hidden: hidden-fact-399; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c26_cont_9" id="_IncomeTaxDisclosureTextBlock-c26_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth reconciliations of the income tax expense at the statutory federal income tax rate to actual expense based
on income or loss before income taxes:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c26_cont_10" id="_IncomeTaxDisclosureTextBlock-c26_cont_9"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Year
    Ended <br/>
December 31,</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Six
    Months <br/>
Ended <br/>
December 31,</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June
    30,</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Income tax expense (benefit) attributable to:</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; width: 64%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Federal</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate" scale="0" sign="-" unitRef="usd">6,692,267</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate" scale="0" sign="-" unitRef="usd">3,560,998</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate" scale="0" sign="-" unitRef="usd">3,255,706</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">State,
    net of federal benefit</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationStateAndLocalIncomeTaxes" scale="0" sign="-" unitRef="usd">672,148</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationStateAndLocalIncomeTaxes" scale="0" sign="-" unitRef="usd">553,871</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationStateAndLocalIncomeTaxes" scale="0" sign="-" unitRef="usd">862,690</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Foreign
    tax rate differential</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationTaxSettlementsForeign" scale="0" sign="-" unitRef="usd">138,292</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationTaxSettlementsForeign" scale="0" unitRef="usd">29,617</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationTaxSettlementsForeign" scale="0" sign="-" unitRef="usd">2,645</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Permanent
    differences</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationChangeInEnactedTaxRate" scale="0" unitRef="usd">2,428,631</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationChangeInEnactedTaxRate" scale="0" unitRef="usd">1,263,151</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationChangeInEnactedTaxRate" scale="0" unitRef="usd">312,525</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rate
    change</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:RateChange" scale="0" unitRef="usd">54,295</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="kern:RateChange" scale="0" unitRef="usd">60,220</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-400; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Changes
    in valuation allowance</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance" scale="0" unitRef="usd">3,361,603</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance" scale="0" unitRef="usd">2,762,081</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance" scale="0" unitRef="usd">3,884,440</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Provision
    to return adjustment</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:IncomeTaxReconciliationProvisionReturnAdjustment" scale="0" unitRef="usd">273,489</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-401; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="kern:IncomeTaxReconciliationProvisionReturnAdjustment" scale="0" sign="-" unitRef="usd">45,134</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Losses
    from flow-through entity not subject to tax</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-402; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-403; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-404; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deferred
    True-Ups</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="kern:DeferredTrueUps" scale="0" sign="-" unitRef="usd">928,743</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-405; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-406; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
    adjustments</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationOtherAdjustments" scale="0" unitRef="usd">51,207</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-407; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationOtherAdjustments" scale="0" unitRef="usd">195</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Effective
    income tax expense (benefit)</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" sign="-" unitRef="usd">2,262,225</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">200</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">30,985</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric></ix:continuation><div>









</div><div>

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

</div><!-- Field: Page; Sequence: 163; Value: 1 --><div>
    </div><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 -->62<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c26_cont_11" id="_IncomeTaxDisclosureTextBlock-c26_cont_10"><ix:nonNumeric contextRef="c26" escape="true" name="us-gaap:ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">December
    31,</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">December
    31,</span></td><td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Noncurrent deferred tax assets:</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; width: 76%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Employee
    compensation</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAllowanceForDoubtfulAccounts" scale="0" unitRef="usd">820,410</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAllowanceForDoubtfulAccounts" scale="0" unitRef="usd">679,106</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Debt
    issuance costs</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:DeferredTaxAssetsDebtIssuanceCosts" scale="0" unitRef="usd">138,778</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="kern:DeferredTaxAssetsDebtIssuanceCosts" scale="0" unitRef="usd">343,612</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue
    recognition</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:DeferredTaxAssetsRevenueRecognition" scale="0" unitRef="usd">105,735</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-408; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    accrual</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsLegalSettlements" scale="0" unitRef="usd">146,604</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsLegalSettlements" scale="0" unitRef="usd">182,896</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fixed
    assets</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="kern:DeferredTaxAssetsFixedAssets" scale="0" unitRef="usd">242,006</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="kern:DeferredTaxAssetsFixedAssets" scale="0" unitRef="usd">831,196</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Federal
    and state net operating loss</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsCharitableContributionCarryforwards" scale="0" unitRef="usd">10,673,908</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsCharitableContributionCarryforwards" scale="0" unitRef="usd">6,337,897</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Foreign
    net operating loss</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsOperatingLossCarryforwardsStateAndLocal" scale="0" unitRef="usd">4,904,857</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsOperatingLossCarryforwardsStateAndLocal" scale="0" unitRef="usd">2,586,671</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsOther" scale="0" unitRef="usd">225,340</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsOther" scale="0" unitRef="usd">27,410</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
    deferred tax assets</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsLiabilitiesNet" scale="0" unitRef="usd">17,257,638</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsLiabilitiesNet" scale="0" unitRef="usd">10,988,788</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Noncurrent deferred tax liabilities:</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fixed
    assets</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-409; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-410; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intangibles</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsGoodwillAndIntangibleAssets" scale="0" unitRef="usd">6,051,459</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsGoodwillAndIntangibleAssets" scale="0" unitRef="usd">2,717,717</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deferred tax liabilities</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxLiabilities" scale="0" unitRef="usd">6,051,459</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxLiabilities" scale="0" unitRef="usd">2,717,717</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Valuation
    allowance</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsValuationAllowance" scale="0" unitRef="usd">11,881,470</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsValuationAllowance" scale="0" unitRef="usd">8,271,071</ix:nonFraction></span></td><td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deferred
    taxes after valuation allowance</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsNet" scale="0" unitRef="usd">675,291</ix:nonFraction></span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="padding-bottom: 4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="border-bottom: Black 4pt double; text-align: right"><span style="-sec-ix-hidden: hidden-fact-411; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="padding-bottom: 4pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c26_cont_12" id="_IncomeTaxDisclosureTextBlock-c26_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the year ended December 31, 2021, valuation allowances on deferred tax assets that are not anticipated to be realized increased by $<ix:nonFraction contextRef="c26" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ValuationAllowanceDeferredTaxAssetChangeInAmount" scale="6" unitRef="usd">3.6</ix:nonFraction>
million&#160;of which $<ix:nonFraction contextRef="c26" decimals="-5" format="ixt:num-dot-decimal" name="kern:PurchasePriceValue" scale="6" unitRef="usd">0.2</ix:nonFraction> million was recorded in purchase accounting and the remainder of $<ix:nonFraction contextRef="c2" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxLiabilitiesDeferredExpense" scale="6" unitRef="usd">3.4</ix:nonFraction> million was recorded to deferred expense.
During the six months ended December 31, 2020, valuation allowances on deferred tax assets that are not anticipated to be realized increased
by $<ix:nonFraction contextRef="c27" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ValuationAllowanceDeferredTaxAssetChangeInAmount" scale="6" unitRef="usd">5.5</ix:nonFraction> million of which $<ix:nonFraction contextRef="c27" decimals="-5" format="ixt:num-dot-decimal" name="kern:PurchasePriceValue" scale="6" unitRef="usd">2.7</ix:nonFraction> million was recorded in purchase accounting and the remainder of $<ix:nonFraction contextRef="c7" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxLiabilitiesDeferredExpense" scale="6" unitRef="usd">2.8</ix:nonFraction> million was recorded to deferred
expense. &#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c26_cont_13" id="_IncomeTaxDisclosureTextBlock-c26_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
deferred tax valuation allowances are primarily the result of uncertainties regarding the future realization of recorded tax benefits
on tax losses. The measurement of deferred tax assets is reduced by a valuation allowance if based upon available evidence, it is more
likely than not that the deferred tax assets will not be realized. We have evaluated the realizability of our deferred tax assets in
each jurisdiction by assessing the adequacy of expected taxable income, including the reversal of existing temporary differences, historical
and projected operating results, and the availability of prudent and feasible tax planning strategies. Based on this analysis, we have
determined that the valuation allowances recorded as of December 31, 2021 and December 31, 2020 are appropriate.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c26_cont_14" id="_IncomeTaxDisclosureTextBlock-c26_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have deferred tax assets related to U.S. federal tax and state tax carryforwards for net operating losses in the amount of&#160;$<ix:nonFraction contextRef="c7" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsOperatingLossCarryforwards" scale="6" unitRef="usd">44.5</ix:nonFraction>
million. The majority of U.S. federal net operating loss carryforwards&#160;are carried forward indefinitely. Federal net operating losses
generated after 2017 have an indefinite carryforward and are only available to offset 80% taxable income beginning in 2021. U.S. state
net operating loss carryforwards&#160;expire at various dates of which the majority begin to expire in 2039.&#160;<ix:nonNumeric contextRef="c26" name="us-gaap:OtherInformationPertainingToIncomeTaxes">We have deferred tax
assets related to foreign net operating loss carryforward, which begin to expire in 2034, in the amount of $18.5 million.</ix:nonNumeric></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 48pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_IncomeTaxDisclosureTextBlock-c26_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are not currently under examination for any of the major jurisdictions where we conduct business as of December 31, 2021, however, all
of our tax years remain subject to examination. Our management does not believe there are significant uncertain tax positions in 2021&#160;and
as a result we do not expect any cash payments in the next 12 months, however, uncertain tax positions related to potential penalties
in the amounts of $<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued" scale="0" unitRef="usd">30,000</ix:nonFraction> and $<ix:nonFraction contextRef="c89" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued" scale="0" unitRef="usd">50,000</ix:nonFraction> have been recorded in connection with business combinations during the years ended December 31,
2021 and June 30, 2020, respectively. There is no interest related to uncertain tax positions in 2021 or 2020.</span></p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

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

</div><!-- Field: Page; Sequence: 164; Value: 1 --><div>
    </div><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 -->63<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>








</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA
CORP.</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes
to Consolidated Financial Statements</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><ix:nonNumeric contextRef="c26" continuedAt="_CondensedFinancialStatementsTextBlock-c26_cont_1" escape="true" name="pf0:CondensedFinancialStatementsTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note
16 - Revisions of Previously Issued Financial Statements</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_CondensedFinancialStatementsTextBlock-c26_cont_2" id="_CondensedFinancialStatementsTextBlock-c26_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 17, 2019, we completed the Mergers with MTech. Prior to the Mergers, MTech was a special purpose acquisition company and had completed
an initial public offering in October 2018, which included the issuances of the MTech Private Warrants in a simultaneous private placement
transaction. The MTech Private Warrants were exchanged for our Private Warrants as part of the Mergers and our Private Warrants remain
outstanding as of December 31, 2021.&#160;We initially accounted for these outstanding Private Warrants as components of equity rather
than as derivative liabilities. In light of the Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special
Purpose Acquisition Companies (&#8220;SPACs&#8221;) issued by the staff of the SEC on April 12, 2021 (the &#8220;SEC Staff Statement&#8221;),
the Company&#8217;s management further evaluated our outstanding warrants under Accounting Standards Codification 815-40, Contracts in
Entity&#8217;s Own Equity (&#8220;ASC 815-40&#8221;), which addresses equity versus liability treatment and classification of equity-linked
financial instruments, including warrants, and states that a warrant may be classified as a component of equity only if, among other
things, the warrant is indexed to the issuer&#8217;s common stock.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CondensedFinancialStatementsTextBlock-c26_cont_3" id="_CondensedFinancialStatementsTextBlock-c26_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
on management&#8217;s evaluation and in consultation with the Audit Committee, we concluded that the Company&#8217;s Private Warrants
are not indexed to the Company&#8217;s common stock in the manner contemplated by ASC Section 815-40.&#160;As a result, these warrants
are precluded from equity classification and should be recorded as derivative liabilities remeasured to fair value at each reporting
period. We assessed the materiality of these errors on prior periods&#8217; consolidated financial statements and concluded that the
errors were not material to any prior annual or interim periods. However, we have revised the prior period financial information included
in these consolidated financial statements to&#160;reclassify the Private Warrants as derivative liabilities measured at their estimated
fair values at the end of each reporting period and recognized changes in the estimated fair value of the derivative instruments from
the prior period in the Company&#8217;s operating results.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CondensedFinancialStatementsTextBlock-c26_cont_4" id="_CondensedFinancialStatementsTextBlock-c26_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company's change in accounting for the Private Warrants from components of equity to derivative liabilities has no impact on the Company's
current or previously reported cash position.&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CondensedFinancialStatementsTextBlock-c26_cont_5" id="_CondensedFinancialStatementsTextBlock-c26_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
tables below disclose the effects on the consolidated financial statements included in this Annual Report on Form 10-K:&#160;</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CondensedFinancialStatementsTextBlock-c26_cont_6" id="_CondensedFinancialStatementsTextBlock-c26_cont_5"><ix:nonNumeric contextRef="c26" continuedAt="_ScheduleOfCondensedIncomeStatementTableTextBlock-c26_cont_1" escape="true" name="pf0:ScheduleOfCondensedIncomeStatementTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Year
    Ended June 30, 2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
    reported</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adjustment</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<b>As
    revised</b> &#160;</span></td><td style="padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated&#160;Statements&#160;of
    Operations</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Change in fair
    value of derivative liability</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-412; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;&#8212;</span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c321" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:UnrealizedGainLossOnDerivatives" scale="0" unitRef="usd">1,962,034</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c322" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:UnrealizedGainLossOnDerivatives" scale="0" unitRef="usd">1,962,034</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net loss&#160;attributable
    to Akerna shareholders</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c320" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="0" sign="-" unitRef="usd">15,534,345</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c321" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="0" unitRef="usd">1,962,034</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c322" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="0" sign="-" unitRef="usd">13,572,311</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net loss per share</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c320" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" sign="-" unitRef="usdPershares">1.31</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-413; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c322" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" sign="-" unitRef="usdPershares">1.14</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p></ix:nonNumeric></ix:continuation><div>


</div><div>



</div><ix:continuation continuedAt="_CondensedFinancialStatementsTextBlock-c26_cont_7" id="_CondensedFinancialStatementsTextBlock-c26_cont_6"><ix:continuation id="_ScheduleOfCondensedIncomeStatementTableTextBlock-c26_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As reported</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Adjustment</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As revised</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Condensed Consolidated Statements of Operations</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left; padding-left: 0.1pt">Change in fair value of derivative liability</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-414">&#8212;</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c324" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:UnrealizedGainLossOnDerivatives" scale="0" unitRef="usd">746,852</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c325" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:UnrealizedGainLossOnDerivatives" scale="0" unitRef="usd">746,852</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net loss&#160;attributable to Akerna shareholders</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c323" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="0" sign="-" unitRef="usd">16,957,334</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c324" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="0" unitRef="usd">746,852</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c325" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="0" sign="-" unitRef="usd">16,210,482</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Net loss per share</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c323" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" sign="-" unitRef="usdPershares">1.01</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-415">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c325" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" sign="-" unitRef="usdPershares">1.01</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;&#160;</span></p></ix:continuation></ix:continuation><div>


</div><div>

</div><ix:continuation id="_CondensedFinancialStatementsTextBlock-c26_cont_7"><ix:nonNumeric contextRef="c26" escape="true" name="pf0:ScheduleOfCondensedBalanceSheetTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
    of December 31, 2020</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
    reported</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adjustment</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font-weight: bold; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
    revised</span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Balance Sheet</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left; padding-left: 0.1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Derivative
    liability</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 9%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-416; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c327" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DerivativeLiabilities" scale="0" sign="-" unitRef="usd">311,376</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c328" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DerivativeLiabilities" scale="0" sign="-" unitRef="usd">311,376</ix:nonFraction></span></td><td style="width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0.1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
    liabilities</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c326" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Liabilities" scale="0" unitRef="usd">19,635,076</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c327" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Liabilities" scale="0" unitRef="usd">311,376</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c328" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Liabilities" scale="0" unitRef="usd">19,946,452</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additional paid-in capital</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c326" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalPaidInCapital" scale="0" unitRef="usd">95,090,833</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c327" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalPaidInCapital" scale="0" sign="-" unitRef="usd">1,004,450</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c328" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalPaidInCapital" scale="0" unitRef="usd">94,086,433</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accumulated deficit</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c326" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RetainedEarningsAccumulatedDeficit" scale="0" sign="-" unitRef="usd">57,872,599</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c327" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RetainedEarningsAccumulatedDeficit" scale="0" unitRef="usd">693,074</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c328" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RetainedEarningsAccumulatedDeficit" scale="0" sign="-" unitRef="usd">57,179,525</ix:nonFraction></span></td><td style="text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  </table></ix:nonNumeric></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

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

</div><!-- Field: Page; Sequence: 165; Value: 1 --><div>
    </div><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 -->64<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"></p><div><a id="F3_001"></a></div><p style="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0"><b>The NAV People,&#160;Inc. &amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">CONSOLIDATED BALANCE SHEET</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><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: right">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September 30, <br/>
2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Assets</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; font-style: italic">Current Assets</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; padding-left: 8.25pt">Cash</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">531,723</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 8.25pt">Accounts receivable, net of allowance of $435,430</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">961,140</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 8.25pt">Prepaid expenses and other current assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">266,826</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; font-style: italic; text-align: left; padding-bottom: 1.5pt; text-indent: 22pt; padding-left: 5.4pt">Total
    Current Assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,759,689</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 5.4pt">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; font-style: italic; text-align: left; padding-left: 8.25pt">Non-Current Assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 8.25pt">Property and equipment, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">92,437</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 8.25pt">Intangible assets, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,362,710</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; padding-left: 0.125in">Deposits</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,361</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; font-style: italic; text-align: left; padding-bottom: 1.5pt; padding-left: 0.375in">Total Non-Current
    Assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,466,508</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 5.4pt">Total Assets</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">3,226,197</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 5.4pt">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-left: 5.4pt">Liabilities and Stockholders&#8217; Deficit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; font-style: italic; text-align: left; padding-left: 5.4pt">Current Liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 5.4pt">Convertible note payable</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">1,520,000</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 5.4pt">Accounts Payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">384,697</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 5.4pt">Accrued Expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">500,185</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 5.4pt">Deferred revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,448,982</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; font-style: italic; text-align: left; padding-bottom: 1.5pt; text-indent: 22pt; padding-left: 5.4pt">Total
    Current Liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,853,864</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; font-style: italic; text-align: left; padding-left: 5.4pt">Long Term Liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 5.4pt">Stockholder notes payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,496,759</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 5.4pt">Notes payable</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">148,817</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; font-style: italic; text-align: left; padding-bottom: 1.5pt; text-indent: 22pt; padding-left: 5.4pt">Total
    Long-Term Liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,645,576</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 5.4pt">Total Liabilities</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">8,499,440</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 5.4pt">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>

<tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; font-style: italic">Stockholders&#8217; Deficit</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: left; padding-left: 5.4pt">Common stock, $1 par value, 10,000 shares authorized, 5,000 shares
    issued and outstanding</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">5,000</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 5.4pt">Additional paid-in capital</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,000</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 5.4pt">Accumulated other comprehensive loss</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(11,410</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 5.4pt">Accumulated deficit</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,268,833</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="font-weight: bold; font-style: italic; text-align: left; padding-bottom: 1.5pt; text-indent: 22pt; padding-left: 5.4pt">Total
    Stockholders&#8217; Deficit</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,273,243</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 5.4pt">Total Liabilities and Stockholders&#8217;
    Deficit</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">3,226,197</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See accompanying Notes to the Consolidated Financial
Statements</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 166; Value: 1 --><div>
    </div><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 -->65<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="F3_002"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People, Inc. &amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">CONSOLIDATED STATEMENT OF OPERATIONS &amp; COMPREHENSIVE
INCOME</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">For the<br/>
 Nine&#160;Months<br/>
 Ended<br/>
 September&#160;30,<br/>
 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Revenue</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: left">Recurring revenue</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,397,990</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Services revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,071,250</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Other revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">685,213</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; font-weight: bold; font-style: italic; text-align: left">Total revenue</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">7,154,453</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Cost of revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,913,331</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Gross profit</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">5,241,122</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Operating Expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Operations and support</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,584,170</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Sales and marketing</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">35,213</td><td style="text-align: left">&#160;</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>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">543,784</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Bad debt expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">286,094</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">189,664</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Acquisition Costs</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">172,550</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; font-weight: bold; font-style: italic; text-align: left">Total Operating Expenses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,811,475</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; font-weight: bold; text-align: left">Loss From Operations</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(570,353</td><td style="font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Other loss</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(19,586</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Gain on PPP loan forgiveness</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">954,984</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Interest expense</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(161,029</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="padding-left: 0.375in; font-weight: bold; font-style: italic; text-align: left">Total other Income</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">774,369</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Net Income before provision for income taxes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">204,016</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Federal and State Income Tax</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,250</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="font-weight: bold; text-align: left">Net Income</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">198,766</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Foreign currency translation adjustment</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(45</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="font-weight: bold; text-align: left">Comprehensive Income</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">198,721</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See accompanying Notes to the Consolidated Financial
Statements</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 167; Value: 1 --><div>
    </div><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 -->66<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="F3_003"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People, Inc. &amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">CONSOLIDATED STATEMENT OF STOCKHOLDERS&#8217; EQUITY</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><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">&#160;</td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>&#160;</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Shares</b></p></td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>&#160;</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Par</b></p></td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additional<br/>
    Paid-In<br/>
    Capital</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Accumulated<br/>
    Other<br/>
    Comprehensive<br/>
    Loss</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Accumulated<br/>
    Deficit</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total<br/>
    Stockholders&#8217;<br/>
    Deficit</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 28%; font-weight: bold">Balance as of January 1, 2021</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">5,000</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,000</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2,000</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(11,365</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(5,467,599</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(5,471,964</td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net Income</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">198,766</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">198,766</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Foreign currency translation adjustment</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(45</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(45</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold">Balance as of September 30, 2021</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">5,000</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,000</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,000</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(11,410</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(5,268,833</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(5,273,243</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">See accompanying Notes to
the Consolidated Financial Statements</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 168; Value: 1 --><div>
    </div><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 -->67<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="F3_004"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People, Inc. &amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">CONSOLIDATED STATEMENT OF CASH FLOWS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">For the<br/>
 Nine&#160;months<br/>
 ended<br/>
 September&#160;30,<br/>
 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: left">Net Income</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">198,766</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Adjustment to reconcile net income to net cash provided by operating activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Gain on PPP loan forgiveness</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(954,984</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Bad debt</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">286,093</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">189,664</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Change in assets and liabilities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Accounts receivable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(190,370</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Prepaid expenses and other current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(97,590</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">Accounts payable and accrued expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">327,837</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">Deferred revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">661,491</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; font-weight: bold; text-align: left">Net cash provided by operating activities</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">420,907</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Cash flows from investing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Developed software additions</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(304,607</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">Purchases of property and equipment</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(14,241</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; font-weight: bold; text-align: left">Net cash used in investing activities</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(318,848</td><td style="font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Cash flows from financing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Proceeds from debt issuances</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">170,000</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Payments of principal amounts of debt</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,182</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="padding-left: 0.375in; font-weight: bold; text-align: left">Net cash provided by financing activities</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">168,818</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Effect of exchange rates on cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,717</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">Net change in cash</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">265,160</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Beginning Balance</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">266,563</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Ending Balance</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">531,723</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Supplemental Disclosure of Cash Flow Information:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Cash paid for interest</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">137,151</td><td style="text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See accompanying Notes to the Consolidated Financial
Statements</p><div>

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





</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><!-- Field: Page; Sequence: 169; Value: 1 --><div>
    </div><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 -->68<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><div><a id="F3_005"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People, Inc. &amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 1 &#8211; Nature of the Business and
Summary of Significant Accounting Policies</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Description of the Business</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The NAV People, Inc. (&#8220;The
NAV People&#8221; or the &#8220;Company&#8221;) provides software for highly regulated retailers in the legal cannabis space. Founded
in 2016 and headquartered in Las Vegas, Nevada, the NAV People services a client base comprised of U.S.-based multi-state operators and
single-state operators and Canadian LPs, in addition to global cannabis clients outside North America. &#160;The NAV People have over
85 customers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Basis of Presentation and Consolidation</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The accompanying consolidated
financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (&#8220;GAAP&#8221;)
as found in the Accounting Standards Codification (&#8220;ASC&#8221;) of the Financial Accounting Standards Board (&#8220;FASB&#8221;)
for consolidated financial information.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The accompanying consolidated
financial statements include the accounts of The NAV People and its wholly-owned subsidiary, Dynamics 365 People Software and Services,
Ltd. All intercompany balances have been eliminated in consolidation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Use of Estimates</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The preparation of our consolidated
financial statements in conformity with GAAP requires management to make estimates and assumptions, which affect the reported amounts
in the financial statements and accompanying notes. Estimates are based on historical experience, where applicable, and other assumptions
which management believes are reasonable under circumstances. The Company has used estimates related to several financial statement amounts
including useful lives of property and equipment, and internal use software. These estimates are inherently subject to judgement and
actual results could differ from those estimates.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Concentrations of Credit Risk</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Cash and cash equivalents
and accounts receivable are potentially subject to credit risk concentration. We have not experienced any material losses related to
these concentrations during the periods presented. Cash is deposited with financial institutions that the Company believes are of high
credit quality. These deposits are typically in excess of insured limits.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company derives a portion
of its revenue from several large customers, as well as a large number of individual small businesses. If the financial condition or
results of any one of the large customers deteriorates substantially, the Company&#8217;s operating results could be adversely affected.
The Company does not require collateral and maintains an allowance for estimated credit losses on customer accounts when considered necessary.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There were two customers
which represented 15% of consolidated revenue for the nine months ended September 30, 2021. The Company has not experienced any losses
related to these concentrations during the period presented.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company relies on a third
party to provide payment processing services ("payment service provider") to collect amounts due from end-users. Payment service
providers are financial institutions or credit card companies that the Company believes are of high credit quality.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 170; Value: 1 --><div>
    </div><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 -->69<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; "><b>The NAV People,
Inc. &amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; ">NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Certain Significant Risks and Uncertainties</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In March 2020, the World
Health Organization declared the outbreak of COVID-19 a pandemic. COVID-19 has rapidly impacted market and economic conditions globally.
In an attempt to limit the spread of the virus, various governmental restrictions have been implemented, including business activities
and travel restrictions, and &#8220;shelter-at-home&#8221; orders, that have had an adverse impact on our business and operations by
reducing demand for transportation. In light of the evolving nature of COVID-19 and the uncertainty it has produced, it is not possible
to predict the COVID-19 pandemics cumulative and ultimate impact on our future consolidated business operations, results of operations,
financial position, liquidity, and cash flows. The extent of the impact of the pandemic on our business and financial results will depend
largely on future developments, including the duration of the spread of the outbreak within the United States, including whether there
will be further resurgences of COVID-19 in various regions, the distribution of the vaccines in various regions, the impact on capital,
and financial markets, governmental or regulatory orders that impact our business and whether the impacts may result in permanent changes
to our end-users&#8217; behavior, all of which are highly uncertain and cannot be predicted. Also, see Note 10, Commitments and Contingencies.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Cash and Cash Equivalents</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company considers all
highly liquid investments with an original maturity from the date of purchase of three months or less to be cash equivalents. As of September
30, 2021, there were no cash equivalents. We continually monitor our positions with, and the credit quality of, the financial institutions
with which we invest.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Accounts Receivable and Allowance
for Doubtful Accounts</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Accounts receivable are recorded
at the invoiced amount and do not bear interest. The Company reviews customer receivables and collections to evaluate and estimate a
reserve for doubtful accounts, including the periodic write off of uncollectible receivables. The Company determines the allowance based
on analysis of historical bad debts, customer concentrations, customer creditworthiness, and current economic trends.&#160; The methodology
used to calculate the reserve for receivables is supported by the historical information and is applied appropriately to all receivable
balances.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Property and Equipment</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Property and equipment are
stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line
method over their estimated useful lives of the assets See Note 3. When assets are retired or otherwise disposed of, the cost, accumulated
depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in the consolidated statement
of operations and comprehensive income in the period realized. Maintenance and repairs that do not enhance or extend the asset&#8217;s
useful life are charged to operating expenses as incurred.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>Intangible Assets</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company capitalizes certain
costs, such as compensation costs incurred in developing internal-use software once planning has been completed, management has authorized
and committed project funding, and it is probable that the project will be completed, and the software will function as intended. Amortization
of such costs occurs on a straight-line basis over the estimated useful life of the related asset and begins once the asset is ready
for its intended use. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are
expensed as incurred.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 171; Value: 1 --><div>
    </div><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 -->70<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; "><b>The NAV People,&#160;Inc.&amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; ">NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Evaluation of Long-Lived Assets
for Impairment</b>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company evaluates its
held-and-used long-lived assets for indicators of possible impairment when events or changes in circumstances indicate the carrying amount
of an asset or asset group (collectively, the &#8220;asset group&#8221;) may not be recoverable. The Company measures the recoverability
of the asset group by comparing the carrying amount of such asset groups to the future undiscounted cash flows it expects the asset group
to generate. If the Company considers the asset group to be impaired, the impairment to be recognized equals the amount by which the
carrying value of the asset group exceeds its fair value.&#160; No such impairments have been identified as of September 30, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Deferred Revenue</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Deferred revenue primarily
consists of billings or payments received in advance of revenue recognition and is recognized as the revenue recognition criteria are
met. All deferred revenue is expected to be recognized during the succeeding 12-month period and is recorded as a current liability.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Research and Development</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Research and development costs are charged to
operations as incurred.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Foreign Currency Translation</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;The functional currency of the Company's
non-U.S. operations is the local currency. Monetary assets and liabilities denominated in foreign currencies are translated into U.S.
dollars at exchange rates prevailing at the balance sheet date. Revenue and expenses are translated into U.S. dollars using the average
rates of exchange prevailing during the period. Translation gains or losses are included as a component of accumulated other comprehensive
loss in stockholders' equity. Gains and losses resulting from foreign currency transactions are recognized in operating expenses.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Income Taxes</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company accounts for
income taxes in accordance with the asset and liability approach method. Our income tax expense, deferred tax assets and liabilities,
and liabilities for unrecognized tax benefits reflect management&#8217;s best estimate of current and future taxes to be paid. Significant
judgments and estimates are required in the determination of the consolidated income tax expense. We are subject to income taxes in the
United States and Canada.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Deferred income taxes arise
from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which
will result in taxable or deductible amounts in the future. In evaluating our ability to recover our deferred tax assets in the jurisdiction
from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities,
projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, we begin
with historical results adjusted for the results of discontinued operations and incorporate assumptions about the amount of future state,
federal, and foreign pretax operating income adjusted for items that do not have tax consequences. The assumptions about future taxable
income require the use of significant judgment and are consistent with the plans and estimates we are using to manage the underlying
businesses. As of September 30, 2021, we have significant federal and state income tax net operating loss (&#8220;NOL&#8221;) carryforwards.
We believe that it is more likely than not that the benefit from federal and state NOL carryforwards will not be realized. In recognition
of this risk, we have provided a full valuation allowance on the deferred tax assets related to these NOL carryforwards.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 172; Value: 1 --><div>
    </div><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 -->71<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; "><b>The NAV People,&#160;Inc.&amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; ">NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><b>Recently
Issued Accounting Pronouncements Not Yet Adopted</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In February 2016, the FASB
issued ASC Topic 842, Leases. This standard requires all entities that leased assets under leases with terms of more than 12 months to
capitalize the assets and related lease liabilities on the consolidated balance sheet. The new standard will become effective for us
beginning January 1, 2022; however, early adoption is permitted. While we continue to assess all potential impacts of this new standard,
we anticipate this standard will have a material impact on our consolidated financial position as we will be required to recognize right-of-use
assets and lease liabilities on our consolidated balance sheet. However, we do not expect the adoption to have a significant impact on
our consolidated results of operations or cash flows.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In June 2016, the FASB issued
ASU 2016-13, &#8220;Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments&#8221; to
require the measurement of expected credit losses for financial assets held at the reporting date based on historical experience, current
conditions, and reasonable and supportable forecasts. The guidance also amends the impairment model for available for sale debt securities
and requires entities to determine whether all or a portion of the unrealized loss on such debt security is a credit loss. The standard
is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.
All other entities, ASU No. 2016-13 is effective for fiscal years beginning after Dec. 15, 2022. Early adoption is permitted. The Company
will adopt the new standard on January 1, 2022. The Company is currently evaluating the impact of this accounting standard update on
its consolidated financial statements. We are still evaluating the impact on our consolidated financial statements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><b>Note 2 &#8211; Revenue Recognition</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company adopted ASC
606 under the modified retrospective transition method with an effective date of January 1, 2019 and applied this guidance to those contracts
which were not completed at the date of adoption. The standard requires entities to recognize revenue upon transfer of goods or services
to customers in amounts that reflect the consideration that the entities expect to receive in exchange for those goods or services.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We recognize revenue when
or as we satisfy our obligations. We derive our revenues from&#160; recurring revenue (subscription sales, support, hosting, and enhancement),
services revenue (packages and projects), and other revenue (perpetual licenses and hardware).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company determines revenue
recognition under ASC 606 through the following steps:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><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: 0.5in"></td><td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Identification
                                            of the contract, or contracts, with a customer;</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><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: 0.5in"></td><td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Identification
                                            of the performance obligations in the contract;</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><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: 0.5in"></td><td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Determination
                                            of the transaction price;</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><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: 0.5in"></td><td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Allocation
                                            of the transaction price to the performance obligations in the contract; and</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><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: 0.5in"></td><td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Recognition
                                            of revenue when, or as, the Company satisfies a performance obligation.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 173; Value: 1 --><div>
    </div><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 -->72<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; "><b>The NAV People,&#160;Inc.&amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; ">NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has the following
revenue streams:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-indent: -0.25in">&#160;</p><div>

</div><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: 0.5in"></td><td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td><span style="font-family: Times New Roman, Times, Serif">Recurring
                                            (subscription sales, support, hosting, enhancement)</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-indent: -0.25in">&#160;</p><div>

</div><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: 0.5in"></td><td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td><span style="font-family: Times New Roman, Times, Serif">Services
                                            revenue (projects and packages)</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-indent: -0.25in">&#160;</p><div>

</div><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: 0.5in"></td><td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td><span style="font-family: Times New Roman, Times, Serif">Other
                                            Revenue (perpetual licenses and hardware)</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-indent: -0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company offers its software
under a cloud-based delivery model, where it provides access to its software on a hosted basis as a service and customers do not have
the contractual right to take possession of the software. Revenue is recognized when control of the promised services is transferred
to the Company's customers at an amount that reflects the consideration the Company expects to be entitled to in exchange for those services.
The majority of customer contracts have performance obligations that the Company satisfies over time and revenue is recognized by consistently
applying a method of measuring progress toward satisfaction of that performance obligation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify; text-indent: 0.5in">The Company&#8217;s
recurring revenue is comprised of subscription sales, support, hosting and enhancement revenue. &#160;Revenue is recognized ratably over
the contract term based on the commencement date of the contract, which is the date our cloud-based software is made available to customers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Revenue from the Company&#8217;s
service for project and packages revenue are recorded as the services are performed. Once the contract is signed, invoices are generated
for professional services on a time and material basis, although the Company occasionally engage in fixed-price service engagements and
invoices for those based upon agreed milestone payments. Revenue is recognized as services are performed for time and material engagements
and on a proportional performance method as the services are performed for fixed-fee engagements. Training revenue is recognized as the
services are performed.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Perpetual software is recognized
when delivered, which is typically within a day of receipt of the order. Hardware is recognized when invoiced and usually ships within
a few days after receipt of order.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any of the above agreements
would be a complete contract. Each party&#8217;s rights regarding the services to be transferred, pricing, and payment terms are listed
in the contract. These factors indicate that the contract has commercial substance. Risk, timing, or the Company&#8217;s future cash
flows are expected to change as a result of a contract. Risk includes non-performance risk, non-payment risk, and mis-usage risk. Payments
are generally due within 15-45, days upon receipt of an invoice.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company considered the
guidance of ASC 606-10-55-3A regarding the collection probability. At contract inception, the Company deems it is probable that the Company
will collect substantially all of the consideration to which it will be entitled to in exchange for the services that will be transferred
to the customer, based on historical experience with customers. The Company also periodically completes an assessment of collectability
from new customers. This assessment includes reviewing publicly available financial information and inquiring of customer&#8217;s financial
creditability. Arrangements for which collection of fees is not deemed probable are recognized upon cash collection.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company considered the
terms of the contract to determine the transaction price. The transaction price is the amount of consideration to which the Company expects
to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract may include
fixed amounts, variable amounts, or both. The Company&#8217;s contracts typically have either (1) annual; (2) monthly; (3) variable based
on completion of performance obligation. &#160;Therefore, the Company&#8217;s contracts have both fixed (e.g., stated annual, monthly,
etc. fee) and variable components (e.g., per hour, time and material).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 174; Value: 1 --><div>
    </div><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 -->73<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; "><b>The NAV People,&#160;Inc.&amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; ">NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Deferred Commissions</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company capitalizes sales
commission expenses and associated payroll taxes paid to internal sales personnel that are incremental to obtaining customer contracts.
These costs are deferred and then amortized over the expected period of benefit. Commissions for existing customer renewals are deferred
and amortized over twelve months. We have determined the period of benefit taking into consideration several factors including the expected
subscription term and expected renewals of our customer contracts, the duration of our relationships with our customers, and the life
of our technology. Amortization expense is included in sales and marketing in the accompanying consolidated statement of operations and
comprehensive income.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Variable consideration</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the end of the reporting
period, the Company knows the amount of time and material to invoice the customer in order to recognize revenue. Therefore, no estimation
of variable consideration is necessary.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Principal vs. Agent Considerations</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Judgment is required in determining
whether we are the principal or agent in its transactions with the customers. We evaluate the presentation of revenue on a gross or net
basis based on whether we control the service provided to the end-user and are the principal (i.e. &#8220;gross&#8221;), or we arrange
for other parties to provide the service to the end-user and are an agent (i.e. &#8220;net&#8221;).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following tables present
our revenues disaggregated by offering. This level of disaggregation takes into consideration how the nature, amount, timing, and uncertainty
of revenue and cash flows are affected by economic factors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There are several practical
expedients and exemptions allowed under Topic 606 that impact timing of revenue recognition and the Company&#8217;s disclosures. Below
is a list of practical expedients the Company applied in the adoption and application of Topic 606:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Application Practical Expedients</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 119.6pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><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: 0.5in"></td><td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif">&#9675;</span></td><td style="text-align: justify">The Company does not evaluate a
                                            contract for a significant financing component if payment is expected within one year or
                                            less from the transfer of the promised items to the customer.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 119.6pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><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: 0.5in"></td><td style="width: 0.25in"><span>&#9675;</span></td><td style="text-align: justify">The Company generally expenses sales
                                            commissions when incurred when the amortization period would have been one year or less.
                                            These costs are recorded within selling, general, and administrative in the Statement of
                                            Operations and Comprehensive Income.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 119.6pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><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: 0.5in"></td><td style="width: 0.25in"><span>&#9675;</span></td><td style="text-align: justify">The Company is permitted to recognize
                                            revenue at the amount to which it has the right to invoice for services performed if the
                                            Company&#8217;s right to payment is for an amount that corresponds directly with the value
                                            provided to the customer.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 175; Value: 1 --><div>
    </div><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 -->74<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; "><b>The NAV People,&#160;Inc.&amp;
Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; ">NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">For contract modifications, the Company reflected
the aggregate effect of all modifications that occurred prior to the adoption date when identifying the satisfied and unsatisfied performance
obligations, determining the transaction price and allocating the transaction price to satisfied and unsatisfied performance obligations
for the modified contract at transition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 3 &#8211; Property and Equipment</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">Depreciation and amortization is calculated using
the straight-line method over the estimated useful life of the assets. Estimated useful lives of major classes of depreciable assets
are as follows:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><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; font-weight: bold">Property and Equipment</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Estimated<br/>
 Useful Life</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: left">Computers and Peripherals</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: center">&#160;</td><td style="width: 9%; text-align: center">3</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Furniture and Fixtures</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td style="text-align: center">5</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Leasehold Improvements</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td style="text-align: center">5</td><td style="text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Property and equipment consist of the following
as of September 30, 2021:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><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">Computers and Peripherals</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">132,490</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Furniture and Fixtures</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">40,694</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Leasehold Improvements</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">24,110</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; font-weight: bold; text-align: left">Total Depreciable Assets</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">197,294</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Less: accumulated depreciation and amortization</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">104,857</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; font-weight: bold; text-align: left; padding-bottom: 4pt">Property and equipment, net</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">92,437</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Depreciation expense amounted to $31,778 for the nine months ended
September 30, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 176; Value: 1 --><div>
    </div><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 -->75<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; "><b>The NAV People,&#160;Inc.&amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; ">NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 4 &#8211; Intangible Assets</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Intangible assets is comprised entirely of capitalized
software for which amortization is calculated using the straight-line method over a 5 year estimated useful life.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Intangible assets consist of the following at
September 30, 2021:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><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">Software development costs</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,849,781</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Less: accumulated amortization</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(487,071</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; padding-left: 0.375in; font-weight: bold">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,362,710</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Amortization expense amounted to $157,886 for
the nine months ended September 30, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Based on our net amortizable intangible asset
balance of $1,362,710 at September 30, 2021, we expect that amortization expense will be as follows for the next five years and thereafter:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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: 87%; text-align: left">2021</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">165,955</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">2022</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">366,947</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">2023</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">365,352</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">2024</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">316,225</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">2025</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">129,296</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; text-align: left">2026</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">18,935</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; padding-left: 0.125in; font-weight: bold; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Total</b></span></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</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">1,362,710</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 5 &#8211; Debt</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Debt consists of the following as of September
30, 2021:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><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">Stockholder notes payable</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,496,759</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Convertible note payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,520,000</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">SBA Disaster Loan</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">148,817</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; font-weight: bold; padding-bottom: 1.5pt">Total</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,165,576</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Interest expense for the nine months ended September
30, 2021 was $161,029.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Stockholder notes payable</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In June 2017, the Company
entered into a $2,000,000 note payable agreement with a stockholder. The note has a 0% stated interest rate, and the entire principal
balance is due upon maturity of June 13, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In June 2018, the Company
entered into a $1,326,759 note payable agreement with a second stockholder. The note has a 0% stated interest rate, and the entire principal
balance is due upon maturity of June 20, 2023.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Convertible note payable</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In June 2017, the Company
entered into a convertible note payable agreement with a stockholder.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 177; Value: 1 --><div>
    </div><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 -->76<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; "><b>The NAV People,&#160;Inc.&amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; ">NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Effective December 23, 2020,
this note was assigned to an affiliate of the stockholder. The note allows for up to $1,750,000 to be borrowed at 12% per annum. Interest
is paid monthly, and the entire principal balance is due upon maturity of June 13, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The note is convertible into
common stock of the Company at the option of the lender or upon a change in control event, as defined in the agreement.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The note agreement contains
certain financial covenants, and the Company was not in compliance as of September 30, 2021, and therefore the entire outstanding principal
balance of $1,520,000 is shown as current on the accompanying consolidated balance sheet.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Paycheck Protection Program (&#8220;PPP&#8221;)
Loan</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 29, 2020, the Company
received a loan in the amount of $954,984 under the Paycheck Protection Program administered by the United States Small Business Administration
(the &#8220;SBA&#8221;). According to the Coronavirus Aid, Relief, and Economic Security Act (the &#8220;Cares Act&#8221;), PPP loan
provides for forgiveness of up to the full principal amount and accrued interest if the funds are used for payroll costs, interest on
mortgages, rent, and utilities. However, at least 60% of the forgiven amount must have been used for payroll. The loan bears interest
at a rate of 1.00% per annum.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The entire loan (principal
and accrued interest) was forgiven on June 30, 2021 and the $954,984 was recorded as a gain on the statement of operations and comprehensive
income.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>SBA Disaster Loan</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In April 2020, the Company
received a $2,000,000 loan under the Disaster Loan Assistance Program administered by the SBA, which was repaid in full in May 2020.
&#160;Then, in July 2020, the Company received a loan in the amount of $150,000 under the same program. The loan bears interest at a
rate of 3.75% per annum and is a 30 year loan.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The future principal payments
for the Company&#8217;s debt are as follows:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; text-align: left">Year ending December 31</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 90%; text-align: left">2021</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 7%; text-align: right">1,521,283</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">2022</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,173,037</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">2023</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,331,891</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">2024</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,132</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">2025</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">134,233</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; font-weight: bold; text-align: left; padding-bottom: 4pt">Total</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,165,576</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 178; Value: 1 --><div>
    </div><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 -->77<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; "><b>The NAV People,&#160;Inc.&amp;
Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; ">NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 6 &#8211; Income Taxes</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&#8217;s effective tax rates from
continuing operations for the nine months ended September 30, 2021 was 2.57%. Since the Company is in a full valuation allowance, the
small tax expense is related to state tax minimum payments.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 7 &#8211; Commitment and Contingencies</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b><i><span style="text-decoration:underline">Operating Lease</span></i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company leases one office
facility under an operating lease arrangement which expires on April 30, 2024.&#160; Rent expense related to the Company&#8217;s operating
leases was $194,514 for the nine months ended September 30, 2021. Future minimum payments, by year and in the aggregate, under operating
leases at September 30, 2021, are as follows:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><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: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Future Minimum Payments</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 87%; text-align: left">2021</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">61,743</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">2022</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">254,376</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">2023</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">262,008</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; text-align: left">2024</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">89,956</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; padding-bottom: 4pt; font-weight: bold; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Total future minimum lease payments</b></span></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">668,083</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b><i><span style="text-decoration:underline">Litigation</span></i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">From time to time, the Company
may be involved in litigation relating to claims arising out of its operations in the normal course of business. The Company will accrue
a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. As of
September 30, 2021, and through the date these financial statements were available to be issued, there were no legal proceedings requiring
recognition or disclosure in the financial statements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b><i><span style="text-decoration:underline">Contingencies</span></i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of the date of this report,
there are no known contingent liabilities for the nine months ended September 30, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 8 &#8211; Subsequent Events</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has evaluated
all subsequent events through December 13, 2021, which is the date the financial statements were available to be issued.&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On October 1, 2021, the Company
was acquired by Akerna Corp. (NASDAQ: KERN) for approximately $17 million, comprised of approximately $5 million in cash and $12 million
in common stock of Akerna Corp.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 179; Value: 1 --><div>
    </div><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 -->78<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&#160;</p><div>

</div><div><a id="F4_001"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b><span style="text-decoration:underline;text-decoration: none">INDEPENDENT AUDITORS&#8217;
REPORT</span></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">To the Board of Directors
and Stockholders of</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">The&#160;Nav&#160;People,&#160;Inc.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "><b><i>Report on the Financial Statements</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">We have audited the accompanying
financial statements of The&#160;Nav&#160;People,&#160;Inc. &amp; Subsidiary (the &#8220;Company&#8221;), which comprise the consolidated<b>&#160;</b>balance
sheet as of December 31, 2020, and the related consolidated<b>&#160;</b>statements of operations and comprehensive loss, changes in stockholders&#8217;
deficit and cash flows for the year then ended, and the related notes to the financial statements.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "><b><i>Management&#8217;s Responsibility for
the Financial Statements</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Management is responsible
for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of&#160;<b>&#160;</b>financial statements that are free from material misstatement, whether due to fraud or error.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "><b><i>Auditors&#8217; Responsibility</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Our responsibility is
to express an opinion on these financial statements based on our audit. We conducted our audit 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 from material misstatement.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend
on the auditors&#8217; judgment, including the assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity&#8217;s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity&#8217;s internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "><b><i>Opinion</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">In our opinion, the financial
statements referred to above present fairly, in all material respects, the consolidated<b>&#160;</b>financial position of The&#160;Nav&#160;People,&#160;Inc.
as of December 31, 2020, and the consolidated<b>&#160;</b>results of its operations and its cash flows for the year then ended in accordance
with accounting principles generally accepted in the United States of America.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">
  <td style="font: 10pt Times New Roman, Times, Serif; width: 40%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
  Marcum&#160;LLP</span></td>
  <td style="font: 10pt Times New Roman, Times, Serif; width: 60%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">
  <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
  <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">
  <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Costa
  Mesa, CA</span></td>
  <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">
  <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">December
  13, 2021</span></td>
  <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
</table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 180; Value: 1 --><div>
    </div><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 -->79<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><div><a id="F4_002"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV
People,&#160;Inc. &amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">CONSOLIDATED BALANCE SHEET</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><div>

</div><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: right">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December&#160;31, <br/>
2020</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Assets</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; font-style: italic">Current Assets</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; width: 88%">Cash</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">266,563</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Accounts receivable, net of allowance of $417,417</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,054,797</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Prepaid expenses and other current assets</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">156,716</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; font-weight: bold; font-style: italic; text-align: left">Total Current Assets</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,478,076</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; font-style: italic; text-align: left">Non-current Assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Property and equipment, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">96,774</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Intangible asset, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,215,989</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in">Deposits</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">23,507</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; font-weight: bold; font-style: italic; text-align: left">Total Non-Current Assets</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,336,270</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Total Assets</td><td style="font-weight: bold">&#160;</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">2,814,346</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Liabilities and Stockholders&#8217; Deficit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; font-style: italic; text-align: left">Current Liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Convertible note payable</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">1,520,000</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Accounts payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">232,283</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Accrued expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">324,077</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Deferred revenue</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,778,207</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; font-weight: bold; font-style: italic; text-align: left">Total Current Liabilities</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,854,567</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; font-style: italic; text-align: left">Long Term Liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Stockholder notes payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,326,759</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Notes payable</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,104,984</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; font-weight: bold; font-style: italic; text-align: left">Total Long-Term Liabilities</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,431,743</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Total Liabilities</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">8,286,310</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>

<tr style="vertical-align: bottom">
    <td style="font-weight: bold; font-style: italic">Stockholders&#8217; Deficit</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: left; padding-left: 0in">Common stock, $1 par value, 10,000 shares authorized, 5,000 shares issued and outstanding</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">5,000</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0in">Additional paid-in capital</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,000</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 0in">Accumulated other comprehensive loss</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(11,365</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Accumulated deficit</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,467,599</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="padding-left: 0.25in; font-weight: bold; font-style: italic; text-align: left; padding-bottom: 1.5pt">Total Stockholders&#8217; Deficit</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,471,964</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Total Liabilities and Stockholders&#8217; Deficit</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">2,814,346</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See accompanying Notes to the Consolidated Financial
Statements</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 181; Value: 1 --><div>
    </div><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 -->80<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><div><a id="F4_003"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV
People,&#160;Inc. &amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">CONSOLIDATED STATEMENT OF OPERATIONS &amp; COMPREHENSIVE
LOSS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><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: right">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the Year Ended<br/>
 December 31,
    2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Revenue</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; width: 88%; text-align: left">Recurring revenue</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,875,121</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Services revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,233,415</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Other revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">426,293</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; font-weight: bold; text-align: left">Total Revenue</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">7,534,829</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0in">Cost of revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,202,534</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0in; font-weight: bold; text-align: left">Gross Profit</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">5,332,295</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Operating Expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Operations and support</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,374,077</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Sales and marketing</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">46,954</td><td style="text-align: left">&#160;</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>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">784,785</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Bad debt expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">424,089</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Depreciation and amortization</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">301,064</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; font-weight: bold; font-style: italic; text-align: left">Total Operating expenses</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">6,930,969</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; font-weight: bold; text-align: left">Loss From Operations</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(1,598,674</td><td style="font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</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>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(467</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Interest expense</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(151,773</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="padding-left: 0.25in; text-align: left">Total Other Expense</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(152,240</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Net Loss Before Provision for Income Taxes</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(1,750,914</td><td style="font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Provision for income taxes</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(6,204</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="font-weight: bold; text-align: left">Net Loss</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,757,118</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-style: normal; padding-left: 0.125in; font-weight: normal; text-align: left">Foreign currency translation adjustment</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(12,222</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="font-weight: bold; text-align: left">Comprehensive Loss</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(1,769,340</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See accompanying Notes to the Consolidated Financial
Statements</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 182; Value: 1 --><div>
    </div><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 -->81<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><div><a id="F4_004"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People, Inc.
&amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">CONSOLIDATED STATEMENT OF STOCKHOLDERS&#8217; DEFICIT</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><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; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</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>&#160;</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Shares</b></p></td><td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</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>&#160;</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Par</b></p></td><td style="padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Additional<br/>
 Paid-In Capital</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Accumulated<br/>
 Other<br/>
 Comprehensive<br/>
 Income (Loss)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Accumulated<br/>
 Deficit</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total<br/>
 Stockholders&#8217;<br/>
 Deficit</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-indent: -0.125in; width: 28%; font-weight: bold">Balance as of January 1, 2020</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">5,000</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,000</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">$ 2,000</td><td style="width: 1%; text-align: left"></td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">857</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(3,710,481</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(3,702,624</td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Net loss</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,757,118</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,757,118</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-indent: -0.125in; text-align: left">Foreign currency translation adjustment</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"> -</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">      -</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(12,222</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">    -</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(12,222</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in; font-weight: bold">Balance as of December 31, 2020</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">5,000</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,000</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">$ 2,000</td><td style="padding-bottom: 4pt; text-align: left"></td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(11,365</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(5,467,599</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(5,471,964</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See accompanying Notes to the Consolidated Financial
Statements</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 183; Value: 1 --><div>
    </div><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 -->82<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>&#160;</b></p><div>

</div><div><a id="F4_005"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People, Inc.
&amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">CONSOLIDATED STATEMENT OF CASH FLOWS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the Year<br/>
 December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: left">Net loss</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(1,757,118</td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Adjustment to reconcile net loss to net cash used in operating activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">   Bad debt</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">424,089</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">   Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">301,064</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">   Change in assets and liabilities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">      Accounts receivable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(253,055</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">      Prepaid expenses and other current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">59,300</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left">      Accounts payable and accrued expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(138,009</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-align: left">      Deferred revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">108,343</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; font-weight: bold; text-align: left">          Net cash used in operating activities</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(1,255,386</td><td style="font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Cash flows from investing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">   Developed software additions</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(692,380</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">   Purchases of property and equipment</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(14,240</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="padding-left: 0.375in; font-weight: bold; text-align: left">          Net cash used in investing activities</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(706,620</td><td style="font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Cash flows from financing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">   Proceeds from debt issuances</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,874,984</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">   Payments of principal amounts of debt</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,000,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; font-weight: bold; text-align: left">          Net cash provided by financing activities</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">1,874,984</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Effect of exchange rates on cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">16,286</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net Change in cash</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(70,736</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Beginning Balance</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">337,299</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Ending Balance</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">266,563</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Supplemental Disclosure of Cash Flow Information:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Cash paid for interest</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">151,773</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Cash paid for income taxes</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">0</td><td style="text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See accompanying Notes to the Consolidated Financial
Statements</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 184; Value: 1 --><div>
    </div><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 -->83<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="F4_006"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People, Inc.
&amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 1 &#8211; Nature of the Business and Summary
of Significant Accounting Policies</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Description of the Business</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The NAV People, Inc. (&#8220;The
NAV People&#8221; or the &#8220;Company&#8221;) provides software for highly regulated retailers in the legal cannabis space. Founded
in 2016 and headquartered in Las Vegas, Nevada, the NAV People services a client base comprised of U.S.-based multi-state operators and
single-state operators and Canadian LPs, in addition to global cannabis clients outside North America. The NAV People have over
85 customers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Basis of Presentation and Consolidation</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The accompanying consolidated
financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (&#8220;GAAP&#8221;)
as found in the Accounting Standards Codification (&#8220;ASC&#8221;) of the Financial Accounting Standards Board (&#8220;FASB&#8221;)
for consolidated financial information.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The accompanying consolidated
financial statements include the accounts of The NAV People and its wholly-owned subsidiary, Dynamics 365 People Software and Services,
Ltd. All intercompany balances have been eliminated in consolidation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Use of Estimates</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The preparation of our consolidated
financial statements in conformity with GAAP requires management to make estimates and assumptions, which affect the reported amounts
in the financial statements and accompanying notes. Estimates are based on historical experience, where applicable, and other assumptions
which management believes are reasonable under circumstances. The Company has used estimates related to several financial statement amounts
including useful lives of property and equipment, and internal use software. These estimates are inherently subject to judgement and actual
results could differ from those estimates.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Concentrations of Credit Risk</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Cash and cash equivalents
and accounts receivable are potentially subject to credit risk concentration. We have not experienced any material losses related to these
concentrations during the periods presented. Cash is deposited with financial institutions that the Company believes are of high credit
quality. These deposits are typically in excess of insured limits.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company derives a portion
of its revenue from several large customers, as well as a large number of individual small businesses. If the financial condition or results
of any one of the large customers deteriorates substantially, the Company&#8217;s operating results could be adversely affected. The Company
does not require collateral and maintains an allowance for estimated credit losses on customer accounts when considered necessary.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There was one customer which
represented 10% of consolidated revenue for the year ended December 31, 2020. The Company has not experienced any losses related to these
concentrations during the period presented.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 185; Value: 1 --><div>
    </div><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 -->84<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; "><b>The NAV People,
Inc. &amp; Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; ">NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company relies on a third
party to provide payment processing services ("payment service provider") to collect amounts due from end-users. Payment service
providers are financial institutions or credit card companies that the Company believes are of high credit quality.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Certain Significant Risks and Uncertainties</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In March 2020, the World Health
Organization declared the outbreak of COVID-19 a pandemic. COVID-19 has rapidly impacted market and economic conditions globally. In an
attempt to limit the spread of the virus, various governmental restrictions have been implemented, including business activities and travel
restrictions, and &#8220;shelter-at-home&#8221; orders, that have had an adverse impact on our business and operations by reducing demand
for transportation. In light of the evolving nature of COVID-19 and the uncertainty it has produced, it is not possible to predict the
COVID-19 pandemics cumulative and ultimate impact on our future consolidated business operations, results of operations, financial position,
liquidity, and cash flows. The extent of the impact of the pandemic on our business and financial results will depend largely on future
developments, including the duration of the spread of the outbreak within the United States, including whether there will be further resurgences
of COVID-19 in various regions, the distribution of the vaccines in various regions, the impact on capital, and financial markets, governmental
or regulatory orders that impact our business and whether the impacts may result in permanent changes to our end-users&#8217; behavior,
all of which are highly uncertain and cannot be predicted. Also, see Note 10, Commitments and Contingencies.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Cash and Cash Equivalents</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company considers all
highly liquid investments with an original maturity from the date of purchase of three months or less to be cash equivalents. As of December
31, 2020, cash and cash equivalents consist of cash deposited with banks. The recorded carrying amount of cash and cash equivalents approximates
their fair value. The Company places its cash equivalents with high credit-quality financial institutions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Accounts Receivable and Allowance
for Doubtful Accounts</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Accounts receivable are recorded
at the invoiced amount and do not bear interest. The Company reviews customer receivables and collections to evaluate and estimate a reserve
for doubtful accounts, including the periodic write off of uncollectible receivables. The Company determines the allowance based on analysis
of historical bad debts, customer concentrations, customer creditworthiness, and current economic trends. The methodology used to
calculate the reserve for receivables is supported by the historical information and is applied appropriately to all receivable balances.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Property and Equipment</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Property and equipment are
stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line
method over their estimated useful lives of the assets (see Note 3). When assets are retired or otherwise disposed of, the cost, accumulated
depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in the consolidated statement
of operations and comprehensive loss in the period realized. Maintenance and repairs that do not enhance or extend the asset&#8217;s useful
life are charged to operating expenses as incurred.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 186; Value: 1 --><div>
    </div><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 -->85<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People,&#160;Inc. &amp;
Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>Intangible Assets</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company capitalizes certain
costs, such as compensation costs incurred in developing internal-use software once planning has been completed, management has authorized
and committed project funding, and it is probable that the project will be completed and the software will function as intended. Amortization
of such costs occurs on a straight-line basis over the estimated useful life of the related asset and begins once the asset is ready for
its intended use. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed
as incurred.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Evaluation of Long-Lived Assets for
Impairment</b>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company evaluates its
held-and-used long-lived assets for indicators of possible impairment when events or changes in circumstances indicate the carrying amount
of an asset or asset group (collectively, the &#8220;asset group&#8221;) may not be recoverable. The Company measures the recoverability
of the asset group by comparing the carrying amount of such asset groups to the future undiscounted cash flows it expects the asset group
to generate. If the Company considers the asset group to be impaired, the impairment to be recognized equals the amount by which the carrying
value of the asset group exceeds its fair value. No such impairments have been identified as of December 31, 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Deferred Revenue</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Deferred revenue primarily
consists of billings or payments received in advance of revenue recognition and is recognized as the revenue recognition criteria are
met. All deferred revenue is expected to be recognized during the succeeding 12-month period and is recorded as a current liability.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Research and Development</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Research and development costs are charged to
operations as incurred.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Foreign Currency Translation</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-indent: 0.5in; text-align: justify">The functional currency of the Company's
non-U.S. operations is the local currency. Monetary assets and liabilities denominated in foreign currencies are translated into U.S.
dollars at exchange rates prevailing at the balance sheet date. Revenue and expenses are translated into U.S. dollars using the average
rates of exchange prevailing during the period. Translation gains or losses are included as a component of accumulated other comprehensive
loss in stockholders' equity. Gains and losses resulting from foreign currency transactions are recognized in operating expenses.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Income Taxes</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company accounts for income
taxes in accordance with the asset and liability approach method. Our income tax expense, deferred tax assets and liabilities, and liabilities
for unrecognized tax benefits reflect management&#8217;s best estimate of current and future taxes to be paid. Significant judgments and
estimates are required in the determination of the consolidated income tax expense. We are subject to income taxes in the United States
and Canada.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 187; Value: 1 --><div>
    </div><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 -->86<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People,&#160;Inc. &amp;
Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Deferred income taxes arise
from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which
will result in taxable or deductible amounts in the future. In evaluating our ability to recover our deferred tax assets in the jurisdiction
from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities,
projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, we begin
with historical results adjusted for the results of discontinued operations and incorporate assumptions about the amount of future state,
federal, and foreign pretax operating income adjusted for items that do not have tax consequences. The assumptions about future taxable
income require the use of significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses.
As of December 31, 2020, we have significant federal, state and foreign income tax net operating loss (&#8220;NOL&#8221;) carryforwards.
We believe that it is more likely than not that the benefit from federal and state NOL carryforwards will not be realized. In recognition
of this risk, we have provided a full valuation allowance on the deferred tax assets related to these NOL carryforwards.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><b>Recently
Issued Accounting Pronouncements Not Yet Adopted</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In February 2016, the FASB
issued ASC Topic 842, Leases. This standard requires all entities that leased assets under leases with terms of more than 12 months to
capitalize the assets and related lease liabilities on the consolidated balance sheet. The new standard will become effective for us beginning
January 1, 2022; however, early adoption is permitted. While we continue to assess all potential impacts of this new standard, we anticipate
this standard will have a material impact on our consolidated financial position as we will be required to recognize right-of-use assets
and lease liabilities on our consolidated balance sheet. However, we do not expect the adoption to have a significant impact on our consolidated
results of operations or cash flows.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In June 2016, the FASB issued
ASU 2016-13, &#8220;Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments&#8221; to
require the measurement of expected credit losses for financial assets held at the reporting date based on historical experience, current
conditions, and reasonable and supportable forecasts. The guidance also amends the impairment model for available for sale debt securities
and requires entities to determine whether all or a portion of the unrealized loss on such debt security is a credit loss. The standard
is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.
All other entities, ASU No. 2016-13 is effective for fiscal years beginning after Dec. 15, 2022. Early adoption is permitted. The Company
will adopt the new standard on January 1, 2022. The Company is currently evaluating the impact of this accounting standard update on its
consolidated financial statements. We are still evaluating the impact on our consolidated financial statements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><b>Note 2 &#8211; Revenue Recognition</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company adopted ASC 606
under the modified retrospective transition method with an effective date of January 1, 2019 and applied this guidance to those contracts
which were not completed at the date of adoption. The standard requires entities to recognize revenue upon transfer of goods or services
to customers in amounts that reflect the consideration that the entities expect to receive in exchange for those goods or services.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We recognize revenue when
or as we satisfy our obligations. We derive our revenues from recurring revenue (subscriptions sales, support, hosting, and enhancement),
services revenue (packages and projects), and other revenue (perpetual licenses and hardware).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 188; Value: 1 --><div>
    </div><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 -->87<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People,&#160;Inc. &amp;
Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">The Company determines revenue
recognition under ASC 606 through the following steps:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Identification
                                            of the contract, or contracts, with a customer;</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Identification
                                            of the performance obligations in the contract;</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Determination
                                            of the transaction price;</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Allocation
                                            of the transaction price to the performance obligations in the contract; and</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recognition
                                            of revenue when, or as, the Company satisfies a performance obligation.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">The Company has the following
revenue streams:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recurring
                                            (subscription sales, support, hosting, enhancement)</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Services
                                            revenue (projects and packages)</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-indent: -0.25in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.75in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
                                            Revenue (perpetual licenses and hardware)</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 100.05pt; text-indent: -0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company offers its software
under a cloud-based delivery model, where it provides access to its software on a hosted basis as a service and customers do not have
the contractual right to take possession of the software. Revenue is recognized when control of the promised services is transferred to
the Company's customers at an amount that reflects the consideration the Company expects to be entitled to in exchange for those services.
The majority of customer contracts have performance obligations that the Company satisfies over time and revenue is recognized by consistently
applying a method of measuring progress toward satisfaction of that performance obligation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">The Company&#8217;s
recurring revenue is comprised of subscription sales, support, hosting and enhancement revenue. Revenue is recognized ratably over
the contract term based on the commencement date of the contract, which is the date our cloud-based software is made available to customers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Revenue from the Company&#8217;s
service for project and packages revenue are recorded as the services are performed. Once the contract is signed, invoices are generated
for professional services on a time and material basis, although the Company occasionally engages in fixed-price service engagements and
invoices for those based upon agreed milestone payments. Revenue is recognized as services are performed for time and material engagements
and on a proportional performance method as the services are performed for fixed-fee engagements. Training revenue is recognized as the
services are performed.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Perpetual software is recognized
when delivered, which is typically within a day of receipt of the order. Hardware is recognized when invoiced and usually ships within
a few days after receipt of order.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any of the above agreements
would be a complete contract. Each party&#8217;s rights regarding the services to be transferred, pricing, and payment terms are listed
in the contract. These factors indicate that the contract has commercial substance. Risk, timing, or the Company&#8217;s future cash flows
are expected to change as a result of a contract. Risk includes non-performance risk, non-payment risk, and mis-usage risk. Payments are
generally due within 15-45, days upon receipt of an invoice.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company considered the
guidance of ASC 606-10-55-3A regarding the collection probability. At contract inception, the Company deems it is probable that the Company
will collect substantially all of the consideration to which it will be entitled to in exchange for the services that will be transferred
to the customer, based on historical experience with customers. The Company also periodically completes an assessment of collectability
from new customers. This assessment includes reviewing publicly available financial information and inquiring of customer&#8217;s financial
creditability. Arrangements for which collection of fees is not deemed probable are recognized upon cash collection.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 189; Value: 1 --><div>
    </div><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 -->88<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People,&#160;Inc. &amp;
Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company considered the
terms of the contract to determine the transaction price. The transaction price is the amount of consideration to which the Company expects
to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract may include
fixed amounts, variable amounts, or both. The Company&#8217;s contracts typically have either (1) annual; (2) monthly; (3) variable based
on completion of performance obligation. Therefore, the Company&#8217;s contracts have both fixed (e.g., stated annual, monthly,
etc. fee) and variable components (e.g., per hour, time and material).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Deferred Commissions</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company capitalizes sales
commission expenses and associated payroll taxes paid to internal sales personnel that are incremental to obtaining customer contracts.
These costs are deferred and then amortized over the expected period of benefit. Commissions for existing customer renewals are deferred
and amortized over twelve months. We have determined the period of benefit taking into consideration several factors including the expected
subscription term and expected renewals of our customer contracts, the duration of our relationships with our customers, and the life
of our technology. Amortization expense is included in sales and marketing in the accompanying consolidated statement of operations and
comprehensive loss.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Variable consideration</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the end of the reporting
period, the Company knows the amount of time and material to invoice the customer in order to recognize revenue. Therefore, no estimation
of variable consideration is necessary.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Principal vs. Agent Considerations</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Judgment is required in determining
whether we are the principal or agent in its transactions with the customers. We evaluate the presentation of revenue on a gross or net
basis based on whether we control the service provided to the end-user and are the principal (i.e. &#8220;gross&#8221;), or we arrange
for other parties to provide the service to the end-user and are an agent (i.e. &#8220;net&#8221;).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following tables present
our revenues disaggregated by offering. This level of disaggregation takes into consideration how the nature, amount, timing, and uncertainty
of revenue and cash flows are affected by economic factors. Revenue is presented in the following tables for the year ended December 31,
2020, respectively:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There are several practical
expedients and exemptions allowed under Topic 606 that impact timing of revenue recognition and the Company&#8217;s disclosures. Below
is a list of practical expedients the Company applied in the adoption and application of Topic 606:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Application Practical Expedients</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 119.6pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><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">
<td style="width: 0.5in"></td><td style="width: 0.5in">o</td><td style="text-align: justify">The Company does not evaluate a contract for a significant financing component if payment is expected
within one year or less from the transfer of the promised items to the customer.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 119.6pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><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">
<td style="width: 0.5in"></td><td style="width: 0.5in">o</td><td style="text-align: justify">The Company generally expenses sales commissions when incurred when the amortization period would have
been one year or less. These costs are recorded within selling, general, and administrative in the Statement of Operations.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 119.6pt; text-align: justify; text-indent: -0.25in">&#160;</p><div>

</div><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">
<td style="width: 0.5in"></td><td style="width: 0.5in">o</td><td style="text-align: justify">The Company is permitted to recognize revenue at the amount to which it has the right to invoice for services
performed if the Company&#8217;s right to payment is for an amount that corresponds directly with the value provided to the customer.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 190; Value: 1 --><div>
    </div><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 -->89<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People,&#160;Inc. &amp;
Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">For contract modifications, the Company
reflected the aggregate effect of all modifications that occurred prior to the adoption date when identifying the satisfied and
unsatisfied performance obligations, determining the transaction price and allocating the transaction price to satisfied and
unsatisfied performance obligations for the modified contract at transition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 3 &#8211; Property and Equipment</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">Depreciation and amortization is calculated using
the straight-line method over the estimated useful life of the assets. Estimated useful lives of major classes of depreciable assets are
as follows:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><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; font-weight: bold">Property and Equipment</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Estimated Useful Life</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: left">Computers and Peripherals</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: center">3</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Furniture and Fixtures</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: center">5</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Leasehold Improvements</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: center">5</td><td style="text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Property and equipment consist of the following at December 31, 2020:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: left">Computers and Peripherals</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">108,166</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Furniture and Fixtures</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">40,695</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Leasehold Improvements</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">24,110</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; font-weight: bold; text-align: left">Total Depreciable Assets</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">172,971</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Less: accumulated depreciation and amortization</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(76,197</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; font-weight: bold; text-align: left; padding-bottom: 4pt">Property and equipment, net</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">96,774</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Depreciation expense amounted to $47,724 for the year ended December
31, 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 4 &#8211; Intangible Assets</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Intangible assets is comprised entirely of capitalized software for
which amortization is calculated using the straight-line method over a 5 year estimated useful life.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Intangible assets consist of the following at December 31, 2020:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: left">Software development costs</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,541,411</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Less: accumulated amortization</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(325,422</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; font-weight: bold">Total</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">1,215,989</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Amortization expense amounted to $253,340 for the year ended December
31, 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 191; Value: 1 --><div>
    </div><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 -->90<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People,&#160;Inc. &amp;
Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based on our net amortizable intangible asset
balance of $1,215,989 at December 31, 2020, we expect that amortization expense will be as follows for the next five years and thereafter:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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: left; font-weight: bold">Year ending December 31</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: left">2021</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">275,171</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">2022</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">305,030</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">2023</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">305,030</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">2024</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">262,999</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">2025</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">67,759</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left; font-weight: bold; padding-bottom: 4pt">Total</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,215,989</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 5 &#8211; Debt</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Debt consists of the following as of December 31,
2020:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><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">Stockholder notes payable</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,326,759</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Convertible notes payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,520,000</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">PPP Loan</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">954,984</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">SBA Disaster Loan</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">150,000</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; font-weight: bold; padding-bottom: 1.5pt">Total</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,951,743</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Interest expense for the year ended December 31,
2020 was $151,773.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Stockholder notes payable</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In June 2017, the Company
entered into a $2,000,000 note payable agreement with a stockholder. The note has a 0% stated interest rate, and the entire principal
balance is due upon maturity of June 13, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In June 2018, the Company
entered into a $1,326,759 note payable agreement with a second stockholder. The note has a 0% stated interest rate, and the entire principal
balance is due upon maturity of June 20, 2023.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Convertible note payable</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In June 2017, the Company
entered into a convertible note payable agreement with a stockholder.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Effective December 23, 2020,
this note was assigned to an affiliate of the stockholder. The note allows for up to $1,750,000 to be borrowed at 12% per annum. Interest
is paid monthly, and the entire principal balance is due upon maturity of June 13, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The note is convertible into
common stock of the Company at the option of the lender or upon a change in control event, as defined in the agreement.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The note agreement contains
certain financial covenants and the Company was not in compliance as of December 31, 2020, and therefore the entire outstanding principal
balance of $1,520,000 is shown as current on the accompanying consolidated balance sheet.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 192; Value: 1 --><div>
    </div><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 -->91<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People,&#160;Inc. &amp;
Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Paycheck Protection Program (&#8220;PPP&#8221;)
Loan</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 29, 2020, the Company
received a loan in the amount of $954,984 under the Paycheck Protection Program administered by the SBA. According to the Coronavirus
Aid, Relief, and Economic Security Act (the &#8220;Cares Act&#8221;), PPP loan provides for forgiveness of up to the full principal amount
and accrued interest if the funds are used for payroll costs, interest on mortgages, rent, and utilities. However, at least 60% of the
forgiven amount must have been used for payroll. The loan bears interest at a rate of 1.00% per annum.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The entire loan (principal
and accrued interest) was forgiven on June 30, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>SBA Disaster Loan</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In April 2020, the Company
received a $2,000,000 loan under the Disaster Loan Assistance Program administered by the United States Small Business Administration
(the &#8220;SBA&#8221;), which was repaid in full in May 2020. Then, in July 2020, the Company received a loan in the amount of
$150,000 under the same program. The loan bears interest at a rate of 3.75% per annum and is a 30 year loan.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The future principal payments for the Company&#8217;s
debt are as follows:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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: left; font-weight: bold">Year ending December 31</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: left">2021</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,522,586</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">2022</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,960,156</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">2023</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,331,931</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">2024</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,172</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">2025</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">131,898</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-align: left; font-weight: bold; padding-bottom: 4pt">Total</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,951,743</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 193; Value: 1 --><div>
    </div><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 -->92<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People,&#160;Inc. &amp;
Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 6 &#8211; Income Taxes</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">For financial reporting purposes, net loss before
provision for income taxes, includes the following components:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%">Domestic</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(1,516,485</td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Foreign</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(234,429</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net loss before provision for income taxes</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(1,750,914</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The provision for income taxes consists of the
following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Current:</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in">Federal</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; width: 88%">State</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">6,204</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; padding-bottom: 1.5pt">Foreign</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 4pt">Total Current</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">6,204</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Deferred:</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; width: 88%">Federal</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in">State</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; padding-bottom: 1.5pt">Foreign</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Total Deferred</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Provision for income taxes</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">6,204</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 194; Value: 1 --><div>
    </div><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 -->93<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People,&#160;Inc. &amp;
Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Income tax provision differs from the amount computed
by applying the statutory as follows:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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">Net loss before income taxes</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(1,750,914</td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Statutory rate:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">21.00</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: right">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Income Tax Expense at Statutory Rate</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(367,692</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">State Tax Expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6,204</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Foreign Tax Differential</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(36,512</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Nondeductible Perm</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">41,022</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">PTBI Reported in PY Tax Return</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">87,576</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Uncertain Tax Position</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">155,428</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Change in Valuation Allowance</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">127,168</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(6,990</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; padding-bottom: 4pt">Total</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">6,204</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Below is a summary of the Company&#8217;s deferred
tax assets and liabilities:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0in; text-indent: 0in; text-align: justify"><b>Deferred
Tax Assets and Liabilities</b></p><div>

</div><p style="margin: 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.25in; text-indent: 0in; text-align: justify">The
deferred assets and liabilities consist of the following:</p><div>

</div><p style="margin: 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; width: 88%; text-align: left">Deferred Revenue</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">163,383</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Bad Debt Reserve</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">53,975</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Accrued Vacation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">296</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">NOL &amp; Charitable Contribution CF</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">807,111</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 4pt">Gross Deferred Tax Assets</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,024,765</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Valuation Allowance</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(947,363</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Property &amp; Equipment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(15,651</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; padding-bottom: 1.5pt">Intangibles</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(61,751</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Deferred Tax Liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(77,402</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; font-weight: bold; text-align: left; padding-bottom: 4pt">Total Deferred Asset / Liability</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 195; Value: 1 --><div>
    </div><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 -->94<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People,&#160;Inc. &amp;
Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At December 31, 2020 the Company
has $3,650,863 federal net operating loss carryforwards, of which $667,770 has a carryforward period of 20 years and the remainder carry
forward indefinitely. The federal NOLs begin to expire in 2037. We have not reflected any benefit of such net operating loss carryforwards
in the accompanying consolidated financial statements. We have established a full valuation against the related deferred tax assets due
to the uncertainty surrounding the realization of such assets. The utilization of the Company&#8217;s NOLs may be subject to annual Internal
Revenue Code Section 382 limitations. The Company has not yet completed a 382 study as of December 31, 2020</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has $2,191,851
of state net operating loss carryforwards with carryforward periods ranging from 15 to 20 years, with state statute period of 4 years.
The state NOLs begin to expire in 2032. The Company has a foreign net operating loss carryforward of $608,604 with carryforward period
of 20 years, with statute period of 4 years. The foreign NOLs begin to expire in 2037. We have not reflected any benefit of such
net operating loss carryforwards in the accompanying consolidated financial statements. We have established a full valuation against the
related deferred tax assets due to the uncertainty surrounding the realization of such assets.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In assessing the realizability
of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will
not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the
periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities,
projected future taxable income, and projects for future taxable income over periods in which the deferred tax assets are deductible.
Management believes it is more likely than not that the Company will realize the benefits of these deductible differences. The change
in valuation allowance during the year ended December 31, 2020, was an increase of $127,168.<br/>
&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Management believes that there
is an uncertain tax position for the cumulative exclusion of deferred revenue and as such, has recognized this uncertain tax position
against federal and state NOLs. There are no interest and penalties related to uncertain tax positions in 2020. The statute of limitation
is 3 years for federal tax and years ending 3/31/18, 3/31/19 and 3/31/20 are open to examination. The statute of limitation is 4 years
for state tax and the years ending 3/31/17, 3/31/18, 3/31/19 and 3/31/20 are open to examination. The Company currently is not under examination
by any tax authority.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In response to the COVID-19
pandemic, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law on March 27, 2020. The CARES
Act, among other things, includes tax provisions relating to refundable payroll tax credits, deferment of employer's social security payments,
net operating loss utilization and carryback periods and modifications to the net interest deduction limitations. The CARES Act did not
have a material impact on the Company&#8217;s income tax provision for 2020. The Company will continue to evaluate the impact of the CARES
Act on its financial position, results of operations, and cash flows.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On December 27, 2020, the
President of the United States signed the Consolidated Appropriations Act, 2021 (&#8220;Consolidated Appropriations Act&#8221;) into law.
The Consolidated Appropriations Act is intended to enhance and expand certain provisions of the CARES Act, allows for the deductions of
expenses related to the Payroll Protection Program funds received by companies, and provides an update to meals and entertainment expensing
for 2021. The Consolidated Appropriations Act did not have a material impact to the Company&#8217;s income tax provision for the year
ended December 31, 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 196; Value: 1 --><div>
    </div><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 -->95<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>The NAV People,&#160;Inc. &amp;
Subsidiary</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 7 &#8211; Commitment and Contingencies</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b><i><span style="text-decoration:underline">Operating Lease</span></i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company leases one office
facility under an operating lease arrangement which expires on April 30, 2024. Rent expense related to the Company&#8217;s operating
leases was $211,343 for the year ended December 31, 2020. Future minimum payments, by year and in the aggregate, under operating leases
at December 31, 2020, are as follows:&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><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: left; font-weight: bold">Year ending December 31</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Future Minimum<br/>
 Payments</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: left">2021</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">246,978</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">2022</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">254,376</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">2023</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">262,008</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">2024</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">89,956</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; font-weight: bold; text-align: left; padding-bottom: 4pt">Total future minimum lease payments</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">853,318</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b><i><span style="text-decoration:underline">Litigation</span></i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">From time to time, the Company
may be involved in litigation relating to claims arising out of its operations in the normal course of business. The Company will accrue
a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. As of
December 31, 2020, and through the date these financial statements were available to be issued, there were no legal proceedings requiring
recognition or disclosure in the financial statements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b><i><span style="text-decoration:underline">Contingencies</span></i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of the date of this report,
there are no known contingent liabilities for the year ended December 31, 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 8 &#8211; Subsequent Events</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has evaluated
all subsequent events through December 13, 2021, which is the date the financial statements were available to be issued.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On October 1, 2021, the Company
was acquired by Akerna Corp. (NASDAQ: KERN) for approximately $17 million, comprised of approximately $5 million in cash and $12 million
in common stock of Akerna Corp.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 197; Value: 1 --><div>
    </div><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 -->96<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>&#160;&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL
INFORMATION</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following unaudited pro forma condensed combined
balance sheet as of September 30, 2021 and the unaudited pro forma condensed combined statements of operations for the twelve months ended
December 31, 2020 and nine months ended September 30, 2021, are based on the historical financial statements of Akerna Corp. (&#8220;Akerna&#8221;,
&#8220;we&#8221;, &#8220;our&#8221;) and The NAV People, Inc. and Subsidiary (&#8220;NAV&#8221;) after giving effect to the acquisition
of NAV (the &#8220;Acquisition&#8221;) and after applying the assumptions and adjustments described in the accompanying notes to the unaudited
pro forma condensed combined financial statements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The unaudited pro forma condensed combined statements
of operations for the twelve months ended December 31, 2020 and nine months ended September 30, 2021 give effect to the Acquisition as
if it had occurred on January 1, 2020,&#160;<span>the first day of the first year presented</span>.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The unaudited pro forma condensed combined balance
sheet as of September 30, 2021, gives effect to the Acquisition as if it had occurred on September 30, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Acquisition of NAV has been accounted for
pursuant to Financial Accounting Standards Board Accounting Standards Codification 805, Business Combinations. The total consideration
transferred, as described in Note 1 to these unaudited pro forma condensed combined financial statements, is allocated to the net tangible
assets and intangible assets of NAV acquired in connection with the Acquisition, based on their estimated fair values as of the date of
the Acquisition, and the excess is allocated to goodwill. We have made a preliminary allocation of the estimated purchase price to the
tangible and intangible assets acquired and liabilities assumed. The acquisition accounting is dependent upon certain valuations and other
studies that have yet to progress to a stage where there is sufficient information for a definitive measurement.&#160;&#160;We have made
significant assumptions and estimates in determining the preliminary estimated purchase price and the preliminary allocation of the estimated
purchase price in the unaudited pro forma condensed combined financial statements. These preliminary estimates and assumptions are subject
to change during the estimated purchase price allocation period (generally one year from the acquisition date) as we finalize the valuations
of the net intangible assets. The final valuations of identifiable intangible assets, fixed assets and deferred revenue and associated
tax effects may change significantly from our preliminary estimates. Differences between these preliminary estimates and the final acquisition
accounting could have a material impact on the accompanying unaudited pro forma condensed combined financial statements and the combined
company&#8217;s future results of operations and financial position. Accordingly, the pro forma adjustments are preliminary and have been
made solely for the purpose of providing unaudited pro forma condensed combined financial statements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The historical consolidated financial information
has been adjusted in the unaudited pro forma condensed consolidated financial statements to give effect to pro forma events that are (1)&#160;directly
attributable to the Acquisition; (2)&#160;factually supportable; and (3)&#160;with respect to the unaudited pro forma condensed consolidated
statements of operations, expected to have a continuing impact on the combined results.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>The unaudited
pro forma condensed consolidated financial statements have been prepared by management for illustrative purposes only and are not necessarily
indicative of the consolidated results of operations or financial position of Akerna that would have been reported had the Acquisition
been completed as of the dates presented and should not be taken as representative of the future consolidated results of operations or
financial position of Akerna. The unaudited pro forma financial statements do not reflect any operating efficiencies and cost savings
that Akerna may achieve, or any additional expenses that it may incur, with respect to the combined companies.&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 198; Value: 1 --><div>
    </div><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 -->97<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The unaudited pro forma condensed combined financial
statements, including the notes thereto should be read in conjunction with:&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><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="text-align: justify; width: 0.25in"></td><td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            accompanying notes to the unaudited pro forma condensed combined financial statements;</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify; width: 0.25in"></td><td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            audited consolidated financial statements, the accompanying notes and &#8220;Management&#8217;s
                                            Discussion and Analysis of Financial Condition and Results of Operations&#8221; included
                                            in Akerna Corp.&#8217;s Transition Report on Form 10-KT for the period ended December 31,
                                            2020 which was filed with the Securities and Exchange Commission ("SEC") on March
                                            31, 2021 (the "Akerna&#160;2020 10-K");</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify; width: 0.25in"></td><td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            unaudited condensed consolidated financial statements, the accompanying notes and &#8220;Management&#8217;s
                                            Discussion and Analysis of Financial Condition and Results of Operations&#8221; included
                                            in our Form 10-Q for the three and nine months ended September 30, 2021 which was filed with
                                            the SEC on November 12, 2021;</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify; width: 0.25in"></td><td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            unaudited condensed consolidated financial statements, the accompanying notes and &#8220;Management&#8217;s
                                            Discussion and Analysis of Financial Condition and Results of Operations&#8221; included
                                            in our Form 10-Q for the three and six months ended June 30, 2021 which was filed with the
                                            SEC on August 12, 2021;</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify; width: 0.25in"></td><td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            unaudited condensed consolidated financial statements, the accompanying notes and &#8220;Management&#8217;s
                                            Discussion and Analysis of Financial Condition and Results of Operations&#8221; included
                                            in our Form 10-Q for the three months ended March 31, 2021 which was filed with the SEC on
                                            May 21, 2021;</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify; width: 0.25in"></td><td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NAV&#8217;s
                                            audited financial statements as of and for the year ended December 31, 2020, included elsewhere
                                            in this Current Report on Form 8-K/A;</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify; width: 0.25in"></td><td style="text-align: justify; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NAV&#8217;s
                                            unaudited c</span><span style="font-family: Times New Roman, Times, Serif">ondensed consolidated
                                            interim financial statements as of and for the nine months ended September 30, 2021, included
                                            elsewhere in this Current Report on Form 8-K/A;</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 199; Value: 1 --><div>
    </div><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 -->98<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>UNAUDITED PRO FORMA CONDENSED COMBINED
BALANCE SHEET</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>AS OF SEPTEMBER 30, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><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; padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Akerna <br/>
Corp.</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">The NAV <br/>
People,<br/>
Inc. &amp; <br/>
Subsidiary <br/>
(Note 1)</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Pro forma <br/>
adjustments</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Note 3</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Pro forma <br/>
combined</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-left: 0.125in; text-indent: -0.125in; font-weight: bold">ASSETS</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-left: 0.125in; text-indent: -0.125in">CURRENT ASSETS:</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.25in; width: 44%">Cash</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">9,608,788</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">531,723</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(5,606,017</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="text-align: center; width: 7%">A</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,534,494</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Restricted cash</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">508,261</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">508,261</td><td style="text-align: left">&#160;</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">Accounts receivable, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,647,619</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">961,140</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,608,759</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-bottom: 1.5pt; padding-left: 0.25in; text-align: left">Prepaid expenses and other current assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,194,221</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">266,826</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,461,047</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.375in; text-align: left">Total current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">13,958,889</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,759,689</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(5,606,107</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">10,112,561</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Fixed assets, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">52,322</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">92,437</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">144,759</td><td style="text-align: left">&#160;</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">Investments, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">226,101</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">226,101</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Capitalized software, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6,167,413</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6,167,413</td><td style="text-align: left">&#160;</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">Intangible assets, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">7,311,541</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,362,710</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,244,507</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">C</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">12,918,758</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in">Goodwill</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">46,790,018</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">21,037,766</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">B</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">67,827,784</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt">Deposits</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,361</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">11,361</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; font-weight: bold; text-align: left">TOTAL ASSETS</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">74,506,284</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,226,197</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">19,676,256</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">97,408,737</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-indent: -0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: left">LIABILITIES AND STOCKHOLDERS' EQUITY</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</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">CURRENT LIABILITIES:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Accounts payable, accrued expenses&#160;and other accrued liabilities</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">5,185,519</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">944,806</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">A, E, G</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">6,130,325</td><td style="text-align: left">&#160;</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">Accounts payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">384,697</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(384,697</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">E</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Accrued expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">500,185</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(500,185</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">E</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</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">Convertible note payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,520,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,520,000</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">A</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Deferred revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">908,256</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,448,982</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(431,411</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">F</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,925,827</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-bottom: 1.5pt; padding-left: 0.25in; text-align: left">Derivative liability</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">160,201</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">160,201</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.375in; text-align: left">Total current liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,253 ,976</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,853,864</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,891,487</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">9,216,353</td><td style="text-align: left">&#160;</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">Long-term debt, less current portion</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,834,001</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,834,001</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Stockholder notes payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,496,759</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(3,496,759</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">A</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; text-align: left">Notes payable</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">148,817</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(148,817</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: center">A</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; text-align: left">TOTAL LIABILITIES</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,087,977</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,499,440</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,537,063</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,050,354</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</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">STOCKHOLDERS' EQUITY:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Special voting preferred stock</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,952,495</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,952,495</td><td style="text-align: left">&#160;</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">Common stock</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,717</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(4,643</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">A, D</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,074</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Additional paid-in capital</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">132,803,659</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">20,020,463</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">A, D</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">152,826,122</td><td style="text-align: left">&#160;</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">Accumulated other comprehensive loss</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(44,639</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(11,410</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(11,410</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">D</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(67,459</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; text-align: left">Accumulated deficit</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(71,295,925</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,268,833</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,208,909</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: center">D, G</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(71,355,849</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="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; text-align: left">TOTAL STOCKHOLDERS' EQUITY</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">64,418,307</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,273,243</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">25,213,319</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">84,358,383</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 4pt; text-align: left">TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">74,506,284</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,226,197</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">19,676,256</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: center">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">97,408,737</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>See accompanying Notes
to Unaudited Pro Forma Condensed Combined Financial Information</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&#160;</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 200; Value: 1 --><div>
    </div><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 -->99<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2020</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;&#160;</b></p><div>

</div><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; text-align: center">&#160;</td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Akerna
<br/>
Corp.<br/>
(Note 1)</b></p></td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>The
NAV <br/>
People,<br/> Inc. &amp; <br/>
Subsidiary<br/>
(Note 1)</b></p></td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Pro forma<br/> adjustments</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Note 4</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Pro forma<br/> combined</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-left: 0.125in; text-indent: -0.125in">Revenue</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.25in; width: 44%">Software</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">11,963,028</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">7,108,536</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="text-align: center; width: 7%">A</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">19,071,564</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in">Consulting</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,739,683</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,739,683</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.25in">Other</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">196,257</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">426,293</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">622,550</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Recurring revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,875,121</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(4,875,121</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">A</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</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; padding-bottom: 1.5pt">Services revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,233,415</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,233,415</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">A</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.375in; text-align: left">Total net revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">13,898,968</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">7,534,829</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">21,433,797</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.25in; padding-bottom: 1.5pt">Cost of revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,355,825</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,202,534</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,558,359</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Gross Profit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">7,543,143</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,332,295</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">12,875,438</td><td style="text-align: left">&#160;</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">Operating expenses:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Product development</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,129,814</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,129,814</td><td style="text-align: left">&#160;</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">Sales and marketing</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">8,085,897</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">46,954</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">8,132,851</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">General and administrative</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">11,018,356</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">784,785</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,798,166</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">A</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">17,601,307</td><td style="text-align: left">&#160;</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">Operations and support</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,374,077</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(5,374,077</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">A</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Bad debt expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">424,089</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(424,089</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">A</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</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">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,223,844</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">301,064</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">542,799</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">B</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,067,707</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt">Impairment of long-lived assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,887,000</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,887,000</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.375in; text-align: left; padding-bottom: 1.5pt">Total operating expenses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">34,344,911</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,930,969</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">542,799</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">41,818,679</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Loss from operations</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(26,801,768</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,598,674</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(542,799</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(28,943,241</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; padding-left: 0.25in; text-align: left">Other income (expense):</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Interest income (expense)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(161,646</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(151,773</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">151,773</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">C</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(161,646</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; padding-left: 0.25in; text-align: left">Change in fair value of convertible notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(195,273</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(195,273</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Change in fair value of derivative liability</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">376,811</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">376,811</td><td style="text-align: left">&#160;</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; padding-bottom: 1.5pt">Other income (expense), net</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(59,397</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(467</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(59,864</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Net loss before income taxes and equity in losses of investee</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(26,841,273</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,750,914</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(391,026</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(28,983,213</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; padding-left: 0.25in; text-align: left">Income tax expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(31,185</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(6,204</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(37,389</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt">Equity in losses of investee</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(16,335</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(16,335</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="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 4pt">Net income (loss)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(26,888,793</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(1,757,118</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(391,026</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(29,036,937</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in">Earnings per share</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.25in">Basic</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(1.87</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(1.61</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in">Diluted</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(1.87</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(1.61</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-indent: -0.125in">Shares used in computing earnings per share</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in">Basic</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">14,409,780</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,571,429</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">17,981,209</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.25in">Diluted</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">14,409,780</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,571,429</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">17,981,209</td><td style="text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span><b>See accompanying
Notes to Unaudited Pro Forma Condensed Combined Financial Information</b></span><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 201; Value: 1 --><div>
    </div><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 -->100<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;<b>UNAUDITED PRO FORMA CONDENSED COMBINED
STATEMENT OF OPERATIONS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><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; text-align: center">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Akerna <br/>
Corp.</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">The NAV <br/>
People,<br/> Inc. &amp; <br/>
Subsidiary</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Pro forma<br/> adjustments</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Note 5</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Pro forma<br/> combined</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-left: 0.125in; text-indent: -0.125in">Revenues</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.25in; width: 44%">Software</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">12,809,841</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#8211;</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,469,240</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="text-align: center; width: 7%">A</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">19,279,081</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in">Consulting</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,135,033</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,135,033</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.25in">Other</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">111,540</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">685,213</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">796,753</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Recurring revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,397,990</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(4,397,990</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">A</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</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; padding-bottom: 1.5pt">Services revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,071,250</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,071,250</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">A</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.375in; text-align: left">Total revenues</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">14,056,414</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">7,154,453</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">21,210,867</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.25in; padding-bottom: 1.5pt">Cost of revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,339,929</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,913,331</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,253,260</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Gross Profit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">8,716,485</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,241,122</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">13,957,607</td><td style="text-align: left">&#160;</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">Operating expenses:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Product development</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,517,836</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,517,836</td><td style="text-align: left">&#160;</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">Sales and marketing</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,564,519</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">35,213</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,599,732</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">General and administrative</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">8,306,417</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">543,784</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,691,077</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">D, A</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">13,541,278</td><td style="text-align: left">&#160;</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">Operations and support</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,584,170</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(4,584,170</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">A</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Bad debt expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">286,094</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(286,094</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">A</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</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">Acquisition costs</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">172,550</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(172,550</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">A</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt">Depreciation and amortization</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,605,435</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">189,664</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">439,218</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">B</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,234,317</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.375in; text-align: left; padding-bottom: 1.5pt">Total operating expenses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">21,994,207</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,811,475</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">87,481</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">27,893,163</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Loss from operations</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(13,277,722</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(570,353</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(87,481</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(13,935,556</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; padding-left: 0.125in; text-align: left">Other (expense) income:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Interest (expense) income, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,175,789</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(161,029</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">161,029</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">C</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,175,789</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; padding-left: 0.25in; text-align: left">Change in fair value of convertible notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(2,030,904</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(2,030,904</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Change in fair value of derivative liability</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">151,175</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">151,175</td><td style="text-align: left">&#160;</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">Gain on forgiveness of PPP Loan</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,234,730</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">954,984</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,189,714</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt">Other (expense) income, net</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">243</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(19,585</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(19,342</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: -0.125in; padding-left: 0.375in; text-align: left; padding-bottom: 1.5pt">Total other (expense) income</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(820,545</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">774,370</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">161,029</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">114,854</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Net loss before income taxes and equity in losses of investee</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(14,098,267</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">204,017</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">73,548</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(13,820,702</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; padding-left: 0.25in; text-align: left">Income tax expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(10,570</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(5,251</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(15,821</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt">Equity in losses of investee</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(7,564</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(7,564</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="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 4pt">Net loss before income taxes and equity in losses of investee</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(14,116,401</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">198,766</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">73,548</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(13,844,087</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-indent: -0.125in">Earnings per share</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.25in">Basic</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(0.58</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(0.50</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in">Diluted</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(0.58</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(0.50</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-indent: -0.125in">Shares used in computing earnings per share</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.25in">Basic</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">24,312,510</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,571,429</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">27,883,939</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.25in">Diluted</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">24,312,510</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,571,429</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">27,883,939</td><td style="text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span><b>See accompanying
Notes to Unaudited Pro Forma Condensed Combined Financial Information</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 202; Value: 1 --><div>
    </div><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 -->101<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 1: Basis of Pro Forma Presentation</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span><i>Accounting
Periods Presented</i></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The unaudited pro forma condensed combined balance
sheet as of September 30, 2021, is presented as if the NAV acquisition had occurred on September 30, 2021. Certain pro forma adjustments
to record differences between historical book values and preliminary values as of the date of the pro forma condensed combined financial
statements are based on the assumption that the Acquisition occurred on September 30, 2021. The actual adjustments to be recorded in Akerna&#8217;s
financial statements will be as of the acquisition date and the option exercise date.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The unaudited pro forma&#160;<b>c</b>ondensed
combined statements of operations of Akerna and NAV for the twelve months ended December 31, 2020 and the nine months ended on September
30, 2021, are presented as if the Acquisition had taken place on January 1, 2020. As disclosed in the Akerna 2020 10-K, we changed our
fiscal year from June 30 to December 31. In the Akerna 2020 10-K we presented the Consolidated statements of operations for the fiscal
year ended June 30, 2020 and the transition period for the six months ended December 31, 2020. For the pro forma condensed combined statements
of operations we have elected to present Akerna results for the year ended December 31, 2020 which consists of the combined transition
period for the six months ended December 31, 2020 plus the six months period from January 1, 2020 to June 30, 2020 consistent with rules
13a-10 and 15d-10 of the Exchange Act.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These unaudited pro forma condensed combined financial
information, including the preliminary purchase price allocation, are presented for illustrative purposes only and do not necessarily
reflect the operating results or financial position that would have occurred if the Acquisition had been consummated on the dates indicated,
nor is it necessarily indicative of the results of operations or financial condition that may be expected for any future period or date.
Accordingly, such information should not be relied upon as an indicator of future performance, financial condition or liquidity.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Preliminary Purchase Consideration</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 1, 2021, we entered into an arrangement
agreement (the &#8220;Agreement&#8221;) to acquire all of the issued and outstanding shares of NAV. Under the terms of the Agreement,
the aggregate consideration for the NAV shares consists of (1) $5,000,000 in cash, (2) $12,000,000 in stock and (3) contingent value rights
to be issued pursuant to a rights indenture entitling the holders thereof to receive, subject to certain adjustments as set forth in the
Agreement, an aggregate of up to $8,000,000 in stock, in the event that NAV achieves certain revenue targets as specified in the Agreement.
These rights are accounted for as contingent consideration and are currently recorded at preliminary fair value which will be updated
upon finalization of purchase accounting.&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%">Cash</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,606,017</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Common shares</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">12,000,000</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Contingent consideration</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,000,000</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 4pt">Total purchase consideration</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">25,606,017</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Preliminary Purchase Consideration Allocation</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>The following
represents the preliminary allocation of the fair value of the purchase consideration to the acquired assets and assumed liabilities based
on NAV&#8217;s balance sheet as of September 30, 2021 and is for illustrative purposes only.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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%">Cash</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">531,723</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Accounts receivable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">961,140</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Prepaid expenses and other current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">266,826</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Fixed assets, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">92,437</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Deposits</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">11,361</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Intangible assets:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Customer relationships</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,509,861</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Acquired technology</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,011,750</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left">Trade Name</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">85,606</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in">Goodwill</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">21,037,766</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Deferred revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(2,017,571</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Accounts payable and accrued expenses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(884,882</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="padding-left: 0.25in; text-align: left; padding-bottom: 4pt">Total purchase consideration</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">25,606,017</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Goodwill of approximately $21.0 million represents
the excess of the purchase consideration over the fair value of the net tangible and intangible assets acquired. Goodwill is primarily
attributable to expected post-acquisition synergies from integrating NAV&#8217;s industry-leading ERP platform into Akerna&#8217;s supply
chain solutions.&#160;<span>None of the goodwill recorded as part of the NAV acquisition is expected to
be deductible for U.S. federal income tax purposes.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>Akerna&#160;has
considered the existing intangible assets of NAV prior to the Acquisition and while we anticipate there will be deferred tax assets arising
from the purchase price, we expect these would have a full valuation allowance given historical losses.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 203; Value: 1 --><div>
    </div><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 -->102<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth the components
of identifiable intangible assets acquired and their preliminary estimated useful lives as of the date of Acquisition:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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">Intangible assets:</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Preliminary <br/>
Fair<br/> Value</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Estimated <br/>
Useful<br/> Life <br/>
(in years)</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; width: 77%; text-align: left">Customer relationships</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,509,861</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: center">10</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Acquired technology</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,011,750</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: center">5</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Trade name</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">85,606</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: center">2</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">5,607,217</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: center">&#160;</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>Following
the end of Akerna&#8217;s fiscal year ended June 30, 2020, Akerna transitioned to a December 31 fiscal year-end date. The following table
presents a reconciliation to Akerna&#8217;s historical unaudited financial data for the twelve months ended December 31, 2020 which was
derived by adding the audited six-month transition period ended December 31, 2020 to Akerna&#8217;s three-month period ended March 31,
2020 and three-month period ended June 30, 2020.&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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: center">&#160;</td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="14" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><b>Historical</b></p></td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Akerna
<br/>
Corp.<br/>
three <br/>
months <br/>
ended<br/> 3/31/2020<br/>
(unaudited)</b></p></td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Akerna
<br/>
Corp.<br/>
three <br/>
months <br/>
ended<br/> 6/30/2020<br/>
(unaudited)</b></p></td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Akerna
<br/>
Corp.<br/>
six months <br/>
ended<br/> 12/31/2020<br/>
(audited)</b></p></td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Akerna
<br/>
Corp.<br/>
twelve <br/>
months <br/>
ended<br/> 12/31/2020<br/>
(unaudited)</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"></p></td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Net revenue:</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%">Software</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2,346,309</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2,849,734</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,766,985</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">11,963,028</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Consulting</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">692,584</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">131,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">916,099</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,739,683</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">31,652</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">22,905</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">141,700</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">196,257</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total net revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,070,545</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,003,639</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">7,824,784</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">13,898,968</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt">Cost of revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,396,219</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,818,565</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,141,041</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,355,825</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Gross profit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,674,326</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,185,074</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,683,743</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">7,543,143</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Operating expenses:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Product development</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">874,787</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,088,939</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,166,088</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,129,814</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Sales and marketing</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,040,751</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,117,118</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,928,028</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">8,085,897</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">General and administrative</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,457,262</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,126,027</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,435,067</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">11,018,356</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">180,229</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,036,378</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,007,237</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,223,844</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Impairment of long-lived assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,887,000</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,887,000</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</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">Total operating expenses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,553,029</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,368,462</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">20,423,420</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">34,344,911</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left">Loss from operations</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(4,878,703</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(6,183,388</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(15,739,677</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(26,801,768</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Interest income (expense), net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">33,522</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(2,084</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(193,084</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(161,646</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Change in fair value of convertible notes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">766,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(961,273</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(195,273</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Change in fair value of derivative liability</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">236,917</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(606,958</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">746,852</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">376,811</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Other expense</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(124</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(59,273</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(59,397</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">Loss before provision for income taxes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(4,608,388</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(6,026,430</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(16,206,455</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(26,841,273</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Provision for income taxes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8211;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(30,985</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(200</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(31,185</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Equity in losses of investee</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#8211;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,692</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(12,643</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(16,335</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in; text-align: left; padding-bottom: 4pt">Net loss</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">(4,608,388</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">(6,061,107</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">(16,219,298</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">(26,888,793</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 204; Value: 1 --><div>
    </div><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 -->103<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 2: Conforming Accounting Policies and Reclassification Adjustments</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">Based on a preliminary review of the accounting policies of Akerna
and NAV, Akerna is not aware of any differences that would have a material impact on the combined company unaudited pro&#160;forma condensed
combined financial information. Following completion of the Acquisition, or as more information becomes available, Akerna will perform
a full and detailed review of the NAV accounting policies and financial statements. As a result of the review, accounting policy differences
may be identified and these differences, when identified, could have a material impact on the combined company unaudited pro&#160;forma
condensed combined financial information. Certain items included in the NAV historical combined financial information have been reclassified
to conform the NAV financial statement presentation to Akerna&#8217;s financial statement presentation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span><b>Note 3: Adjustments to Unaudited
Pro Forma Condensed Combined Balance Sheet as of September 30, 2021</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The pro forma adjustments included in the unaudited
pro forma condensed combined balance sheet for the Acquisition of NAV are as follows:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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">A.</td><td style="text-align: justify">To record the purchase consideration of $5,606,017 in cash which was used to pay NAV debtors in the amount
of $988,874, NAV obligations in the amount of $890,000, and NAV shareholders in the amount&#160;of $2,103,425 and funded from cash and
$12.0 million in common stock issued, which was used to pay down debtors in the amount of $4,299,280 and NAV shareholders in the amount
of $7,700,721.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><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">B.</td><td style="text-align: justify">To record estimated preliminary goodwill of $21,037,766.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><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">C.</td><td style="text-align: justify">To adjust the historical NAV intangible assets to fair value in connection with the Acquisition.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><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">D.</td><td style="text-align: justify">To eliminate NAV&#8217;s historical equity, accumulated deficit, paid in capital and accumulated other
comprehensive loss.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><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">E.</td><td style="text-align: justify">To record reclassifications to conform NAV financial statements with Akerna&#8217;s historical financial
statement presentation.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><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">F.</td><td style="text-align: justify">To record the estimated preliminary fair value of deferred revenue.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><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">G.</td><td style="text-align: justify">To record transaction cost paid after the close of the Acquisition</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span><b>Note
4: Adjustments to Unaudited Pro Forma Condensed Combined Statements of Operations for the twelve months ended December 31, 2020</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The pro forma adjustments included in the unaudited
pro forma condensed combined statement of operations for the Acquisition of NAV are as follows:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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">A.</td><td style="text-align: justify">To record reclassifications to conform NAV financial statements with Akerna&#8217;s historical financial
statement presentation.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><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">B.</td><td style="text-align: justify">To reflect $769,139 amortization expense of preliminarily estimated purchased intangible assets and to eliminate the historical amortization
expense of $253,340.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><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">C.</td><td style="text-align: justify">To eliminate interest expense related to the historical debt of NAV.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">The pro forma combined basic and diluted net loss per share are based
on the number of 17,981,209 shares common stock used in computing basic and diluted net loss per share for the acquisition of Solo, respectively.
Dilutive potential common shares are included only if they have a dilutive effect on earnings per share.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 205; Value: 1 --><div>
    </div><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 -->104<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 5: Adjustments to Unaudited Pro Forma
Condensed Combined Statements of Operations for the nine months ended September 30, 2021</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The pro forma adjustments included in the unaudited
pro forma condensed combined statement of operations for the acquisition of NAV are as follows:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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">A.</td><td style="text-align: justify">To record reclassifications to conform NAV financial statements with Akerna&#8217;s historical financial
statement presentation.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><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">B.</td><td style="text-align: justify">To reflect $597,104 amortization expense of preliminarily estimated purchased intangible assets and to eliminate the historical amortization
expense of $157,886.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><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">C.</td><td style="text-align: justify">To eliminate interest expense related to the historical debt of NAV.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><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">D.</td><td style="text-align: justify">To eliminate transaction related expenses of $179,187 from the historical financial statements of Akerna&#160;and
$172,550 from the historical financial statements of NAV.</td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The pro forma combined basic and diluted net loss per share are based
on the number of 27,883,939 shares common stock used in computing basic and diluted net loss per share for the acquisition of Solo, respectively.
Dilutive potential common shares are included only if they have a dilutive effect on earnings per share.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><b>&#160;</b></p><div>


</div><!-- Field: Page; Sequence: 206; Value: 1 --><div>
    </div><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 -->105<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt">&#160;</div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><img alt="" src="image_002.jpg"/>&#160;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>AKERNA CORP.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Up to ______________ Units, Each Unit Consisting
of One Share of Common Stock and One Warrant to Purchase One Share of Common Stock</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Up to _________________ Pre-funded Units, Each
Pre-funded Unit Consisting of One Pre-funded Warrant to Purchase One Share of Common Stock and One Warrant to Purchase One Share of Common
Stock</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Shares of Common Stock Underlying the Warrants</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Shares of Common Stock Underlying the Pre-Funded
Warrants</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><!-- Field: Rule-Page --><div style="margin: 0pt auto; width: 25%"><div style="font-size: 1pt; border-top: Black 1.5pt solid">&#160;</div></div><!-- Field: /Rule-Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>PROSPECTUS&#160;</b>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

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

</div><!-- Field: Rule-Page --><div style="margin: 0pt auto; width: 25%"><div style="font-size: 1pt; border-top: Black 1.5pt solid">&#160;</div></div><!-- Field: /Rule-Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>A.G.P.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.25in"><b>, 2022</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.25in">&#160;</p><div>


</div><!-- Field: Page; Sequence: 207 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="margin: 0pt">&#160;</p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>PART II</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>INFORMATION NOT REQUIRED IN PROSPECTUS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 13- OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table indicates the expenses to
be incurred in connection with the Offering described in this registration statement, other than underwriting discounts and commissions,
all of which will be paid by us. All amounts are estimates, except for the Securities and Exchange Commission registration fee.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><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">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</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">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: justify">Securities and Exchange Commission Registration Fee</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,900</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">FINRA Filing Fee</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"></td><td style="text-align: left">**</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Legal Fees and Expenses</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">140,000</td><td style="text-align: left">*</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Accounting Fees and Expenses</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">50,000</td><td style="text-align: left">*</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Printing and Engraving Expenses</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">20,000</td><td style="text-align: left">*</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; padding-bottom: 1.5pt">Miscellaneous Expenses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">15,000</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="font-weight: bold; padding-bottom: 4pt; padding-left: 9pt">Total</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">226,900</td><td style="padding-bottom: 4pt; text-align: left">*</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Estimated.</span></td></tr>
  <tr style="vertical-align: top">
    <td style="font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">**</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To be provided by amendment.</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 14- INDEMNIFICATION OF DIRECTORS AND
OFFICERS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under Section 145 of the DGCL, a corporation
may indemnify its directors, officers, employees and agents and its former directors, officers, employees and agents and those who serve,
at the corporation&#8217;s request, in such capacities with another enterprise, against expenses (including attorney&#8217;s fees), as
well as judgments, fines and settlements, actually and reasonably incurred in connection with the defense of any action, suit or proceeding
(other than an action by or in the right of the corporation) in which they or any of them were or are made parties or are threatened
to be made parties by reason of their serving or having served in such capacity. The DGCL provides, however, that such person must have
acted in good faith and in a manner he or she reasonably believed to be in (or not opposed to) the best interests of the corporation
and, in the case of a criminal action, such person must have had no reasonable cause to believe his or her conduct was unlawful. In addition,
the DGCL does not permit indemnification in an action or suit by or in the right of the corporation, where such person has been adjudged
liable to the corporation for negligence or misconduct in the performance of his/her duty to the corporation, unless, and only to the
extent that, a court determines that such person fairly and reasonably is entitled to indemnity for costs the court deems proper in light
of liability adjudication. Indemnity is mandatory to the extent a claim, issue or matter has been successfully defended.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section 102(b)(7) of the DGCL permits a corporation
to include in its certificate of incorporation a provision eliminating or limiting the personal liability of a director to the corporation
or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that such provision shall not eliminate
or limit the liability of a director (i) for any breach of the director&#8217;s duty of loyalty to the corporation or its stockholders,
(ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii)&#160;under
Section 174 of the DGCL (relating to unlawful payment of dividends and unlawful stock purchase or redemption) or (iv) for any transaction
from which the director derived an improper personal benefit.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Article VI of the Amended and Restated By-Laws
of Akerna contains provisions which are designed to provide mandatory indemnification of directors and officers of Akerna to the full
extent permitted by law, as now in effect or later amended. The Amended and Restated By-Laws further provide for reimbursement and advances
of payment of expenses actually and reasonably incurred by a current or former director or officer of Akerna under the circumstances
contained therein.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>


</div><!-- Field: Page; Sequence: 208; Options: NewSection; Value: 1 --><div>
    </div><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 -->1<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 15- RECENT SALES OF UNREGISTERED SECURITIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Set forth below is information regarding shares
of capital stock issued by us within the past three years which were not registered under the Securities Act.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 15, 2020, Akerna closed on a stock
purchase agreement previously entered into with substantially all of the shareholders of Solo Sciences, Inc., a Delaware corporation
(&#8220;Solo&#8221;), pursuant to which Akerna acquired all right, title and interest in 80.40% of the issued and outstanding capital
stock of Solo (calculated on a fully diluted basis), free and clear of all liens. The initial consideration amount under the agreement
was 1,950,000 shares of the common stock of Akerna, less 570,000 shares of the common stock of Akerna to be held in escrow as follows:
(a) 375,000 are to be held and sold to cover costs of the Solo shareholders under a related intellectual property purchase agreement,
to be completed within 12 months of the closing date, with any remaining shares to be released to the Solo shareholders; and (b) 195,000
shares to be held to cover any indemnity payment to certain Akerna parties under the indemnity provisions in the Agreement. This initial
consideration may be subject to an adjustment for final working capital acquired no later than 120 days following the closing date. The
Akerna shares were issued in exchange for the shares of Solo held by the Solo shareholders pursuant to the exemption from the registration
requirements of the Securities Act provided by Rule 506(b) of Regulation D thereunder, such exemption being available based on the representations
of the Solo shareholders.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 8, 2020, Akerna entered into a stock
exchange agreement, pursuant to which it issued shares of common stock of Akerna with an aggregate contractual value of $2,000,000 (the
&#8220;Akerna Shares&#8221;) at $5.72 per share, subject to certain adjustments not later than 90 days post-closing. The acquisition
closed on April 10, 2020, the acquisition date fair value of the shares of stock issued was $2,531,466, or $7.24 per share, the closing
price on the date of acquisition. The Akerna Shares were issued in exchange for the shares of Trellis Solutions, Inc., an Ontario corporation
held by the sellers under the stock exchange agreement. The Akerna shares of common stock were issued pursuant to the exemption from
the registration requirements of the Securities Act provided by Section 4(a)(2) thereof, based on the representations and warranties
of the sellers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 9, 2020, Akerna issued senior secured
convertible notes to holders in an aggregate original principal amount of $17,000,000 having an aggregate original issue discount of
12%, and ranking senior to all of our outstanding and future indebtedness, in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D under the Securities Act, based in part on the representations
of the holders..</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 7, 2020, Akerna Canada Ample Exchange
Inc., a corporation incorporated under the&#160;<i>Business Corporations Act</i>&#160;(Ontario) and wholly-owned subsidiary of Akerna
issued 3,294,574 Exchangeable Shares to Ample shareholders. The issuance of the Exchangeable Shares and the Special Voting Share on the
closing in connection with the consummation of the plan of arrangement was not registered under the Securities Act and such securities
were issued in reliance upon the exemption from registration pursuant to Section 3(a)(10) of the Securities Act.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 31, 2020, Akerna issued 800,000 shares
of common stock of Akerna to acquire the remaining 19.6% of Solo. The Akerna shares were issued in exchange for the shares of Solo held
by the Solo shareholders pursuant to the exemption from the registration requirements of the Securities Act provided by Rule 506(b) of
Regulation D thereunder, such exemption being available based on the representations of the Solo shareholders.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 209; Value: 1 --><div>
    </div><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 -->2<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From December 29, 2020 through January 8, 2021,
Akerna issued 974,540 shares of common stock of Akerna to the holders of Akerna&#8217;s convertible notes upon conversion of installment
amounts due under the terms of the notes. The shares were issued upon conversion of the installment amounts under the notes to the holders
of the notes pursuant to the exemption from the registration requirements of the Securities Act provided by Section 3(a)(9) thereof.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 7, 2021, Akerna issued 101,705 shares
of common stock to a private party in settlement of a lease agreement. The shares were issued to the private party in settlement of claims
and payments due under the lease agreement pursuant to the exemption from the registration requirements of the Securities Act provided
by Rule 506(b) of Regulation D thereunder, such exemption being available based on the representations of the private party.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From February 11, 2021 through March 10, 2021,
Akerna issued 1,113,969 shares of common stock of Akerna to the holders of Akerna&#8217;s convertible notes upon conversion of installment
amounts due under the terms of the notes. The shares were issued upon conversion of the installment amounts under the notes to the holders
of the notes pursuant to the exemption from the registration requirements of the Securities Act provided by Section 3(a)(9) thereof.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 1, 2021, Akerna completed its acquisition
of 100% of the issued and outstanding capital stock of Viridian Sciences Inc. (&#8220;Viridian&#8221;) from Navigator Acquisition Corp.,
a Delaware corporation (&#8220;Navigator&#8221;), pursuant to which Akerna issued 1,000,000 shares of common stock of Akerna to Navigator
the acquisition of Viridian. The shares of common stock were issued to Navigator pursuant to the exemption from the registration requirements
of the Securities Act provided by Rule 506(b) of Regulation D under the Securities Act and/or Section 4(a)(2) thereof based, in part,
on the representations and warranties made by Navigator to Akerna.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 1, 2021, Akerna closed on a stock purchase
agreement with the shareholders of The NAV People Inc., a Delaware corporation d/b/a &#8220;365 Cannabis&#8221; (&#8220;365 Cannabis&#8221;),
pursuant to which Akerna acquired all right, title and interest in 100% of the issued and outstanding capital stock of 365 Cannabis (calculated
on a fully diluted basis), free and clear of all liens. As part of the consideration for the acquisition, Akerna issued 3,571,429 shares
of common stock, representing an aggregate value of approximately $12 million. 357,143 shares of the stock consideration will be held
in escrow for a period of, and will be released from escrow after a period of, 12 months, subject to certain indemnity claims under the
stock purchase agreement. The shares of common stock are also subject to a lock-up agreement between Akerna and the 365 Cannabis shareholders
and will be released from lock-up as follows: (a) 50% of the stock consideration six months from the date of the closing, (b) 25% of the
stock consideration nine months from the date of closing and (c) the remaining 25% of the stock consideration one year from the date of
the closing. The shares of common stock were issued in exchange for the shares of 365 Cannabis held by the 365 Cannabis shareholders pursuant
to the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof and Rule 506(b) of Regulation
D thereunder, such exemption being available based on the representations of the 365 Cannabis shareholders.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 5, 2021, Akerna entered into a securities
purchase agreement with the two institutional investors to sell a new series of senior secured convertible notes of the Company in a private
placement, with an aggregate principal amount of $20,000,000 having an aggregate original issue discount of 10%, and ranking senior to
all outstanding and future indebtedness of the Company. Pursuant to the securities purchase agreement, the convertible notes in an aggregate
original principal amount of $20,000,000 were issued to the institutional investors in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D as promulgated by the Commission under the Securities
Act, based in part on the representations of the institutional investors in the securities purchase agreement.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 210; Value: 1 --><div>
    </div><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 -->3<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 25, 2022, the Company&#8217;s
board of directors approved the issuance of 30,000 shares of our common stock to service providers in relation to providing investor
relations services to the Company. The shares were approved for issuance in consideration for the services to be provided by such
service providers. The shares have not been issued as of the date of this prospectus. The shares are to be issued pursuant to
Section 4(a)(2) of the Securities Act on the basis of the representations and warranties of the service providers in their service
contracts.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>From February
1, 2022 through April 1, 2022, the Company issued 3,948,372 shares of common stock of the Company to the holders of the Company&#8217;s
convertible notes upon conversion of installment amounts due under the terms of the notes. The shares were issued upon conversion of the
installment amounts under the notes to the holders of the notes pursuant to the exemption from the registration requirements of the Securities
Act provided by Section 3(a)(9) thereof.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From April 2, 2022 through to the date of
this prospectus, we&#160;issued 751,686 shares of our common stock to the holders of Akerna&#8217;s convertible notes upon
conversion of installment amounts due under the terms of the notes. The shares were issued upon conversion of the installment
amounts under the notes to the holders of the notes pursuant to the exemption from the registration requirements of the Securities
Act provided by Section 3(a)(9) thereof.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 16- EXHIBITS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(a) Exhibits.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See the Exhibit Index.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(b) Financial Statement Schedules.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(c) Reports, Opinions and Appraisals.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 17- UNDERTAKINGS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">(a) The undersigned Registrant
hereby undertakes:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(1) To file, during any period
in which offers or sales of securities are being made, a post-effective amendment to this registration statement to:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 72px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Include any prospectus
    required by Section 10(a)(3) of the Securities Act;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 72px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflect in the prospectus
    any facts or events which, individually or together, represent a fundamental change in the information in the registration statement;
    and notwithstanding the forgoing, 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 prospectuses filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes
    in the volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the &#8220;Calculation
    of Registration Fee&#8221; table in the effective registration statement; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

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

</div><!-- Field: Page; Sequence: 211; Value: 1 --><div>
    </div><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 -->4<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 72px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iii)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Include any additional
    or changed material information on the plan of distribution not previously disclosed in the registration statement or any material
    change to such information in the registration statement.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 81pt; text-align: justify; text-indent: -27pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(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 therein, and the offering of such securities at that time shall be deemed to be the initial bona fide
offering thereof.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(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.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(4) That, for determining
liability of the undersigned Registrant under the Securities Act 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:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 72px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any preliminary prospectus
    or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424 (&#167;230.424 of
    this chapter);</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 72px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)</span></td>
    <td style="text-align: justify"><span 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 Registrant or used or referred to by the undersigned Registrant;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 72px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iii)</span></td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 72px">&#160;</td>
    <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iv)</span></td>
    <td style="text-align: justify"><span 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 Registrant to the purchaser.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">(b) Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant
to the provisions described herein, 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 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.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">(c) The undersigned Registrant
hereby undertakes that:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(1) For purposes of determining
any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement
in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h)
under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(2) For the purpose of determining
any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to
be the initial bona fide offering thereof.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>


</div><!-- Field: Page; Sequence: 212; Value: 1 --><div>
    </div><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 -->5<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="POA"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>SIGNATURES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the requirements of the Securities
Act of 1933, as amended, the registrant certifies that it has reasonable grounds to believe that it meets all the requirements of filing
on Form S-1 and authorized registration statement to be signed on its behalf by the undersigned, in the city of Denver, Colorado on June
15, 2022.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td colspan="2" style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AKERNA CORP.</b></span></td></tr>
  <tr style="vertical-align: top">
    <td style="width: 60%; text-align: justify">&#160;</td>
    <td style="width: 4%; text-align: justify">&#160;</td>
    <td style="width: 36%; text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</span></td>
    <td style="border-bottom: black 1.5pt solid; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Jessica Billingsley</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name: Jessica Billingsley</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:&#160;Chief Executive
    Officer&#160;&#160;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">KNOW ALL PERSIONS BY THESE PRESENTS, that each
person whose signature appears below constitutes and appoints Jessica Billingsley his or her true and lawful attorney-in-fact, with full
power of substitution and resubstitution for him or her and in his or her name, place and stead, in any and all capacities to sign any
and all amendments including post-effective amendments to this registration statement, and to file the same, with all exhibits thereto,
and other documents in connection therewith, with the SEC, hereby ratifying and confirming all that said attorney-in-fact or his or her
substitute, each acting alone, may lawfully do or cause to be done by virtue thereof.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the requirements of the Securities
Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 40%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Signature</b></span></td>
    <td style="width: 1%; text-align: center">&#160;</td>
    <td style="width: 38%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Title</b></span></td>
    <td style="width: 1%; text-align: center">&#160;</td>
    <td style="width: 20%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Date</b></span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="border-bottom: black 1.5pt solid; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Jessica Billingsley </span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive Officer
    and Director </span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 15, 2022</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jessica Billingsley </span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(Principal Executive
    Officer)</i></span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="border-bottom: black 1.5pt solid; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Larry Dean Ditto, Jr.</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interim Chief Financial
    Officer </span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 15, 2022</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Larry Dean Ditto, Jr.</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>(Principal Financial
    and Accounting Officer)</i></span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="border-bottom: black 1.5pt solid; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Scott Sozio</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director </span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 15, 2022</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Scott Sozio </span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="border-bottom: black 1.5pt solid; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Matthew R. Kane</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director </span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 15, 2022</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Matthew Kane</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="border-bottom: black 1.5pt solid; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Tahira Rehmatullah</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director </span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 15, 2022</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tahira Rehmatullah</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="border-bottom: black 1.5pt solid; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Barry Fishman</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director </span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 15, 2022</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Barry Fishman</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>


</div><!-- Field: Page; Sequence: 213; Value: 1 --><div>
    </div><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 -->6<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>EXHIBIT INDEX</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; width: 9%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Exhibit</b></span></td>
    <td style="width: 1%; text-align: justify">&#160;</td>
    <td style="white-space: nowrap; width: 90%; text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="border-bottom: black 1.5pt solid; white-space: nowrap; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Number</b></span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; white-space: nowrap; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;Description</b></span></td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.1**</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Underwriting Agreement</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.1+</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000161577419007783/s118329_s4a.htm#annex_a">Agreement and Plan of Merger, dated as of October 10, 2018, by and among MTech Acquisition Corp., Akerna Corp., Purchaser Merger Sub Inc., Company Merger Sub LLC, MTech Sponsor LLC in the capacity as the Purchaser Representative thereunder, MJ Freeway LLC and Harold Handelsman in the capacity as the Seller Representative thereunder (incorporated by reference to Exhibit 2.1 to the registrant&#8217;s Registration Statement on Form S-4 (File No. 333-228220))</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.2</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000161577419007783/s118329_s4a.htm#annex_a1">First Amendment to Agreement and Plan of Merger, effective as of April 17, 2019, by and among MTech Acquisition Corp., Akerna Corp., MTech Purchaser Merger Sub Inc., MTech Company Merger Sub LLC, MTech Sponsor LLC,, in the capacity as the Purchaser Representative under the Merger Agreement, MJ Freeway LLC, and Jessica Billingsley, in the capacity as the Seller Representative under the Merger Agreement (incorporated by reference to Exhibit 2.2 to the registrant&#8217;s Registration Statement on Form S-4/A (File No. 333-228220))</a></span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.3</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019026474/f8k1219ex10-1_akernacorp.htm">Arrangement Agreement dated December 18, 2019 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on December 18, 2019)</a></span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.4</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390020005249/ea119197ex10-1_akerna.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amendment to Arrangement Agreement dated February 28, 2020 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on March 3, 2020)</span></a></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.5</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="https://www.sec.gov/Archives/edgar/data/1755953/000121390020016993/ea123745ex2-3_akerna.htm" style="-sec-extract: exhibit">Amendment No. 2 to Arrangement Agreement dated May 26, 2020 (incorporated by reference to Exhibit 2.3 to the Current Report on Form 8-K filed by the registrant on July 8, 2020)</a></span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.6</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390020016993/ea123745ex2-4_akerna.htm">Amendment No. 3 to Arrangement Agreement dated June 1, 2020 (incorporated by reference to Exhibit 2.4 to the Current Report on Form 8-K filed by the registrant on July 8, 2020)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.1</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex3-1_akerna.htm">Amended and Restated Certificate of Incorporation of Akerna Corp. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.2</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390021019124/ex32_1.htm" style="-sec-extract: exhibit">Amended and Restated Bylaws of Akerna Corp. (incorporated by reference to Exhibit 3.1 to the Form 10-KT filed by the registrant on March 31, 2021)</a></span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.3</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390020016993/ea123745ex3-1_akerna.htm">Certificate of Designation for the Special Voting Share (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by the registrant on July 8, 2020)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.1</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000161577419001033/s115341_ex4-1.htm">Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the registrant&#8217;s Registration Statement on Form S-4 (File No. 333-228220))</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.2</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000161577419001033/s115341_ex4-2.htm">Specimen Warrant Certificate (incorporated by reference to Exhibit 4.2 to the registrant&#8217;s Registration Statement on Form S-4 (File No. 333-228220))</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.3</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex4-3_akerna.htm">Form of Warrant Agreement (incorporated by reference to Exhibit 4.3 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.4</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390021048970/ea147701ex10-1_akernacorp.htm">Stock Purchase Agreement, dated September 13, 2021, relating to the 365 Cannabis acquisition (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on September 21, 2021)</a></span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.5</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000101376221000210/ea148402ex10-1_akerna.htm">Securities Purchase Agreement, dated October 5, 2021 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on October 5, 2021)</a></span></td></tr>
</table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="margin: 0"></p><div>

</div><!-- Field: Page; Sequence: 214; Value: 1 --><div>
    </div><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 -->7<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="margin: 0">&#160;</p><div>

</div><p style="margin: 0"></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify; width: 9%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.6</span></td>
    <td style="text-align: justify; width: 1%">&#160;</td>
    <td style="text-align: justify; width: 90%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000101376221000210/ea148402ex10-2_akerna.htm">Form of Secured Convertible Notes (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by the registrant on October 5, 2021)</a></span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.7</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000101376221000210/ea148402ex10-3_akerna.htm">Form of Security Agreement (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed by the registrant on October 5, 2021)</a></span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.8</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000101376221000210/ea148402ex10-4_akerna.htm">Form of Guaranty Agreement (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed by the registrant on October 5, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.9**</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of warrant underlying
    unit offered hereby</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.10*</span>*</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of pre-funded warrant
    underlying pre-funded unit offered hereby</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.11*</span>*</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of underwriter&#8217;s
    warrant </span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.1**</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Opinion of Dorsey &amp;
    Whitney LLP </span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.1</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390020016993/ea123745ex9-1_akerna.htm">Voting and Exchange Trust Agreement (incorporated by reference to Exhibit 9.1 to the Current Report on Form 8-K filed by the registrant on July 8, 2020)</a></span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.1</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex10-1_akerna.htm">Registration Rights Agreement, dated January 29, 2018, by and among MTech Acquisition Corp., MTech Sponsor LLC, and MTech Sponsor LLC (incorporated by reference to Exhibit 10.1 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.2</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex10-2_akerna.htm">First Amendment to Registration Rights Agreement, dated June 17, 2019, by and among MTech Acquisition Corp., Akerna Corp. and MTech Sponsor LLC (incorporated by reference to Exhibit 10.2 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.3</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex10-3_akerna.htm">Stock Escrow Agreement, dated January 29, 2018, by and among MTech Acquisition Corp., MTech Sponsor LLC, and Continental Stock Transfer &amp; Trust Company (incorporated by reference to Exhibit 10.3 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.4</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex10-4_akerna.htm">Amendment to Stock Escrow Agreement, dated June 17, 2019, by and among MTech Acquisition Corp., Akerna Corp., MTech Sponsor LLC, and Continental Stock Transfer &amp; Trust Company (incorporated by reference to Exhibit 10.4 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.5</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex10-5_akerna.htm">Non-Competition and Non-Solicitation Agreement dated June 17, 2019, by and among Jessica Billingsley, Akerna Corp., MJ Freeway and MTech Sponsor LLC (incorporated by reference to Exhibit 10.5 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.6</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex10-6_akerna.htm">Non-Competition and Non-Solicitation Agreement dated June 17, 2019, by and among Amy Poinsett, Akerna Corp., MJ Freeway and MTech Sponsor LLC (incorporated by reference to Exhibit 10.6 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.7</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex10-7_akerna.htm">Form of Indemnification Agreement of Officers and Directors (incorporated by reference to Exhibit 10.7 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.8</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex10-8_akerna.htm">Form of Subscription Agreement, by and among MTech Acquisition Corp., Akerna Corp., and each purchaser signatory thereto (incorporated by reference to Exhibit 10.8 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
</table><div>
</div><p style="margin: 0">&#160;</p><div>





</div><p style="margin: 0"></p><div>

</div><!-- Field: Page; Sequence: 215; Value: 1 --><div>
    </div><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 -->8<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="margin: 0">&#160;</p><div>

</div><p style="margin: 0"></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify; width: 9%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.9</span></td>
    <td style="text-align: justify; width: 1%">&#160;</td>
    <td style="text-align: justify; width: 90%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex10-9_akerna.htm">Form of Agreement to Transfer Sponsor Shares, by and among MTech Acquisition Corp., Akerna Corp., each transferee signatory thereto, and Continental Stock Transfer &amp;Trust Company (incorporated by reference to Exhibit 10.9 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.10&#x5e;</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex10-10_akerna.htm">Employment Agreement, dated June 17, 2019, by and between Jessica Billingsley and Akerna Corp. (incorporated by reference to Exhibit 10.10 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.11&#x5e;</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000161577418012191/s113428_ex10-5.htm">MTech Acquisition Holdings Inc. 2019 Long Term Incentive Plan (incorporated by reference to Exhibit 10.5 to the registrant&#8217;s Registration Statement on Form S-4 (File No. 333-228220))</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.12&#x5e;</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex10-12_akerna.htm">Form of Option Grant Certificate (incorporated by reference to Exhibit 10.12 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.13&#x5e;</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex10-13_akerna.htm">Form of Restricted Stock Unit Award (incorporated by reference to Exhibit 10.13 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.14&#x5e;</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex10-14_akerna.htm">Form of Stock Award (incorporated by reference to Exhibit 10.14 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.15&#x5e;</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex10-15_akerna.htm">Form of Restricted Stock Award (incorporated by reference to Exhibit 10.15 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.16&#x5e;</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019011249/f8k061719ex10-16_akerna.htm">Form of Appreciation Rights Award (incorporated by reference to Exhibit 10.16 on Current Report on Form 8-K filed by the registrant on June 21, 2019)</a></span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.17</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000161577418012191/s113428_ex10-3.htm">Form of Lock-Up Agreement, by and among MTech Acquisition Holdings, Inc., MTech Sponsor LLC, and each holder signatory thereto (incorporated by reference to Exhibit 10.3 to the registrant&#8217;s Registration Statement on Form S-4 (File No. 333-228220))</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.18</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019023486/f10q0919ex10-1_akernacorp.htm">Office Service Agreement, dated September 30, 2019, effective February 1, 2020 (incorporated by reference to Exhibit 10.1 to the registrant&#8217;s Quarterly Report on Form 10-Q for the three months ended September 30, 2019</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.19</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019024703/f8k112419ex10-1_akernacorp.htm">Stock Purchase Agreement, dated November 25, 2018 (incorporated by reference to Exhibit 10.1 to the registrant&#8217;s Current Report on Form 8-K filed on November 26, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.20&#x5e;</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019019421/f8k092619ex10-1_akernacorp.htm">Letter Agreement effective September 23, 2019 between the registrant and Nina Simosko (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on October 1, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.21&#x5e;</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019019421/f8k092619ex10-2_akernacorp.htm">Letter Agreement effective September 26, 2019 between MJ Freeway, LLC and Ray Thompson (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by the registrant on October 1, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.22</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019019421/f8k092619ex10-3_akernacorp.htm">Covenant Agreement effective September 23, 2019 between Akerna Corp and Nina Simosko (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed by the registrant on October 1, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.23</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019019421/f8k092619ex10-4_akernacorp.htm">Covenant Agreement between Akerna Corp. and Ray Thompson (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed by the registrant on October 1, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.24&#x5e;</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019026864/f8k122319ex10-1_akerna.htm">Letter Agreement dated December 17, 2019 between Akerna Corp. and John Fowle (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on December 23, 2019)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: #CCEEFF">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.25</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390019026864/f8k122319ex10-2_akerna.htm">Covenant Agreement dated December 17, 2019 between Akerna Corp. and John Fowle (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by the registrant on December 23, 2019)</a></span></td></tr>
</table><div>
</div><p style="margin: 0">&#160;</p><div>

</div><p style="margin: 0"></p><div>

</div><!-- Field: Page; Sequence: 216; Value: 1 --><div>
    </div><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 -->9<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="margin: 0">&#160;</p><div>

</div><p style="margin: 0"></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify; width: 9%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.26</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="text-align: justify; width: 90%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390020016993/ea123745ex10-1_akerna.htm">Exchangeable Share Support Agreement (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on July 8, 2020)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.27</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390020016993/ea123745ex10-2_akerna.htm">Escrow Agreement (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by the registrant on July 8, 2020)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.28</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390020016993/ea123745ex10-3_akerna.htm">Rights Indenture (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed by the registrant on July 8, 2020)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.29</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390021028342/ex101_1.htm">Agreement and Plan of Reorganization with Navigator Acquisition Corp. dated March 10, 2021 (incorporated by reference to Exhibit 10.1 to the Form 10-Q filed by the registrant on May 21, 2021)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.30</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390021038408/ea144679ex10-1_akernacorp.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">At-the-Market Distribution
    Agreement dated July 23, 2021 (incorporated by reference to Exhibit 10.1 to the Form 8-K filed by the registrant on July 23, 2021)</span></a></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.31</span></td>
    <td>&#160;</td>
    <td><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390021051250/ea148334ex10-2_akernacorp.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Lock-Up Agreement
    (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by the registrant on October 4, 2021)</span></a></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.32</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390021051250/ea148334ex10-3_akernacorp.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Registration Rights Agreement
with Sellers of 365 Cannabis (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed by the registrant on
October 4, 2021)</span></a></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.33</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000101376221000210/ea148402ex10-5_akerna.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Registration Rights Agreement (incorporated
by reference to Exhibit 10.5 to the Current Report on Form 8-K filed by the registrant on October 5, 2021)</span></a></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.34</span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000101376221000210/ea148402ex10-6_akerna.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Voting Agreement
    (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K filed by the registrant on October 5, 2021)</span></a></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.30</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390022027396/ea159971ex10-1_akernacorp.htm">Consulting Agreement, between Akerna Corp. and Larry Dean Ditto, Jr., dated April 21, 2022 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on May 16, 2022)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">21.1</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1755953/000121390020017108/ea123951ex21-1_akernacorp.htm">Subsidiaries of Akerna Corp. (incorporated by reference to Exhibit 21.1 to the Registration Statement on Form S-1 filed by the registrant on July 9, 2020)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.1*</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="ea161432ex23-1_akernacorp.htm">Consents of Marcum LLP</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.2*</span>*</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent of Dorsey &amp;
    Whitney LLP (included as Exhibit 5.1)</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">24.1*</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="#POA">Power of Attorney (included on signature page)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>

<tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify; width: 9%"><span style="font-size: 10pt">101.INS*</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 90%"><span style="font-size: 10pt">Inline XBRL Instance Document </span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">101.SCH*</span></td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Inline XBRL Taxonomy Extension Schema Document.</span></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-size: 10pt">101.CAL*</span></td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Inline XBRL Taxonomy Extension Calculation Linkbase Document.</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-size: 10pt">101.DEF*</span></td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Inline XBRL Taxonomy Extension Definition Linkbase Document.</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-size: 10pt">101.LAB*</span></td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Inline XBRL Taxonomy Extension Label Linkbase Document.</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-size: 10pt">101.PRE*</span></td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Inline XBRL Taxonomy Extension Presentation Linkbase Document.</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-size: 10pt">104*</span></td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).</span></td></tr>

<tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify; width: 9%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">107</span>*</td>
    <td style="text-align: justify; width: 1%">&#160;</td>
    <td style="text-align: justify; width: 90%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="ea161432ex-fee_akernacorp.htm">Calculation of Filing Fee Table</a></span></td></tr>
  </table><div>
</div><p style="margin: 0">&#160;</p><div>

</div><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: 0in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Filed
herewith.</span></td>
</tr></table><div>

</div><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: 0in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">**</span></td><td style="text-align: justify"><span style="font-size: 10pt">To be filed by amendment.</span></td>
</tr></table><div>

</div><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: 0in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">+</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
exhibits and schedules to this Exhibit have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The registrant hereby agrees to
furnish a copy of any omitted schedules to the Commission upon request.</span></td>
</tr></table><div>

</div><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: 0in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#x5e;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management
compensation contract or arrangement.</span></td>
</tr></table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">II-10</p><div>

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

</div><!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><div style="font-size: 1pt; border-top: Black 1.5pt solid">&#160;</div></div><!-- Field: /Rule-Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>


</div><div style="display: none"><ix:header>
<ix:hidden>
<ix:nonFraction contextRef="c1" id="hidden-fact-0" name="us-gaap:CommitmentsAndContingencies" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-1" name="us-gaap:CommitmentsAndContingencies" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c1" id="hidden-fact-2" name="us-gaap:PreferredStockValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-3" name="us-gaap:PreferredStockValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c7" id="hidden-fact-4" name="us-gaap:OtherAssetsNoncurrent" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c7" id="hidden-fact-5" name="us-gaap:BusinessCombinationContingentConsiderationLiabilityCurrent" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c7" id="hidden-fact-6" name="us-gaap:DeferredRevenueNoncurrent" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c7" id="hidden-fact-7" name="us-gaap:DeferredIncomeTaxLiabilitiesNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-8" name="us-gaap:CommitmentsAndContingencies" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c7" id="hidden-fact-9" name="us-gaap:CommitmentsAndContingencies" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-10" name="us-gaap:PreferredStockValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c7" id="hidden-fact-11" name="us-gaap:PreferredStockValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-12" name="us-gaap:ImpairmentOfLongLivedAssetsHeldForUse" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-13" name="us-gaap:IncomeLossFromEquityMethodInvestments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-14" name="us-gaap:ImpairmentOfLongLivedAssetsHeldForUse" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-15" name="us-gaap:GainsLossesOnExtinguishmentOfDebt" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-16" name="us-gaap:GainsLossesOnExtinguishmentOfDebt" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-17" name="us-gaap:NetIncomeLossAttributableToNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-18" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-19" name="us-gaap:ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c35" id="hidden-fact-20" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c37" id="hidden-fact-21" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c38" id="hidden-fact-22" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-23" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c34" id="hidden-fact-24" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c34" id="hidden-fact-25" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c37" id="hidden-fact-26" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c38" id="hidden-fact-27" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c34" id="hidden-fact-28" name="us-gaap:SharesPaidForTaxWithholdingForShareBasedCompensation" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c34" id="hidden-fact-29" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c35" id="hidden-fact-30" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c37" id="hidden-fact-31" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c38" id="hidden-fact-32" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c34" id="hidden-fact-33" name="kern:StcckIssuedDuringSharesReturnedInConnectionWithCannabisAcquisition" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c34" id="hidden-fact-34" name="kern:StockIssuedDuringSharesReturnedInConnectionWith365CannabisAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c37" id="hidden-fact-35" name="kern:StockIssuedDuringSharesReturnedInConnectionWith365CannabisAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c38" id="hidden-fact-36" name="kern:StockIssuedDuringSharesReturnedInConnectionWith365CannabisAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c34" id="hidden-fact-37" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c35" id="hidden-fact-38" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c37" id="hidden-fact-39" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c38" id="hidden-fact-40" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c34" id="hidden-fact-41" name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardGross" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c34" id="hidden-fact-42" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c37" id="hidden-fact-43" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c38" id="hidden-fact-44" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-45" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c34" id="hidden-fact-46" name="kern:StockIssuedDuringPeriodSharesSettlementOfLiabilities" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c34" id="hidden-fact-47" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c37" id="hidden-fact-48" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c38" id="hidden-fact-49" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c34" id="hidden-fact-50" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c35" id="hidden-fact-51" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c36" id="hidden-fact-52" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c38" id="hidden-fact-53" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c34" id="hidden-fact-54" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c35" id="hidden-fact-55" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c36" id="hidden-fact-56" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c38" id="hidden-fact-57" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c34" id="hidden-fact-58" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c35" id="hidden-fact-59" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c36" id="hidden-fact-60" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c37" id="hidden-fact-61" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c52" id="hidden-fact-62" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c53" id="hidden-fact-63" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-64" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c49" id="hidden-fact-65" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c49" id="hidden-fact-66" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c52" id="hidden-fact-67" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c53" id="hidden-fact-68" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c49" id="hidden-fact-69" name="us-gaap:SharesPaidForTaxWithholdingForShareBasedCompensation" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c49" id="hidden-fact-70" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c52" id="hidden-fact-71" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c53" id="hidden-fact-72" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c49" id="hidden-fact-73" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c50" id="hidden-fact-74" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c52" id="hidden-fact-75" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c53" id="hidden-fact-76" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c49" id="hidden-fact-77" name="kern:StockIssuedDuringPeriodSharesSettlementOfLiabilities" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c49" id="hidden-fact-78" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c52" id="hidden-fact-79" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c53" id="hidden-fact-80" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c49" id="hidden-fact-81" name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardGross" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c49" id="hidden-fact-82" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c52" id="hidden-fact-83" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c53" id="hidden-fact-84" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-85" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c49" id="hidden-fact-86" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c50" id="hidden-fact-87" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c51" id="hidden-fact-88" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c53" id="hidden-fact-89" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c49" id="hidden-fact-90" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c50" id="hidden-fact-91" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c51" id="hidden-fact-92" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c53" id="hidden-fact-93" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c49" id="hidden-fact-94" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c50" id="hidden-fact-95" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c51" id="hidden-fact-96" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c52" id="hidden-fact-97" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c60" id="hidden-fact-98" name="us-gaap:SharesOutstanding" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c60" id="hidden-fact-99" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c63" id="hidden-fact-100" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c66" id="hidden-fact-101" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c68" id="hidden-fact-102" name="kern:StockIssuedDuringPeriodSharesWarrantExercise" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c68" id="hidden-fact-103" name="kern:StockIssuedDuringPeriodValueWarrantExercise" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c71" id="hidden-fact-104" name="kern:StockIssuedDuringPeriodValueWarrantExercise" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c72" id="hidden-fact-105" name="kern:StockIssuedDuringPeriodValueWarrantExercise" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c74" id="hidden-fact-106" name="kern:StockIssuedDuringPeriodValueWarrantExercise" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c68" id="hidden-fact-107" name="us-gaap:StockIssuedDuringPeriodSharesAcquisitions" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c68" id="hidden-fact-108" name="us-gaap:StockIssuedDuringPeriodValueAcquisitions" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c71" id="hidden-fact-109" name="us-gaap:StockIssuedDuringPeriodValueAcquisitions" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c72" id="hidden-fact-110" name="us-gaap:StockIssuedDuringPeriodValueAcquisitions" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c74" id="hidden-fact-111" name="us-gaap:StockIssuedDuringPeriodValueAcquisitions" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c70" id="hidden-fact-112" name="kern:NoncontrollingInterestInAcquiredSubsidiary" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c71" id="hidden-fact-113" name="kern:NoncontrollingInterestInAcquiredSubsidiary" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c72" id="hidden-fact-114" name="kern:NoncontrollingInterestInAcquiredSubsidiary" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c73" id="hidden-fact-115" name="kern:NoncontrollingInterestInAcquiredSubsidiary" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c71" id="hidden-fact-116" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c72" id="hidden-fact-117" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c74" id="hidden-fact-118" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c68" id="hidden-fact-119" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c71" id="hidden-fact-120" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c72" id="hidden-fact-121" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c73" id="hidden-fact-122" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c74" id="hidden-fact-123" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-124" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c68" id="hidden-fact-125" name="kern:IncreaseDecreaseInFairValueOfConvertibleNotes" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c69" id="hidden-fact-126" name="kern:IncreaseDecreaseInFairValueOfConvertibleNotes" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c70" id="hidden-fact-127" name="kern:IncreaseDecreaseInFairValueOfConvertibleNotes" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c72" id="hidden-fact-128" name="kern:IncreaseDecreaseInFairValueOfConvertibleNotes" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c74" id="hidden-fact-129" name="kern:IncreaseDecreaseInFairValueOfConvertibleNotes" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c68" id="hidden-fact-130" name="us-gaap:FairValueAdjustmentOfWarrants" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c69" id="hidden-fact-131" name="us-gaap:FairValueAdjustmentOfWarrants" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c71" id="hidden-fact-132" name="us-gaap:FairValueAdjustmentOfWarrants" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c72" id="hidden-fact-133" name="us-gaap:FairValueAdjustmentOfWarrants" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c74" id="hidden-fact-134" name="us-gaap:FairValueAdjustmentOfWarrants" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c68" id="hidden-fact-135" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c69" id="hidden-fact-136" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c70" id="hidden-fact-137" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c71" id="hidden-fact-138" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c75" id="hidden-fact-139" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c76" id="hidden-fact-140" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c77" id="hidden-fact-141" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c78" id="hidden-fact-142" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c81" id="hidden-fact-143" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c82" id="hidden-fact-144" name="us-gaap:SharesOutstanding" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c82" id="hidden-fact-145" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c75" id="hidden-fact-146" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c78" id="hidden-fact-147" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c79" id="hidden-fact-148" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c81" id="hidden-fact-149" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c76" id="hidden-fact-150" name="kern:SpecialVotingPreferredStockIssueInBusinessCombinationShares" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c76" id="hidden-fact-151" name="kern:SpecialVotingPreferredStockIssuedInBusinessCombination" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c77" id="hidden-fact-152" name="kern:SpecialVotingPreferredStockIssuedInBusinessCombination" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c78" id="hidden-fact-153" name="kern:SpecialVotingPreferredStockIssuedInBusinessCombination" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c79" id="hidden-fact-154" name="kern:SpecialVotingPreferredStockIssuedInBusinessCombination" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c81" id="hidden-fact-155" name="kern:SpecialVotingPreferredStockIssuedInBusinessCombination" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c78" id="hidden-fact-156" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c79" id="hidden-fact-157" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c80" id="hidden-fact-158" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c81" id="hidden-fact-159" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-160" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c75" id="hidden-fact-161" name="kern:NoncontrollingInterestInAcquiredSubsidiaryinShares" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c75" id="hidden-fact-162" name="kern:NoncontrollingInterestInAcquiredSubsidiary" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c78" id="hidden-fact-163" name="kern:NoncontrollingInterestInAcquiredSubsidiary" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c79" id="hidden-fact-164" name="kern:NoncontrollingInterestInAcquiredSubsidiary" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-165" name="kern:NoncontrollingInterestInAcquiredSubsidiary" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c75" id="hidden-fact-166" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c76" id="hidden-fact-167" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c78" id="hidden-fact-168" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c79" id="hidden-fact-169" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c81" id="hidden-fact-170" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c75" id="hidden-fact-171" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c75" id="hidden-fact-172" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c78" id="hidden-fact-173" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c79" id="hidden-fact-174" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c81" id="hidden-fact-175" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c75" id="hidden-fact-176" name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardGross" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c75" id="hidden-fact-177" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c78" id="hidden-fact-178" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c79" id="hidden-fact-179" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c80" id="hidden-fact-180" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c81" id="hidden-fact-181" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-182" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c75" id="hidden-fact-183" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c76" id="hidden-fact-184" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c77" id="hidden-fact-185" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c79" id="hidden-fact-186" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c81" id="hidden-fact-187" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c75" id="hidden-fact-188" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c76" id="hidden-fact-189" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c77" id="hidden-fact-190" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c79" id="hidden-fact-191" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c81" id="hidden-fact-192" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c75" id="hidden-fact-193" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c76" id="hidden-fact-194" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c77" id="hidden-fact-195" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c78" id="hidden-fact-196" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c94" id="hidden-fact-197" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c95" id="hidden-fact-198" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c96" id="hidden-fact-199" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c97" id="hidden-fact-200" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-201" name="us-gaap:StockIssuedDuringPeriodValueConversionOfUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-202" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-203" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c94" id="hidden-fact-204" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c95" id="hidden-fact-205" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c97" id="hidden-fact-206" name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-207" name="us-gaap:SharesPaidForTaxWithholdingForShareBasedCompensation" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-208" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c94" id="hidden-fact-209" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c95" id="hidden-fact-210" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c97" id="hidden-fact-211" name="us-gaap:AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-212" name="kern:SharesIssuedInConnectionWithViridianAcquisitionShares" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-213" name="kern:SharesIssuedInConnectionWithViridianAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c94" id="hidden-fact-214" name="kern:SharesIssuedInConnectionWithViridianAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c95" id="hidden-fact-215" name="kern:SharesIssuedInConnectionWithViridianAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c97" id="hidden-fact-216" name="kern:SharesIssuedInConnectionWithViridianAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-217" name="us-gaap:StockIssuedDuringPeriodSharesPurchaseOfAssets" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-218" name="us-gaap:StockIssuedDuringPeriodValuePurchaseOfAssets" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c94" id="hidden-fact-219" name="us-gaap:StockIssuedDuringPeriodValuePurchaseOfAssets" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c95" id="hidden-fact-220" name="us-gaap:StockIssuedDuringPeriodValuePurchaseOfAssets" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c97" id="hidden-fact-221" name="us-gaap:StockIssuedDuringPeriodValuePurchaseOfAssets" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-222" name="kern:StockIssuedDuringSharesIssuedInConnectionWith365CannabisAcquisitioninShares" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-223" name="kern:StockIssuedDuringSharesIssuedInConnectionWithCannabisAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c94" id="hidden-fact-224" name="kern:StockIssuedDuringSharesIssuedInConnectionWithCannabisAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c95" id="hidden-fact-225" name="kern:StockIssuedDuringSharesIssuedInConnectionWithCannabisAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c97" id="hidden-fact-226" name="kern:StockIssuedDuringSharesIssuedInConnectionWithCannabisAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c92" id="hidden-fact-227" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c94" id="hidden-fact-228" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c95" id="hidden-fact-229" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c97" id="hidden-fact-230" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-231" name="kern:CashReceivedInConnectionWithExerciseOfWarrantsShares" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-232" name="kern:CashReceivedInConnectionWithExerciseOfWarrants" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c94" id="hidden-fact-233" name="kern:CashReceivedInConnectionWithExerciseOfWarrants" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c95" id="hidden-fact-234" name="kern:CashReceivedInConnectionWithExerciseOfWarrants" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c97" id="hidden-fact-235" name="kern:CashReceivedInConnectionWithExerciseOfWarrants" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-236" name="kern:StockIssuedDuringPeriodSharesSettlementOfLiabilities" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-237" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c94" id="hidden-fact-238" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c95" id="hidden-fact-239" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c97" id="hidden-fact-240" name="kern:StockIssuedDuringPeriodValueSettlementOfLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-241" name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardGross" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-242" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c94" id="hidden-fact-243" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c95" id="hidden-fact-244" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c96" id="hidden-fact-245" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c97" id="hidden-fact-246" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-247" name="us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-248" name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-249" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c92" id="hidden-fact-250" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c93" id="hidden-fact-251" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c95" id="hidden-fact-252" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c97" id="hidden-fact-253" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-254" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c92" id="hidden-fact-255" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c93" id="hidden-fact-256" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c95" id="hidden-fact-257" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c97" id="hidden-fact-258" name="us-gaap:OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-259" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c92" id="hidden-fact-260" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c93" id="hidden-fact-261" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c94" id="hidden-fact-262" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c97" id="hidden-fact-263" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c99" id="hidden-fact-264" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-265" name="us-gaap:LossOnSaleOfInvestments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-266" name="us-gaap:OtherNoncashExpense" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-267" name="us-gaap:ImpairmentOfLongLivedAssetsToBeDisposedOf" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-268" name="us-gaap:IncreaseDecreaseInDeferredLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-269" name="us-gaap:InterestPaidNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-270" name="us-gaap:InterestPaidNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-271" name="us-gaap:IncomeTaxesPaidNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-272" name="kern:StockBasedCompensationCapitalizedAsSoftwareDevelopment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-273" name="kern:VestingOfRestrictedStockUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-274" name="kern:CapitalizedSoftwareIncludedInAccruedExpense" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-275" name="kern:FixedAssetPurchasesAccruedOrInAccountsPayable" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-276" name="kern:SharesReturnedInConnectionWith365CannabisAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-277" name="kern:CapitalFundsReleasedFromAccruedExpenses" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-278" name="kern:CapitalAdjustmentFundsRecordedInOtherCurrentAssets" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-279" name="kern:LossOnWriteOffOfFixedAsset" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-280" name="kern:LossOnWriteOffOfFixedAsset" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-281" name="kern:GainOnForgivenessOfPPPLoan" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-282" name="kern:GainOnForgivenessOfPPPLoan" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-283" name="kern:AmortizationOfDeferredContractCost" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-284" name="us-gaap:OtherNoncashExpense" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-285" name="kern:ForeignCurrencyLossesgain" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-286" name="kern:ForeignCurrencyLossesgain" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-287" name="us-gaap:ImpairmentOfLongLivedAssetsToBeDisposedOf" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-288" name="kern:GainOnDebtExtinguishments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-289" name="kern:GainOnDebtExtinguishments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-290" name="kern:LossOnSaleOfFixedAsset" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-291" name="kern:LossOnSaleOfFixedAsset" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-292" name="us-gaap:AmortizationOfFinancingCosts" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-293" name="us-gaap:AmortizationOfFinancingCosts" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-294" name="us-gaap:BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationAsset1" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-295" name="kern:OtherAssetsAmount" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-296" name="us-gaap:IncreaseDecreaseInDeferredLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-297" name="us-gaap:IncreaseDecreaseInDeferredLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-298" name="us-gaap:PaymentsToAcquireEquityMethodInvestments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-299" name="us-gaap:PaymentsToAcquireEquityMethodInvestments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-300" name="us-gaap:PaymentsRelatedToTaxWithholdingForShareBasedCompensation" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-301" name="us-gaap:PaymentsRelatedToTaxWithholdingForShareBasedCompensation" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-302" name="us-gaap:ProceedsFromContributedCapital" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-303" name="us-gaap:ProceedsFromContributedCapital" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-304" name="us-gaap:ProceedsFromIssuanceOfLongTermDebt" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-305" name="us-gaap:FinanceLeasePrincipalPayments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-306" name="us-gaap:FinanceLeasePrincipalPayments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-307" name="us-gaap:FinanceLeasePrincipalPayments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-308" name="us-gaap:RepaymentsOfLongTermDebt" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-309" name="us-gaap:PaymentsOfDebtIssuanceCosts" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-310" name="us-gaap:PaymentsOfDebtIssuanceCosts" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-311" name="us-gaap:ProceedsFromWarrantExercises" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-312" name="us-gaap:ProceedsFromWarrantExercises" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-313" name="us-gaap:ProceedsFromIssuanceOfCommonStock" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-314" name="us-gaap:ProceedsFromIssuanceOfCommonStock" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-315" name="us-gaap:PaymentsOfStockIssuanceCosts" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-316" name="us-gaap:PaymentsOfStockIssuanceCosts" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-317" name="us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-318" name="us-gaap:IncomeTaxesPaidNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-319" name="us-gaap:IncomeTaxesPaidNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-320" name="us-gaap:InterestPaidNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-321" name="kern:AdjustmentsDueToTheAdoptionOfASC606" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-322" name="kern:AdjustmentsDueToTheAdoptionOfASC606" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-323" name="kern:VestingOfRestrictedStockUnits" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-324" name="us-gaap:ConversionOfStockAmountIssued1" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-325" name="kern:AcquisitionOfNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-326" name="kern:AcquisitionOfNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-327" name="kern:CapitalizedSoftwareIncludedInAccruedExpense" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-328" name="kern:SpecialVotingPreferredStockIssuedInBusinessCombinations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-329" name="kern:SpecialVotingPreferredStockIssuedInBusinessCombinations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-330" name="us-gaap:ConversionOfStockAmountConverted1" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-331" name="kern:AdjustmentToTrellisPurchasePriceAllocation" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-332" name="kern:AdjustmentToTrellisPurchasePriceAllocation" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-333" name="us-gaap:DebtConversionOriginalDebtAmount1" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-334" name="us-gaap:DebtConversionOriginalDebtAmount1" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-335" name="kern:SharesIssuedInConnectionWithAnAssetPurchase" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-336" name="kern:SharesIssuedInConnectionWithAnAssetPurchase" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c89" id="hidden-fact-337" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c7" id="hidden-fact-338" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c89" id="hidden-fact-339" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c111" id="hidden-fact-340" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c192" id="hidden-fact-341" name="kern:AdjustedForAdoption" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c228" id="hidden-fact-342" name="kern:FiniteLivedIntangiableAssetsImpairment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c230" id="hidden-fact-343" name="kern:FiniteLivedIntangiableAssetsImpairment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c232" id="hidden-fact-344" name="kern:FiniteLivedIntangiableAssetsImpairment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c234" id="hidden-fact-345" name="kern:FiniteLivedIntangiableAssetsImpairment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-346" name="kern:FiniteLivedIntangiableAssetsImpairment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c236" id="hidden-fact-347" name="kern:FiniteLivedIntangiableAssetsImpairment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c237" id="hidden-fact-348" name="us-gaap:FiniteLivedIntangibleAssetUsefulLife" xsi:nil="true"></ix:nonNumeric>
<ix:nonFraction contextRef="c238" id="hidden-fact-349" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c246" id="hidden-fact-350" name="kern:FiniteLivedIntangiableAssetsImpairment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c248" id="hidden-fact-351" name="kern:FiniteLivedIntangiableAssetsImpairment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c249" id="hidden-fact-352" name="us-gaap:FiniteLivedIntangibleAssetUsefulLife" xsi:nil="true"></ix:nonNumeric>
<ix:nonFraction contextRef="c250" id="hidden-fact-353" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c250" id="hidden-fact-354" name="kern:FiniteLivedIntangiableAssetsImpairment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c251" id="hidden-fact-355" name="kern:FiniteLivedIntangiableAssetsImpairment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c89" id="hidden-fact-356" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueOutstanding" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-357" name="kern:WarrantsIssuedInPeriodNumberOfShares" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-358" name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice" unitRef="usdPershares" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c27" id="hidden-fact-359" name="kern:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermIssued" xsi:nil="true"></ix:nonNumeric>
<ix:nonFraction contextRef="c27" id="hidden-fact-360" name="kern:SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueOutstandingissued" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-361" name="kern:WarrantsExercisedInPeriodNumberOfShares" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-362" name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" unitRef="usdPershares" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c27" id="hidden-fact-363" name="kern:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermExercised" xsi:nil="true"></ix:nonNumeric>
<ix:nonFraction contextRef="c27" id="hidden-fact-364" name="kern:SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueOutstandingExercised" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-365" name="kern:WarrantsForfeitedInPeriodNumberOfShares" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-366" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice" unitRef="usdPershares" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c27" id="hidden-fact-367" name="kern:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermExpired" xsi:nil="true"></ix:nonNumeric>
<ix:nonFraction contextRef="c27" id="hidden-fact-368" name="kern:SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueOutstandingExpired" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c7" id="hidden-fact-369" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueOutstanding" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-370" name="kern:WarrantsIssuedInPeriodNumberOfShares" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-371" name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice" unitRef="usdPershares" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c26" id="hidden-fact-372" name="kern:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermIssued" xsi:nil="true"></ix:nonNumeric>
<ix:nonFraction contextRef="c26" id="hidden-fact-373" name="kern:SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueOutstandingissued" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-374" name="kern:WarrantsExercisedInPeriodNumberOfShares" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-375" name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" unitRef="usdPershares" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c26" id="hidden-fact-376" name="kern:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermExercised" xsi:nil="true"></ix:nonNumeric>
<ix:nonFraction contextRef="c26" id="hidden-fact-377" name="kern:SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueOutstandingExercised" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-378" name="kern:WarrantsForfeitedInPeriodNumberOfShares" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-379" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice" unitRef="usdPershares" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c26" id="hidden-fact-380" name="kern:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermExpired" xsi:nil="true"></ix:nonNumeric>
<ix:nonFraction contextRef="c26" id="hidden-fact-381" name="kern:SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueOutstandingExpired" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-382" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueOutstanding" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-383" name="kern:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsRestrictedSharesGrantsInPeriods" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-384" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-385" name="kern:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsRestrictedSharesGrantsInPeriods" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c283" id="hidden-fact-386" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardRequisiteServicePeriod1">P4Y</ix:nonNumeric>
<ix:nonNumeric contextRef="c284" id="hidden-fact-387" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardRequisiteServicePeriod1">P4Y</ix:nonNumeric>
<ix:nonFraction contextRef="c128" id="hidden-fact-388" name="kern:ConvertibleDebtFairValueDisclosure" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c301" id="hidden-fact-389" name="us-gaap:RepaymentsOfConvertibleDebt" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-390" name="us-gaap:CurrentFederalTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-391" name="us-gaap:CurrentFederalTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-392" name="us-gaap:CurrentForeignTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-393" name="us-gaap:DeferredFederalIncomeTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-394" name="us-gaap:DeferredFederalIncomeTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-395" name="us-gaap:DeferredStateAndLocalIncomeTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-396" name="us-gaap:DeferredStateAndLocalIncomeTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-397" name="us-gaap:DeferredStateAndLocalIncomeTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-398" name="us-gaap:DeferredIncomeTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-399" name="us-gaap:DeferredIncomeTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-400" name="kern:RateChange" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-401" name="kern:IncomeTaxReconciliationProvisionReturnAdjustment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c26" id="hidden-fact-402" name="us-gaap:IncomeTaxReconciliationOtherReconcilingItems" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-403" name="us-gaap:IncomeTaxReconciliationOtherReconcilingItems" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-404" name="us-gaap:IncomeTaxReconciliationOtherReconcilingItems" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-405" name="kern:DeferredTrueUps" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-406" name="kern:DeferredTrueUps" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-407" name="us-gaap:IncomeTaxReconciliationOtherAdjustments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c7" id="hidden-fact-408" name="kern:DeferredTaxAssetsRevenueRecognition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-409" name="us-gaap:DeferredTaxLiabilitiesPropertyPlantAndEquipment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c7" id="hidden-fact-410" name="us-gaap:DeferredTaxLiabilitiesPropertyPlantAndEquipment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c7" id="hidden-fact-411" name="us-gaap:DeferredTaxAssetsNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c320" id="hidden-fact-412" name="us-gaap:UnrealizedGainLossOnDerivatives" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c321" id="hidden-fact-413" name="us-gaap:EarningsPerShareBasic" unitRef="usdPershares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c323" id="hidden-fact-414" name="us-gaap:UnrealizedGainLossOnDerivatives" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c324" id="hidden-fact-415" name="us-gaap:EarningsPerShareBasic" unitRef="usdPershares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c326" id="hidden-fact-416" name="us-gaap:DerivativeLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c0" name="dei:AmendmentFlag">false</ix:nonNumeric>
<ix:nonNumeric contextRef="c0" name="dei:EntityCentralIndexKey">0001755953</ix:nonNumeric>
<ix:nonNumeric contextRef="c305" name="us-gaap:DebtInstrumentIssuanceDate1" xsi:nil="true"></ix:nonNumeric><!--From Schedule of fair value by using key inputs with text '9'-->
<ix:nonNumeric contextRef="c306" name="us-gaap:DebtInstrumentIssuanceDate1" xsi:nil="true"></ix:nonNumeric><!--From Schedule of fair value by using key inputs with text '2020'-->
<ix:nonNumeric contextRef="c305" name="us-gaap:DebtInstrumentMaturityDate" xsi:nil="true"></ix:nonNumeric><!--From Schedule of fair value by using key inputs with text '1'-->
<ix:nonNumeric contextRef="c306" name="us-gaap:DebtInstrumentMaturityDate" xsi:nil="true"></ix:nonNumeric><!--From Schedule of fair value by using key inputs with text '2023'-->
</ix:hidden>
<ix:references><link:schemaRef xlink:href="kern-20220331.xsd" xlink:type="simple"></link:schemaRef></ix:references>
<ix:resources xmlns="http://www.xbrl.org/2003/instance"><ix:relationship fromRefs="ix_0_fact" toRefs="ix_0_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_1_fact ix_2_fact ix_3_fact" toRefs="ix_1_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_4_fact" toRefs="ix_2_footnote"></ix:relationship>
<xbrli:context id="c0">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c1">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c2">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c3">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">kern:SpecialVotingPreferredStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c4">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">kern:SpecialVotingPreferredStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c5">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">kern:ExchangeableSharesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c6">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">kern:ExchangeableSharesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c7">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c8">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">kern:SpecialVotingPreferredStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c9">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">kern:ExchangeableSharesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c10">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:ProductOrServiceAxis">kern:SoftwareRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c11">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:ProductOrServiceAxis">kern:SoftwareRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c12">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:ProductOrServiceAxis">kern:ConsultingRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c13">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:ProductOrServiceAxis">kern:ConsultingRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c14">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:ProductOrServiceAxis">kern:OtherRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c15">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:ProductOrServiceAxis">kern:OtherRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c16">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c17">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:ProductOrServiceAxis">kern:SoftwareRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c18">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:ProductOrServiceAxis">kern:SoftwareRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c19">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:ProductOrServiceAxis">kern:SoftwareRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c20">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:ProductOrServiceAxis">kern:ConsultingRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c21">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:ProductOrServiceAxis">kern:ConsultingRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c22">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:ProductOrServiceAxis">kern:ConsultingRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c23">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:ProductOrServiceAxis">kern:OtherRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c24">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:ProductOrServiceAxis">kern:OtherRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c25">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:ProductOrServiceAxis">kern:OtherRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c26">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c27">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c28">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c29">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">kern:SpecialVotingPreferredStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c30">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c31">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c32">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c33">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c34">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">kern:SpecialVotingPreferredStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c35">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c36">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c37">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c38">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c39">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">kern:SpecialVotingPreferredStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c40">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c41">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c42">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c43">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c44">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">kern:SpecialVotingPreferredStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c45">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c46">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c47">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c48">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c49">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">kern:SpecialVotingPreferredStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c50">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c51">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c52">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c53">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c54">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">kern:SpecialVotingPreferredStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c55">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c56">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c57">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c58">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c59">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c60">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">kern:SpecialVotingPreferredStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c61">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c62">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c63">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c64">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c65">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:ParentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c66">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:NoncontrollingInterestMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c67">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c68">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">kern:SpecialVotingPreferredStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c69">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c70">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c71">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c72">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c73">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:ParentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c74">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:NoncontrollingInterestMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c75">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">kern:SpecialVotingPreferredStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c76">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c77">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c78">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c79">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c80">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:ParentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c81">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:NoncontrollingInterestMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c82">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">kern:SpecialVotingPreferredStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c83">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c84">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c85">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c86">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c87">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:ParentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c88">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:NoncontrollingInterestMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c89">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c90">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:ParentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c91">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">kern:SpecialVotingPreferredStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c92">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c93">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c94">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c95">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c96">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:ParentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c97">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:NoncontrollingInterestMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c98">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:ParentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c99">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:NoncontrollingInterestMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c100">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">us-gaap:SeniorDebtObligationsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c101">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:MajorCustomersAxis">kern:CustomerOneMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">kern:SalesRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c102">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:MajorCustomersAxis">kern:CustomerOneMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">kern:SalesRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c103">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">kern:SalesRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c104">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:MajorCustomersAxis">kern:CustomerOneMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">kern:SalesRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c105">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:MajorCustomersAxis">kern:CustomerTwoMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">kern:NetAccountsReceivableMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c106">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c107">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c108">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:CA</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c109">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:CA</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c110">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AccountsNotesLoansAndFinancingReceivablesByLegalEntityOfCounterpartyTypeAxis">us-gaap:CorporationMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c111">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AccountsNotesLoansAndFinancingReceivablesByLegalEntityOfCounterpartyTypeAxis">us-gaap:CorporationMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c112">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AccountsNotesLoansAndFinancingReceivablesByLegalEntityOfCounterpartyTypeAxis">kern:NonenterpriseMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c113">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AccountsNotesLoansAndFinancingReceivablesByLegalEntityOfCounterpartyTypeAxis">kern:NonenterpriseMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c114">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c115">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c116">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:CA</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c117">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:CA</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c118">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ViridianSciencesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-04-01</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c119">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ViridianSciencesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-04-01</xbrli:startDate>
    <xbrli:endDate>2021-04-01</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c120">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ThreeSixtyFiveCannabisMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-10-01</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c121">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ThreeSixtyFiveCannabisMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-10-01</xbrli:startDate>
    <xbrli:endDate>2021-10-01</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c122">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ThreeSixtyFiveCannabisMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c123">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ThreeSixtyFiveCannabisMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c124">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ThreeSixtyFiveCannabisMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c125">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ThreeSixtyFiveCannabisMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c126">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-06-09</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c127">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-06-01</xbrli:startDate>
    <xbrli:endDate>2020-06-09</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c128">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-10-05</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c129">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">kern:MTechMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-02-08</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c130">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">kern:PublicWarrantMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">kern:MTechMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:IPOMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-02-08</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c131">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">kern:PublicWarrantMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">kern:MTechMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:OverAllotmentOptionMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-02-08</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c132">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">kern:PublicWarrantMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">kern:MTechMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:IPOMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-02-08</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c133">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">kern:PublicWarrantMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">kern:MTechMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:WarrantMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:IPOMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-02-08</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c134">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">kern:PrivateWarrantsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">kern:MTechMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:PrivatePlacementMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-02-08</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c135">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">kern:PrivateWarrantsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">kern:MTechMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:PrivatePlacementMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-02-08</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c136">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">kern:PrivateWarrantsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">kern:MTechMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:WarrantMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:PrivatePlacementMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-02-08</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c137">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-02-08</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c138">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">us-gaap:ConvertibleDebtSecuritiesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c139">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">us-gaap:ConvertibleDebtSecuritiesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c140">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">us-gaap:ConvertibleDebtSecuritiesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c141">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">us-gaap:ConvertibleDebtSecuritiesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c142">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">kern:PrivateWarrantsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c143">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">kern:PrivateWarrantsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c144">
<!-- [WMV5][XcpuxYn59dz7vgYynUDuwG7r97K2jUTysl7vcz0lJt/tSeJz73kx1cLt0ZFF2SK/vxBCY0vdSrYVG2bQ9DSv/KtPkt4mm5nqDyPReDXSj7XKRODfQn+X+e9mgX0ot39UNSTAqwkZV2B8zlbYYEp4RY6HFoN8dkbaHzHWFcKIoLIECg2pr93iEDVh5vxn5Xad9CuAdil54hVVPZ2DP32M6KmrRMqXKcOQjexjBhn+iMur7+dN0Re8cHMcYNxLb7A6] CSR-->
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">kern:PrivateWarrantsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c145">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">kern:PrivateWarrantsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c146">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">kern:PrivateWarrantsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c147">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">kern:PrivateWarrantsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c148">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">kern:PrivateWarrantsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c149">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="kern:AgreementAxis">kern:TechMagicUSALLCMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-04</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c150">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="kern:AgreementAxis">kern:TechMagicUSALLCMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-12-01</xbrli:startDate>
    <xbrli:endDate>2020-12-04</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c151">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="kern:AgreementAxis">kern:TechMagicUSALLCMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c152">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="kern:AgreementAxis">kern:TechMagicUSALLCMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-04-02</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c153">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="kern:AgreementAxis">kern:TreComSystemsGroupIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c154">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="kern:AgreementAxis">kern:TreComSystemsGroupIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c155">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShortTermDebtTypeAxis">us-gaap:ExchangeableDebtMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c156">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShortTermDebtTypeAxis">us-gaap:ExchangeableDebtMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c157">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShortTermDebtTypeAxis">us-gaap:ConvertibleNotesPayableMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c158">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShortTermDebtTypeAxis">us-gaap:ConvertibleNotesPayableMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c159">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:WarrantMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c160">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:WarrantMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c161">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:RestrictedStockUnitsRSUMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c162">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:RestrictedStockUnitsRSUMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c163">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:RestrictedStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c164">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:RestrictedStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-03-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c165">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">kern:AmpleReportingUnitMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c166">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:OperatingExpenseMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c167">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:OperatingExpenseMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c168">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:OperatingExpenseMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c169">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-07-23</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c170">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-10-01</xbrli:startDate>
    <xbrli:endDate>2021-10-05</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c171">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">us-gaap:SeniorDebtObligationsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-10-01</xbrli:startDate>
    <xbrli:endDate>2021-10-05</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c172">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">us-gaap:SeniorDebtObligationsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c173">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:MajorCustomersAxis">kern:CustomerOneMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">kern:SalesRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c174">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:MajorCustomersAxis">kern:CustomerOneMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">kern:SalesRevenuesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c175">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:MajorCustomersAxis">kern:CustomerTwoMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">kern:NetAccountsReceivableMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c176">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RangeAxis">pf0:MinimumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c177">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RangeAxis">pf0:MaximumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c178">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c179">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:CA</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c180">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-07-01</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c181">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AccountsNotesLoansAndFinancingReceivablesByLegalEntityOfCounterpartyTypeAxis">us-gaap:GovernmentSectorMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c182">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AccountsNotesLoansAndFinancingReceivablesByLegalEntityOfCounterpartyTypeAxis">us-gaap:GovernmentSectorMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c183">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AccountsNotesLoansAndFinancingReceivablesByLegalEntityOfCounterpartyTypeAxis">us-gaap:GovernmentSectorMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c184">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AccountsNotesLoansAndFinancingReceivablesByLegalEntityOfCounterpartyTypeAxis">kern:NongovernmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c185">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AccountsNotesLoansAndFinancingReceivablesByLegalEntityOfCounterpartyTypeAxis">kern:NongovernmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c186">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AccountsNotesLoansAndFinancingReceivablesByLegalEntityOfCounterpartyTypeAxis">kern:NongovernmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c187">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c188">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c189">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c190">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:CA</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c191">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:CA</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c192">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:StatementGeographicalAxis">country:CA</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c193">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ViridianSciencesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-04-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c194">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ThreeSixFiveCannabisMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-10-01</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c195">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ThreeSixFiveCannabisMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-10-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c196">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:TrellisSolutionsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c197">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:TrellisSolutionsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c198">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:TrellisSolutionsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-06-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c199">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:TrellisSolutionsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c200">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:TrellisSolutionsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-04-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c201">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:soloSciencesIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-01-15</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c202">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:soloSciencesIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c203">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:soloSciencesIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c204">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RangeAxis">pf0:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:soloSciencesIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c205">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RangeAxis">pf0:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:soloSciencesIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c206">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:soloSciencesIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-16</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c207">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:soloSciencesIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c208">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:AmpleOrganicsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-07-07</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c209">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:AmpleOrganicsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c210">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:AmpleOrganicsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c211">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:AmpleOrganicsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-16</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c212">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:AmpleOrganicsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c213">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:AmpleOrganicsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-09-01</xbrli:startDate>
    <xbrli:endDate>2020-09-01</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c214">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:AmpleOrganicsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c215">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:OwnershipAxis">kern:PreliminaryFairValueMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ViridianSciencesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-04-01</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c216">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:OwnershipAxis">kern:PreliminaryFairValueMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ThreeSixFiveCannabisMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-10-01</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c217">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:OwnershipAxis">kern:PreliminaryFairValueMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:TrellisSolutionsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-04-08</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c218">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:OwnershipAxis">kern:PreliminaryFairValueMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:TrellisSolutionsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-04-01</xbrli:startDate>
    <xbrli:endDate>2020-04-08</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c219">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:OwnershipAxis">kern:PreliminaryFairValueMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:soloSciencesIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-01-15</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c220">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:OwnershipAxis">kern:PreliminaryFairValueMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:soloSciencesIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-01-15</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c221">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:OwnershipAxis">kern:PreliminaryFairValueMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:AmpleOrganicsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-07-07</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c222">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c223">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">kern:AmpleReportingUnitMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c224">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">kern:SoloSciencesIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c225">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:AmpleMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c226">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ViridianSciencesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c227">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:DevelopedTechnologyRightsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c228">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:DevelopedTechnologyRightsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c229">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:TradeNamesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c230">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:TradeNamesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c231">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:CustomerRelationshipsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c232">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:CustomerRelationshipsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c233">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">kern:NonCompeteAgreementMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c234">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">kern:NonCompeteAgreementMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c235">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:ComputerSoftwareIntangibleAssetMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c236">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:ComputerSoftwareIntangibleAssetMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c237">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">kern:CapitalizedSoftwareWorkInProgressMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c238">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">kern:CapitalizedSoftwareWorkInProgressMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c239">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">kern:CapitalizedSoftwareMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c240">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:FiniteLivedIntangibleAssetsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c241">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:DevelopedTechnologyRightsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c242">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:DevelopedTechnologyRightsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c243">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:TradeNamesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c244">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:TradeNamesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c245">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:CustomerRelationshipsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c246">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:CustomerRelationshipsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c247">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:ComputerSoftwareIntangibleAssetMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c248">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:ComputerSoftwareIntangibleAssetMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c249">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">kern:CapitalizedSoftwareWorkInProgressMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c250">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">kern:CapitalizedSoftwareWorkInProgressMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c251">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">kern:CapitalizedSoftwareMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c252">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:FiniteLivedIntangibleAssetsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c253">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:OtherIntangibleAssetsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c254">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c255">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:FurnitureAndFixturesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c256">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:FurnitureAndFixturesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c257">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:LeaseholdImprovementsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c258">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:LeaseholdImprovementsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c259">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">kern:ZolSolutionsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-10-07</xbrli:startDate>
    <xbrli:endDate>2019-10-07</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c260">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-07-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c261">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-06-08</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c262">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-06-01</xbrli:startDate>
    <xbrli:endDate>2020-06-08</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c263">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-06-07</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c264">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-06-01</xbrli:startDate>
    <xbrli:endDate>2020-06-07</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c265">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-06-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c266">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-12-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c267">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-01-04</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c268">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:LongtermDebtTypeAxis">us-gaap:SeniorNotesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c269">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:LongtermDebtTypeAxis">us-gaap:SeniorNotesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c270">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-04-01</xbrli:startDate>
    <xbrli:endDate>2020-04-21</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c271">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-08-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c272">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-09-03</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c273">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-09-01</xbrli:startDate>
    <xbrli:endDate>2021-09-03</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c274">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-10-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c275">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-10-01</xbrli:startDate>
    <xbrli:endDate>2020-10-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c276">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:WarrantMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2018-02-01</xbrli:startDate>
    <xbrli:endDate>2018-02-08</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c277">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:WarrantMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-02-08</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c278">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:WarrantMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">kern:UnderwritersMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2018-02-01</xbrli:startDate>
    <xbrli:endDate>2018-02-08</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c279">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:WarrantMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c280">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">kern:RestrictedSharesAndRestrictedStockUnitsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PlanNameAxis">kern:EquityIncentivePlanMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-06-17</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c281">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RangeAxis">pf0:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">kern:RestrictedSharesAndRestrictedStockUnitsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PlanNameAxis">kern:EquityIncentivePlanMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-06-01</xbrli:startDate>
    <xbrli:endDate>2020-06-26</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c282">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RangeAxis">pf0:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">kern:RestrictedSharesAndRestrictedStockUnitsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PlanNameAxis">kern:EquityIncentivePlanMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-06-01</xbrli:startDate>
    <xbrli:endDate>2020-06-26</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c283">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">us-gaap:RestrictedStockUnitsRSUMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PlanNameAxis">kern:EquityIncentivePlanMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c284">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">kern:ProfitsInterestUnitsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PlanNameAxis">kern:ProfitsInterestIncentivePlanMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c285">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">kern:RestrictedSharesAndRestrictedStockUnitsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c286">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">kern:RestrictedSharesAndRestrictedStockUnitsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c287">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">kern:RestrictedSharesAndRestrictedStockUnitsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c288">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:SoloSciencesIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c289">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:SoloSciencesIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c290">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:TrellisSolutionsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c291">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:AmpleOrganicsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c292">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:AmpleOrganicsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c293">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:AmpleOrganicsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c294">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ViridianMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c295">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ViridianSciencesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c296">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:ThreeSixFiveCannabisMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c297">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-02-08</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c298">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">kern:MTechMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:PrivatePlacementMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c299">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-10-05</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c300">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel3Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-10-05</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c301">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel3Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-10-06</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c302">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel3Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c303">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">us-gaap:ConvertibleDebtSecuritiesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c304">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">us-gaap:ConvertibleDebtSecuritiesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c305">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RangeAxis">pf0:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">us-gaap:ConvertibleDebtSecuritiesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c306">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RangeAxis">pf0:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">us-gaap:ConvertibleDebtSecuritiesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c307">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c308">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">kern:PrivateWarrantsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c309">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-09-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c310">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-09-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c311">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="kern:TypesOfAgreementAxis">kern:DenverCOMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c312">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShortTermDebtTypeAxis">us-gaap:LineOfCreditMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c313">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="kern:TypesOfAgreementAxis">kern:TechMagicUSALLCMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-04</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c314">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="kern:TypesOfAgreementAxis">kern:TechMagicUSALLCMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-12-04</xbrli:startDate>
    <xbrli:endDate>2020-12-04</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c315">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-04</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c316">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-04-02</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c317">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="kern:TypesOfAgreementAxis">kern:TreComSystemsGroupIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c318">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="kern:TypesOfAgreementAxis">kern:TreComSystemsGroupIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c319">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-04-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c320">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RestatementAxis">pf0:ScenarioPreviouslyReportedMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c321">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RestatementAxis">pf0:RestatementAdjustmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c322">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RestatementAxis">kern:AsRevisedMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-07-01</xbrli:startDate>
    <xbrli:endDate>2020-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c323">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RestatementAxis">pf0:ScenarioPreviouslyReportedMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c324">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RestatementAxis">pf0:RestatementAdjustmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c325">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RestatementAxis">kern:AsRevisedMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c326">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RestatementAxis">pf0:ScenarioPreviouslyReportedMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c327">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RestatementAxis">pf0:RestatementAdjustmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c328">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001755953</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="pf0:RestatementAxis">kern:AsRevisedMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:unit id="usd">
  <xbrli:measure>iso4217:USD</xbrli:measure>
</xbrli:unit><xbrli:unit id="usdPershares">
  <xbrli:divide>
    <xbrli:unitNumerator>
      <xbrli:measure>iso4217:USD</xbrli:measure>
    </xbrli:unitNumerator>
    <xbrli:unitDenominator>
      <xbrli:measure>xbrli:shares</xbrli:measure>
    </xbrli:unitDenominator>
  </xbrli:divide>
</xbrli:unit><xbrli:unit id="shares">
  <xbrli:measure>xbrli:shares</xbrli:measure>
</xbrli:unit><xbrli:unit id="pure">
  <xbrli:measure>xbrli:pure</xbrli:measure>
</xbrli:unit><xbrli:unit id="cad">
  <xbrli:measure>iso4217:CAD</xbrli:measure>
</xbrli:unit></ix:resources></ix:header>

</div></div></body></html>
[{"type": "S-1", "sequence": "1", "filename": "ea161432-s1_akernacorp.htm", "description": "REGISTRATION STATEMENT", "secsgml_size_bytes": 3267432}]
{"company-data": {"conformed-name": "Akerna Corp.", "cik": "0001755953", "assigned-sic": "7374", "irs-number": "832242651", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-265641", "film-number": "221018602"}, "business-address": {"street1": "1550 LARIMER STREET, SUITE 246", "city": "DENVER", "state": "CO", "zip": "80202", "phone": "888-932-6537"}, "mail-address": {"street1": "1550 LARIMER STREET, SUITE 246", "city": "DENVER", "state": "CO", "zip": "80202"}, "former-company": {"former-conformed-name": "MTech Acquisition Holdings Inc.", "date-changed": "20181015"}}
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
S-1
REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933
AKERNA
CORP.
(Exact
Name of Registrant as Specified in its Charter)
Delaware
7374
83-2242651
(State or other jurisdiction of
incorporation or organization)
Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification No.)
1550
Larimer Street #246
Denver,
Colorado 80202
1-888-932-6537
(Address,
including zip code, and telephone number,
including
area code, of principal executive offices)
Corporation
Service Company
251
Little Falls Drive
Wilmington,
Delaware 19808
(302)
636-5400
(Address,
including zip code, and telephone number,
including
area code, of agent for service)
Copies
to:
Jason
    K Brenkert, Esq.
Dorsey
    & Whitney LLP
1400
    Wewatta Street, Suite 400
Denver,
    Colorado 80202
Telephone:
    (303) 352-1133
Fax
    Number: (303) 629-3450
Faith
    L. Charles, Esq.
Naveen
    Pogula, Esq.
Thompson
    Hine LLP
335
    Madison Avenue, 12
th
Floor
New
    York, New York 10017
Telephone:
    (212) 344-5680
Facsimile:
    (212) 344-6101
As
soon as practicable after the effective date of this Registration Statement.
(Approximate
date of commencement of proposed sale to the public)
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 registration statement for the same offering.
☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer,"
"smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☒
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 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 amendment which specifically states that this Registration Statement shall thereafter become effective
in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement shall become effective
on such date as the Securities and Exchange Commission acting pursuant to said Section 8(a), may determine.
The
information in this prospectus is not complete and may be changed. We may not sell the securities until the Registration Statement filed
with the Securities and Exchange Commission, of which this prospectus is a part, is effective. This prospectus is not an offer to sell
these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
PRELIMINARY
    PROSPECTUS
SUBJECT
    TO COMPLETION
DATED
    JUNE 15, 2022
AKERNA
CORP.
Up
to ______________ Units, Each Unit Consisting of One Share of Common Stock and One Warrant to Purchase One Share of Common Stock
Up
to _________________ Pre-funded Units, Each Pre-funded Unit Consisting of One Pre-funded Warrant to Purchase One Share of Common Stock
and One Warrant to Purchase One Share of Common Stock
Shares
of Common Stock Underlying the Warrants
Shares
of Common Stock Underlying the Pre-Funded Warrants
We are offering up to ________ units, each unit
consisting of one share of common stock and one warrant to purchase one share of common stock. The warrants included in the units have
an exercise price of $ ___ per share, will be immediately exercisable and expire ________ years from the date of issuance. The offering
price of the units is $ ___ per unit.
We
are also offering to those purchasers, if any, whose purchase of units in this offering would otherwise result in such purchaser, together
with its affiliates and certain related parties, beneficially owning more than 4.99% (or, at the election of the purchaser, 9.99%) of
our outstanding shares of common stock immediately following the consummation of this offering, the opportunity to purchase, if any such
purchaser so chooses, pre-funded units in lieu of units that would otherwise result in such purchaser's beneficial ownership exceeding
4.99% (or, at the election of the purchaser, 9.99%) of our outstanding shares of common stock. Each pre-funded unit consists of one pre-funded
warrant to purchase one share of common stock and one warrant to purchase one share of common stock. The purchase price of each pre-funded
unit will be equal to the price per unit being sold to the public in this offering, minus $0.0001, and the exercise price of each pre-funded
warrant included in the pre-funded units will be $0.0001 per share. The pre-funded warrants included in the pre-funded units will be
immediately exercisable and may be exercised at any time until all of the pre-funded warrants are exercised in full. The warrant included
in the pre-funded unit is in the same form as the warrant included in the unit.
For
each pre-funded unit we sell, the number of units we are offering will be decreased on a one-for-one basis. The units and the pre-funded
units will not be issued or certificated. The shares of common stock or pre-funded warrants, as the case may be, and the accompanying
warrants can only be purchased together in this offering, but the securities contained in the units or pre-funded units will be immediately
separable upon issuance and will be issued separately. The shares of common stock issuable from time to time upon exercise of the warrants
and the pre-funded warrants are also being offered by this prospectus. The registration statement of which this prospectus forms a part
also registers the common stock purchase warrants to be issued to the underwriter and the shares of common stock issuable upon exercise
thereof.
Our common stock is currently listed on the Nasdaq
Capital Market under the symbol "KERN." On June 13, 2022, the last reported price for our common stock as reported on the
Nasdaq Capital Market was $0.3825 per share. In this offering, the actual public offering price per unit or pre-funded unit, as the case
may be, will be determined between us and the underwriter in the offering, and may be at a discount to the current market price of our
common stock. Therefore, the assumed public offering price used throughout this prospectus may not be indicative of the final offering
price. There is no established public trading market for the warrants or the pre-funded warrants, and we do not expect such a market to
develop. In addition, we do not intend to apply for a listing of the warrants or the pre-funded warrants on any national securities exchange
or other nationally recognized trading system.
We
are a "smaller reporting company" and an "emerging growth company" as defined under the federal securities laws
and, as such, we may continue to elect to comply with certain reduced public company reporting requirements in future reports.
Investing
in our securities involves a high degree of risk. See "
Risk Factors
" beginning on page 6 of this prospectus.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined
if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
Per Unit
Per
                                            Pre-
Funded
Unit
Total
Public offering price
$
$
$
Underwriting discount and commissions
(1)
$
$
$
Proceeds, before expenses, to us
(2)
$
$
$
(1)
We have agreed to reimburse
    the underwriter for certain expenses and issue warrants to the underwriter in an amount equal to 5% of the aggregate number of shares
    and shares issuable upon exercise of the warrants and/or pre-funded warrants. For more information, see "
Underwriting."
(2)
Because
there is no minimum offering amount required as a condition to closing in this offering, the total public offering amount, underwriting
discount and commissions, and proceeds to us, before expenses, are not presently determinable and may be substantially less than the
total maximum offering amounts set forth above.  For more information, see "
Plan of Distribution
."
The
offering is being underwritten on a firm commitment basis. We have granted the underwriter a 45-day option from the date of this prospectus
to purchase up to (i) ________ shares of our common stock and/or warrants to purchase up to ________ shares of common stock, in any combination
thereof; and/or (ii) ________ pre-funded units, consisting of ____________ warrants to purchase up to ________ shares of common stock
and ____________ pre-funded warrants to purchase up to __________ shares of common stock, from us solely to cover over-allotments, if
any.
The
underwriters expect to deliver our shares to purchasers in the offering on or about     , 2022.
A.G.P.
June 
, 2022
TABLE
OF CONTENTS
ABOUT THIS PROSPECTUS
ii
SUMMARY
1
THE OFFERING
2
SUMMARY OF RISK FACTORS
4
SUMMARY FINANCIAL DATA
5
RISK FACTORS
6
FORWARD-LOOKING STATEMENTS
26
RECENT DEVELOPMENTS
28
USE OF PROCEEDS
30
DILUTION
30
DIVIDEND POLICY
31
DESCRIPTION OF COMPANY CAPITAL STOCK
31
DESCRIPTION OF THE BUSINESS
34
DESCRIPTION OF PROPERTY
45
LEGAL PROCEEDINGS
45
MARKET FOR COMMON EQUITY AND RELATED SHAREHOLDER MATTERS
45
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
48
DIRECTORS AND EXECUTIVE OFFICERS
70
EXECUTIVE COMPENSATION
74
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
82
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
84
CERTAIN MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS
85
UNDERWRITING
93
EXPERTS
96
LEGAL MATTERS
96
WHERE YOU CAN FIND MORE INFORMATION
96
i
ABOUT
THIS PROSPECTUS
The
registration statement of which this prospectus forms a part that we have filed with the Securities and Exchange Commission, or SEC,
includes and incorporates by reference exhibits that provide more detail of the matters discussed in this prospectus. You should read
this prospectus and the related exhibits filed with the SEC, together with the additional information described under the heading "Where
You Can Find More Information."
You
should rely only on the information contained in this prospectus and in any free writing prospectus prepared by or on behalf of
us. We have not, and the underwriter has not, authorized anyone to provide you with information different from, or in addition to, that
contained in this prospectus or any related free writing prospectus. This prospectus is an offer to sell only the securities offered
hereby but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus
is current only as of its date. Our business, financial condition, results of operations and prospects may have changed since that date.
We
are not offering to sell or seeking offers to purchase these securities in any jurisdiction where the offer or sale is not permitted.
We have not done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where
action for that purpose is required, other than in the United States. Persons outside the United States who come into possession of this
prospectus and any free writing prospectus related to this offering in jurisdictions outside the United States are required to inform
themselves about and to observe any restrictions relating to this offering and the distribution of this prospectus and any such free
writing prospectus applicable to that jurisdiction.
Unless
otherwise indicated, any reference to Akerna, or as "we", "us", or "our" refers to Akerna Corp. and
its consolidated subsidiaries ("Akerna" or the "Company").
ii
SUMMARY
The following highlights certain information
contained elsewhere in this prospectus. It does not contain all the details concerning the Offering, including information that may be
important to you. You should carefully review this entire prospectus including the section entitled "Risk Factors" and the
consolidated historical and pro forma financial statements and accompanying notes contained herein. See "Where You Can Find More
Information."
Summary of Our Business
Akerna is a leading provider of enterprise software
solutions within the cannabis industry. Cannabis businesses face significant complexity due to the stringent regulations and restrictions
that shift based on regional, state, and national governing bodies. As the first to market more than ten years ago, Akerna's family
of software platforms help to enable regulatory compliance and inventory management across the entire supply chain. When the legal cannabis
market started to grow, we identified a need for organic material tracking and regulatory compliance software as a service (SaaS) solution
customized specifically for the unique needs of the industry. By providing an integrated ecosystem of applications and services that help
our clients enable compliance, regulation, consumer safety and taxation, Akerna is building the technology backbone of the cannabis industry.
While designed specifically for the unique needs of the cannabis market, our solutions are adaptable for other industries requiring government
regulatory oversight, or where the tracking of organic materials from seed or plant to end products is desired.
Executing upon our expansion strategy, we acquire
complementary cannabis brands to grow the scope of Akerna's cannabis ecosystem. Since 2019, we have integrated six new brands into
the Akerna product and service offering. Our first acquisition, Solo Sciences ("Solo"), was initiated in the fall of 2019, with
the full acquisition completed in July 2020. We added Trellis Solutions ("Trellis") to our portfolio on April 10, 2020 and finalized
the acquisition of Ample Organics ("Ample") and Last Call Analytics ("Last Call") on July 7, 2020. More recently,
on April 1, 2021 we completed our acquisition of Viridian Sciences Inc. ("Viridian"), a cannabis business management software
system built on SAP Business One, followed by the acquisition of The NAV People, Inc. d.b.a 365 Cannabis ("365 Cannabis"), a
cannabis business management software system built on Microsoft Business Central, on October 1, 2021. Through our growing family of companies,
Akerna provides highly versatile platforms that equip our clients with a central data management system for tracking regulated products.
Our solutions also provide clients with integrated security, transparency, and scalability capabilities, all while helping maintaining
compliance with their governing regulations.
On the commercial side, our products help state-licensed
businesses operate in compliance with applicable regional laws. Our integrated ecosystem provides integrations with third-party vendors
and add-ons that enhance the capabilities of our commercial software platforms. On the regulatory side, we provide track and trace solutions
that allow state governments to monitor compliance of licensed cannabis businesses. To date, our software has helped monitor the compliance
of more than $30 billion in legal cannabis. While our software facilitates the success of legal cannabis businesses, we do not handle
any cannabis-related material, do not process cannabis sales transactions within the United States ("U.S."), and our revenue
is generated from a fixed-fee based subscription and professional services model and is not related to the type or amount of sales made
by our clients.
We drive revenue growth through the development
of our product line, our acquisitions and from continued expansion of the cannabis, hemp, and CBD industry. Businesses across the regulated
cannabis industry use our solutions. The brand recognition of our existing products, our ability to provide services in all areas of the
seed-to-sale life cycle, and our wealth of relevant experience attracts cultivation, manufacturing, and dispensary clients who are seeking
comprehensive business optimization solutions. Our software solutions are designed to be scalable, and while mid-market and smaller customers
have historically been our primary target segment, we are focused on extending our customer reach to address the needs of the emerging
enterprise level operator. We believe these larger multi-state/multi-vertical operations represent significant long-term future growth
opportunities as the cannabis industry continues to consolidate at a rapid rate. The sophistication of our platform accommodates the complexities
of both multi-vertical and multi-state business needs, making us critical partners and allowing us to cultivate long-term, successful
relationships with our clients.
Our principal executive offices are located at
1550 Larimer Street #246, Denver, Colorado 80202, and our telephone number is (888) 932-6537 and our Internet website address is
www.akerna.com
.
 The information on our website is not a part of, or incorporated in, this prospectus.
1
THE OFFERING
Issuer
Akerna Corp.
Units Offered by Us:
Up to __________ units on a "firm commitment" basis, each unit consisting of one share of common stock and one warrant to purchase one share of common stock, at a price of $____ per unit.
Each warrant will have an exercise price of $____ per share, will
be immediately exercisable, and will have a term of exercise of ________ from the original issuance date. This prospectus also relates
to the offering of the shares of common stock issuable upon exercise of the warrants.
Pre-Funded Units Offered by Us:
We are also offering to those purchasers, if any, whose purchase of units in this offering would otherwise result in the purchaser, together with its affiliates and certain related parties, beneficially owning more than 4.99% (or, at the election of the purchaser, 9.99%) of our outstanding shares of common stock immediately following the consummation of this offering, the opportunity to purchase, if such purchasers so choose, pre-funded units (each pre-funded unit consisting of one pre-funded warrant to purchase one share of common stock and one warrant to purchase one share of common stock), in lieu of units that would otherwise result in any such purchaser's beneficial ownership exceeding 4.99% (or, at the election of the purchaser, 9.99%) of our outstanding shares of common stock.
The purchase price of each pre-funded unit will be equal to the price per unit being sold to the public in this offering, minus $0.0001, and the exercise price of each pre-funded warrant included in the pre-funded units will be $0.0001 per share. The pre-funded warrants included in the pre-funded units will be immediately exercisable and may be exercised at any time until all of the pre-funded warrants are exercised in full.
For each pre-funded unit we sell, the number of units we are offering will be decreased on a one-for-one basis.   This prospectus also relates to the offering of the shares of common stock issuable upon exercise of the pre-funded warrants.
Common Stock Outstanding Before this offering:
36,574,158 shares of common stock.
Common Stock Outstanding After this offering
(1)
:
_____________ shares of common stock (or, _____________ shares if the underwriter exercises its over-allotment option in full), assuming the sale of all units covered by this prospectus, no sale of pre-funded units, and no exercise of any warrants issued in this offering. If the warrants are exercised in full, assuming no pre-funded warrants are sold, then there will be _____________ shares outstanding (or, _____________ shares if the underwriter exercises its over-allotment option in full).
Over-Allotment Option
We have granted the underwriter a 45-day option from the date of this prospectus to purchase up to (i) ________ shares of our common stock and/or warrants to purchase up to ________ shares of common stock, in any combination thereof; and/or (ii) ________ pre-funded units, consisting of ____________ warrants to purchase up to ________ shares of common stock and ____________ pre-funded warrants to purchase up to __________ shares of common stock, from us solely to cover over-allotments, if any.
2
Use of Proceeds:
We intend to use the net proceeds from this offering for general corporate purposes, including servicing our ongoing debt obligations under our convertible notes, working capital, marketing, product development and capital expenditures. See "
Use of Proceeds
" in this prospectus.
Dividend Policy:
We have never declared or paid any cash dividends on our shares of common stock. We do not anticipate paying any cash dividends in the foreseeable future.
Nasdaq Capital Market Trading Symbol:
Our shares of common stock are listed on the Nasdaq Capital Market under the symbol "KERN." We do not intend to list the warrants or the pre-funded warrants on any securities exchange or nationally recognized trading system.
(1)
Unless otherwise indicated, the number of our shares of common
stock to be outstanding immediately after this offering as shown above is based on 36,574,158 shares of common stock outstanding as of
June 3, 2022. The number of shares outstanding excludes the following as of June 3, 2022:
●
398,595
shares of common stock issuable upon vesting of outstanding restricted stock units and restricted stock awards;
●
5,813,804
shares of common stock issuable upon the exercise of warrants outstanding at a weighted average exercise price of $11.50 per share;
●
28,685,185
shares of common stock issuable upon conversion of our outstanding convertible notes;
●
291,192
shares of common stock issuable upon conversion of exchangeable shares; and
●
3,580,126
shares of common stock reserved for future issuance under our equity incentive plan.
3
SUMMARY OF RISK FACTORS
An investment in our securities involves a high
degree of risk. You should carefully consider all of the risks described below, and the other risks set forth in the section of this prospectus
entitled "Risk Factors" commencing on page 6, before making a decision to invest in our units. If any of the following events
occur, our business, financial condition and operating results may be materially adversely affected. In that event, the trading price
of our securities could decline, and you could lose all or part of your investment. Such risks include, but are not limited to:
●
Funds raised in this offering may not be sufficient
to eliminate the substantial doubt about our ability to continue as a going concern.
●
Due to this offering, the conversion price pursuant
to our Senior Convertible Notes will need to be adjusted, which will result in the potential issuance of higher number of shares of our
common stock pursuant to the conversion than previously anticipated, thereby resulting in significant dilution to our stockholders.
●
If our common stock is delisted from Nasdaq,
the liquidity and price of our common stock could decrease and our ability to obtain financing could be impaired.
●
Management will have broad discretion as to the
use of the net proceeds from this offering, and we may not use the proceeds effectively.
●
If you purchase shares of our common stock in
this offering, you will experience immediate dilution as a result of this offering and you may experience future dilution as a result of future equity offerings or other equity issuances.
●
This Offering may cause the trading price of
our common stock to decrease.
●
A significant portion of our total outstanding
shares are eligible to be sold into the market, which could cause the market price of our common stock to drop significantly, even if
our business is doing well.
●
There is no public market for the units, pre-funded
units, or warrants being offered in this offering.
●
Holders of our warrants and pre-funded warrants
will have no rights as a common stockholder until they acquire our common stock.
●
If we do not maintain a current and effective
prospectus relating to the common stock issuable upon exercise of the warrants or pre-funded warrants, public holders will only be able
to exercise such warrants or pre-funded warrants on a "cashless basis."
●
The pre-funded warrants are speculative in nature.
●
The warrants may not have any value.
●
Provisions of the warrants and pre-funded warrants
offered by this prospectus could discourage an acquisition of us by a third party.
●
There is substantial doubt about our ability
to continue as a going concern.
●
We have a history of losses, expect to continue
to incur losses in the near term and may not achieve or sustain profitability in the future.
●
Our long-term results of operations are difficult
to predict and depend on the commercial success of our clients, the continued growth of the cannabis industry generally, and the regulatory
environment within which the cannabis industry operates.
●
As a company whose clients operate in the cannabis
industry, we face many unique and evolving risks.
●
A significant portion of our business is, and is expected to be, from government contracts, which present certain unique risks.
●
Acquisitions and integration issues may expose
us to risks.
●
We are smaller and less diversified than many
of our potential competitors.
●
Our obligations to the holders of our Senior
Convertible Notes are secured by a security interest in substantially all of our assets, if we default on those obligations, the Senior
Convertible Note holders could foreclose on our assets.
●
Warrants are exercisable for our common stock,
which could increase the number of shares eligible for future resale in the public market and result in dilution to our stockholders.
●
The market price of our shares of common stock
is particularly volatile given our status as a relatively new public company with a generally small and thinly traded public float, which
could lead to wide fluctuations in our share price. You may be unable to sell your shares of common stock at or above your purchase price,
which may result in substantial losses to you.
4
SUMMARY FINANCIAL DATA
The following tables set forth our summary historical
financial and other data as of and for the periods indicated. We have derived the summary historical financial data for the year ended
December 31, 2021, the transitional six months ended December 31, 2020 and the year ended June 30, 2020 from the audited financial statements
and we have derived the summary historical financial data for the three months ended March 31, 2022 from the unaudited financial statements,
each included elsewhere in this prospectus.
The summary historical financial and other data
set forth below should be read in conjunction with the information included under the headings "Use of Proceeds," and "Management's
Discussion and Analysis of Financial Condition and Results of Operations" and the audited and unaudited financial statements and
related notes included elsewhere in this prospectus.
Statement of Operations Data
Year Ended
December 31,
2021
Six Months
Ended
December 31,
2020
Year Ended
June 30,
2020
Period
Ended
March 31,
2022
(unaudited)
Total revenue
$
20,684,974
$
7,824,784
$
12,573,276
$
6,950,841
Cost of revenue
$
8,119,487
$
3,141,041
$
6,209,724
$
2,203,671
Gross profit
$
12,565,487
$
4,683,743
$
6,363,552
$
4,747,170
Total operating expenses
$
45,920,806
$
20,423,420
$
23,635,403
$
25,383,818
Loss from operations
$
(33,355,319
)
$
(15,739,677
)
$
(17,271,851
)
$
(20,636,648
)
Net loss
$
(31,328,711
)
$
(16,219,296
)
$
(14,422,070
)
$
(21,952,893
)
Basic and diluted net loss per common share
$
(1.22
)
$
(1.01
)
$
(1.14
)
$
(0.69
)
Basic and diluted weighted average common stock outstanding
25,641,950
16,056,030
11,860,212
31,605,783
As of December 31,
As of
March 31,
2022
Balance Sheet Data
2021
2020
(unaudited)
Total current assets
$
18,230,064
$
22,552,914
$
15,267,227
Total assets
$
94,483,167
$
77,169,072
$
74,346,780
Total current liabilities
$
29,170,517
$
16,051,215
$
30,378,099
Total liabilities
$
34,533,484
$
19,946,452
$
33,566,484
Accumulated deficit
$
(88,508,236
)
$
(57,179,525
)
$
(110,461,129
)
Total equity
$
59,949,683
$
57,222,620
$
40,780,296
5
RISK FACTORS
An investment in our common stock involves
a high degree of risk.  You should carefully consider the risks described below, together with all of the other information included
in this prospectus, before making an investment decision with regard to our securities. The statements contained in this prospectus that
are not historic facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ
materially from those set forth in or implied by forward-looking statements. If any of the following risks actually occurs, our business,
financial condition or results of operations could suffer.  In that case, the trading price of our common stock could decline, and
you may lose all or part of your investment.
You should carefully consider the following
risk factors in evaluating our business and us. The factors listed below represent certain important factors that we believe could cause
our business results to differ. These factors are not intended to represent a complete list of the general or specific risks that may
affect us. It should be recognized that other risks may be significant, presently or in the future, and the risks set forth below may
affect us to a greater extent than indicated. If any of the following risks occur, our business, financial condition or results of operations
could be materially and adversely affected.
Risks Relating to
Our Financial Condition and Operating History
There is substantial doubt about our ability
to continue as a going concern.
Our financial statement
footnotes include disclosure regarding the substantial doubt about our ability to continue as a going concern. Our financial statements
do not include any adjustments that might result from the outcome of the uncertainty regarding our ability to continue as a going concern.
This going concern opinion could materially limit our ability to raise additional funds through the issuance of equity or debt securities
or otherwise. Further reports on our financial statements may include an explanatory paragraph with respect to our ability to continue
as a going concern. Our ability to continue as a going concern is uncertain and dependent upon obtaining the financing necessary to meet
our financial commitments and to continue our ongoing operations as currently planned. We do not have sufficient funds to meet planned
expenditures over the next twelve months, and will need to seek additional debt or equity financing to meet our planned expenditures.
We will require additional financing in the second quarter of 2022 to meet our ongoing operational working capital requirements and continue
to meet the financial covenants of our convertible notes. We plan to meet those requirements in part through the use of our at-the-market
facility, but there are no guarantees that the facility will permit us to raise sufficient cash to meet our ongoing requirements. These
factors raise substantial doubt regarding our ability to continue as a going concern. If we are unable to raise sufficient capital we
may have to reduce operations which could significantly affect our results of operations. If we fail to meet the financial covenants of
our debt and cannot obtain a waiver from such provisions or otherwise come to an agreement with the holders of our debt, such holders
may declare a default on the debt which could subject our assets to seizure and sale, negatively impacting our business. See "Risks
Relating to our Convertible Debt" below.
We have a history
of losses, expect to continue to incur losses in the near term and may not achieve or sustain profitability in the future.
We have incurred significant losses in each fiscal year since our inception
in 2010. For the quarter ended March 31, 2022, we had a net loss of approximately $22 million. For the year ended December 31, 2021, we
had a net loss of approximately $31.3 million. For the six months ended December 31, 2020 we had a net loss of approximately $16.2 million.
For fiscal year ended June 30, 2020, we had a net loss of approximately $14.4 million. These losses have been due to the substantial investments
we have made to develop our monitoring and compliance platforms and related software, market these products to government regulatory agencies
and commercial businesses and growing our infrastructure to support the increased business. We expect to continue to invest in the further
development of our platforms, software, and related product offerings and to grow both our government regulatory and commercial business
client base. As a result, we expect our operating expenses to increase in the future due to expected increased sales and marketing expenses,
operational costs, product development costs, and general and administrative costs and, therefore, our operating losses will continue
or even increase at least through the near term. In addition, because we are now a public company, we will incur significant legal, accounting,
and other expenses that MJ Freeway, or MJF, did not incur as a non-public company. Furthermore, to the extent that we are successful in
increasing our client base, we will also incur increased expenses because costs associated with generating and supporting client agreements
are generally incurred upfront, while revenue is generally recognized ratably over the term of the agreement. You should not rely upon
our recent revenue growth as indicative of future performance. We may not reach profitability in the near future or at any specific time
in the future. If and when our operations do become profitable, we may not sustain profitability.
6
We have a relatively
short operating history, which makes it difficult to evaluate our business and future prospects.
We have a relatively
short operating history, which makes it difficult to evaluate our business and future prospects. Our wholly-owned subsidiary, MJF, has
been in existence since 2010, and much of our revenue growth has occurred during the past three years. We have encountered, and will continue
to encounter, risks and difficulties frequently experienced by growing companies in rapidly changing industries, including those
related to:
●
market acceptance of our current and future products and services;
●
changing regulatory environments and costs associated with compliance;
●
our ability to compete with other companies offering similar products and services;
●
our ability to effectively market our products and services and attract new clients;
●
existing client retention rates and the ability to upsell clients;
●
the amount and timing of operating expenses, particularly sales and marketing expenses, related to the maintenance and expansion of our business, operations, and infrastructure;
●
our ability to control costs, including operating expenses;
●
our ability to manage organic growth and growth fueled by acquisitions;
●
public perception and acceptance of cannabis-related products and services generally; and
●
general economic conditions and events.
If we do not manage these
risks successfully, our business and financial performance will be adversely affected.
Our long-term results
of operations are difficult to predict and depend on the commercial success of our clients, the continued growth of the cannabis industry
generally, and the regulatory environment within which the cannabis industry operates.
Our offers of products and services globally to
help government regulatory agencies and commercial businesses monitor regulatory compliance and operate efficiently and successfully in
compliance with applicable state laws. Our long-term results will directly depend on the continued growth of the legalized cannabis industry
(and public acceptance of cannabis-related products) and the ability of our current and future clients to successfully market their own
products and services. If the legalized cannabis marketplace does not continue to grow because the public does not increasingly accept
cannabis-related products or government regulators adopt laws, rules, or regulations that terminate or diminish the ability for commercial
businesses to develop, market, and sell cannabis-related products, our business and financial performance would be materially adversely
affected. Additionally, even if the cannabis marketplace continues to grow rapidly, and government regulation allows for the free-market
development of this industry, products, and services competitive with those offered by us may enjoy better market acceptance.
The legalized cannabis industry may not continue
to grow, and the regulatory environment may not remain favorable to participants in the industry. More generally, our products and services
may not experience growing market acceptance, which would adversely impact our ability to grow revenue.
7
Direct and indirect consequences of the
COVID-19 pandemic may have material adverse consequences.
The current COVID-19 pandemic is creating extensive
disruptions to the global economy. Governments, businesses, and the public are taking unprecedented actions to contain the spread of COVID-19
and to mitigate its effects, including quarantines, travel bans, shelter-in-place orders, closures of businesses, fiscal stimulus, and
legislation designed to deliver monetary aid and other relief. While the scope, duration, and full effects of COVID-19 are rapidly evolving
and not fully known, the pandemic and related efforts to contain it have disrupted global economic activity, adversely affected the functioning
of financial markets, impacted interest rates, increased economic and market uncertainty, and disrupted trade and supply chains. If these
effects continue for a prolonged period or result in sustained economic stress or recession, we may experience adverse effects on our
operations. Specifically, if our clients are forced to reduce business hours or close their businesses for an extended period of time
or if their customer base experiences financial hardship, our clients may experience a sharp decline in revenue and be unable to meet
their obligations to us under existing agreements or be unwilling to extend their agreements past current terms, which may adversely impact
our financial results. Further, we may experience a decrease in new clients due to a lack of financial resources or a decline in new markets
as businesses and financial markets deal with the impact of COVID-19. As governments are focused on relief efforts and fiscal stimulus
measures, important legislation to expand or clarify certain existing or new markets for our products may be postponed or abandoned, which
may adversely impact our results. Further, these conditions may impact our ability to access financial markets to obtain the necessary
funding to operate our business as currently contemplated, which may adversely affect our liquidity and working capital. To the extent
the COVID-19 pandemic adversely affects our business and financial results, it may also have the effect of heightening many of the other
risks described in this registration statement, such as those relating to our operations and financial condition. Due to the highly uncertain
and dynamic nature of events relating to the COVID-19 pandemic, it is not currently possible to estimate the impact of the pandemic on
our business. However, these effects could have a material impact on our operations, and we will continue to monitor the COVID-19 situation
closely. Through December 31, 2021, we have experienced delays in our consulting projects and the corresponding delay in revenue recognition
for such projects, which we believe could be the result of government shutdowns and other regulatory uncertainty surrounding COVID-19.
Risks Related to the Cannabis Industry
As a company whose clients operate in the
cannabis industry, we face many unique and evolving risks.
We currently serve government and private clients
with respect to their tracking, monitoring, and compliance needs as they operate in the growing cannabis industry. Any risks related to
the cannabis industry that may adversely affect our clients and potential clients may, in turn, adversely affect demand for our products.
Specific risks faced by companies operating in the cannabis industry include, but are not limited to, the following:
Marijuana remains illegal
under United States federal law
Marijuana is a Schedule-I controlled substance
under the Controlled Substances Act ("CSA"), and is illegal under federal law. It remains illegal under United States federal
law to grow, cultivate, sell or possess marijuana for any purpose or to assist or conspire with those who do so. Additionally, 21 U.S.C.
856 a.1. states that it shall be unlawful to "knowingly open, lease, rent, use, or maintain any place, whether permanently or temporarily,
for the purpose of manufacturing, distributing, or using any controlled substance." Even in those states in which the use of marijuana
has been authorized, its use remains a violation of federal law. Since federal law criminalizing the use of marijuana is not preempted
by state laws that legalize its use, strict enforcement of federal law regarding marijuana would likely result in our clients' inability
to proceed with their operations, which would adversely affect demands for our products.
Uncertainty of federal
enforcement
On January 4, 2018, former Attorney General Sessions
rescinded the previously issued memoranda (known as the Cole Memorandum) from the U.S. Department of Justice ("DOJ") that
had de-prioritized the enforcement of federal law against marijuana users and businesses that comply with state marijuana laws, adding
uncertainty to the question of how the federal government will choose to enforce federal laws regarding marijuana. Former Attorney General
Sessions issued a memorandum to all United States Attorneys in which the DOJ affirmatively rescinded the previous guidance as to marijuana
enforcement, calling such guidance "unnecessary." This one-page memorandum was vague in nature, stating that federal
prosecutors should use established principles in setting their law enforcement priorities. Under previous administrations, the DOJ indicated
that those users and suppliers of medical marijuana who complied with state laws, which required compliance with certain criteria, would
not be prosecuted. On November 7, 2018, Jeff Sessions resigned from his position as Attorney General. The current Attorney General, Merrick
Garland, has not indicated any change in enforcement priority for state-compliant marijuana businesses, however, substantial uncertainty
regarding federal enforcement remains. Regardless, the federal government has always reserved the right to enforce federal law regarding
the sale and disbursement of medical or recreational marijuana, even if state law sanctioned such sale and disbursement. Although the
rescission of the Cole Memorandum does not necessarily indicate that marijuana industry prosecutions are now affirmatively a priority
for the DOJ, there can be no assurance that the federal government will not enforce such laws in the future. As a result, it is now unclear
if the DOJ will seek to enforce the CSA against those users and suppliers who comply with state marijuana laws.
8
In 2014, Congress passed a spending bill, (the
"2015 Appropriations Bill"), containing a provision (the "Appropriations Rider"), blocking federal funds and resources
allocated under the 2015 Appropriations Bill from being used to "prevent such States from implementing their own State medical marijuana
law." The Appropriations Rider provided a budgetary constraint on the federal government from interfering with the ability of states
to administer their medical marijuana laws, although it did not codify federal protections for medical marijuana patients and producers.
Moreover, despite the Appropriations Rider, the DOJ maintains that it can still prosecute violations of the federal marijuana ban and
continue cases already in the courts. However, the Ninth Circuit Court of Appeals and other courts have interpreted the language to mean
that the DOL cannot prosecute medical marijuana operators complying strictly with state medical marijuana laws. Additionally, the Appropriations
Rider must be re-enacted every year. The Appropriations Rider was renewed on December 20, 2019 through the signing of the fiscal year
2020 omnibus spending bill, effective through September 30, 2020, continued re-authorization of the Appropriations Rider cannot be guaranteed.
Subsequently, the Appropriations Rider was extended through a series of stopgap spending bills on October 1, December 11, December 18,
December 20 and December 22, 2020. On December 27, 2020 the Appropriations Rider was included in the fiscal year 2021 omnibus spending
bill and will remain in effect through September 30, 2022. If the Appropriation Rider is not extended in the future, the risk of federal
enforcement and override of state medical marijuana laws would increase.
Despite the rescission of the Cole Memorandum,
the Department of the Treasury, Financial Crimes Enforcement Network, has not rescinded the "FinCEN Memo" dated February 14,
2014, which de-prioritizes enforcement of the Bank Secrecy Act against financial institutions and marijuana-related businesses which utilize
them. This memo appears to be a standalone document and is presumptively still in effect. At any time, however, the Department of the
Treasury, Financial Crimes Enforcement Network, could elect to rescind the FinCEN Memo. This would make it more difficult for us and our
clients and potential clients to access the U.S. banking systems and conduct financial transactions, which would adversely affect our
operations.
We could become subject
to racketeering laws
While we do not grow, handle, process or sell
cannabis or cannabis-derived products, our receipt of funds from clients that do conduct such operations in violation of federal law exposes
us to risks related to federal racketeering laws. The Racketeer Influenced Corrupt Organizations Act ("RICO") is a federal
statute providing criminal penalties in addition to a civil cause of action for acts performed as part of an ongoing criminal organization.
Under RICO, it is unlawful for any person who has received income derived from a pattern of racketeering activity (which includes most
felonious violations of the CSA), to use or invest any of that income in the acquisition of any interest, or the establishment or operation
of, any enterprise which is engaged in interstate commerce. RICO also authorizes private parties whose properties or businesses are harmed
by such patterns of racketeering activity to initiate a civil action against the individuals involved. Although RICO suits against the
cannabis industry are rare, a few cannabis businesses have been subject to a civil RICO action. Any violation of RICO could result in
significant fines, penalties, administrative sanctions, convictions or settlements arising from civil proceedings conducted by either
the federal government or private citizens or criminal charges, including but not limited to, seizure of assets, disgorgement of profits,
cessation of our business activities or divestiture.
Banking regulations could
limit access to banking services and expose us to risk
Our receipt of payments from clients engaged in
state-legal cannabis operations could also subject us to the consequences of a variety of federal laws and regulations that involve money
laundering, financial record keeping and proceeds of crime, including the Bank Secrecy Act, as amended by Title III of the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) and any
related or similar rules, regulations or guidelines, issued, administered or enforced by the federal government. Since we fund from activities
that are illegal under the CSA, banks and other financial institutions providing services to us risk violation of federal anti-money laundering
statutes (18 U.S.C. §§ 1956 and 1957), the unlicensed money-remitter statute (18 U.S.C. § 1960) and the Bank Secrecy Act,
among other applicable federal statutes. Banks often refuse to provide banking services to businesses involved in the cannabis industry
due to the present state of federal laws and regulations governing financial institutions. The inability to open bank accounts may make
it difficult for us or our clients to operate and our client's reliance on cash can result in a heightened risk of theft, which
could harm their businesses and, in turn, harm our business. Additionally, some courts have denied marijuana-related businesses bankruptcy
protection, thus, making it very difficult for lenders to recoup their investments, which may limit the willingness of banks to lend to
our clients and to us. The lack of banking and financial services presents unique and significant challenges to businesses in the cannabis
industry and we may experience similar difficulties in obtaining and maintaining regular banking and financial services because of the
activities of our clients.
9
Dividends and distributions
could be prevented if our receipt of payments from clients is deemed to be proceeds of crime
In the event that any of our operations, or any
proceeds thereof, any dividends or distributions therefrom, or any profits or revenues accruing from such operations were found to be
in violation of money laundering legislation or otherwise, such transactions may be viewed as proceeds of crime under one or more federal
statutes or any other applicable legislation. This could restrict or otherwise jeopardize our ability to declare or pay dividends or effect
other distributions. Furthermore, while there are no current intentions to declare or pay dividends in the foreseeable future, in the
event that a determination was made that our proceeds from operations (or any future operations) could reasonably be shown to constitute
proceeds of crime, we may decide or be required to suspend declaring or paying dividends without advance notice and for an indefinite
period of time.
Further legislative development
beneficial to our operations is not guaranteed
Among other things, our business involves the
provision of an online platform that provides monitoring and tracking of those involved in the cultivation, distribution, manufacture,
storage, transportation, and/or sale of medical and adult-use cannabis products in compliance with applicable state law. The success of
our business depends on the continued development of the cannabis industry and the activity of commercial business and government regulatory
agencies within the industry. The continued development of the cannabis industry is dependent upon continued legislative and regulatory
authorization of cannabis at the state level and a continued laissez-faire approach by federal enforcement agencies. Any number of factors
could slow or halt progress in this area. Further regulatory progress beneficial to the industry cannot be assured. While there may be
ample public support for legislative action, numerous factors impact the legislative and regulatory process, including election results,
scientific findings or general public events. Any one of these factors could slow or halt progressive legislation relating to cannabis
and the current tolerance for the use of cannabis by consumers, which could adversely affect the demand for our product and operations.
The cannabis industry could
face strong opposition from other industries
We believe that established businesses in other
industries may have a strong economic interest in opposing the development of the cannabis industry. Cannabis may be seen by companies
in other industries as an attractive alternative to their products, including recreational marijuana as an alternative to alcohol, and
medical marijuana as an alternative to various commercial pharmaceuticals. Many industries that could view the emerging cannabis industry
as an economic threat are well established, with vast economic and federal and state lobbying resources. It is possible that companies
within these industries could use their resources to attempt to slow or reverse legislation legalizing cannabis. Any inroads these companies
make in halting or impeding legislative initiatives that would be beneficial to the cannabis industry could have a detrimental impact
on our clients and, in turn on our operations.
The legality of marijuana
could be reversed in one or more states
The voters or legislatures of states in which
marijuana has already been legalized could potentially repeal applicable laws that permit the operation of both medical and retail marijuana
businesses. These actions might force businesses, including those that are our clients, to cease operations in one or more states entirely.
10
Changing legislation and
evolving interpretations of the law
Laws and regulations affecting the medical and
adult-use marijuana industry are constantly changing, which could detrimentally affect our clients and, in turn, our operations. Local,
state, and federal marijuana laws and regulations are broad in scope and subject to evolving interpretations, which could require our
clients and thus us to incur substantial costs associated with modification of operations to help ensure such clients' compliance.
In addition, violations of these laws, or allegations of such violations, could disrupt our clients' business and result in a material
adverse effect on our operations. In addition, it is possible that regulations may be enacted in the future that will limit the amount
of cannabis growth or related products that our commercial clients are authorized to produce. We cannot predict the nature of any future
laws, regulations, interpretations, or applications, nor can we determine what effect additional governmental regulations or administrative
policies and procedures, when and if promulgated, could have on our operations.
Dependence on client licensing
Our business is dependent on our clients obtaining
various licenses from various municipalities and state licensing agencies. There can be no assurance that any or all licenses necessary
for our clients to operate their businesses will be obtained, retained or renewed. If a licensing body were to determine that a client
of ours had violated applicable rules and regulations, there is a risk the license granted to that client could be revoked, which could
adversely affect our operations. There can be no assurance that our existing clients will be able to retain their licenses going forward,
or that new licenses will be granted to existing and new market entrants.
Insurance risks
In the U.S, many marijuana-related businesses
are subject to a lack of adequate insurance coverage. In addition, many insurance companies may deny claims for any loss relating to marijuana
or marijuana-related operations based on their illegality under federal law, noting that a contract for an illegal transaction is unenforceable.
Bankruptcy risks
Because cannabis is illegal under U.S. federal
law, and bankruptcy is a strictly federal proceeding, many courts have denied cannabis businesses federal bankruptcy protections, thus
making it very difficult for lenders to recoup their investments in the cannabis industry in the event of a bankruptcy. If we were to
seek protection from creditors pursuant to applicable bankruptcy or insolvency laws, even though we are not directly engaged in manufacturing,
distributing, selling or otherwise handling cannabis under state cannabis laws, there is no guarantee that U.S. federal bankruptcy protections
would be available to our United States operations, which would have a material adverse effect on us, our lenders and other stakeholders.
While state-level receivership options do exist in some states as an alternative to bankruptcy, the efficacy of these alternatives cannot
be guaranteed.
The cannabis industry is an evolving industry
and we must anticipate and respond to changes.
The cannabis industry is not yet well-developed,
and many aspects of this industry's development and evolution cannot be accurately predicted. While we have attempted to identify
any risks specific to the cannabis industry, you should carefully consider that there are other risks that cannot be foreseen or are not
described in this prospectus, which could materially and adversely affect our business and financial performance. We expect that the cannabis
market and our business will evolve in ways that are difficult to predict. For example, it is anticipated that over time, we will reach
a point in most markets where we have achieved a market penetration level in which new client acquisitions are less productive, and the
continued growth of our revenue will require more focus on increasing the rate at which existing clients purchase products and services
across our platforms. Our long-term success will depend on our ability to successfully adjust our strategy to meet the changing market
dynamics. If we are unable to successfully adapt to changes in the cannabis industry, our operations could be adversely affected.
11
Risks related to Our Business
A significant portion
of our business is and is expected to be, from government contracts, which present certain unique risks.
Contracts for Leaf Data
Systems with government agencies in Pennsylvania, Washington, and Utah represented 16%, 25% and 39% of our revenue for the year ended
December 31, 2021, the six months ended December 31, 2020 and fiscal year ended June 30, 2020, respectively. In order to obtain a government
contract for Leaf Data Systems, we are required to follow a competitive bidding process in each state where we seek a contract. Government
contracts have very specific compliance requirements that often require contractors to invest material time and money to prepare a bid
to ensure that our technology, processes, and staff meet these specific requirements. After expenditures of such time and money, there
is no assurance that the bid will result in an award of a contract. Further, even if a contract is awarded, there are strict procedures
that government agencies follow when it comes to reimbursement of the costs incurred in the course of fulfilling contracts. Accordingly,
it is possible that some or all costs might not be reimbursed under a government contract as contemplated by us.
Government agencies also
typically audit and investigate government contractors. These agencies review a contractor's performance under its contracts, its
cost structure, its business systems, and compliance with applicable laws, regulations, and standards. If an audit or investigation uncovers
improper or illegal activities, we may be subject to civil or criminal penalties and administrative sanctions, including reductions of
the value of contracts, contract modifications or terminations, forfeiture of profits, suspension of payments, penalties, fines, and suspension,
or prohibition from doing business with the government. In addition, we could suffer serious reputational harm if allegations of impropriety
were made against us. Any such imposition of penalties, or the loss of such government contracts, could materially adversely affect our
business, financial condition, results of operations, and growth prospects.
There also is typically
a longer window of liability under government contracts than private contracts, and the government can seek claims after the contract
has ended and payments under the contract have been made. The terms of government contracts may also require the sharing of proprietary
information, processes, software, and product development efforts with the government. Additionally, government employees are required
to follow certain protocols to ensure there is no appearance of impropriety in the bidding process. As a result, bidders on government
contracts must ensure that there is no appearance of favoritism, gift-giving, bribery, or the exertion of other influences in the bidding
process. Any finding of the same can result in fines to the bidder and cancellation of contracts. The applicable state government generally
has the ability to terminate our contract, in whole or in part, without prior notice, for convenience or for default based on performance.
If a government contract were to be terminated for convenience, we generally would be protected by provisions covering reimbursement for
costs incurred on the contract and profit on those costs, but not the anticipated profit that would have been earned had the contract
been completed. The state government also has the ability to stop work under a contract for a limited period of time for its convenience.
We cannot assure you
that we will be successful in navigating the government contract bidding process or that we will be able to maintain our existing government
contracts or obtain additional government contracts in the future.
Our operations may be adversely affected
by disruptions to our information technology, or IT, systems, including disruptions from cybersecurity breaches of our IT infrastructure.
We rely on information technology networks and
systems, including those of third-party service providers, to process, transmit, and store electronic information. In particular, we depend
on our information technology infrastructure for a variety of functions, including financial reporting, data management, project development,
and email communications. Any of these systems may be susceptible to outages due to fire, floods, power loss, telecommunications failures,
terrorist attacks, sabotage, and similar events. Global cybersecurity threats and incidents can range from uncoordinated individual attempts
to gain unauthorized access to our information technology systems to sophisticated and targeted measures known as advanced persistent
threats. The ever-increasing use and evolution of technology, including cloud-based computing, create opportunities for the unintentional
dissemination or intentional destruction of confidential information stored in our systems or in non-encrypted portable media or storage
devices. We could also experience a business interruption, information theft of confidential information, or reputational damage from
industrial espionage attacks, malware, or other cyber-attacks, which may compromise our system infrastructure or lead to data leakage,
either internally or at our third-party providers. Despite the implementation of network security measures and disaster recovery plans,
our systems and those of third parties on which we rely may also be vulnerable to computer viruses, break-ins, and similar disruptions.
If we or our vendors are unable (or are perceived as unable) to prevent such outages and breaches, our operations may be disrupted, and
our business reputation could be adversely affected.
We expect that risks and exposures related to cybersecurity attacks
will remain high for the foreseeable future due to the rapidly evolving nature and sophistication of these threats.
12
Privacy regulation is an evolving area and
compliance with applicable privacy regulations may increase our operating costs or adversely impact our ability to service our clients
and market our products and services.
Because we store, processes, and use data, some
of which contains personal information, we are subject to complex and evolving federal, state, and foreign laws and regulations (including
Canada's Cannabis Act and related regulations and the European Union's general data protection regulation, or GDPR) regarding
privacy, data protection, and other matters. While we believe we are currently in compliance with applicable laws and regulations, many
of these laws and regulations are subject to change and uncertain interpretation, and could result in investigations, claims, changes
to our business practices, increased cost of operations, and declines in user growth, retention, or engagement, any of which could seriously
harm our business.
We rely on third parties for certain services
made available to users of our platforms, which could limit our control over the quality of the user experience and our cost of providing
services.
Some of the applications and services available
through the Leaf Data System and MJ Platform are provided through relationships with third-party service providers. We do not typically
have any direct control over these third-party service providers. These third-party service providers could experience service outages,
data loss, privacy breaches, including cyber-attacks, and other events relating to the applications and services they provide that could
diminish the utility of these services and which could harm users thereof. The MJ Platform itself does not depend on any third-party software
or applications and is based entirely on open source technologies and custom programming. The MJ Platform, however, is hosted by Amazon
Web Services, a third-party service provider. There are readily available alternative hosting services available should we desire or need
to move to a different web host. Certain ancillary services provided by us also uses the services of third-party providers, for which,
we believe, there are readily available alternatives on comparable economic terms. Offering integrated platforms, such as the Leaf Data
System and MJ Platform which rely, in part, on the services of other providers lessens the control that we have over the total client
experience. Should the third-party service providers we rely upon not deliver at standards we expect and desires, acceptance of our platforms
could suffer, which would have an adverse effect on our business and financial performance. Further, we cannot be assured of entering
into agreements with such third-party service providers on economically favorable terms.
Acquisitions and integration issues may
expose us to risks.
Our business strategy includes making targeted
acquisitions. Any acquisition that we make may be of significant size, may change the scale of our business and operations, and may expose
us to new geographic, political, operating, financial, and geological risks. Our success in our acquisition activities depends on our
ability to identify suitable acquisition candidates, negotiate acceptable terms for any such acquisition, and integrate the acquired operations
successfully with our own. Any acquisitions would be accompanied by risks. For example, there may be significant changes in our market
value after we have committed to complete the transaction and have established the purchase price or exchange ratio; a potential targeted
acquisition's business and prospects may prove to be below expectations; we may have difficulty integrating and assimilating the
operations and personnel of any acquired companies, realizing anticipated synergies and maximizing the financial and strategic position
of the combined enterprise and maintaining uniform standards, policies, and controls across the organization; the integration of the acquired
business or assets may disrupt our ongoing business and our relationships with employees, clients, suppliers, and contractors; and the
acquired business or assets may have unknown liabilities that may be significant. If we choose to use equity securities as consideration
for such an acquisition, existing shareholders may suffer dilution. Alternatively, we may choose to finance any such acquisition with
our existing resources. There can be no assurance that we would be successful in overcoming these risks or any other problems encountered
in connection with such acquisitions. To grow and be successful, we need to attract and retain qualified personnel.
In any future acquisitions, we may not be able
to successfully integrate acquired personnel, operations, and technologies, or effectively manage the combined business following the
acquisition. We also may not achieve the anticipated benefits from future acquisitions due to a number of factors, including: (a) an inability
to integrate or benefit from acquisitions in a profitable manner; (b) unanticipated costs or liabilities associated with the acquisition;
(c) the incurrence of acquisition-related costs; (d) the diversion of management's attention from other business concerns; (e) the
loss of our or the acquired business' key employees; or (f) the issuance of dilutive equity securities, the incurrence of debt,
or the use of cash to fund such acquisitions.
13
To grow and be successful, we need to attract
and retain qualified personnel.
Our growth and success will depend to a significant
extent on our ability to identify, attract, hire, train, and retain qualified professional, creative, technical, and managerial personnel.
Competition for experienced and qualified talent in the cannabis industry can be intense. We may not be successful in identifying, attracting,
hiring, training, and retaining such personnel in the future. If we are unable to hire, assimilate, and retain qualified personnel in
the future, such inability could adversely affect our operations.
We are smaller and less diversified than
many of our potential competitors.
While we believe we are a leading provider in
the software solutions segment of the cannabis industry, there are general software design and integrated business platform companies
seeking to provide online and software-based business solutions and operations integration to clients in numerous industries. The continued
growth of the cannabis industry will likely attract some of these existing companies and incentivize them to produce solutions that are
competitive with those offered by us. Many of these potential competitors are a part of large diversified corporate groups with a variety
of other operations and expansive resources. We may not be able to successfully compete with larger enterprises devoting significant resources
to compete in our target market space, which may negatively affect operations.
Our business and stock price may suffer
as a result of our limited public company operating experience and if securities or industry analysts do not publish or cease publishing
research or reports about us, our business, or our market, or if they change their recommendations regarding our common stock in an adverse
manner, the price and trading volume of our common stock could decline.
If we are unable to execute our business strategy,
either as a result of our inability to manage effectively our business in a public company environment or for any other reason, our business,
prospects, financial condition, and operating results may be harmed.
The trading market for our common stock will be
influenced by the research and reports that industry or securities analysts may publish about us, our business, our market, or our competitors.
We currently have limited coverage by securities and industry analysts. If no additional securities or industry analysts commence coverage
of us, our stock price and trading volume would likely be negatively impacted. If any of the analysts who cover, or who may cover us in
the future, change their recommendation regarding our stock in an adverse manner, or provide more favorable relative recommendations about
our competitors, the price of our common stock would likely decline. If any analyst who may cover us were to cease coverage of us or fail
to regularly publish reports on us, we could lose visibility in the financial markets, which could cause our stock price or trading volume
to decline.
Risks related to Intellectual Property
Protecting and defending against intellectual
property claims may have a material adverse effect on our business.
Our ability to compete depends, in part,
upon successful protection of our intellectual property relating to our Leaf Data Systems and MJ Platform, and intellectual property
acquired in business combinations, such as Solo, Trellis, Ample, Viridian and 365 Cannabis. We seek to protect our proprietary and
intellectual property rights through patent applications, available copyright and trademark laws, nondisclosure agreements, and
licensing and distribution arrangements with reputable companies in our target markets. While patent protection for inventions
related to cannabis and cannabis-related products is available, there are substantial difficulties faced in the patent process by
cannabis-related businesses. Further, patent applications may be rejected for numerous other reasons beyond those related to the
cannabis industry, including that the subject matter of the application is found to be non-patentable. Our previous patent
applications were denied and while we are continuing to pursue such applications and believe they are with merit, there can be no
assurance that patents will be issued on these applications. The failure to be awarded patents on our technology could weaken our
ability to enforce our intellectual property rights. Any such enforcement, whether we have been granted patent protection or not,
would be costly, and there can be no assurance that we will have the resources to undertake all necessary action to protect our
intellectual property rights or that we will be successful. Any infringement of our material intellectual property rights could
require us to redirect resources to actions necessary to protect the same and could distract management from our underlying business
operations. The infringement of our material intellectual property rights and resulting actions could adversely affect our
operations.
14
Our success depends in part upon our ability
to protect our core technology and intellectual property.
Our success depends in part upon our ability to
protect our core technology and intellectual property. To establish and protect our proprietary rights, we rely on a combination of patent
applications, trade secrets, including know-how, license agreements, confidentiality procedures, non-disclosure agreements with third
parties, employee disclosure and invention assignment agreements, and other contractual rights.
We generally control access to and use of our
proprietary technology and other confidential information through the use of internal and external controls, including contractual protections
with employees, contractors, clients, and partners, and our software is protected by the U.S. and international copyright laws.
Despite efforts to protect our trade secrets and
proprietary rights through intellectual property rights, licenses, and confidentiality agreements, unauthorized parties may still copy
or otherwise obtain and use our software and technology, as was the case when our source code was compromised in June 2017. We have taken
significant actions to improve security but will be required to regularly modify our systems to combat new hacking approaches as they
develop. In addition, as our international operations expand, effective intellectual property protection may not be available or may be
limited in foreign countries.
Others may assert intellectual property
infringement claims against us.
Companies in the software and technology industries
own large numbers of patents, copyrights, trademarks, and trade secrets, and frequently enter into litigation based on allegations of
infringement, misappropriation, or other violations of intellectual property or other rights. In addition, various "non-practicing
entities" that own patents and other intellectual property rights often attempt to aggressively assert their rights in order to
extract value from technology companies. It is possible that others may claim from time to time that our products misappropriate or infringe
the intellectual property rights of third parties. Irrespective of the validity or the successful assertion of any such claims, we could
incur significant costs and diversion of resources in defending against these claims, which could adversely affect our operations. We
may receive unfavorable preliminary or interim rulings in the course of litigation, and there can be no assurances that favorable final
outcomes will be obtained in all cases. We may decide to settle such lawsuits and disputes on terms that are unfavorable to us. As a result,
we may also be required to develop alternative non-infringing technology or practices or discontinue the practices. The development of
alternative non-infringing technology or practices could require significant effort and expense or may not be feasible.
Risks related to Our Charter Documents
Anti-takeover provisions contained in our
amended and restated certificate of incorporation and amended and restated bylaws, as well as provisions of Delaware law, could impair
a takeover attempt and limit the price investors might be willing to pay in the future for our common stock and could entrench management.
Our Amended and Restated Certificate of Incorporation
contains provisions that may discourage unsolicited takeover proposals that stockholders may consider to be in their best interests. We
are also subject to anti-takeover provisions under Delaware law, which could delay or prevent a change of control. Together these provisions
may make more difficult the removal of management and may discourage transactions that otherwise could involve payment of a premium over
prevailing market prices for our securities.
15
These provisions:
●
create
a staggered Board of Directors making it more difficult for stockholders to remove a majority of the Board of Directors and take control;
●
grant
the Board of Directors the ability to designate the terms of and issue new series of preferred shares, which can be created and issued
by the Board of Directors without prior stockholder approval, with rights senior to those of the common stock;
●
impose
limitations on our stockholders' ability to call special stockholders' meetings; and
●
make
it more difficult the removal of management and may discourage transactions that otherwise could involve payment of a premium over prevailing
market prices for our securities.
In addition, we are subject to the provisions
of Section 203 of the Delaware General Corporation Law, which may prohibit certain business combinations with stockholders owning 15%
or more of our outstanding voting stock. These and other provisions in our Amended and Restated Certificate of Incorporation, our bylaws,
and Delaware law could make it more difficult for stockholders or potential acquirers to obtain control of our Board of Directors or initiate
actions that are opposed by our then-current Board of Directors, including to delay or impede a merger, tender offer or proxy contest
involving us. Any delay or prevention of a change in control transaction or changes in our Board of Directors could cause the market price
of our common stock to decline.
Our corporate opportunity provisions in
our Amended and Restated Certificate of Incorporation could enable management to benefit from corporate opportunities that might otherwise
be available to us.
Our Amended and Restated Certificate of Incorporation
provides that the doctrine of corporate opportunity, or any other analogous doctrine, shall not apply with respect to us, or any of our
directors or officers in circumstances where the application of such doctrine would conflict with any fiduciary duties or contractual
obligations they may otherwise have.
Our management may become aware, from time to
time, of certain business opportunities (such as acquisition opportunities) and may direct such opportunities to other businesses in which
they have invested, in which case we may not become aware of or otherwise have the ability to pursue such opportunity. Further, such businesses
may choose to compete with us for these opportunities, possibly causing these opportunities to not be available to us or causing them
to be more expensive for us to pursue. These potential conflicts of interest could adversely impact our business or prospects if attractive
business opportunities are procured by such parties for their own benefit rather than for ours.
Our amended and restated certificate of
incorporation provides, subject to limited exceptions, that the Court of Chancery of the State of Delaware will be the sole and exclusive
forum for certain stockholder litigation matters, which could limit our stockholders' ability to obtain a favorable judicial forum
for disputes with us or our directors, officers, employees or stockholders.
Our amended and restated certificate of incorporation
requires, to the fullest extent permitted by law, that derivative actions brought in our name, actions against directors, officers, and
employees for breach of fiduciary duty, actions under the Delaware general corporation law or under our amended and restated certificate
of incorporation, or actions asserting a claim governed by the internal affairs doctrine may be brought only in the Court of Chancery
in the State of Delaware and, if brought outside of Delaware, the stockholder bringing the suit will be deemed to have consented to service
of process on such stockholder's counsel. This choice of forum provision does not preclude or contract the scope of exclusive federal
or concurrent jurisdiction for any actions brought under the Securities Act or the Exchange Act of 1934, as amended, or the Exchange Act.
Accordingly, our exclusive forum provision will not relieve us of our duties to comply with the federal securities laws and the rules
and regulations thereunder, and our stockholders will not be deemed to have waived our compliance with these laws, rules and regulations.
Any person or entity purchasing or otherwise acquiring
any interest in shares of our capital stock shall be deemed to have notice of and consented to the forum provisions in our amended and
restated certificate of incorporation. This choice of forum provision does not exclude stockholders from suing in federal court for claims
under the federal securities laws but may limit a stockholder's ability to bring such claims in a judicial forum that it finds favorable
for disputes with us or any of our directors, officers, other employees or stockholders, which may discourage lawsuits with respect to
such claims.
Alternatively, if a court were to find the choice
of forum provision contained in our amended and restated certificate of incorporation to be inapplicable or unenforceable in an action,
we may incur additional costs associated with resolving such action in other jurisdictions, which could harm our business, operating results
and financial condition.
16
Risks Relating to our Convertible Debt
The issuance of shares of our common stock
pursuant to our Senior Convertible Notes may result in significant dilution to our stockholders.
The conversion of our outstanding Senior Convertible Notes, issued
on October 5, 2021, could result in the issuance of a significant number of shares of our common stock. The original $20 million principal
amount of Senior Convertible Notes is convertible at a price of $4.05 per share, which would result in the issuance of 4,938,272 shares
of our common stock upon the conversion of the Senior Convertible Notes in full. At the option of Akerna, assuming all equity conditions
under the Senior Convertible Notes are met, the installment payments on the Senior Convertible Notes can be converted into shares of common
stock of Akerna at a price per share equal to the lower of (i) the conversion price then in effect, or (ii) the greater of (x) the floor
price of $0.54 and (y) 90% of the lower of (A) the volume-weighted average price of the common stock as of the trading day immediately
preceding the applicable date of determination and (B) the quotient of (I) the sum of the volume-weighted average price of the common
stock for each of the two (2) trading days with the lowest volume-weighted average price of the common stock during the ten consecutive
trading day period ending on and including the trading day immediately prior to the applicable date of determination, divided by (II)
two. If the equity conditions are not satisfied and the holder does not waive the equity conditions, the Senior Convertible Note's
installment payments must be made in cash.
Due to the variable nature of the adjustments of installment conversion
prices and the formula that sets certain conversion prices of these securities based on a discount to the then-current market price, we
could issue up to 28,685,185 shares of common stock as of June 13, 2022, upon conversion of the Senior Convertible Notes at the floor
price, which may result in significant dilution to our stockholders and could negatively impact the trading price of our common stock.
This financing will reset the conversion price of the Senior Convertible Notes, see the risk factors under "Risks Related to this
Offering" below.
Our obligations to the holders of our Senior
Convertible Notes are secured by a security interest in substantially all of our assets, if we default on those obligations, the Senior
Convertible Note holders could foreclose on our assets.
Our obligations under the Senior Convertible Notes,
issued on October 5, 2021, and the related transaction documents are secured by a security interest in substantially all of our assets.
As a result, if we default on our obligations under such Senior Convertible Notes, the collateral agent on behalf of the holders of the
Senior Convertible Notes could foreclose on the security interests and liquidate some or all of our assets, which would harm our business,
financial condition and results of operations and could require us to reduce or cease operations and investors may lose all or part of
your investment.
Events of default under the Senior Convertible
Notes include: (i) the failure of the registration statement to which this prospectus relates (under the registration rights agreement
between the Company and the holders) to be filed with the SEC or the failure of the applicable registration statement to be declared effective
by the SEC by deadlines set forth in the registration rights agreement; (ii) (x) the effectiveness of the applicable registration statement
lapses for any reason or such registration statement is unavailable to any holder of registrable securities and Rule 144 (subject to certain
conditions) is not unavailable to any holder of the conversion shares; (iii) suspension of trading of the Company's common stock
on a national securities exchange for five days; (iv) uncured conversion failure; (v) failure by the Company to maintain required share
allocations for the conversion of the Senior Convertible Notes; (vi) failure by the Company to pay principal when due; (vii) failure of
the Company to remove restricted legends from shares issued to a holder upon conversion of the Senior Convertible Notes; (viii) the occurrence
of any default under, redemption of or acceleration prior to maturity of at least an aggregate of $50,000 of indebtedness of the Company;
(ix) bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted
by or against the Company or any subsidiary and not dismissed within 45 days of initiation; (x) the commencement by the Company or any
subsidiary of a voluntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or
other similar law; (xi) the entry by a court of a decree, order, judgment or other similar document in respect of the Company or any subsidiary
of a voluntary or involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization
or other similar law; (xii) final judgment for the payment of money aggregating in excess of $50,000 are rendered against the Company
or any subsidiary of the Company and not bonded or discharged within 30 days; (xiii) failure of the Company or any subsidiary to pay when
due any debts in excess of $50,000 due to any third party; (xiv) breaches by the Company or any subsidiary of any representations or warranties
in the securities purchase agreement for the Senior Convertible Notes or any document contemplated thereby; (xv) a false or inaccurate
certification by the Company that either (A) the "Equity Conditions" (as defined in the Senior Convertible Notes) are satisfied,
(B) there has been no "Equity Conditions Failure," (as defined in the Senior Convertible Notes) or (C) as to whether any Event
of Default has occurred; (xvi) failure of the Company or any subsidiary to comply with certain of the covenants in the Senior Convertible
Notes; (xvii) the occurrence of (A) at any time after the six month anniversary of the issuance date, any current public information failure
that remains outstanding for a period of twenty (20) trading days or (B) any restatement of any financial statements of the Company filed
with the SEC; (xviii) any material adverse effect occurring; (xix) any provision of any transaction document shall at any time for any
reason cease to be valid and binding or enforceable; (xx) any security document shall for any reason (other than pursuant to the express
terms thereof or due to any failure or omission of the collateral agent) fail or cease to create a separate valid and perfected and, except
to the extent permitted by the terms hereof or thereof, first priority lien; (xxi) any material damage to, or loss, theft or destruction
of, any collateral, that is material to the business of the Company or any subsidiary and is not reimbursed by insurance; or (xxii) any
Event of Default occurs under any other Senior Convertible Notes.
17
The holders of the Senior Convertible Notes
have certain additional rights upon an event of default under such Senior Convertible Notes, which could harm our business, financial
condition, and results of operations and could require us to reduce or cease our operations.
Under the Senior Convertible Notes, the holders
have certain rights upon an event of default. Such rights include (i) the remaining principal amount of the Senior Convertible Notes bearing
interest at a rate of 15% per annum, (ii) during the event of default the holders of the Senior Convertible Notes will be entitled to
convert all or any portion of the Senior Convertible Notes at an alternate conversion price equal to the lower of (i) the conversion price
then in effect, and (ii) 80% of the lower of (x) the volume weighted average price of the common stock as of the trading day immediately
preceding the applicable date of determination and (y) the quotient of (A) the sum of the volume weighted average price of the common
stock for each of the two (2) trading days with the lowest volume weighted average price of the common stock during the ten consecutive
trading day period ending and including the trading day immediately prior to the applicable date of determination, divided by (B) two,
but not less than the floor price, and (iii) the holder having the right to demand redemption of all or a portion of the Senior Convertible
Notes, as described below. At any time after certain notice requirements for an event of default are triggered, a holder of Senior Convertible
Notes may require us to redeem all or any portion of the convertible note by delivering written notice. The redemption price will equal
the greater of (i) 115% of the outstanding principal of the convertible note to be redeemed and accrued and unpaid interest and unpaid
late charges thereon, and (ii) an amount equal to the market value of the shares of the common stock underlying the Senior Convertible
Notes, as determined in accordance with the Senior Convertible Notes. Upon the occurrence of certain events of default relating to the
bankruptcy of Akerna, whether occurring prior to or following the maturity date, Akerna will be required to immediately redeem the Senior
Convertible Notes, in cash, for an amount equal to 115% of the outstanding principal of the Senior Convertible Notes, and accrued and
unpaid interest and unpaid late charges thereon, without the requirement for any notice or demand or other action by any holder or any
other person or entity. We may not have sufficient funds to settle the redemption price and, as described above, this could trigger rights
under the security interest granted to the holders and result in the foreclosure of their security interests and liquidation of some or
all of our assets.
The exercise of any of these rights upon an event
of default could substantially harm our financial condition, substantially dilute our other shareholders and force us to reduce or cease
operations and investors may lose all or part of their investment.
Risks Relating to Our Common Stock
We may seek to raise additional funds, finance
acquisitions, or develop strategic relationships by issuing securities that would dilute investors' ownership. Depending on the terms
available to us, if these activities result in significant dilution, it may negatively impact the trading price of our shares of common
stock.
Any additional financing that we secure, may require
the granting of rights, preferences, or privileges senior to, or pari passu with, those of our common stock. Any issuances by us of equity
securities may be at or below the prevailing market price of our common stock and in any event, may have a dilutive impact on stockholders'
ownership interest, which could cause the market price of our common stock to decline. We may also raise additional funds through the
incurrence of debt, subject to the limitations imposed by our current outstanding Senior Convertible Notes, or the issuance or sale of
other securities or instruments senior to our shares of common stock. We cannot be certain how the repayment of our Senior Convertible
Notes will be funded and we may issue further equity or debt in order to raise funds to repay the promissory notes, including funding
that may be highly dilutive. The holders of any securities or instruments we may issue may have rights superior to the rights of our common
stockholders. If we experience dilution from the issuance of additional securities and we grant superior rights to new securities over
holders of our common stock, it may negatively impact the trading price of our shares of common stock and stockholders may lose all or
part of their investment.
18
Warrants are exercisable
for our common stock, which could increase the number of shares eligible for future resale in the public market and result in dilution
to our stockholders.
Currently, before this offering, there are warrants
to purchase 5,813,804 shares of our common stock, and each one of those warrants is exercisable for one share of common stock at $11.50
per share. To the extent such warrants are exercised, additional shares of common stock will be issued, which will result in dilution
to the then-existing holders of common stock and increase the number of shares eligible for resale in the public market. Sales of substantial
numbers of such shares in the public market could adversely affect the market price of our common stock.
Certain of our warrants are accounted for
as a warrant liability and are recorded at fair value upon issuance with any changes in fair value each period reported in our statement
of operations, which may have an adverse effect on the market price of our securities.
We had 225,635 warrants that were issued in private
placements that occurred concurrently with the initial public offering of MTech, our successor (the "private warrants"). These
private warrants and the shares of Company common stock issuable upon the exercise of the private warrants are exercisable for cash or
on a cashless basis, at the holder's option, and are non-redeemable so long as they are held by the initial purchasers or their permitted
transferees. If the private warrants are held by someone other than the initial purchasers or their permitted transferees, the private
warrants will be redeemable by the Company and exercisable by such holders on the same basis as the warrants included in the units sold
in the initial public offering, in which case the 225,635 private warrants could be redeemed by the Company for $2,256.35. Under generally
accepted accounting principles in the United States ("GAAP"), the Company is required to evaluate contingent exercise provisions
of these warrants and then their settlement provisions to determine whether they should be accounted for as a warrant liability or as
equity. As a result of the provision that the private warrants, when held by someone other than the initial purchasers or their permitted
transferees, will be redeemable by the Company, the requirements for accounting for these warrants as equity are not satisfied. Therefore,
the Company is required to account for these private warrants as a warrant liability and record (a) that liability at fair value and (b)
any subsequent changes in fair value as of the end of each period for which earnings are reported. The impact of changes in fair value
on earnings may have an adverse effect on the market price of our common stock.
We may face additional risks, including
regulatory, litigation, stockholder or other actions and negative impacts on our stock price, as a result of the material weakness in
our internal control over financial reporting and revisions to our financial statements.
As a result of our material weaknesses in internal
control over financial reporting, the change in accounting for certain warrants, and the related revisions to our prior financial statements
or that may in the future be raised by the SEC, we face potential additional risks, including regulatory, litigation, stockholder or other
actions and negative impacts on our stock price, which may include, among others, claims invoking the federal and state securities laws,
contractual claims or other claims arising from the material weakness in our internal control over financial reporting and the preparation
of our financial statements. As of the date of this report, we have no knowledge of any such litigation or dispute. However, we can provide
no assurance that such litigation or dispute will not arise in the future. Any such litigation or dispute, whether successful or not,
could have a material adverse effect on our business, results of operations and financial condition.
19
The market price of our shares of common
stock is particularly volatile given our status as a relatively new public company with a generally small and thinly traded public float,
which could lead to wide fluctuations in our share price. You may be unable to sell your shares of common stock at or above your purchase
price, which may result in substantial losses to you.
The market for our shares of common stock is characterized
by significant price volatility when compared to the shares of larger, more established companies that trade on a national securities
exchange and have large public floats, and we expect that our share price will continue to be more volatile than the shares of such larger,
more established companies for the indefinite future. The volatility in our share price is attributable to a number of factors, including
the fact that our shares are thinly traded relative to larger, more established companies. The price for our shares of common stock could,
for example, decline precipitously in the event that a large number of our shares of common stock are sold on the market without commensurate
demand. As of March 31, 2022, there are public warrants to purchase 5,813,804 shares of our common stock at $11.50 per share and
$16.7
million
in principal amount of Senior Convertible Notes at a price of $4.05 per share (subject to being reset to the price at which
shares of common stock are offered in this offering), which if exercised or converted and sold into the open market could cause our stock
price to decline. In addition, because we may be considered a speculative or "risky" investment due to our lack of profits
to date, certain investors may, under the fear of losing all or most of their investment in the event of negative news or lack of progress,
be more inclined to sell their shares of common stock on the market more quickly and at greater discounts, thus resulting in a rapid downward
decline in the price of our common stock. Many of these factors are beyond our control and may decrease the market price of our shares
of common stock, regardless of our operating performance.
The market price of our common stock is
still likely to be highly volatile and subject to wide fluctuations, and you may be unable to resell your shares of common stock at or
above the price at which you acquired them.
The market price of our common stock is likely
to be highly volatile and could be subject to wide fluctuations in response to a number of factors that are beyond our control, including,
but not limited to:
●
Variations
in our revenues and operating expenses;
●
Actual
or anticipated changes in the estimates of our operating results or changes in stock market analyst recommendations regarding our common
stock, other comparable companies, or our industry generally;
●
Market
conditions in our industry, the industries of our clients, and the economy as a whole;
●
Actual
or expected changes in our growth rates or our competitors' growth rates;
●
Developments
in the financial markets and worldwide or regional economies;
●
Announcements
of innovations or new products or services by us or our competitors;
●
Announcements
by the government relating to regulations that govern our industry;
●
Sales
of our common stock or other securities by us or in the open market; and
●
Changes
in the market valuations of other comparable companies.
The trading price of our shares of common stock
might also decline in reaction to events that affect other companies in our industry, even if these events do not directly affect us.
In the past, following periods of volatility in the market, securities class-action litigation has often been instituted against companies.
Such litigation, if instituted against us, could result in substantial costs and diversion of management's attention and resources,
which could materially and adversely affect our business, operating results, and financial condition.
We have not paid dividends in the past and
do not expect to pay dividends for the foreseeable future, and any return on investment may be limited to potential future appreciation
in the value of our common stock.
We currently intend to retain any future earnings
to support the development and expansion of our business and do not anticipate paying cash dividends on our shares of common stock in
the foreseeable future. Our payment of any future dividends will be at the discretion of our Board of Directors after taking into account
various factors, including without limitation, our financial condition, operating results, cash needs, growth plans, and the terms of
any credit agreements that we may be a party to at the time. To the extent we do not pay dividends, our shares of common stock may be
less valuable because a return on investment will only occur if and to the extent our stock price appreciates, which may never occur.
In addition, investors must rely on sales of their common stock after price appreciation as the only way to realize their investment,
and if the price of our common stock does not appreciate, then there will be no return on investment. Investors seeking cash dividends
should not purchase our common stock.
20
Risks Relating to This Offering
Funds raised in this offering may not be sufficient to eliminate
the substantial doubt about our ability to continue as a going concern.
Our ability to continue as a going concern is uncertain and dependent
upon obtaining the financing necessary to meet our financial commitments and to continue our ongoing operations as currently planned.
Even with the funds raised in this offering, we may not have sufficient funds to meet planned expenditures over the next twelve months,
we may require additional financing in the near future to meet our ongoing operational working capital requirements and continue to meet
the financial covenants of our convertible notes and may need to seek additional debt or equity financing to meet our planned expenditures.
If we are unable to raise sufficient capital we may have to reduce operations which could significantly affect our results of operations. 
If we fail to meet the financial covenants of our debt and cannot obtain a waiver from such provisions or otherwise come to an agreement
with the holders of our debt, such holders may declare a default on the debt which could subject our assets to seizure and sale, negatively
impacting our business. See "Risks Relating to Our Financial Condition and Operating History" above.
Due to this offering, the conversion price
pursuant to our Senior Convertible Notes will need to be adjusted, which will result in the potential issuance of higher number of shares
of our common stock pursuant to the conversion than previously anticipated, thereby resulting in significant dilution to our stockholders.
The conversion of our outstanding Senior Convertible
Notes, issued on October 5, 2021 (the "Senior Convertible Notes"), could result in the issuance of a significant number of
shares of our common stock. The currently outstanding $15.5 million principal amount of Senior Convertible Notes is convertible at a price
of $4.05 per share, which would result in the issuance of 3,824,691 shares of our common stock upon the conversion of the Senior Convertible
Notes in full. At the option of Akerna, the installment payments on the Senior Convertible Notes can be converted into shares of common
stock of Akerna at a price per share equal to the lower of (i) the conversion price then in effect, or (ii) the greater of (x) the floor
price of $0.54 and (y) 90% of the lower of (A) the volume-weighted average price of the common stock as of the trading day immediately
preceding the applicable date of determination and (B) the quotient of (I) the sum of the volume-weighted average price of the common
stock for each of the two (2) trading days with the lowest volume-weighted average price of the common stock during the ten consecutive
trading day period ending on and including the trading day immediately prior to the applicable date of determination, divided by (II)
two.
Pursuant to the terms of the Convertible Notes,
if on or after the issue date of the Convertible Notes the Company issues or sells shares of common stock or certain other securities
exercisable or convertible into shares of common stock for a deemed issue price less than the then current conversion price of the Convertible
Notes, then the conversion price of the Convertible Notes will be adjusted to the deemed issue price per share of the shares of common
stock or other securities issued. Therefore, if we issue the Units under this offering at a deemed issue price of ______ per share, the
conversion price of the Convertible Notes will be reset to $______ per share and the $15.5 million principal amount of Senior Convertible
Notes would be convertible into ______ shares of our common stock potentially resulting in significant dilution to our stockholders and
the purchasers of securities in this offering.
If our common stock is delisted from Nasdaq, the liquidity and
price of our common stock could decrease and our ability to obtain financing could be impaired.
On May 24, 2022, we received a notification letter
from The Nasdaq Stock Market stating that we are not in compliance with the Minimum Bid Price Requirement, which requires our
listed securities to maintain a minimum bid price of $1.00 per share. The notification stated that we have a compliance period of 180
calendar days, or until November 21, 2022, to regain compliance with the Minimum Bid Price Requirement. If at any time during this 180-day
compliance period the closing bid price of our common stock is at least $1.00 per share for a minimum of ten consecutive business days,
then the Nasdaq Stock Market will provide us with written confirmation of compliance and the matter will be closed.
21
If compliance cannot be demonstrated by November
21, 2022, we may be eligible for additional time. To qualify, we will be required to meet the continued listing requirement for market
value of publicly held shares and all other initial listing standards on the Nasdaq Capital Market (except the bid price requirement).
In addition, we would be required to provide written notice of our intention to cure the minimum bid price deficiency during this second
180-day compliance period by effecting a reverse stock split, if necessary. If we are not granted an additional 180-day compliance period,
then Nasdaq will provide written notification that our securities will be subject to delisting. At that time, we may appeal the determination
to delist our securities to a Nasdaq hearings panel. There can be no assurance that we will regain compliance with the Minimum Bid Price
Requirement or otherwise maintain compliance with the other listing requirements.
Management will have broad discretion as
to the use of the net proceeds from this offering, and we may not use the proceeds effectively.
Our management will have broad discretion as
to the application of the net proceeds and could use them for purposes other than those contemplated at the time of this offering. Our
stockholders may not agree with the manner in which our management chooses to allocate and spend the net proceeds. Moreover, our management
may use the net proceeds for corporate purposes that may not increase our results of operations or the market value of our common stock.
Our failure to apply these funds effectively could have a material adverse effect on our business, delay the development and approval
of our products and cause the price of our common stock to decline.
If you purchase shares of our common stock
in this offering, you will experience immediate dilution as a result of this offering.
Because the price per share being offered may
be higher than net tangible book value per share of our common stock, you will experience dilution to the extent of the difference between
the offering price per share of common stock you pay in this offering and the net tangible book value per share of our common stock immediately
after this offering. Our net tangible book value as of March 31, 2022 was approximately $(17.9 million), or $(0.52) per share of common
stock. Net tangible book value per share is equal to our total tangible assets minus total liabilities, all divided by the number of
shares of common stock outstanding. See "Dilution" on page 30 of this prospectus for a more detailed illustration
of the dilution you may incur if you participate in this offering. Because the sales of the shares offered hereby will be made directly
into the market or in negotiated transactions, the prices at which we sell these shares will vary and these variations may be significant.
Purchasers of the shares we sell, as well as our existing stockholders, will experience significant dilution if we sell shares at prices
significantly below the price at which they invested.
If you purchase shares of our common stock
in this offering, you may experience future dilution as a result of future equity offerings or other equity issuances.
In order to raise additional capital, we may
in the future offer and issue additional shares of our common stock or other securities convertible into or exchangeable for our common
stock. We cannot assure you that we will be able to sell shares or other securities in any offering at a price per share that is equal
to or greater than the price per share paid by investors in previous offerings, and investors purchasing shares or other securities in
the future could have rights superior to existing stockholders. The price per share at which we sell additional shares of our common
stock or other securities convertible into or exchangeable for our common stock in future transactions may be higher or lower than the
price per share in previous offerings. Further, we may choose to raise additional capital due to market conditions or strategic considerations,
even if we believe we have sufficient funds for our current or future operating plans. In addition, the exercise of outstanding stock
options and warrants or the settlement of outstanding restricted stock units would result in further dilution of your investment.
22
This offering may cause the trading price
of our common stock to decrease.
The price per share, together with the number
of shares of common stock we propose to issue and ultimately will issue if this offering is completed, may result in an immediate decrease
in the market price of our common stock. This decrease may continue after the completion of this offering.
A significant portion of our total outstanding
shares are eligible to be sold into the market, which could cause the market price of our common stock to drop significantly, even if
our business is doing well.
Sales of a substantial number of shares of our
common stock in the public market, either by us or by our current stockholders, or the perception that these sales could occur, could
cause a decline in the market price of our securities. Such sales, along with any other market transactions, could adversely affect the
market price of our common stock.
Upon completion of this offering, based on our
shares outstanding as of ______, 2022, we will have ______ shares of common stock outstanding based on the issuance and sale of ______
units in this offering, assuming no sale of any pre-funded units. Of these shares, ______ are subject to a contractual lock-up with the
underwriter for this offering for a period of ____ days following this offering. These shares can be sold, subject to any applicable volume
limitations under federal securities laws, after the earlier of the expiration of, or release from, the ____-day lock-up period. The balance
of our outstanding shares of common stock, including any shares of common stock included in units or issuable upon the exercise of the
warrants and pre-funded warrants purchased in this offering other than shares acquired by our current stockholders who are also subject
to the contractual lock-up, may be resold into the public market immediately without restriction, unless owned or purchased by our affiliates.
As of March 31, 2022, there were an aggregate
of 5,813,804 shares subject to outstanding warrants, many of which shares we have registered under the Securities Act of 1933, as amended
(the "Securities Act"). These shares can be freely sold in the public market upon issuance, subject to volume limitations
applicable to affiliates to the extent applicable.
As of March 31, 2022, there were 1,071,205 shares
subject to outstanding options and restricted stock units that are issuable under our equity incentive plan, all of which shares we have
registered under the Securities Act on a registration statement on Form S-8. These shares can be freely sold in the public market upon
issuance, subject to volume limitations applicable to affiliates, to the extent applicable.
We do not intend to pay dividends in the
foreseeable future.
We have never paid cash dividends on our common
stock. We currently intend to retain our future earnings, if any, to finance the operation and growth of our business and currently do
not plan to pay any cash dividends in the foreseeable future.
There is no public market for the units,
pre-funded units, or warrants being offered in this offering.
There is no established public trading market
for the units, pre-funded units, or warrants being offered in this offering, and we do not expect a market to develop. In addition, we
do not intend to apply to list the units, pre-funded units, or warrants on any securities exchange or nationally recognized trading system.
Without an active market, the liquidity of the units, pre-funded units, or warrants will be limited.
Holders of our warrants and pre-funded
warrants will have no rights as a common stockholder until they acquire our common stock.
Until you acquire shares of our common stock
upon exercise of your warrants or pre-funded warrants, you will have no rights with respect to shares of our common stock issuable upon
exercise of your warrants or pre-funded warrants. Upon exercise of your warrants or pre-funded warrants, you will be entitled to exercise
the rights of a common stockholder only as to matters for which the record date occurs after the exercise date.
23
If we do not maintain a current and effective
prospectus relating to the common stock issuable upon exercise of the warrants or pre-funded warrants, public holders will only be able
to exercise such warrants or pre-funded warrants on a
"
cashless basis.
"
If we do not maintain a current and effective
prospectus relating to the shares of common stock issuable upon exercise of the warrants or the pre-funded warrants at the time that
holders wish to exercise such warrants or pre-funded warrants, they will only be able to exercise them on a "cashless basis,"
and under no circumstances would we be required to make any cash payments or net cash settle such warrants to the holders. As a result,
the number of shares of common stock that holders will receive upon exercise of the warrants or pre-funded warrants will be fewer than
it would have been had such holders exercised their warrants or pre-funded warrants for cash. Under the terms of the warrants and pre-funded
warrants, we have agreed to use our best efforts to maintain a current and effective prospectus relating to the shares of common stock
issuable upon exercise of such warrants and pre-funded warrants until the expiration of such warrants and pre-funded warrants. However,
we cannot assure you that we will be able to do so. If we are unable to do so, the potential "upside" of the holder's
investment in our company may be reduced.
The pre-funded warrants are speculative
in nature.
The pre-funded warrants offered hereby do not
confer any rights of common stock ownership on their holders, such as voting rights or the right to receive dividends, but rather merely
represent the right to acquire shares of common stock at a fixed price. Specifically, commencing on the date of issuance, holders of
the pre-funded warrants may acquire the common stock issuable upon exercise of such warrants at an exercise price of $0.0001 per share
of common stock. Moreover, following this offering, the market value of the pre-funded warrants is uncertain and there can be no assurance
that the market value of the pre-funded warrants will equal or exceed their public offering price. There can be no assurance that the
market price of the common stock will ever equal or exceed the exercise price of the pre-funded warrants, and consequently, whether it
will ever be profitable for holders of the pre-funded warrants to exercise the pre-funded warrants.
The warrants may not have any value.
Each warrant has an exercise price per share of
$______, are immediately exercisable after their issuance and will expire ______ years from the initial issuance date. In the event our
common stock price does not exceed the exercise price of the warrants during the period when the warrants are exercisable, the warrants
may not have any value.
Provisions of the warrants and pre-funded
warrants offered by this prospectus could discourage an acquisition of us by a third party.
Certain provisions of the warrants and pre-funded
warrants offered by this prospectus could make it more difficult or expensive for a third party to acquire us. The warrants and pre-funded
warrants prohibit us from engaging in certain transactions constituting "fundamental transactions" unless, among other things,
the surviving entity assumes our obligations under the warrants and pre-funded warrants. Further, the warrants and pre-funded warrants
provide that, in the event of certain transactions constituting "fundamental transactions," with some exception, holders
of such warrants and pre-funded warrants will have the right, at their option, to require us to repurchase such warrants and pre-funded
warrants at a price described therein. These and other provisions of the warrants and pre-funded warrants offered by this prospectus
could prevent or deter a third party from acquiring us even where the acquisition could be beneficial to you.
Proposed legislation in the U.S. Congress,
including changes in U.S. tax law, may adversely impact the Company and the value of the units, pre-funded units, shares of common stock,
pre-funded warrants, and warrants.
Changes to U.S. tax laws (which changes may have
retroactive application) could adversely affect the Company or holders of the units, pre-funded units, shares of common stock, pre-funded
warrants or warrants. In recent years, many changes to U.S. federal income tax laws have been proposed and made, and additional changes
to U.S. federal income tax laws are likely to continue to occur in the future.
The U.S. Congress is currently considering numerous
items of legislation which may be enacted prospectively or with retroactive effect, which legislation could adversely impact the Company's
financial performance and the value of the units, pre-funded units, shares of common stock, pre-funded warrants and warrants. In particular,
new proposed legislation known as the "Build Back Better Act" is under consideration within both houses of U.S. Congress.
The proposed legislation includes, without limitation, new corporate minimum income taxes. If enacted, most of the proposals would be
effective for 2022 or later years. The proposed legislation remains subject to change, and its impact on the Company and investors who
purchase the units, pre-funded units, shares of common stock, pre-funded warrants or warrants is uncertain.
24
General Risk Factors
We may not be able to timely and effectively
implement controls and procedures required by Section 404 of the Sarbanes-Oxley Act of 2002.
The standards required for a public company under
Section 404 of the Sarbanes-Oxley Act of 2002 are significantly more stringent than those required of MJF as a privately held company.
Management may not be able to effectively and timely implement controls and procedures that adequately respond to the regulatory compliance
and reporting requirements that are applicable to us. If we are not able to implement the additional requirements of Section 404 in a
timely manner or with adequate compliance, we may not be able to conclude that our internal controls over financial reporting are effective,
which may subject us to adverse regulatory consequences and could harm investor confidence and the market price of our common stock.
Failure to remediate material weaknesses
in internal controls over financial reporting could result in material misstatements in our financial statements.
Our management has identified material weaknesses
in our internal controls over financial reporting and has concluded that due to such material weaknesses, our internal controls over
financial reporting (including disclosure controls and procedures) were not effective as of December 31, 2021. If not remediated, our
failure to establish and maintain effective disclosure controls and procedures over financial reporting could result in material misstatements
in our financial statements and a failure to meet our reporting and financial obligations, each of which could have a material adverse
effect on our financial condition and the trading price of our common stock.
The requirements of being a public company
may strain our resources and divert management's attention.
As a public company, we are subject to the reporting
requirements of the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Act, the listing requirements of NASDAQ, and other applicable
securities rules and regulations. Compliance with these rules and regulations increase our legal and financial compliance costs, make
some activities more difficult, time-consuming or costly and increase demand on our systems and resources, particularly after we are
no longer an "emerging growth company." The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure
controls and procedures and internal control over financial reporting. In order to maintain and, if required, improve our disclosure
controls and procedures and internal control over financial reporting to meet this standard, significant resources and management oversight
may be required. As a result, management's attention may be diverted from other business concerns, which could adversely affect
our business and operating results. We may need to hire more employees in the future or engage outside consultants to comply with these
requirements, which will increase our costs and expenses.
In addition, changing laws, regulations, and
standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing legal and
financial compliance costs and making some activities more time-consuming. These laws, regulations, and standards are subject to varying
interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time
as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters
and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to comply with
evolving laws, regulations, and standards, and this investment may result in increased general and administrative expenses and a diversion
of management's time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new
laws, regulations, and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to
their application and practice, regulatory authorities may initiate legal proceedings against us and our business may be adversely affected.
25
We are an "emerging growth company"
and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our shares of common
stock less attractive to investors.
We are an "emerging growth company,"
as defined in the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to
other public companies that are not "emerging growth companies" including, but not limited to, not being required to comply
with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive
compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote
on executive compensation and shareholder approval of any golden parachute payments not previously approved. Additionally, as an emerging
growth company, we have elected to delay the adoption of new or revised accounting standards that have different effective dates for
public and private companies until those standards apply to private companies. As such, our financial statements may not be comparable
to companies that comply with public company effective dates. It cannot be predicted if investors will find our common stock less attractive
because we may rely on these exemptions. 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 our share price may be more volatile.
Our ability to utilize our net operating
loss carryforwards and certain other tax attributes may be limited.
Under Section 382 and related provisions of the
Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"), if a corporation undergoes an "ownership change"
(generally defined as a greater than 50% change (by value) in its equity ownership over a three year period), the corporation's
ability to use its pre-change net operating loss carryforwards and other pre-change tax attributes to offset its post-change income may
be limited. We may, in the future, as a result of subsequent shifts in our stock ownership, experience, an "ownership change."
Thus, our ability to utilize carryforwards of our net operating losses and other tax attributes to reduce future tax liabilities may
be substantially restricted. At this time, we have not completed a study to assess whether an ownership change under Section 382 of the
Internal Revenue Code has occurred at any time in the past or may occur in the foreseeable future, due to the costs and complexities
associated with completing such a study. Therefore, we may not be able to take full advantage of these carryforwards for federal or state
tax purposes.
Our operations could be adversely affected
by events outside of our control, such as natural disasters, wars, or health epidemics.
We may be impacted by business interruptions
resulting from geopolitical actions, including war and terrorism, or natural disasters including earthquakes, typhoons, floods, and fires.
An outbreak of any of the foregoing or fear of any of the foregoing could adversely impact us by disrupting the operations of our clients,
which could result in delayed payments, non-renewal of contracts, and other adverse effects on the market for our products or by causing
product development and implementation delays and disruptions (including as a result of government regulation and prevention measures).
We may incur expenses or delays relating to such events outside of our control, which could have a material adverse impact on our business,
operating results, and financial condition.
FORWARD-LOOKING STATEMENTS
This prospectus and the exhibits attached hereto
contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including
statements regarding future events or our future results of operations, financial condition, business, strategies, financial needs, and
the plans and objectives of management. In some cases forward-looking statements can be identified because they contain words such as
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"intend," "may," "might," "likely," "plan," "potential," "predict,"
"project," "seek," "should," "target," "will," "would," or similar
expressions and the negatives of those terms. Forward-looking statements are based on information available to our management as of the
date of this prospectus and our management's good faith belief as of such date with respect to future events and are subject to
a number of risks, uncertainties, and assumptions that could cause actual performance or results to differ materially from those expressed
in or suggested by the forward-looking statements, in particular the substantial risks and uncertainties related to the ongoing COVID-19
pandemic. Important factors that could cause such differences include, but are not limited to:
●
our ability
    to continue as a going-concern;
●
our ability to sustain
    our revenue growth rate, to achieve or maintain profitability, and to effectively manage our anticipated growth;
26
●
our dependence on the commercial
    success of our clients, the continued growth of the cannabis industry and the regulatory environment in which the cannabis industry
    operates;
●
our ability to attract
    new clients on a cost-effective basis and the extent to which existing clients renew and upgrade their subscriptions;
●
the timing of our introduction
    of new solutions or updates to existing solutions;
●
our ability to successfully
    diversify our solutions by developing or introducing new solutions or acquiring and integrating additional businesses, products,
    services, or content;
●
our ability to respond
    to changes within the cannabis industry;
●
the effects of adverse
    changes in, or the enforcement of, federal laws regarding our clients' cannabis operations or our receipt of proceeds from
    such operations;
●
our ability to manage unique
    risks and uncertainties related to government contracts;
●
our ability to manage and
    protect our information technology systems;
●
our ability to maintain
    and expand our strategic relationships with third parties;
●
our ability to deliver
    our solutions to clients without disruption or delay;
●
our exposure to liability
    from errors, delays, fraud, or system failures, which may not be covered by insurance;
●
our ability to expand our
    international reach;
●
our ability to retain or
    recruit officers, key employees, and directors;
●
our ability to raise additional
    capital or obtain financing in the future;
●
our ability to successfully
    integrate acquired businesses with Akerna's business within anticipated timelines and at their expected costs;
●
our ability to complete
    planned acquisitions on time or at all due to failure to obtain stockholder approval or governmental or regulatory clearances, or
    the failure to satisfy other conditions to completion, or the failure of completion for any other reason;
●
our response to adverse
    developments in the general market, business, economic, labor, regulatory, and political conditions, including worldwide demand for
    cannabis and the spot price and long-term contract price of cannabis;
●
our response to competitive
    risks;
●
our ability to protect
    our intellectual property;
●
the market reaction to
    negative publicity regarding cannabis;
●
our ability to manage the
    requirements of being a public company;
●
our ability to service
    our convertible debt;
●
our accounting treatment
    of certain of our private warrants;
●
our ability to effectively
    manage any disruptions to our business and/or any negative impact to our financial performance caused by the economic and social
    effects of the COVID-19 pandemic and measures taken in response; and
●
other factors discussed
    in other sections of this prospectus, including the sections titled "
Management's Discussion and Analysis of Financial
    Condition and Results of Operations
" and "
Risk Factors
."
Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated
or expected. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.
We disclaim any obligation to revise subsequently any forward-looking statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or unanticipated events. We qualify all the forward-looking statements contained
in this prospectus by the foregoing cautionary statements.
27
RECENT DEVELOPMENTS
On May 27, 2022, the
Company announced its implementation of certain expense reduction measures, approved by the Company's board of directors on May
24, 2022, including a reduction of the Company's workforce by 59 full-time employees, or approximately 33% of the Company. The
corporate restructuring follows the Company's recent decision to address liquidity concerns in part by focusing its initiatives
on its enterprise business and new market expansion of the SMB business.
As a result of the corporate
restructuring, the company anticipates reporting $690,000 in total costs in its second quarter of 2022 to implement the reduction in
force, including the following cost elements: $630,000 in severance and associated payroll taxes; $40,000 in legal costs; and $20,000
in employee insurance benefits. Of the total cost, $440,000 in salaries, payroll taxes and benefits costs would have been reported in
its second quarter if the reduction in force had not been implemented. The corporate restructuring is expected to be substantially completed
by the end of the second quarter of 2022. The estimates of costs that the Company expects to incur and the timing thereof are subject
to a number of assumptions and actual results may differ. The Company may also incur other charges or cash expenditures not currently
contemplated in connection with the corporate restructuring. This estimate may change due to future changes in the Company's stock
price. If the Company subsequently determines that it will incur additional material restructuring costs or charges or there are material
differences from the ranges provided, the Company will file an amendment to this Current Report on Form 8-K (this "Current Report")
to disclose any such material costs, charges or differences.
On May 27, 2022, in
relation the Company's corporate restructuring, the Company's executive leadership team agreed to 25% reduction in salary.
As a result, the salaries of Jessica Billingsley, Chief Executive Officer, David McCullough, Chief Technology Officer, and Raymond Thompson,
Special Advisor to the Chief Executive Officer, have been reduced by 25%.
On May 27, 2022, the
Company filed an amendment to its Amended and Restated Certificate of Incorporation to amend Article 4 thereof to increase the number
of authorized shares of common stock, par value $0.001, from 75,000,000 shares to 150,000,000 shares.
On May 25, 2022, the
stockholders of the Company approved an amendment to the Company's Amended and Restated 2019 Long Term Incentive Plan (the "Incentive
Plan") to increase the number of shares available under the Incentive Plan by 2,934,962 shares of common stock of the Company.
On May 24, 2022, the
Company received a letter from the Listing Qualifications Staff of The Nasdaq Stock Market LLC ("Nasdaq") indicating that,
based upon the closing bid price of the Company's common stock, par value $0.0001 per share ("Common Stock"), for the
last 30 consecutive business days, the Company is not currently in compliance with the requirement to maintain a minimum bid price of
$1.00 per share for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2) (the "Notice").
The Notice has no immediate
effect on the continued listing status of the Company's Common Stock on The Nasdaq Capital Market, and, therefore, the Company's
listing remains fully effective.
28
The Company is provided
a compliance period of 180 calendar days from the date of the Notice, or until November 21, 2022, to regain compliance with the minimum
closing bid requirement, pursuant to Nasdaq Listing Rule 5810(c)(3)(A). If at any time before November 21, 2022, the closing bid price
of the Company's Common Stock closes at or above $1.00 per share for a minimum of 10 consecutive business days, subject to Nasdaq's
discretion to extend this period pursuant to Nasdaq Listing Rule 5810(c)(3)(G) to 20 consecutive business days, Nasdaq will provide written
notification that the Company has achieved compliance with the minimum bid price requirement, and the matter would be resolved. If the
Company does not regain compliance during the compliance period ending November 21, 2022, then Nasdaq may grant the Company a second
180 calendar day period to regain compliance, provided the Company meets the continued listing requirement for market value of publicly-held
shares and all other initial listing standards for The Nasdaq Capital Market, other than the minimum closing bid price requirement, and
notifies Nasdaq of its intent to cure the deficiency.
On May 23, 2022, we
entered into an amending agreement (the "Amendment") to the Amended and Restated Stock Purchase Agreement, dated as of October
1, 2021 (the "Original Agreement"), by and among the Company, The Nav People, Inc., a Delaware corporation d/b/a "365
Cannabis") (the "365 Cannabis") and Matthew Dredge, Ian Humphries, Jeff Kiehn, David Walker and Quartermain Investment
Holdings Ltd. (collectively, the "Sellers").
Pursuant to the Amendment,
Section 2.04(a) of the Original Agreement was amended to provide that the Sellers could elect to have the potential earn-out payment
described therein paid in cash or in shares of the Company or in any combination thereof. The Original Agreement previously had provided
that the Company could elect whether to pay the earn-out payment in cash or in shares of the Company. Under the Amendment, if a Seller
elects to have any portion of the earn-out payment paid in cash such amount payable will be reduced by 25%. Further, Section 2.04(b)
of the Original Agreement was amendment to reflect the administrative handling of the earn-out payment to the Sellers in cash or shares
of the Company.
Pursuant to the Amendment,
Section 2.06 of the Original Agreement was amended to require that $100,000 the Second Post-Closing Payment (as defined in the Original
Agreement) will be made at the end of June 2022 on the same day on which the Buyer's end-of-month payroll is run and on each of
the next four months thereafter, in each such month on the same day on which the Buyer's end-of-month payroll is run.
On May 16, 2022, the Company and Ray Thompson,
the Company's then-President and Chief Operating Officer, agreed to a transition, effective immediately, by which Mr. Thompson
moved from his role as President and Chief Operating Officer to Special Advisor to the Chief Executive Officer. In this new role, Mr.
Thompson will continue to assist the Chief Executive Officer with certain of the day-to-day operations of the Company and advise the
Company on various aspects of corporate strategy. In relation to the Company's enterprise business, Jeff Kiehn, the Company's
current President of Akerna Enterprise will report to the Chief Executive Officer. Additionally, the Company intends for the functions
of strategic communications, compliance, technology, and human resources to report directly to the Company's Chief Executive Officer.
On May 11, 2022, the
Company and and John Fowle the Company's Chief Financial Officer and Secretary agreed to a mutual separation effective as of May
17, 2022. Mr. Fowle is leaving to pursue other opportunities.
On May 11, 2022, the Board of Directors of the
Company appointed Larry Dean Ditto, Jr. as Interim Chief Financial Officer ("Interim CFO") of the Company effective May 17,
2022.
29
USE OF PROCEEDS
We estimate that our net proceeds from this offering
will be approximately $______ million (or $______ if the underwriter exercises the over-allotment option in full), assuming a public offering
price of $______ per unit, which represents approximately a ______% discount to $______, the last reported sale price for the shares of
our common stock on ______, 2022, as reported by the Nasdaq Capital Market, after deducting estimated underwriting discounts and commissions
and estimated offering expenses payable by us and assuming none of the warrants issued in this offering are exercised.
We intend to use the
net proceeds from this offering for general corporate purposes, including servicing our ongoing debt obligations under our convertible
notes, working capital, marketing, product development and capital expenditures. As of the date of this prospectus, we cannot predict
with certainty all of the particular uses for the net proceeds to be received upon the completion of this offering or the amounts that
we will actually spend on the uses set forth above. The amounts and timing of our actual use of proceeds will vary depending on numerous
factors, including the factors described under the heading "
Risk Factors
" and elsewhere in this prospectus. As a result,
management will retain broad discretion over the allocation of the net proceeds from this offering, and investors will be relying on
the judgment of our management regarding the application of the net proceeds.
DILUTION
If you invest in the securities being offered
by this prospectus, your interest will be diluted immediately to the extent of the difference between the public offering price per unit
and the as adjusted, net tangible book value per share of our common stock immediately after this offering.
The net tangible book value of our common stock
as of March 31, 2022 was approximately $17.9 million, or approximately $(0.52) per share based on approximately 34.2 million shares
of our common stock issued and outstanding. Net tangible book value per share represents the amount of our total tangible assets, excluding
goodwill and intangible assets, less total liabilities, divided by the total number of shares of our common stock outstanding.
After giving further effect to the assumed sale
of __________ shares of our common stock and warrants to purchase __________ shares of our common stock for __________ per share at the
public offering price of $ __________ per share and related warrant, the closing sale price per share of our common stock on the Nasdaq
Capital Market on ______, 2022, assuming no sale of pre-funded warrants in this offering and no exercise of the warrants being offered
in this offering and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us,
our as adjusted pro forma net tangible book value per share as of March 31, 2022, would have been approximately $__________ million, or
approximately $__________ per share. This represents an immediate increase in net tangible book value per share of $__________ to existing
stockholders and an immediate dilution of approximately $__________ per share to new investors purchasing shares of our common stock in
this offering.
Dilution per share to new investors is determined
by subtracting the pro forma, as adjusted, net tangible book value per share after this offering from the public offering price per share
and related warrant paid by new investors.
The following table illustrates this dilution
on a per share basis:
Assumed public offering price per unit
$
[●]
Historical net tangible book value per share as of March 31, 2022
$
[●]
Pro forma net tangible book value per share (deficit) as of March 31, 2022
$
[●]
Increase in pro forma net tangible book value per share attributable to this offering
$
[●]
As adjusted pro forma net tangible book value per share after giving effect to this offering
$
[●]
Dilution in net tangible book value per share to new investors
$
[●]
The number of shares of common stock used in the
table above is based on 34,175,088 shares of common stock outstanding as of March 31, 2022 and ______ shares on an as adjusted basis after
giving effect to the issuance of ______ shares of common stock offered by this prospectus. Except as otherwise indicated herein, all information
in this prospectus assumes (i) no sale of pre-funded warrants, which, if sold, would reduce the number of shares of common stock that
we are offering on a one-for-one basis, and (ii) no exercise of the underwriter's over-allotment option, (iii) no exercise of the
underwriter's warrants to be issued in connection with this offering.
30
The number of shares of common stock outstanding
excludes:
●
634,519 shares of common
    stock issuable upon vesting of outstanding restricted stock units and restricted stock awards;
●
5,813,804 shares of common
stock issuable upon the exercise of warrants outstanding at a weighted average exercise price of $11.50 per share;
●
12,370,370 shares of common
stock issuable upon conversion of our outstanding convertible notes;
●
306,852 shares of common
    stock issuable upon conversion of exchangeable shares; and
●
461,776 shares of common
    stock reserved for future issuance under our equity incentive plan.
To the extent that outstanding options or warrants
are exercised, you will experience further dilution. In addition, we may choose to raise additional capital due to market conditions
or strategic considerations even if we believe we have sufficient funds for our current or future operating plans. To the extent that
additional capital is raised through the sale of equity or convertible debt securities, the issuance of these securities could result
in further dilution to our stockholders.
DIVIDEND POLICY
We do not intend to pay dividends for the foreseeable
future. In addition, our ability to pay dividends is restricted by agreements governing Akerna's and its subsidiaries' debt,
including the Company's senior secured convertible notes. See "
Risk Factors
" above.
DESCRIPTION OF COMPANY CAPITAL STOCK
As of June 3, 2022, our authorized share capital
consists of 150,000,000 shares of Common Stock, $0.0001 par value per share, of which 36,574,158 shares of common stock are issued and
outstanding, 5,000,000 shares of preferred stock, $0.0001 par value per share, of which one share of special voting preferred stock is
issued and outstanding with a voting equivalent of 291,192 shares of common stock. We are a Delaware corporation and our affairs are governed
by our Amended and Restated Certificate of Incorporation and Amended and Restated By-laws. The following are summaries of material provisions
of our Amended and Restated Certificate of Incorporation and Amended and Restated By-laws insofar as they relate to the material terms
of our common stock. Complete copies of our Amended and Restated Certificate of Incorporation and Amended and Restated By-laws are filed
as exhibits to our public filings.
Common Stock
All outstanding shares of common stock are of
the same class and have equal rights and attributes. The holders of common stock are entitled to one vote per share on all matters submitted
to a vote of our stockholders. Subject to the prior rights of all classes or series of stock at the time outstanding having prior rights
as to dividends or other distributions, all stockholders are entitled to share equally in dividends, if any, as may be declared from
time to time by the Board of Directors out of funds legally available. Subject to the prior rights of creditors of Akerna and the holders
of all classes or series of stock at the time outstanding having prior rights as to distributions upon liquidation, dissolution or winding
up of Akerna, in the event of liquidation, the holders of common stock are entitled to share ratably in all assets remaining after payment
of all liabilities. The stockholders do not have cumulative, preemptive rights, or subscription rights.
Preferred Stock
The board of directors is authorized, subject
to any limitations prescribed by law, without further vote or action by the stockholders, to issue from time to time shares of Preferred
Stock in one or more series. Each such series of Preferred Stock shall have such number of shares, designations, preferences, voting
powers, qualifications, and special or relative rights or privileges as shall be determined by the board of directors, which may include,
among others, dividend rights, voting rights, liquidation preferences, conversion rights and preemptive rights. Issuance of Preferred
Stock by our board of directors may result in such shares having dividend and/or liquidation preferences senior to the rights of the
holders of our common stock and could dilute the voting rights of the holders of our common stock.
31
Prior to the issuance of shares of each series
of Preferred Stock, the board of directors is required by the Delaware General Corporation Law, and our certificate of incorporation
to adopt resolutions and file a certificate of designation with the Secretary of State of the State of Delaware. The certificate of designation
fixes for each class or series the designations, powers, preferences, rights, qualifications, limitations and restrictions, including,
but not limited to, some or all of the following:
●
the
    number of shares constituting that series and the distinctive designation of that series, which number may be increased or decreased
    (but not below the number of shares then outstanding) from time to time by action of the board of directors;
●
the
    dividend rate and the manner and frequency of payment of dividends on the shares of that series, whether dividends will be cumulative,
    and, if so, from which date;
●
whether
    that series will have voting rights, in addition to any voting rights provided by law, and, if so, the terms of such voting rights;
●
whether
    that series will have conversion privileges, and, if so, the terms and conditions of such conversion, including provision for adjustment
    of the conversion rate in such events as the board of directors may determine;
●
whether
    or not the shares of that series will be redeemable, and, if so, the terms and conditions of such redemption;
●
whether
    that series will have a sinking fund for the redemption or purchase of shares of that series, and, if so, the terms and amount of
    such sinking fund;
●
whether
    or not the shares of the series will have priority over or be on a parity with or be junior to the shares of any other series or
    class in any respect;
●
the
    rights of the shares of that series in the event of voluntary or involuntary liquidation, dissolution or winding up of the corporation,
    and the relative rights or priority, if any, of payment of shares of that series; and
●
any
    other relative rights, preferences and limitations of that series.
Once designated by our board of directors, each
series of Preferred Stock may have specific financial and other terms that will be described in a prospectus. The description of the
Preferred Stock that is set forth in any prospectus is not complete without reference to the documents that govern the Preferred Stock.
These include our certificate of incorporation and any certificates of designation that our board of directors may adopt.
All shares of Preferred Stock offered hereby
will, when issued, be fully paid and nonassessable, including shares of Preferred Stock issued upon the exercise of Preferred Stock Warrants
or subscription rights, if any.
Although our board of directors has no intention
at the present time of doing so, it could authorize the issuance of a series of Preferred Stock that could, depending on the terms of
such series, impede the completion of a merger, tender offer or other takeover attempt.
Special Voting Share
The special voting share has a par value of $0.0001
per share. The special voting share entitles the holder thereof to an aggregate number of votes equal to the number of the Exchangeable
Shares issued and outstanding from time to time and that are not owned by us or our subsidiaries. Except as otherwise provided herein
or by law, the holder of the special voting share and the holders of our common stock will vote together as a single class on all matters
submitted to a vote of Akerna's shareholders. With respect to all meetings of shareholders of Akerna at which holders of Akerna
shares are entitled to vote, each registered holder of Exchangeable Shares shall be entitled to instruct the trustee holding the special
voting share to cast and exercise, in the manner instructed, that number of votes equal to the "Equivalent Vote Amount" for
each Exchangeable Share owned of record by such holder of Exchangeable Shares at the close of business on the record date established
by Akerna or by applicable law for such meeting, in respect of each matter, question, proposal or proposition to be voted on at such
meeting. At such time as the special voting share has no votes attached to it, the special voting share shall be automatically cancelled.
32
Exchangeable Shares
The Exchangeable Shares of Exchangeco are intended
to be substantially economically equivalent to shares of our common stock. The rights, privileges, restrictions and conditions attaching
to the Exchangeable Shares of Exchangeco include the following:
●
any
    holder of Exchangeable Shares of Exchangeco is entitled to require Exchangeco to redeem any or all of the Exchangeable Shares registered
    in his/her name in exchange for one share of our common stock for each Exchangeable Share presented and surrendered;
●
in
    the event Akerna declares a dividend on its common stock, the holders of Exchangeable Shares of Exchangeco are entitled to receive
    from Exchangeco the same dividend, or an economically equivalent dividend, on their Exchangeable Shares;
●
the
    holders of the Exchangeable Shares of Exchangeco are not entitled to receive notice of or to attend any meeting of the shareholders
    of Exchangeco or to vote at any such meeting, except as required by law or as specifically provided in the Exchangeable Share conditions;
    and
●
the
    holders of Exchangeable Shares of Exchangeco are entitled to instruct the Trustee to vote the special voting stock as described above.
Of the 3,294,574 Exchangeable Shares that were issued to former Ample
shareholders in connection with the consummation of the Arrangement, an aggregate of 658,915 Exchangeable Shares were issued as "Closing
Consideration" and an aggregate of 2,635,659 Exchangeable Shares, constituting part of the "Escrowed Consideration"
were issued into escrow pursuant to an escrow agreement (the "Escrow Agreement"), entered into on July 7, 2020 by and among
the Company, Exchangeco, John Prentice, as Shareholder Representative, and Odyssey Trust Company. Under the Escrow Agreement, subject
to unresolved claims by the Company under the Arrangement Agreement in respect of fraud, the Escrowed Consideration shall be released
to former Ample shareholders upon the six-, nine-, and twelve-month anniversaries of the Closing Date in accordance with the following
schedule -- 988,372 shares on the six-month anniversary, 823,643 shares on the nine-month anniversary, and 823,644 shares on the twelve-month
anniversary. As of the date hereof, 3,003,382 shares of common stock of Akerna have been issued on conversion of Exchangeable Shares.
Registration Rights
We have granted registration rights under the
Securities Act to certain holders of our common stock in relation to our acquisitions of Ample and 365 Cannabis and in relation to our
issuance of the Senior Convertible Notes. In relation to Ample, we agreed to file and maintain, until no Exchangeable Shares remain outstanding,
a registration statement regarding the exchange of the Exchangeable Shares into shares of our common stock pursuant to their terms. In
relation thereto, we filed a registration statement on Form S-1 on July 9, 2020 (333-239783) which was brought effective on August 14,
2020, as amended on January 8, 2021 and as amended on Form S-3 on May 24, 2021. In relation to the acquisition transaction of 365 Cannabis,
we have agreed to register the shares of common stock issuable upon initial closing of the transaction and upon settlement of the earn-out
provision, if any. In relation to our issuance of the Senior Convertible Notes, we have agreed to file the registration statement of
which this prospectus forms a part. We are also obligated to maintain such registration statement until the earlier of (i) the date as
of which all of the holders may sell all of the conversion shares required to be covered by such registration statement without restriction
pursuant to Rule 144 (including, without limitation, volume restrictions) and without the need for current public information required
by Rule 144(c)(1) (or Rule 144(i)(2), if applicable), (ii) the date on which the holders shall have sold all of the registrable securities
covered by such registration statement or (iii) the later of (x) ninety (90) calendar days after the date no Senior Convertible Notes
remain outstanding and (y) the first anniversary of the maturity date of the Senior Convertible Notes. We may also be required in the
future to file amendments to these registration statements to maintain effectiveness.
Election of Directors
Our Class I Directors hold office until the 2025
annual meeting of stockholders and are eligible for reelection at such meeting. Our Class II Directors held office until the 2023 annual
meeting of stockholders and are eligible for reelection at such meeting. Our Class III Directors hold office until the 2024 annual meeting
of stockholders and are eligible for reelection at such meeting. Directors are elected by a plurality of the votes cast at the annual
meeting by the holders of common stock present in person or represented by proxy and entitled to vote at such meeting. There is no cumulative
voting for directors.
33
Anti-Takeover Provisions
Our Amended and Restated
Certificate of Incorporation contains provisions that may discourage unsolicited takeover proposals that stockholders may consider to
be in their best interests. We are also subject to anti-takeover provisions under Delaware law, which could delay or prevent a change
of control. Together these provisions may make more difficult the removal of management and may discourage transactions that otherwise
could involve payment of a premium over prevailing market prices for our securities.
These
provisions:
●
create a staggered Board
    of Directors making it more difficult for stockholders to remove a majority of the Board of Directors and take control;
●
grant the Board of Directors
    the ability to designate the terms of and issue new series of preferred shares, which can be created and issued by the Board of Directors
    without prior stockholder approval, with rights senior to those of the common stock;
●
impose limitations on our
    stockholders' ability to call special stockholder meetings;
●
make it more difficult
    the removal of management and may discourage transactions that otherwise could involve payment of a premium over prevailing market
    prices for our securities.
DESCRIPTION OF THE BUSINESS
Business Overview
Akerna is a leading provider of enterprise software
solutions within the cannabis industry. Cannabis businesses face significant complexity due to the stringent regulations and restrictions
that shift based on regional, state, and national governing bodies. As the first to market more than ten years ago, Akerna's family
of software platforms help to enable regulatory compliance and inventory management across the entire supply chain. When the legal cannabis
market started to grow, we identified a need for organic material tracking and regulatory compliance software as a service (SaaS) solution
customized specifically for the unique needs of the industry. By providing an integrated ecosystem of applications and services that
help our clients enable compliance, regulation, consumer safety and taxation, Akerna is building the technology backbone of the cannabis
industry. While designed specifically for the unique needs of the cannabis market, our solutions are adaptable for other industries requiring
government regulatory oversight, or where the tracking of organic materials from seed or plant to end products is desired.
Executing upon our expansion strategy, we acquire
complementary cannabis brands to grow the scope of Akerna's cannabis ecosystem. Since 2019, we have integrated six new brands into
the Akerna product and service offering. Our first acquisition, Solo Sciences ("Solo"), was initiated in the fall of 2019,
with the full acquisition completed in July 2020. We added Trellis Solutions ("Trellis") to our portfolio on April 10, 2020
and finalized the acquisition of Ample Organics ("Ample") and Last Call Analytics ("Last Call") on July 7, 2020.
More recently, on April 1, 2021 we completed our acquisition of Viridian Sciences Inc. ("Viridian"), a cannabis business management
software system built on SAP Business One, followed by the acquisition of The NAV People, Inc. d.b.a 365 Cannabis ("365 Cannabis"),
a cannabis business management software system built on Microsoft Business Central, on October 1, 2021. Through our growing family of
companies, Akerna provides highly versatile platforms that equip our clients with a central data management system for tracking regulated
products. Our solutions also provide clients with integrated security, transparency, and scalability capabilities, all while helping
maintaining compliance with their governing regulations.
34
On the commercial side, our products help state-licensed
businesses operate in compliance with applicable regional laws. Our integrated ecosystem provides integrations with third-party vendors
and add-ons that enhance the capabilities of our commercial software platforms. On the regulatory side, we provide track and trace solutions
that allow state governments to monitor compliance of licensed cannabis businesses. To date, our software has helped monitor the compliance
of more than $30 billion in legal cannabis. While our software facilitates the success of legal cannabis businesses, we do not handle
any cannabis-related material, do not process cannabis sales transactions within the United States ("U.S."), and our revenue
is generated from a fixed-fee based subscription and professional services model and is not related to the type or amount of sales made
by our clients.
We drive revenue growth through the development
of our product line, our acquisitions and from continued expansion of the cannabis, hemp, and CBD industry. Businesses across the regulated
cannabis industry use our solutions. The brand recognition of our existing products, our ability to provide services in all areas of
the seed-to-sale life cycle, and our wealth of relevant experience attracts cultivation, manufacturing, and dispensary clients who are
seeking comprehensive business optimization solutions. Our software solutions are designed to be scalable, and while mid-market and smaller
customers have historically been our primary target segment, we are focused on extending our customer reach to address the needs of the
emerging enterprise level operator. We believe these larger multi-state/multi-vertical operations represent significant long-term future
growth opportunities as the cannabis industry continues to consolidate at a rapid rate. The sophistication of our platform accommodates
the complexities of both multi-vertical and multi-state business needs, making us critical partners and allowing us to cultivate long-term,
successful relationships with our clients.
Our platforms provide licensed businesses with
a true enterprise solution for managing their inventory and compliance and allow government regulators to engage in accurate and real-time
compliance monitoring. Key capabilities of our technology infrastructure include:
Seed-to-Sale Tracking
allows the tracking of products from cultivation, through harvest and processing and manufacturing, to the monitoring of the final
sale to the patient or consumer. Our traceability technology captures every step in an individual plant's life, providing visibility
into the supply chain from any measurement of finished product dispensed to a patient or customer, back to the plant it came from, and
all activity, transportation, and transactions that happen in between. While we do not provide payment processing, and never take, own,
or handle any product or cash transaction, our platform records all sales as part of state and jurisdictional compliance Track-and-Trace
processes. The data gathered throughout all of these processes is captured, and provides the insights and information needed to run an
efficient and streamlined cannabis business. Seed-to-Sale software operates in a complementary relationship with state-mandated Track-and-Trace
systems, replicating the reporting functionality and eliminating the need for operators to duplicate their compliance data into two disparate
systems. Track-and-Trace systems are designed solely for government regulators to maintain compliance and do not have the sophistication
or functionality to provide cannabis business owners with the insights and tools for effective business management. Our seed-to-sale
platforms integrate with the state Track-and-Trace compliance system, reporting in the mandated data along the supply chain while also
providing business owners with the capabilities to make informed business decisions based on the fully overview of their operations.
Track-and-Trace
is
the compliance reporting system used by regulatory bodies in most states. In order to adhere to their state-specific compliance regulations,
cannabis operators are required to enter specific data points along the supply chain into the state-mandated track-and-trace system.
By doing so, regulators can track the movement of cannabis inventory through the full supply chain, even when it moves between facilities
or operators. The aggregated view that Track-and-Trace software seeks to ensure that the end product being sold has been grown, harvested,
processed, transferred and sold compliantly, and provides assurance of safety to consumers.
Single System Integration
allows state-licensed clients to manage inventory, customer records, and staff in one tracking system. MJ Platform and Leaf Data
Systems platforms can be fully integrated with one another to create a streamlined Seed-to-Sale/Track-and-Trace solution. Additionally,
our platforms can also be integrated with systems of numerous third-party suppliers. We have certified integrations with world class
accounting solutions, including Sage, SAP, Microsoft and Netsuite.
Anti-Counterfeiting Technology
.
Solo sciences provides next-generation anti-counterfeiting technology fused with a direct communication system between brands and consumers.
The solo sciences mission is to build confidence and establish trust among consumers, while enabling retailers and distributors to close
the loop with creators and producers.
35
Cannabis Market Insights
are curated using the anonymized data aggregated through our Seed-to-Sale platform for key industry intelligence. With over $30 billion
in cannabis sales tracked over the past twelve years, we have cultivated a substantial legal cannabis dataset across 30+ states and multiple
countries. This data provides a detailed overview of key industry trends, giving us the ability to provide banks, investors, researchers,
cannabis businesses, and non-cannabis businesses with cannabis market intelligence and comparison data.
Enterprise Resource Planning
(ERP) software
is a business process management software that manages and integrates a company's financials, manufacturing,
inventory, supply chain, operations, commerce, and reporting activities. ERP systems improve an operator's efficiency and effectiveness
by eliminating disparate systems, consolidating business critical information in a single location, reducing double entry data, and streamlining
operations. ERP software solutions built for cannabis operators combine traditional accounting, manufacturing, inventory, and supply
chain management with cannabis-specific track and trace and compliance functionality.
Using our years of experience, proprietary databases,
and resources to identify trends and predict changes in the cannabis industry we evolve our products and better assist our clients in
operating in compliance with the applicable laws of their jurisdictions and capitalizing on commercial opportunities within the applicable
regulatory framework, with accuracy, efficiency, and geographic specificity. We have worked with clients and governments across the globe
to create customized solutions that fit their specific regulatory and commercially compliant needs. While the majority of our clients
are in the U.S. and Canada, our solutions allow cannabis businesses to operate efficiently in this fast-changing industry and comply
with state, local, and federal (in countries such as Canada, Italy, Macedonia, and Colombia). Akerna and our family of companies is well-positioned
to provide compliance solutions for the expanding national and international legal cannabis market.
Industry & Competition
We believe the growing cannabis industry in numerous
U.S. states and other countries represents a significant market opportunity for our technology, as legally licensed operating companies
need to ensure they operate within applicable laws and carefully track inventory. With democratic leadership and the new legislation
passed during the 2020 election improving the outlook of the industry and a congress that is committed to push forward cannabis policy,
the industry's growth potential has large near-term upside. Since state governments require supply chain transparency to ensure
compliance and the maintenance of the seed-to-sale life cycle within their jurisdictions, each new regulated jurisdiction offers an expanded
market opportunity for Akerna.
The regulated cannabis industry (medicinal and
adult-use) is experiencing rapid growth. According to BDSA's 2021 Essential Cannabis Insights, December 2021 Vol 4, Issue 10, legal cannabis
sales in the U.S. passed $25 billion in 2021, growth of 40% over 2020's $18 billion. BDSA's Cannabis Market Forecast update from
September 2021 noted sales are forecasted to rise to $46 billion in 2026, a CAGR of 14% from 2021. Global cannabis sales reached nearly
$29 billion in 2021, an increase of 45% over 2020 sales of $20 billion. BDSA forecasts global cannabis sales will grow from $29 billion
in 2021 to $61 billion in 2026, a compound annual growth rate (CAGR) of more than 16%.
The COVID-19 pandemic has had a positive effect
on the growth and acceptance of the cannabis industry. Fitting into a non-cyclical, vice product category has worked to the industry's
advantage overall based on the 2020 sales data. Although many cannabis companies felt extremely adverse circumstances, and some were
even forced to close or sell their businesses, this has accelerated a predictable M&A marketplace in which licenses are being acquired
for a fraction of what they cost only 1 year ago. The largest Multi-State Operators (MSOs) are growing and financing faster than ever
before. For example, Curaleaf, one of the largest MSOs, opened their 100th retail location in February 2021. As a result of the current
M&A marketplace, the landscape is beginning to position itself in a similar way that the alcohol industry has, with major companies
controlling a vast majority of market share. Akerna is positioned as an enterprise-level offering to address the needs of these large
MSOs that continue to grow through consolidation. The addition of the MJ Analytics seed-to-sale reporting engine, built on the architecture
of leading business intelligence platform, Domo, further positions Akerna as an enterprise-level solution.
36
Further to our current addressable market, the
regulatory changes in the 2018 Farm Bill in the U.S. have created an opportunity for hemp-based CBD in general retail and pharmaceutical
channels. Additionally, multiple countries across the world have legalized hemp for growth and export including Canada, China, Italy,
Australia, and South Korea. In the U.S., hemp-derived CBD is available broadly across retailers (not solely licensed cannabis dispensaries),
including online, drug and convenience stores, natural product, beauty, grocery, and pet stores. According to Grand View Research, Industrial
Hemp Market Analysis, The global cannabidiol market size was valued at USD 2.8 billion in 2020 and is expected to expand at a compound
annual growth rate (CAGR) of 21.2% from 2021 to 2028.
The unfortunate events of the 2019 vape scare
in the U.S. prompted regulatory changes and additional requirements, including anti-counterfeiting tags and codes. With major investment
and partnership with Solo, Akerna has provided a solution to address the issue for both regulators and operators. The combined supply
chain transparency solution was chosen by the State of Utah, requiring all medical dispensary products to be validated. Markets and Markets
projects that the anti-counterfeit packaging market size will grow from $105.9 billion in 2018 to $182.2 billion by 2023, at a CAGR of
11.5%. The anti-counterfeit packaging market is projected to witness high growth due to the increasing focus of manufacturers on brand
protection to reduce counterfeiting. By leveraging this investment, we strengthen our current addressable market with an essential compliance
tool.
The cannabis industry is a fast-growing, increasingly
complex, and rapidly changing landscape. Arcview Market Research and BDS Analytics note that the range of regulatory schemes is wide,
and fines for non-compliance are steep. Proper, safe, and profitable operation of a cannabis business requires a full understanding of
applicable laws, the ability to track plants and products to ensure compliance with these laws, and the ability to operate at scale in
a competitive environment.
Competitive Landscape
The competitive set within the cannabis technology
and consulting space has traditionally been comprised of several smaller and specialized companies with limited access to capital. As
part of our growth strategy, we may seek to acquire assets or companies that are synergistic with our business. We have built a scalable
infrastructure to support both rapid organic growth and targeted acquisitions. By providing the full seed-to-sale solution, we believe
we are well-positioned to be an acquirer of cannabis technology solutions throughout the supply chain. We compete with numerous technology
and consulting companies that offer services that are similar to some of our services including, but not limited to, Acumatica, BDS Analytics,
BioTrackTHC, Canna Advisors, Cova Cannabis, Dutchie, Flowhub, Headset, Jane, Metrc, New Frontier Data, Nextec, 3C, Treez, and TILT Holdings.
We face competition in each of the revenue segments
in which we operate. We believe, however, that we possess relative strengths in each segment that provide us with competitive advantages,
including:
●
the range of services offered
    by us;
●
our management personnel
    and their industry knowledge and experience; and
●
our proprietary databases,
    which are only available to users of our platforms and consulting services.
Range of Services
We believe we possess a unique viewpoint into
the industry because we offer solutions to, and work with, both commercial businesses and government regulatory agencies towards the
common goal of ensuring regulatory compliance and real-time monitoring of inventory and sales. We offer a complete range of both software
and services to meet these needs for both state governments and commercial businesses. While we do not face competition from firms focusing
on specific subsets of our markets, there are a very limited number of competitors providing products or services that compete with our
complete range of products and services. We compete with software companies offering a product to businesses only in a certain geographic
region or of a certain business type. We also compete with consulting firms serving a specific phase of the cannabis plant life cycle.
37
Industry Knowledge and
Experience
Our management personnel have extensive technical
and business operations knowledge and experience within the cannabis and technology industries, which has been developed through numerous
years of service in key roles with a broad range of both cannabis and technology companies, both in terms of product and service type
and size. We leverage this knowledge and experience to guide our product and service development and delivery. Our management team possesses
significant compliance expertise, allowing us to continually monitor changes in legislation and regulation within the markets we and
our clients operate. We face competition from companies that have teams with technical expertise or cannabis industry experience, but
there are a limited number of competitors who have both and who understand the interplay between software and technology development
and the application of the same to the evolving cannabis compliance landscape.
Proprietary Databases
Twelve
years of operations have provided us with a statistically significant dataset of cannabis transaction information that we believe cannot
be readily duplicated by new entrants into the marketplace. This growing database includes proprietary sales, market trends, customer
preferences, pricing, and regulatory data. We use this dataset to predict trends more accurately in the marketplace and make this dataset
available to users of our platforms, providing greater utility to clients in this regard than can be provided by competing platforms.
Products and Solutions
Software
SMB Market:
Akerna's suite of small and medium business
("SMB" or "Non-Enterprise") products including MJ Platform, Ample Organics, and Trellis provide SaaS offerings
for legal cannabis, hemp and CBD businesses. We provide government-licensed cultivators, manufacturers, distributors, and retail dispensaries
with a data-driven seed-to-sale tracking platform that provides clients with an enterprise resource planning solution for managing their
inventory and regulatory compliance. Akerna's products and ecosystem of connections are used by clients to compliantly track inventory
through all phases of the seed-to-sale cycle - from cultivation to extraction and infusion to packaging, distribution and retail sales.
Data points are collected at every stage of the product life cycle and about multiple aspects of the plant's growing environment,
manufacturing processes, and ingredients, as well as retail pricing and purchase data. In Canada, the first G7 country with a federally
legal market, we have a pharmacy portal and insurance adjudication.
We service licensed operators in all verticals of the industry, including cultivation, manufacturing, distribution, and retail dispensaries.
We have significant client presence for our commercial software solutions in mature cannabis markets such as Arizona, California, Michigan,
Pennsylvania, Colorado, Utah, Illinois, Oklahoma, and Puerto Rico, as well as Canada.
We have exclusivity in the Pennsylvania and Utah
markets due to our government contracts, which require operators in the states to use MJ Platform.
Solo Sciences - Anti-counterfeiting Technology
Solo is a technology provider for legal cannabis
businesses with a focus on providing a cannabis tracking technology that provides seed-to-sale-to-self data throughout a product's
life cycle and empowers consumers with the ability to confirm the quality and authenticity of a product they have purchased.
Solo uses proprietary technology to place a unique
encrypted arrangement of patterns, the solo*TAG
TM
or solo*CODE
TM
, onto individual packaging labels. Solo technology
is significantly lower cost and more secure than traditional tagging technologies like radio-frequency identification. The technology
includes a free consumer mobile application, granting end-users and regulatory agencies the ability to track products in the supply chain,
verify their authenticity, and learn more detailed information about the product such as its origins and ingredients.
38
The Solo technology platform also enables brands
to connect directly with consumers. Through it, product creators can provide end-users with push notifications, targeted news, product
insights, loyalty points, etc. Brands embrace the platform as it enables them to increase their revenues and create a more tailored marketing
experience. Clients benefit from product incentives while gaining trust in the products they are buying and consuming.
Solo has developed several key partnerships including
the Utah Department of Health and Department of Agriculture, through Akerna's Leaf Data Systems contract including solo*TAG
TM,
,
a key tagging and technology component in a closed-loop system used by all Utah cannabis licensees as the state's primary tracking
system at the retail, wholesale, cultivation, and manufacturing levels.
Enterprise Market:
Akerna's Enterprise product suite provides
a comprehensive vertically integrated cannabis ERP and business management software system with a choice of being built on the Microsoft
Dynamics 365 Business Central platform or the SAP Business One platform. Our enterprise products were built by cannabis experts with
cannabis-specific functionality built into the core of the solution and are designed to meet present and future needs of growing businesses.
The software solutions allow business clients to manage their entire operations from cultivation to retail and incorporates Cultivation,
Production, Global Compliance, QC, Finance, Dispensing & Retail, CRM, Warehousing, Distribution, Multi-Facility, Multi-Company, Multi-Entity,
Language, Currency and more with a client base comprised of leading U.S.-based MSOs and single-state operators, and Canadian LPs, in
addition to global cannabis clients outside North America. Our enterprise offerings leverage shared Akerna infrastructure for access
to Akerna's broad ecosystem of offerings and to facilitate compliance with our up-to-date regulatory integrations, unparalleled
state and country reporting knowledge, and dedicated team of compliance experts.
Government Market:
Leaf Data Systems - Government Regulatory
Software
Leaf Data Systems is our SaaS product for government
agencies. Leaf Data Systems provides regulatory authorities with visibility into the operations of licensed medical and recreational
cannabis businesses. Government regulators desire visibility at critical junctures within the seed-to-sale chain of custody in order
to ensure public safety, monitor sales data for the purposes of taxation, and perform physical inspections of cannabis industry facilities.
Leaf Data Systems allows for specific data points captured during these workflows to be compiled into the state and regional view retrievable
by regulatory officials.
Licensed cannabis facilities within a state can
track plant and product movement and waste across their organization, which is processed into reporting tailored to the government agencies
that regulate and enforce the rules of the industry. This gives regulators a tool for transparency and accountability across the cannabis
supply chain to ensure public and product safety as well as to monitor sales and inventory within the industry. Leaf Data Systems is
customized to the regulations of the state in which it is contracted and tailored to capture the relevant data points desired by regulatory
officials.
As of the date of this report, Leaf Data Systems
serves two state clients, the Commonwealth of Pennsylvania and the State of Utah. The State of Utah mandates the use of our proprietary
solo*TAG
TM
the world's first cryptographically-secure, cannabis product authentication system, exclusively for governments
as an alternative to radio-frequency identification tracking. This customized system includes an electronic verification and inventory
control system to track plants and products throughout the compliance supply chain.
Business Intelligence and Data Analytics Products
We have four data products: MJ Analytics ("MJA");
and Akerna Acumen Big Data, which both leverage the extensive data captured in each of MJ Platform's cultivation, E&I, distribution,
and retail modules; AmpleData, which leverages data obtained through Canadian regulated retail channels; and Last Call Analytics, which
provides retail sales analytics for alcohol brands.
39
MJ Analytics
MJA gives MJ Platform clients access to aggregate
data across their organization to keep track of emerging legal and commercial trends, allowing for informed actionable insights at various
levels within the organization, including room, location, state, brand, and administration. MJ Platform allows users to align their operational
data from three vantage points: in real-time, past trends, and predictive future. This proprietary database assists the user in making
important decisions in real-time with respect to product monitoring, tracking, planning, and pricing.
Built in partnership with Domo and Snowflake,
MJA is monetized through the provision of Data Analytics subscriptions to clients. We typically grant a limited, non-exclusive, non-sublicensable
license to use our industry data for internal management, reporting, and business optimization purposes. The information typically supplied
to clients is aggregated and anonymized information regarding products, which may or may not be those of the client, sold through sales
generated through our online service platforms.
Akerna Acumen Business Intelligence
We have cultivated a substantial legal cannabis
dataset with over $30 billion in sales tracked and twelve years of data across 30+ states and multiple countries. With the contractual
ability to aggregate and anonymize this data, we have launched the Akerna Acumen product to provide banks, investors, researchers, cannabis
businesses, and non-cannabis businesses with cannabis market intelligence and valuable market comparison data. The data is available
in various formats and is available with updates as frequently as daily.
Last Call Analytics & Ample Data
Ample's wholly owned subsidiary, Last Call
Analytics ("LCA"), is a retail analytics platform designed for the beverage alcohol industry, with a focus on allowing our
clients to use data to empower retail operations and generate revenue growth. The platform ingests sales and product data from a wide
variety of sources, normalizes and homogenizes the dataset, and displays the resultant analysis in a proprietary application.
With the underlying technologies built by LCA,
Ample has created AmpleData, a retail analytics platform for the cannabis industry that applies the same proven solution to data streams
ingested from various points within the regulated supply chain
.
Ample Data is designed to provide key insights for Canadian cannabis
license holders, cannabis agencies and government regulators.
Cannabis Business Consulting
We provide project-focused consulting services
to clients that are initiating or expanding their cannabis businesses or are interested in data consulting engagements regarding the
legal cannabis industry. We typically provide our consulting services to clients in emerging markets that are seeking consultation on
newly introduced licensing regimes and assistance with the regulatory compliant build-out of operations in newly opened states.
Entering the cannabis industry is a significant
undertaking. We work with clients to efficiently comply with state requirements in connection with the launch and operations of their
cannabis businesses. Our management and key personnel bring deep cannabis industry experience to us. Our management team and key personnel
have broad experience gained from working with numerous cannabis businesses, with operational experience across every vertical (
e.g
.,
cultivation, processing, and retail). Our team members have previously managed projects, including cultivation facilities exceeding 100,000 square
feet, retail operations with locations in multiple states, and online businesses serving an entire country.
Competitive Advantage
Partner API.
We host an open API ecosystem
and are continually developing and maintaining an extensive collection of integrations that are designed to connect our solutions to
over 80 partners, provide full-service solutions at all points in the cannabis business life cycle, including compliance, hardware, banking,
accounting, online ordering, payment solutions, CRM and loyalty, delivery, and business analytics. We believe these integrations provide
a competitive advantage as they reduce implementation time, effort, and cost while providing a holistic cannabis solution; We have certified
API integration with tier one ERP software providers supplying sophisticated accounting solutions that collect and store business transactions
to satisfy external reporting requirements. Additionally, we leverage revenue sharing agreements and referral programs with our strategic
partners to further grow our business and our revenue.
40
Technology.
As the inventors of Seed-To-Sale
technology, our proprietary platform is an AWS cloud-based software solution. We offer specialized cannabis workflows specific to the
needs of the industry. We serve all verticals of the cannabis supply chain (cultivation, manufacturing, distribution, retail and delivery).
We are one of the few true, single-platform Seed-To-Sale solutions in the cannabis space, and the sophistication of our technology allows
us to uniquely scale across legal markets. Our platform has processed over $30 billion in legal cannabis sales, with speed, reliability,
and security capabilities designed to serve the needs of even the largest of enterprise customers. Compliance with state regulations
is built into our platform infrastructure, assisting clients in their efforts to operate within the regulation parameters of their individual
markets. The business insights provided by the data collection throughout the supply chain enables businesses to optimize their operations
and make crucial data-driven decisions for their business. These insights are easily analyzed and made actionable by our MJ Analytics
module, built in partnership with Domo, a leading BI platform.
Learning Management System
. Through our
license with ZolTrain, we are able to provide our Akerna clients with training modules to educate and on-board their staff and improve
the patient /consumer experience by pairing education with product information both in person and through digital channels. The Zoltrain
platform allows cannabis employees to self-direct their own learning and certification through an Akerna specific curriculum, and their
employers are able to monitor and track their progress, assisting clients in ensuring that their staff is fully trained and knowledgeable
about the software they are required to use within their job functions. This is one of the only LMS platforms specifically designed both
for the industry and for our software. It provides detailed notes, takeaways, scored exams and certificates of completion, ensuring staff
knows their Seed-To-Sale software inside and out. Zoltrain modules are dynamic, and can be easily updated to accommodate new content
or education on new product offerings. The AmpleLearn platform is a similar onboarding and education tool developed for Ample Organics
clients to assist with building their proficiency using the software in Canada. Similar to Zoltrain, AmpleLearn is built on industry
tested content within a dynamic learning environment. There are assessments, progress reports and certifications that are all available
to both the employee and their supervisor. The AmpleLearn product is maintained by the internal team at Ample Organics, ensuring that
the content is always up-to-date with the most recent software upgrades and functionality.
Strategy
We intend to leverage our scale and capital markets
access to pursue additional growth through organic initiatives and to pursue our ecosystem strategy which leverages integrations, partnerships,
and inorganic growth. We believe having a scaled ecosystem gives us more opportunities to leverage our footprint and increase wallet
share by providing more value to our clients through having what we believe is the most robust cannabis technology suite available. We
intend to pursue additional growth through organic initiatives, including increased marketing personnel and resources, acquisitions,
and strategic relationships.
●
Graduate
                                            our SMB clients to Enterprise.
Consolidation, limited license markets, and natural industry
                                            maturation are leading many companies in our SMB portfolio to look at enterprise technology
                                            to scale their business. These market forces are an opportunity for us to convert more of
                                            our client base to our Enterprise solutions as they grow and expand into other states. We
                                            have mobilized ongoing marketing and sales campaigns to identify and actively engage these
                                            opportunities to convert to Enterprise.
●
Broaden
                                            our base of clients.
With increasing cannabis legislation, rapid industry consolidation,
                                            and opportunities in other supply-chain driven industries, Akerna will continue to focus
                                            on expanding our leadership and market share in the mid-market, while optimizing our offerings
                                            for the multi-state/multi-vertical enterprise segment. We will continue to invest in our
                                            sales and marketing efforts and intend to expand into new markets to grow our client base.
●
Grow
                                            revenue from our existing clients.
With increased product line offerings, such as MJ
                                            Analytics, as well as our growing API partner network, we are able to offer continued opportunities
                                            for our customers to optimize and streamline their operations. By leveraging our existing
                                            client base and provide them with an array of tools and solutions, we are able to increase
                                            the revenue opportunity without the burden of new client acquisition costs.
●
Expand
                                            and deepen our partner ecosystem.
We have an extensive network of API integrated cannabis
                                            application provider
s and
                                            other referral sources providing us with new avenues of qualified leads and new client opportunities.
                                            By continuing to grow and optimize these partner agreements and relationships, we have increased
                                            exposure to larger client pools, and revenue sharing agreements.
41
Customers
Businesses across the cannabis and hemp industries
and of all sizes, ranging from small, single location/ single vertical businesses to multi-state enterprise operations, use the Akerna
family of solutions. The cannabis industry is still very much in its infancy compared to more established markets, and as it matures,
we are seeing a shift in the typical business model. In the beginning, most operators only managed a single location, or a single vertical
operation, and therefore many of our longer-standing clients fall into the small to mid-market size business. Over the past few years,
and significantly expedited by the COVID-19 pandemic, we are witnessing large-scale, rapid consolidation within the industry. Many of
the original small licensees are being purchased and assumed into larger, multi-state, enterprise level organizations. Our software solutions
are designed to be scalable, and as we see this shift in the market, we are focused on extending our customer reach to address the needs
of the emerging enterprise level operator. We believe these larger multi-state/multi-vertical operations represent significant long-term
future growth opportunities as the cannabis industry continues to consolidate. As more states legalize, these operators are identifying
future growth opportunities into these expanded legal markets and need a software solution that can grow with them.
Sales and Marketing
We sell our solutions primarily on a subscription
basis with module-based and user-seat pricing, allowing businesses to customize their solution based on their specific business model
or vertical. With our integrations to major accounting solutions and cannabis service providers, we are able to customize solutions for
all sizes and types of businesses. To gain market share and expand beyond the small to mid- size market, Akerna invests in specialized
go-to-market strategies for sales and marketing unique to each state and customer segment.
Our omnichannel marketing program, which includes
paid and unpaid digital advertising, event marketing, account-based marketing, content marketing, prospect database nurturing, and other
digital marketing activities, is designed to capture inbound marketing leads. We also leverage our expertise and industry intelligence
to identify and engage directly with our prospective customers, especially at the enterprise level. Additionally, we have a broad
ecosystem of partners across the cannabis industry and have selectively implemented referral and revenue sharing opportunities with the
key players.
We reach each market segment, from emerging small
business to enterprise, through channels and tactics that match their expectations for content, outreach, timeliness, and service level.
This can require high touch service for some enterprise customers, with more a traditional purchase path for the smallest companies.
We hire and train both sales and marketing professionals specialized for the market and the customer segment.
For growth in the regulatory and consulting side,
we stay current on emerging legal markets, both nationally and globally to actively conduct outreach and education programs to engage
with state regulators and business owners. This strategy strongly supports the growth of our consulting client bases, as we provide license
application assistance in new markets, and require in-depth understanding of the regulatory guidelines to be able to successfully win
licenses for our customers. We leverage our expertise to provide thought-leadership and industry guidance in order to gain recognition
as a leader in the space.
Government Regulation
Cannabis and Cannabis-derived Products
We do not grow, handle, process, or sell cannabis
or cannabis-derived products, nor do we ever possess any such material or process any transactions related to the sale of the same. We
only provide a technology platform for our clients to assist them with their compliance with state law and to monitor and control their
inventory in compliance with state regulatory environments. We do not receive any commissions from sale by our clients and our revenue
generation is not based on the sales of cannabis products by our clients, but rather we generate revenues through a fixed-fee based subscription
and professional services revenue model. We are not directly subject to state or federal government drug regulation and our products
are only intended to be used to assist with compliance with applicable state laws, under which our clients operate.
42
Our clients are subject to state and federal
law as it relates to cannabis growth, processing, and sale. 37 U.S. states have legalized cannabis in some form. The federal government
regulates drugs through the Controlled Substances Act (CSA) (21 U.S.C. § 811), which does not recognize the difference between medical
and recreational use of cannabis. State laws regulating cannabis are in direct conflict with the CSA, which prohibits cannabis use and
possession. Although certain states and territories authorize medical or recreational cannabis cultivation, manufacturing, production,
distribution, and sales by licensed or registered entities, under federal law, the cultivation, manufacture, distribution, possession,
use, and transfer of cannabis and any related drug paraphernalia, unless specifically exempt, is illegal and any such acts are criminal
acts under the CSA.
While the U.S. Department of Justice has used
prosecutorial discretion to not prioritize enforcement actions against state-legal cannabis businesses that are compliant with state,
county, municipal and other local laws and regulations and which do not trigger any other federal enforcement priorities, the Department
of Justice reserves the right to enforce federal law and there can be no assurance that the federal government will not enforce the CSA
and related federal laws in the future. Any shift in enforcement priority at the Department of Justice or with the individual U.S.
Attorneys with jurisdiction over our clients, could have a drastic and adverse impact upon our clients and our business.
While we do not grow, handle, process or sell
cannabis or cannabis-derived products, our receipt of funds from clients that do conduct such operations in violation of federal law
exposes us to risks related to federal racketeering laws. The Racketeer Influenced Corrupt Organizations Act ("RICO") is
a federal statute providing criminal penalties in addition to a civil cause of action for acts performed as part of an ongoing criminal
organization. Under RICO, it is unlawful for any person who has received income derived from a pattern of racketeering activity (which
includes most felonious violations of the CSA), to use or invest any of that income in the acquisition of any interest, or the establishment
or operation of, any enterprise which is engaged in interstate commerce. RICO also authorizes private parties whose properties or businesses
are harmed by such patterns of racketeering activity to initiate a civil action against the individuals involved. Although RICO suits
against the cannabis industry are rare, a few cannabis businesses have been subject to a civil RICO action.
Our receipt of payments from clients engaged
in state-legal cannabis operations could also subject us to the consequences of a variety of federal laws and regulations that involve
money laundering, financial record keeping and proceeds of crime, including the Bank Secrecy Act, as amended by Title III of the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) and
any related or similar rules, regulations or guidelines, issued, administered or enforced by the federal government. Because the funds
from activities that are illegal under the CSA, banks and other financial institutions providing services to us risk violation of federal
anti-money laundering statutes (18 U.S.C. §§ 1956 and 1957), the unlicensed money-remitter statute (18 U.S.C. § 1960)
and the Bank Secrecy Act, among other applicable federal statutes. Banks often refuse to provide banking services to businesses involved
in the cannabis industry due to the present state of federal laws and regulations governing financial institutions. The lack of banking
and financial services presents unique and significant challenges to businesses in the cannabis industry and we may experience similar
difficulties in obtaining and maintaining regular banking and financial services because of the activities of our clients.
Any violations of federal laws and regulations
could result in significant fines, penalties, administrative sanctions, convictions or settlements arising from civil proceedings conducted
by either the federal government or private citizens or criminal charges, including but not limited to, seizure of assets, disgorgement
of profits, cessation of business activities or divestiture. In the event that any of our operations, or any proceeds thereof, any
dividends or distributions therefrom, or any profits or revenues accruing from such operations were found to be in violation of money
laundering legislation or otherwise, such transactions may be viewed as proceeds of crime under one or more of the statutes noted above
or any other applicable legislation. This could restrict or otherwise jeopardize our ability to declare or pay dividends or effect other
distributions. Furthermore, while there are no current intentions to declare or pay dividends in the foreseeable future, in the event
that a determination was made that our proceeds from operations (or any future operations) could reasonably be shown to constitute proceeds
of crime, we may decide or be required to suspend declaring or paying dividends without advance notice and for an indefinite period of
time.
43
Privacy & Customer Data
Regulation related to the provision of services
over the Internet is evolving, as federal, state, and foreign governments continue to adopt new, or modify existing, laws and regulations
addressing data privacy and the collection, processing, storage, transfer, and use of data. In some cases, data privacy laws and regulations,
such as the European Union's ("EU") General Data Protection Regulation ("GDPR") that took effect in May
2018, impose new obligations directly on us as both a data controller and a data processor, as well as on many of our clients. In addition,
domestic data privacy laws, such as the California Consumer Privacy Act ("CCPA"), which took effect in January 2020, continue
to evolve and could expose us to further regulatory burdens. Further, laws such as the EU's proposed e-Privacy Regulation are increasingly
aimed at the use of personal information for marketing purposes and the tracking of individuals' online activities.
Although we monitor the regulatory environment
and have invested in addressing these developments, such as GDPR and CCPA readiness, these laws may require us to make additional changes
to our services to enable us or our clients to meet the new legal requirements, and may also increase our potential liability exposure
through higher potential penalties for non-compliance. These new or proposed laws and regulations are subject to differing interpretations
and may be inconsistent among jurisdictions. These and other requirements could reduce demand for our services, require us to take on
more onerous obligations in our contracts, restrict our ability to store, transfer, and process data or, in some cases, impact our ability
or our clients' ability to offer our services in certain locations, to deploy our solutions, to reach current and prospective customers,
or to derive insights from customer data globally. The costs of compliance with, and other burdens imposed by, privacy laws, regulations,
and standards may limit the use and adoption of our services, reduce overall demand for our services, make it more difficult to meet
expectations from or commitments to clients, lead to significant fines, penalties or liabilities for non-compliance, impact our reputation,
or slow the pace at which we close sales transactions, any of which could harm our business.
Furthermore, the uncertain and shifting regulatory
environment and trust climate may cause concerns regarding data privacy and may cause our clients or our clients' customers to
resist providing the data necessary to allow our clients to use our services effectively. Even the perception that the privacy of personal
information is not satisfactorily protected or does not meet regulatory requirements could inhibit sales of our products or services
and could limit the adoption of our cloud-based solutions.
Patents and Trademarks
We primarily rely upon a combination of confidentiality
procedures, contractual provisions, copyright, trademark, patent, and trade secret laws, and other similar measures to protect our proprietary
information and intellectual property.
We hold 2 patents in the U.S., through Solo,
related to its Solo*ID proprietary technology. One patent has an issue date of December 1, 2009 and is set to expire on December
1, 2029. The other patent has an issue date of May 31, 2011 and is set to expire on July 11, 2025. We also have 2 patent applications
that are currently pending action by the U.S. Patent Office. One was filed on April 22, 2011 by MJF and the other was filed on January
22, 2022 related to Solo blockchain technology.
We and our wholly-owned subsidiaries hold 19
trademarks in the U.S., principally related to Akerna, MJ Freeway, Leaf Data Systems, our Daily Dose mailer, Solo*ID and our logos and
designs, 7 in Canada, principally related to Ample, AmpleCentral, AmpleData, AmpleExchange and Ample's logos and designs and 1
in Colombia, 1 in Jamaica and 1 on EUIPO related to Ample's logo and designs.
Employees
As of December 31, 2021, we had 204 full time employees. Of these employees,
157 were based in the U.S. and 47 were based in Canada. Our workforce is highly educated, with most of our employees working in engineering,
technical, or professional roles. None of our employees are a member of a union or a party to any collective bargaining agreement. We
believe our employee relations are good. On May 27, 2022, the Company announced its implementation of certain expense reduction measures,
approved by the Company's board of directors on May 24, 2022, including a reduction of the Company's workforce by 59 full-time
employees, or approximately 33% of the Company. See "Recent Developments" above for more information.
Company Information
Emerging Growth Company
We are an "emerging growth company"
as defined in the Jumpstart Our Business Startups Act of 2012, (the "JOBS Act") because we went public in the U.S. in January
2018 and meet the criteria outlined in the JOBS Act. We will remain an emerging growth company until up to the last day of the fiscal
year following the fifth anniversary of our initial public offering, or until the earliest of  (i) the last day of the first fiscal
year in which our annual gross revenue exceeds $1.07 billion, (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. As allowed by the JOBS Act, we have elected
to utilize the extended transition period provided to non-public companies for complying with new or revised accounting standards.
44
DESCRIPTION OF PROPERTY
Our corporate headquarters are located in Denver,
Colorado, although we do not lease or own any real property associated with our corporate headquarters as our workforce is primarily
remote. We have one facility that we lease in Las Vegas, Nevada which serves as office space for our Las Vegas based employees. We believe
that our existing facilities are adequate for our current needs and that suitable additional or alternative space would be available
to us to lease on commercially reasonable terms if and when we need it.
LEGAL PROCEEDINGS
We are not a party to any material pending legal
proceedings, and no such proceedings are known to be contemplated.
From time to time, we may become involved in
other legal proceedings or be subject to claims arising in the ordinary course of our business. Regardless of the outcome of any existing
or future litigation, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources,
and other factors.
MARKET FOR COMMON EQUITY AND RELATED SHAREHOLDER
MATTERS
Market Information
Our
common stock is listed on the Nasdaq Capital Market under the trading symbol "KERN". As of June 3, 2022, we had 36,574,158
shares of common stock issued and outstanding and approximately
238
registered shareholders. Because many of our shares of common
stock are held by brokers and other institutions on behalf of shareholders, we are unable to estimate the total number of shareholders
represented by these record holders.
Purchases of Equity Securities by the Company
and Affiliates
None.
2019 Long Term Incentive Plan Summary
The purpose of the Incentive Plan is to enable
Akerna to offer its employees, officers, directors and consultants whose past, present and/or potential future contributions to Akerna
have been, are, or will be important to its success, an opportunity to acquire a proprietary interest in Akerna. The various types of
incentive awards that may be provided under the Incentive Plan are intended to enable Akerna to respond to changes in compensation practices,
tax laws, accounting regulations and the size and diversity of its business.
Plan Administration
The Incentive Plan is administered by the compensation
committee of the Akerna Board (the "Compensation Committee") or by the full Akerna Board, which may determine, among other
things, (1) the persons who are to receive awards, (2) the type or types of awards to be granted to such persons, (3) the number of shares
of common stock to be covered by, or with respect to what payments, rights, or other matters are to be calculated in connection with
the awards, (4) the terms and conditions of any awards, (5) whether, to what extent, and under what circumstances awards may be settled
or exercised in cash, shares of common stock, other securities, other awards or other property, or cancelled, forfeited, or suspended
and the method or methods by which awards may be settled, exercised, cancelled, forfeited, or suspended, (6) whether, to what extent,
and under what circumstances the delivery of cash, shares of common stock, other securities, other awards or other property and other
amounts payable with respect to an award, and (7) make any other determination and take any other action that the Compensation Committee
deems necessary or desirable for the administration of the Incentive Plan.
45
Stock Options
Stock options granted under the Incentive Plan
may be of two types: (i) Incentive Stock Options (as defined in the Incentive Plan) and (ii) Non-qualified Stock Options (as defined
in the Incentive Plan). Any stock option granted under the Incentive Plan shall contain such terms, as the Compensation Committee may
from time to time approve.
The term of each stock option shall be fixed
by the Compensation Committee; provided, however, that no stock option may be exercisable after the expiration of ten years from the
date of grant; provided, further, that no Incentive Stock Option granted to a person who, at the time of grant, owns stock possessing
more than 10% of the total combined voting power of all classes of voting stock of Akerna ("10% Shareholder") may be exercisable
after the expiration of five years from the date of grant.
The exercise price per share purchasable under
a stock option shall be determined by the Compensation Committee at the time of grant; provided, however, that the exercise price of
a stock option may not be less than 100% of the fair market value on the date of grant; provided, further, that the exercise price of
an Incentive Stock Option granted to a 10% Shareholder may not be less than 110% of the fair market value on the date of grant.
Stock Appreciation Rights
The Compensation Committee may grant Stock Appreciation
Rights in tandem with a stock option or alone and unrelated to a stock option. The Compensation Committee may grant stock appreciation
rights to participants who have been or are being granted stock options under the Incentive Plan as a means of allowing such participants
to exercise their stock options without the need to pay the exercise price in cash. In the case of a Non-qualified Stock Option, a stock
appreciation right may be granted either at or after the time of the grant of such Non-qualified Stock Option. In the case of an Incentive
Stock Option, a stock appreciation right may be granted only at the time of the grant of such Incentive Stock Option. Stock appreciation
rights shall be exercisable as shall be determined by the Compensation Committee. All or a portion of a stock appreciation right granted
in tandem with a stock option shall terminate and shall no longer be exercisable upon the termination or after the exercise of the applicable
portion of the related stock option.
Restricted Stock and Restricted Stock Units
Shares of restricted stock may be awarded either
alone or in addition to other awards granted under the Incentive Plan. The Compensation Committee shall determine the eligible persons
to whom, and the time or times at which, grants of restricted stock will be awarded, the number of shares to be awarded, the price (if
any) to be paid by the holder, any restriction period, the vesting schedule and rights to acceleration thereof, and all other terms and
conditions of the awards. In addition, the Compensation Committee may award restricted stock units, which may be subject to vesting and
forfeiture conditions during the applicable restriction period, as set forth in an agreement.
Restricted stock constitutes issued and outstanding
shares of common stock for all corporate purposes. The holder will have the right to vote such restricted stock and to exercise all other
rights, powers and privileges of a holder of common stock with respect to such restricted stock, subject to certain limited exceptions.
Upon the expiration of the restriction period with respect to each award of restricted stock and the satisfaction of any other applicable
restrictions, terms and conditions, all or part of such restricted stock shall become vested in accordance with the terms of the agreement.
Any restricted stock that do not vest shall be forfeited to Akerna and the holder shall not thereafter have any rights with respect to
such restricted stock.
46
The Compensation Committee may provide that settlement
of restricted stock units will occur upon or as soon as reasonably practicable after the restricted stock units vest or will instead
be deferred, on a mandatory basis or at the holder's election, in a manner intended to comply with tax laws. A Holder will have
no rights of a holder of common stock with respect to shares subject to any restricted stock unit unless and until the shares are delivered
in settlement of the restricted stock unit. If the Committee provides, a grant of restricted stock units may provide a holder with the
right to receive dividend equivalents.
Other Stock-Based Awards
Other Stock-Based Awards may be awarded, subject
to limitations under applicable law, that are denominated or payable in, valued in whole or in part by reference to, or otherwise based
on or related to, shares of common stock, as deemed by the Compensation Committee to be consistent with the purposes of the Incentive
Plan, including, without limitation, purchase rights, shares of common stock awarded that are not subject to any restrictions or conditions,
convertible or exchangeable debentures, or other rights convertible into shares of common stock and awards valued by reference to the
value of securities of or the performance of specified subsidiaries.
Change of Control Provisions
The Incentive Plan provides that in the event
of a change of control event, (1) all of the then outstanding options and stock appreciation rights granted pursuant to the Incentive
Plan will immediately vest and become immediately exercisable as of a time prior to the change in control and (2) any performance goal
restrictions related to an award will be deemed achieved at 100% of target levels and all other conditions met as of a time prior to
the change in control. In the event of the sale of all of Akerna's assets or a change of control event, then the Compensation Committee
may (1) accelerate the vesting of any and all Stock Options and other awards granted and outstanding under the Incentive Plan; (2) require
a holder of outstanding options to relinquish such award to Akerna upon the tender by Akerna to holder of cash, stock or other property,
or any combination thereof pursuant to the terms of the Incentive Plan and (3) terminate all incomplete performance periods in respect
of awards in effect on the date the acquisition occurs, determine the extent to which performance goals have been met based upon such
information then available as it deems relevant and cause to be paid to the holder all or the applicable portion of the award based upon
the Compensation Committee's determination of the degree of attainment of performance goals, or on such other basis determined
by the Compensation Committee.
The Akerna Board may at any time, and from time
to time, amend alter, suspend or discontinue any of the provisions of the Incentive Plan, but no amendment, alteration, suspension or
discontinuance shall be made that would impair the rights of a holder under any agreement theretofore entered into hereunder, without
the holder's consent, except as set forth in this Incentive Plan or the agreement. Notwithstanding anything to the contrary herein,
no amendment to the provisions of the Incentive Plan shall be effective unless approved by the stockholders of Akerna to the extent stockholder
approval is necessary to satisfy any provision of the Ethics Code or other applicable law or the listing requirements of any national
securities exchange on which Akerna's securities are listed.
Equity Compensation Plans
The
following table
provides information as of December 31, 2021, with
respect to the shares of our common stock that may be issued under our existing equity compensation plans:
Number of
securities to be
issued upon
exercise of
outstanding
options,
warrants and
rights or
vesting
of restricted
stock units
(column - a)
Weighted-
average exercise
price of
outstanding
options,
warrants and
rights or
vesting
of restricted
stock units
(column - b)
Number of
securities
remaining
available for
future issuance
under equity
compensation
plans (excluding
securities
reflected in
column (a))
(column - c)
2019 - Equity compensation plan approved by security holders
683,767
(1)
$
-
459,539
Total
683,767
(1)
$
-
459,539
(1)
See "2019 Long Term
    Incentive Plan Summary" above.
47
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion and
analysis of our financial condition and results of operations together with our financial statements and related notes appearing elsewhere
in this prospectus. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions.
 Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors,
including, but not limited to, those set forth under "Risk Factors" and "Note Regarding Forward-Looking Statements"
above.
Akerna is the leading provider of enterprise
software solutions within the cannabis industry. By providing an integrated ecosystem of applications and services that enables compliance,
regulation, consumer safety and taxation, Akerna is building the technology backbone of the cannabis industry. Our solutions provide
clients with integrated security, transparency, and scalability capabilities, all while maintaining compliance with their governing regulations.
We intend to leverage our scale and capital markets
access to pursue additional growth through organic initiatives and to pursue our ecosystem strategy which leverages integrations, partnerships,
and inorganic growth. We believe having a scaled ecosystem gives us more opportunities to leverage our footprint and increase wallet
share by providing more value to our clients through having what we believe is the most robust cannabis technology suite available. We
intend to pursue additional growth through organic initiatives, including increased marketing personnel and resources, acquisitions,
and strategic relationships. We will continue scaling our platform for continued growth, adding new features and functionality, supporting
new products and content types, and improving the user experience.
We offer our software solutions to our customers
as a subscription-based service. Subscription fees are based upon the chosen package which includes differentiated platform capabilities,
support and user accounts. As customers recognize the value of our platform, we increasingly engage with them to facilitate broad adoption
across other parts of their business.
We believe having a scaled ecosystem gives us
more opportunities to leverage our footprint and increase wallet share by providing more value to our clients through having what we
believe is the most robust cannabis technology suite available. In order to accelerate customer growth, we intend to pursue additional
initiatives, including increased marketing personnel and resources, acquisitions, and strategic relationships. We believe we are underpenetrated
in the overall market and have significant opportunity to expand our customer base over time.
We have invested in professional services, customer
support and customer success functions to support our sales force by helping customers successfully deploy our platform. We actively
engage with our customers to assess whether they are satisfied and fully realizing the benefits of our platform. While these efforts
often require a substantial commitment and upfront costs, we believe our investment in product, customer support, customer success and
professional services will create opportunities to expand our customer relationships over time.
48
We plan to continue to make investments in areas
of our business to continue to expand our platform functionality to enhance current offerings and build new features.
On April 1, 2021 and October 1, 2021, we completed
our acquisitions of Viridian and 365 Cannabis which is reflected in the consolidated financial statements for the fiscal year ended December
31, 2021. The impact of the acquisition is discussed in our results of operations below.
Key Business Metrics
In addition to our results determined in accordance
with U.S. Generally Accepted Accounting Principles, or GAAP, we believe earnings before interest, taxes, depreciation and amortization,
or EBITDA, and Adjusted EBITDA are useful in evaluating our operating performance. We use EBITDA and Adjusted EBITDA, to evaluate our
ongoing operations and for internal planning and forecasting purposes. Please see the heading Non-GAAP Financial Measures for additional
discussion and a reconciliation of GAAP net loss to these non-GAAP measures.
Impact of COVID-19
In December 2019, COVID-19 was first reported.
After ongoing assessment of the rapid spread, number of cases and countries affected, on March 11, 2020, the World Health Organization
characterized COVID-19 as a pandemic. The COVID-19 pandemic has created significant global economic uncertainty, impacted the business
of our clients, impacted our consulting business and our results of operations and could further impact our results of operations, and
our cash flows in the future.
The COVID-19 pandemic impacted our clients'
business and the industry. Nearly every state and country where medical and adult use cannabis was legal declared access essential, which
we believe is a significant shift in sentiment. Our clients also have experienced increased consumer demand throughout the year, including
during the pandemic. We believe COVID-19 has accelerated consolidation in the cannabis industry. At the peak of the crisis, cannabis
companies lost on average 75% to 90% of their value, however, industry sales in 2021 increased 40% over 2020. As we move towards economic
recovery from the pandemic, more state governments are looking to cannabis legalization to generate tax revenue and create jobs. During
the November 2020 election, a total of 7 initiatives in 5 states passed with overwhelming majority support, showing increased bi-partisan
support. These initiatives bring the total number of states with legal, medical markets to 36 and adult-use markets to 17, plus Washington,
DC. Various additional states have pending legislation aimed at expanding or adding legalization to their markets. In terms of job creation,
over 107,059 jobs were added to the cannabis workforce in 2021, raising the total number of full-time equivalent jobs in the industry
to 428,059.
The ultimate extent of the impact of the COVID-19
pandemic on our operational and financial performance will depend on certain developments, including the duration of the outbreak, the
severity of the disease, responsive actions taken by public health officials, the impacts on our clients and our sales cycles, our ability
to generate new business, the impacts on our clients, employee and industry events, and the effects on our vendors, all of which are
uncertain and currently cannot be predicted. As a result, the extent to which the COVID-19 pandemic will continue to impact our financial
condition or results of operations is uncertain. Due to our subscription-based business model, the effect of the COVID-19 pandemic may
not be fully reflected in our results of operations until future periods. If the COVID-19 pandemic has a substantial impact on our employees',
partners' or clients' productivity, our results of operations and overall financial performance may be harmed.
See the section entitled "Risk Factors"
for further discussion of the impact and possible future impacts of the COVID-19 pandemic on our business.
49
Strategic Acquisitions
We have pursued and expect to continue to pursue
acquisitions that align with our strategic objectives to build relevant content, technology, and expertise to best serve our current
and future customers. Accordingly, the comparability of periods covered by our consolidated financial statements are, and in the future
may be, affected by the impact of these acquisitions.
Components of Results of Operations
Revenue
We generate revenue from two primary sources:
(1) software and (2) consulting services. Revenue from software comprised approximately 92%, 86% and 79% of our revenue for the year
ended December 31, 2021, six months ended December 31, 2020, and year ended June 30, 2020, respectively. Revenue from consulting
services comprised approximately 7%, 12% and 19% of our revenue for the year ended December 31, 2021, six months ended December 31, 2020,
and year ended June 30, 2020, respectively. Revenue from software comprised approximately 94% and 95% of our revenue for the three months
ended March 31, 2022 and 2021, respectively. Revenue from consulting services comprised approximately 6% and 4% of our revenue for three
months ended March 31, 2022 and 2021, respectively.
Software
. Our software is solutioned for
our key markets, SMB and enterprise customers. Our SMB customers become a natural funnel for our larger, more robust enterprise offerings
built on SAP and Microsoft. In either market, software revenue is generated from subscriptions and services related to the use of our
commercial software platforms, MJ Platform, Ample, Trellis, Viridian, and 365 Cannabis, our government regulatory platform, Leaf Data
Systems, and the sale of business intelligence, data analytics and other software related services. Software contracts are generally
quarterly or annual contracts paid monthly, quarterly, or annually in advance of service and cancellable upon 30 or 90 days' notice,
although we do have many multi-year commercial software contracts. Leaf Data Systems contracts are generally multi-year contracts payable
annually or quarterly in advance of service. Commercial software and Leaf Data Systems contracts generally may only be terminated early
for breach of contract as defined in the respective agreements. Amounts that have been invoiced are initially recorded as deferred revenue
or contract liabilities. Subscription revenue is recognized on a straight-line basis over the service term of the arrangement beginning
on the date that our solution is made available to the customer and ending at the expiration of the subscription term.
Consulting Services
. Consulting services
revenue is generated by providing solutions for operators in the pre-application of licensures and pre-operational phases of development.
These services include application and business plan preparation as they seek licenses to be granted. Consulting projects completed during
the pre-application phase generally solidify us as the software vendor of choice for subsequent operational phases once the operator
is granted the license. As a result, our consulting revenue is driven as new emerging states pass legislation, and as our client-operators
gain licenses. Accordingly, we expect our consulting services to grow over time as more states emerge with legalization reforms.
Other Revenue
. Our other revenue is derived
primarily from point-of-sale hardware and other non-recurring revenue.
Cost of Revenue and Operating Expenses
Cost of Revenue
Our cost of revenue is derived from direct costs
associated with operating our commercial and government regulatory software platforms and providing consulting services. The cost of
revenue for our commercial and government regulatory platforms relates primarily to hosting and infrastructure costs and subcontractor
expenses incurred in connection with certain government contracts. Consulting cost of revenue relates primarily to our employees'
and consultants' salaries and other related compensation expenses. We record the cost of revenue using the direct cost method.
This method requires the allocation of direct costs including support services and materials to the cost of revenue.
50
Product Development Expenses
Our product development expenses include salaries
and benefits, nearshore contractor expenses, technology expenses, and other overhead related to the ongoing maintenance of our commercial
and government regulatory software platforms and planning for new software development. Product development costs, other than software
development expenses qualifying for capitalization, are expensed as incurred. Capitalized software development costs consist primarily
of employee-related costs. We devote substantial resources to enhancing and maintaining our technology infrastructure, developing new
and enhancing existing solutions, conducting quality assurance testing, and improving our core technology.
Sales and Marketing Expenses
Sales and marketing expense is primarily salaries
and related expenses, including commissions, for our sales, marketing, and client service staff. We also categorize payments to partners
and marketing programs as sales and marketing expenses. Marketing programs consist of advertising, events, such as trade shows, corporate
communications, brand building, and product marketing activities. We plan to continue to invest in marketing and sales by expanding our
domestic and international selling and marketing activities, building brand awareness, attracting new clients, and sponsoring additional
marketing events. The timing of these marketing events will affect our marketing costs in a particular quarter.
We defer the portion of sales commissions that
is considered a cost of obtaining a new contract with a customer in accordance with the revenue recognition standard and amortize these
deferred costs over the period of benefit, currently one year. We expense the remaining sales commissions as incurred. The rates at which
sales commissions are earned varies depending on a variety of factors, including the nature of the sale (new, renewal, or add-on service
offering), the type of service or solution sold, and the sales channel.
General and Administrative Expenses
Our general and administrative expenses include
salaries and benefits and other costs of departments serving administrative functions, such as executives, finance and accounting, human
resources, public relations and investor relations. In addition, general and administrative expense includes non-personnel costs, such
as professional fees and other supporting corporate expenses not allocated to cost of revenue, product and development or sales and marketing.
Total Other (Income) Expense, Net
Total other (income) expense, net consists of
interest income on cash and cash equivalents, interest expense on our debt, quarterly remeasurement of the fair value of our convertible
notes and derivative liability, foreign currency gains and losses, and other nonoperating gains and losses.
Results
of Operations for the Three Months Ended March 31, 2022 Compared to Three Months Ended March 31, 2021
The following table highlights the various sources
of revenues and expenses for the three months ended March 31, 2022 as compared to the three months ended March 31, 2021:
Three Months Ended March 31,
Change
Period over
2022
2021
Period
Revenues:
Software
$
6,508,513
$
3,795,153
$
2,713,360
71
%
Consulting
427,009
172,747
254,262
147
%
Other
15,319
46,124
(30,805
)
(67
)%
Total revenue
6,950,841
4,014,024
2,936,817
73
%
Cost of revenues
2,203,671
1,454,167
749,504
52
%
Gross profit
4,747,170
2,559,857
2,187,313
85
%
Gross profit margin
68
%
64
%
Operating expenses:
Product development:
2,105,361
1,424,100
681,261
48
%
Sales and marketing
3,236,113
1,735,915
1,500,198
86
%
General and administrative
2,570,432
1,852,962
717,470
39
%
Depreciation and amortization
1,993,391
1,052,883
940,508
89
%
Impairment of long-lived assets
15,478,521
-
15,478,521
nm
Total operating expenses
25,383,818
6,065,860
19,317,958
318
%
Loss from operations
$
(20,636,648
)
$
(3,506,003
)
$
(17,130,645
)
489
%
nm - percentage change not meaningful
51
Revenue
Software Revenue
Total software revenue increased to
$6.5 million for the three months ended March 31, 2022 from $3.8 million for the three months ended March 31, 2021,
for an increase of $2.7 million, or 71%. Software revenue related to our enterprise offerings, Viridian and 365 Cannabis,
for the three months ended March 31, 2022 were $3.0 million, compared to $0 for the three months ended March 31, 2021 and software revenue
related to our non-enterprise offerings, which include MJ Platform, Ample, Trellis, Solo, and Leaf Data Systems, were $3.2 million for
the three months ended March 31, 2022 compared to $3.4 million for the three months ended March 31, 2021. There was also a slight decrease
in partnership and data revenue which was $0.2 million for the three months ended March 31, 2022 compared to $0.4 million during the same
period in the prior year. Software revenue accounted for 94% and 95% of total revenue for the three months ended March 31, 2022 and 2021,
respectively. As indicated above, increase in software revenue during the three months ended March 31, 2022 as compared to the three months
ended March 31, 2021 was attributable to revenue generated from our enterprise offerings.
Consulting Revenue
Consulting revenue includes revenue generated
from consulting services delivered to prospective and current cannabis, hemp and CBD businesses and business operators. Our consulting
revenue was $0.4 million for the three months ended March 31, 2022 compared to $0.2 million for the three months ended
March 31, 2021, an increase of $0.2 million, or 147%. Consulting revenue was 6% and 4% of total revenue for the three months ended March
31, 2022 and 2021, respectively. Due to the nature of consulting revenue, our dependence on emerging market activity and the
ongoing pandemic as a driver of demand, the percentage of consulting revenue over total revenue has varied from period to period depending
on whether state legislation has expanded to allow new market entrants or growth of existing market participant operations.
Other Revenue
Other revenue includes retail/resale revenue,
which is generated from point-of-sale hardware. Other revenue was less than $0.1 million for the three months ended March 31, 2022 and
2021, respectively.
Cost of Revenue
Our cost of revenue was
$2.2 million for the three months ended March 31, 2022 compared to $1.5 million for the three months ended March 31, 2021, an
increase of $0.7 million, or 52%. Total cost of revenue increased primarily as a result of an increase in hosting expenses of $0.3 million
and fees for SAP and Microsoft licenses in the amount of $0.5 million related to our acquisitions of Viridian and 365 Cannabis.
52
Gross Profit
Gross profit was $4.7
million for the three months ended March 31, 2022 compared to $2.6 million for the three months ended March 31, 2021, an increase of $2.2
million or 86%. Gross profit margin also increased from 64% for the three months ended March 31, 2021 to 68% for the three months ended
March 31, 2022. This improvement in gross margin was primarily due to operating synergies realized from our acquired assets, our ongoing
initiatives to drive operating effectiveness, and acquiring additional business-to-business customers, that have a higher gross margin.
Operating Expenses
Product Development
Product development expense
was $2.1 million for the three months ended March 31, 2022, compared to $1.4 million for the three months ended
March 31, 2021, an increase of $0.7 million, or 48%. Product development expense increased primarily due the
Viridian and 365 Cannabis acquisitions, which resulted in a $0.6 million increase in salary-related and contractor expenses for the three
months ended March 31, 2022 compared to the same period in the prior year.
Sales and Marketing
Sales and marketing expense
was $3.2 million for the three months ended March 31, 2022, compared to $1.7 million for the three months ended March 31, 2021,
an increase of $1.5 million, or 86%. The increase in sales and marketing expense is primarily related to the acquisitions of Viridian
and 365 Cannabis which resulted in an increase of $1.6 million in salary-related and contractor expenses for the three months ended March
31, 2022 compared to the three months ended March 31, 2021.
General and Administrative
General and administrative
expense was $2.6 million for the three months ended March 31, 2022, compared to $1.9 million for the three
months ended March 31, 2021, an increase of 0.7 million, or 39%. The increase in general and administrative expense is primarily
related to the termination of our Las Vegas office space during the three months ended March 31, 2022, which resulted in a restructuring
charge of $0.5 million. There was also an increase of $0.1 million in salary-related and contractor expenses as well as bad debt expense
of $0.2 million for the three months ended March 31, 2022 compared to the same period in the prior year.
Depreciation and Amortization
Depreciation and amortization
expense increased to $2.0 million for the three months ended March 31, 2022 from $1.1 million for the three months ended March 31, 2021,
an increase of $0.9 million, or 89%. The increase in amortization expense is primarily attributable to the acquired intangible assets
from our Viridian and 365 Cannabis acquisitions in the amount of $0.6 million, which both occurred after March 31, 2021, as well as an
increase in capitalized software in the amount of $0.4 million.
Impairment of long-lived
assets
Due to a continued decline
in market conditions from December 31, 2021 to March 31, 2022, we recorded an impairment charge of $15.5 million on our non-enterprise
reporting unit during the three months ended March 31, 2022, compared to no impairment charge for the three months ended March 31, 2021
(see Note 9 - Goodwill and Intangible Assets, Net to the unaudited consolidated financial statements for the period ended March 31, 2022
for further discussion on the impairments recorded).
53
Results
of Operations for the Year Ended December 31, 2021 (audited) compared with the Year Ended December 31, 2020 (unaudited)
The following table highlights the various sources
of revenues and operating expenses for the year ended December 31, 2021 as compared to the year ended December 31, 2020 (unaudited). The
results for the year ended December 31, 2020 were derived by combining the audited six-month transition period ended December 31, 2020
with Akerna's three-month period ended March 31, 2020 and three-month period ended June 30, 2020:
Year Ended December 31,
Change
2021
2020
(unaudited)
Period over
period
Revenue
Software
$
18,998,409
$
11,963,028
$
7,035,381
59
%
Consulting
1,510,413
1,739,683
(229,270
)
(13
)%
Other revenue
176,152
196,257
(20,105
)
(10
)%
Total revenue
20,684,974
13,898,968
6,786,006
49
%
Cost of revenue
8,119,487
6,355,825
1,763,662
28
%
Gross profit
12,565,487
7,543,143
5,022,344
67
%
Operating Expenses
Product development
6,271,966
5,129,814
1,142,152
22
%
Sales and marketing
9,108,173
8,085,897
1,022,276
13
%
General and administrative
10,422,207
11,018,356
(596,149
)
(5
)%
Depreciation and amortization
5,735,150
3,223,844
2,511,306
78
%
Impairment of long-lived assets
14,383,310
6,887,000
7,496,310
109
%
Total operating expenses
45,920,806
34,344,911
11,575,895
34
%
Loss from operations
$
(33,355,319
)
$
(26,801,768
)
$
(6,553,551
)
24
%
nm - percentage change not meaningful
Total Revenue
Total revenue increased to $20.7 million for the
year ended December 31, 2021 from $13.9 million for the year ended December 31, 2020, an increase of $6.8 million, or 49%. The increase
in total revenue was driven primarily by growth in our software business of $7.0 million, or 59% compared to the prior period. The
growth in software was offset by a decline in consulting revenue of $0.2 million, or 13%, primarily a result of government shut-down related
to COVID-19 as discussed below.
Software Revenue
Total software revenue increased to $19.0 million
for the year ended December 31, 2021 from $12.0 million for the year ended December 31, 2020, for an increase of $7.0 million, or 59%.
Software revenue related to our enterprise offering, Viridian and 365 Cannabis, during the year ended December 31, 2021, were $4.8 million
compared to $0 in the prior year and software revenue related to our non-enterprise offerings, which include MJ Platform, Ample, Trellis,
Solo, and Leaf Data Systems, for the year ended December 31, 2021, were $12.8 million compared to $11.6 million in the prior year. There
was also in an increase in partnership and data revenue which was $1.4 million for the year ended December 31, 2021, compared to $0.4
million for the same period in the prior year. Software revenue accounted for 92% and 86% of total revenue in 2021 and 2020, respectively.
As indicated above, the increase in software revenue for the year ended December 31, 2021 was primarily attributable to our acquisitions
of Ample, Viridian, and 365 Cannabis.
54
Consulting Revenue
Consulting revenue includes revenue generated
from consulting services delivered to prospective and current cannabis, hemp and CBD businesses and business operators. Our consulting
revenue was $1.5 million for the year ended December 31, 2021 compared to $1.7 million for the year ended December 31, 2020, a decrease
of $0.2 million, or 13%. Consulting revenue was 7% and 13% of total revenue for 2021 and 2020, respectively. Due to the nature of consulting
revenue, our dependence on emerging market activity as well as the ongoing pandemic as a driver of demand, the percentage of consulting
revenue over total revenue has varied from period to period depending on whether state legislation has expanded to allow new market entrants
or growth of existing market participant operations.
Other Revenue
Other revenue includes retail/resale revenue,
which was generated from point-of-sale hardware. Other revenue was $0.2 million for the years ended December 31, 2021 and 2020 and was
approximately 1% of total revenue for the years ended December 31, 2021 and 2020.
Cost of Revenue
Cost of revenue increased to $8.1 million for
the year ended December 31, 2021 from $6.3 million for the year ended December 31, 2020, for an increase of $1.8 million, or 28%. Total
cost of revenue increased primarily as a result of our acquisitions of Ample, Viridian, and 365 Cannabis, the specific drivers being an
increase in hosting expenses by $1.6 million and fees for SAP and Microsoft licenses in the amount of $0.5 million. These increases from
acquisitions were partially offset by net savings of $0.6 million in Leaf Data Systems contractor costs during the year ended December
31, 2021 compared to the year ended December 31, 2020.
Gross Profit
Gross profit increased to $12.6 million for the
year ended December 31, 2021 from $7.5 million for the year ended December 31, 2020, for an increase of $5.0 million, or 67%. Gross margin
increased to 61% for the year ended December 31, 2021 from 54% for the year ended December 31, 2020. This improvement in gross margin
was primarily due to operating synergies realized from our acquired assets, our ongoing initiatives to drive operating effectiveness and
acquiring additional B2B customers, which have a higher gross margin.
Operating Expenses
Product Development
Product development expense increased to $6.3
million for the year ended December 31, 2021 from $5.1 million for the year ended December 31, 2020, for an increase of $1.2 million,
or 22%. Product development expense increased primarily due the acquisitions of Ample, Viridian, and 365 Cannabis which resulted in a
$1.4 million increase in salary-related expenses and a $0.3 million increase in stock compensation expense for the year ended December
31, 2021 compared to year ended December 31, 2020. These increases were partially offset by savings on contractor expenses in the amount
of $0.7 million.
Sales and Marketing
Sales and marketing expense increased to $9.1
million for the year ended December 31, 2021 from $8.1 million for the year ended December 31, 2020, for an increase of $1.0 million or
13%. The increase in sales and marketing expense is primarily related to the acquisitions of Ample, Viridian, and 365 Cannabis which resulted
in an increase of $1.0 million in salary-related expenses and a $0.1 million increase in stock compensation expense for the year ended
December 31, 2021 compared to year ended December 31, 2020. These increases were slightly offset by a reduction in external marketing
consulting costs as we moved more of our marketing initiatives in house.
55
General and Administrative
General and administrative expense decreased to
$10.4 million for the year ended December 31, 2021 from $11.0 million for the year ended December 31, 2020, for a decrease of $0.6 million,
or 5%. This decrease was primarily related to a reduction in acquisition-related expenses of $2.9 million, as we completed two acquisitions,
Viridian and 365 Cannabis, during the year ended December 31, 2021 compared to three acquisitions, Solo, Trellis, and Ample, during 2020.
There was also a decrease of $0.6 million in rental expenses related to the termination of our office spaces in Denver in December 2020
and Toronto in June 2021, a decrease in financing fees of $0.9 million, and a decrease of $0.3 million in salary-related expenses as a
direct result of cost-saving measures placed into service during 2020. Partially offsetting these decreases is a $1.9 million increase
in restructuring charges during 2021 attributable to a lease settlement agreement for relinquishing office space in Toronto and the related
write off of leasehold improvements associated with the lease termination, as well as an increase of $0.6 million for legal, audit, tax
and other professional service fees as our business has continued to grow. We also had a $2.0 million change in fair value of contingent
consideration during the year ended December 31, 2020 related to the 2020 acquisitions.
Depreciation and Amortization
Depreciation and amortization expense increased
to $5.7 million for the year ended December 31, 2021 from $3.2 million for the year ended December 31, 2020. The increase in amortization
expense is entirely related to the acquired intangible assets from our acquisitions completed in calendar year 2021 and 2020.
Impairment of long-lived assets
Due to a continued decline in market conditions
and declines in the operating results of our non-enterprise reporting unit, we recorded an impairment charge of $14.4 million during the
year ended December 31, 2021. During the year ended December 31, 2020, we recorded a $6.9 million impairment charges (see Note 6 - Goodwill
and Intangible Assets, Net to the audited consolidated financial statements for the year ended December 31, 2021 for further discussion
on the impairments recorded).
Results of Operations for the Six Months Ended
December 31, 2020 (audited) compared with the Six Months Ended December 31, 2019 (unaudited)
The following table highlights the various sources
of revenues and operating expenses for the six months ended December 31, 2020 as compared to the six months ended December 31, 2019:
Six Months Ended
December 31,
Change
2020
2019
(unaudited)
Period over
period
Revenue
Software
$
6,766,985
$
4,802,654
$
1,964,331
41
%
Consulting
916,099
1,556,363
(640,264
)
(41
)%
Other revenue
141,700
140,076
1,624
1
%
Total revenue
7,824,784
6,499,093
1,325,691
20
%
Cost of revenue
3,141,041
2,994,940
146,101
5
%
Gross profit
4,683,743
3,504,153
1,179,590
34
%
Operating Expenses
Product development
3,166,088
1,234,403
1,931,685
156
%
Sales and marketing
3,928,028
3,725,012
203,016
5
%
General and administrative
4,435,067
4,655,207
(220,140
)
(5
)%
Depreciation and amortization
2,007,237
104,667
1,902,570
nm
Impairment of long-lived assets
6,887,000
-
6,887,000
nm
Total operating expenses
20,423,420
9,719,289
10,704,131
nm
Loss from operations
$
(15,739,677
)
$
(6,215,136
)
$
(9,524,541
)
153
%
nm - percentage change not meaningful
56
Total Revenue
Total revenue increased to $7.8 million for the
six months ended December 31, 2020 from $6.5 million for the six months ended December 31, 2019, an increase of $1.3 million, or 20%.
The increase in total revenue was driven primarily by growth in our software business of $2.0 million, or 41% compared to the prior period.
The growth in software was offset by a decline in consulting revenue of $0.6 million, or 41%, primarily a result of government shut-down
related to COVID-19 as discussed below.
Software Revenue
Total software revenue increased to $6.8 million
for the six months ended December 31, 2020 from $4.8 million for the six months ended December 31, 2019, for an increase of $2.0 million,
or 41%. Total software revenue increased $2.8 million primarily as a result of the acquisition of Ample, Trellis and Solo, offset by a
decline in government revenue of $0.4 million, primarily as a result of these contracts maturing to a run-and-maintain mode, and a decline
in other software revenue of $0.4 million. Total software revenue accounted for 86% and 74% of total revenue for the six months ended
December 31, 2020, and 2019, respectively.
Consulting Revenue
Consulting revenue includes revenue generated
from consulting services delivered to prospective and current cannabis, hemp and CBD businesses and business operators. Our consulting
revenue was $0.9 million for the six months ended December 31, 2020 compared to $1.6 million for the six months ended December 31, 2019,
a decrease of $0.6 million, or 41%. This decrease is mainly due to the impact of COVID-19. Consulting services are also correlated to
state legalizations and other regulatory expansion activity. As a result, individual year-over-year comparisons may experience variability
depending on the timing of recent legislative changes. During the COVID-19 pandemic and resulting shut-down, state legislatures have turned
their focus to the pandemic and tabled work on cannabis legislation, which resulted in delays in our providing consulting services during
the six months ended December 31, 2020. However, many state ballot initiatives were passed in the November 2020 election that provides
for new medical or adult-use marijuana. We expect, despite the slowing of our consulting activity experienced during the pandemic, we
will see increased demand for our services following the November 2020 election. As a sign consulting revenue is starting to rebound from
the impacts of the COVID-19 pandemic, consulting revenue increased to $0.6 million for the three months ended December 31, 2020 from $0.3
million for the three months ended September 30, 2020, an increase of $0.3 million, or 100%.
Consulting revenue was 12% and 24% of total revenue
for the six months ended December 31, 2020 and 2019, respectively. Due to the nature of consulting revenue and our dependence on emerging
market activity as well as the ongoing pandemic as a driver of demand, the quarters in which we recognize consulting revenue has varied
from year to year depending on whether state legislation has expanded to allow new market entrants or growth of existing market participant
operations.
Other Revenue
Other revenue includes retail/resale revenue,
which was generated from point-of-sale hardware. Other revenue was $0.1 million for the six months ended December 31, 2020 and $0.1 million
for the six months ended December 31, 2019. Other revenue was 2.0% and 2% of total revenue for the six months ended December 31, 2020
and 2019.
57
Cost of Revenue
Cost of revenue increased to $3.1 million for
the six months ended December 31, 2020 from $3 million for the six months ended December 31, 2019, for an increase of $0.1 million, or
5%. Total cost of revenue increased $0.4 million as a result of the acquisition of Ample, Trellis and Solo, offset by a decline in professional
services costs of $0.3 million due to declining use of third-party consulting firms for our government solution as a result of these contracts
maturing to a run-and-maintain mode.
Gross Profit
Gross profit increased to $4.7 million for the
six months ended December 31, 2020 from $3.5 million for the six months ended December 31, 2019, for an increase of $1.2 million, or 34%.
Gross margin increased to 60% for the six months ended December 31, 2020 from 54% for the six months ended December 31, 2019. Total gross
profit increased $2.6 million as a result of the acquisition of Ample, Trellis and Solo, offset by the decline in consulting revenue of
$0.6 million, a decline government revenue of $0.4 million, primarily as a result of these contracts maturing to a run-and-maintain mode
and a decline in other software revenue of $0.4 million.
Operating Expenses
Product Development
Product development expense increased to $3.2
million for the six months ended December 31, 2020 from $1.2 million for the six months ended December 31, 2019, for an increase of $1.9
million, or 156%. The increase was due primarily to $1.3 million in employee-related costs from higher headcount and other operating cost
related to acquisitions. Stock compensation expense increased $0.4 million compared to the prior period. Software costs increased $0.3
million primarily a result of additional investment in information technology security and reporting tools and software hosting costs,
including data infrastructure.
Sales and Marketing
Sales and marketing expense increased to $3.9
million for the six months ended December 31, 2020 from $3.7 million for the six months ended December 31, 2019, for an increase of $0.2
million or 5%. Total sales and marketing expense increased $0.8 million as a result of the acquisition of Ample, Trellis and Solo, offset
by a decline other sales and marketing expense of $0.6 million primarily a result of decreased travel costs and a reduction in customer
event spend due primarily to cancelling all in-person customer activities and events as a result of the COVID-19 pandemic.
General and Administrative
General and administrative expense decreased to
$4.4 million for the six months ended December 31, 2020 from $4.7 million for the six months ended December 31, 2019, for a decrease of
$0.2 million, or 5%. Total general and administrative expense increased $0.6 million as a result of the acquisition of Ample, Trellis
and Solo. Bad debt expense decreased $0.6 million during the six months ended December 31, 2020, as compared to the six months ended December
31, 2019, due to our improvement in the overall quality of our revenue and client portfolio, and the enhancement of our sales and marketing
team which has resulted in a steady decline in the number and amount of delinquent accounts. We recorded a benefit of $1.0 million to
reflect the estimated fair value of contingent consideration paid for our acquisition of Trellis and Ample. During 2020, we vacated certain
leased offices in the U.S. following the dislocation of our workforce because of the COVID-19 pandemic. As a result, we recorded a restructuring
charge of $0.4 million, which was recorded in general and administrative expenses. Stock compensation expenses increased $0.3 million
for the six months ended December 31, 2020, as compared to the six months ended December 31, 2019
58
Depreciation and Amortization
Depreciation and amortization expense increased
to $2.0 million for the six months ended December 31, 2020 from $0.1 million for the six months ended December 31, 2019. Amortization
expense increased entirely as a result of acquired intangible assets from our acquisitions completed in calendar 2020.
Impairment of long-lived assets
As a result of delays in executing on strategic
initiatives related to acquisitions completed in calendar 2020 we recorded a $6.9 million impairment adjustment during the six months
ended December 31, 2020. There were no similar charges during the six months ended December 31, 2019. A goodwill impairment charge of
$4.2 million was recorded related to our Ample reporting unit and an intangible asset charge of $2.7 million was recorded for intangible
assets acquired from our Solo transaction (see Note 6 - Goodwill and Intangible Assets, Net to the audited consolidated financial statements
for the six months ended December 31, 2019 for further discussion on the impairments recorded).
Non-GAAP Financial Measures
In addition to our results determined in accordance
with GAAP, we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP
financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP
financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past
financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations
as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance
with GAAP.
Investors are cautioned that there are material
limitations associated with the use of non-GAAP financial measures as an analytical tool. Other companies, including companies in our
industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of
which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. We attempt to compensate for these
limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures.
Investors are encouraged to review the related
GAAP financial measures and the reconciliation of these non-GAAP financial measures with their most directly comparable GAAP financial
measures and not rely on any single financial measure to evaluate our business.
EBITDA and Adjusted EBITDA
We believe that EBITDA and Adjusted EBITDA, when
considered with the consolidated financial statements determined in accordance with GAAP, are helpful to investors in understanding our
performance and allows for comparison of our performance and credit strength to our peers. EBITDA and Adjusted EBITDA should not be considered
alternatives to net loss as determined in accordance with GAAP as indicators of our performance or liquidity.
We define EBITDA as net loss before interest income
and expense, changes in fair value of convertible notes, changes in fair value of derivative liabilities, provision for income taxes,
and depreciation and amortization. We calculate Adjusted EBITDA as EBITDA further adjusted to exclude the effects of the following items
for the reasons set forth below:
●
impairment of long-lived assets, as this is a non-cash, non-recurring item, which effects the comparability of results of operations and liquidity;
●
stock-based compensation expense, as this represents a non-cash charge and our mix of cash and share-based compensation may differ from other companies, which effects the comparability of results of operations and liquidity;
59
●
costs incurred in connection with business combinations and mergers that are required to be expensed as incurred in accordance with GAAP, because business combination and merger related costs are specific to the complexity and size of the underlying transactions as well as the frequency of our acquisition activity these costs are not reflective of our ongoing operations;
●
costs incurred in connection with non-recurring financing, including fees incurred as a direct result of electing the fair value option to account for our debt instruments;
●
restructuring charges, which include costs to terminate a lease and the related writeoff of leasehold improvements and furniture, as we believe these costs are not representative of operating performance;
●
gain on forgiveness of PPP loan, as this is a one-time forgiveness of debt that is not recurring across all periods and we believe inclusion of the gain is not representative of operating performance;
●
equity in losses of investees because our share of the operations of investees is not representative of our own operating performance and may not be monetized for a number of years;
●
and changes in the fair value of contingent consideration because these adjustments are not recurring across all periods and we believe these costs are not representative of operating performance.
●
other non-operating expenses which includes a one-time gain on debt extinguishment and one-time loss on disposal of fixed assets, which effects the comparability of results of operations and liquidity;
The reconciliation of net loss to EBITDA and Adjusted
EBITDA is as follows:
Year Ended December 31,
Six Months Ended
December 31,
2021
2020
2020
2019
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Net Loss
$
(31,328,711
)
$
(26,888,791
)
$
(16,219,296
)
$
(3,757,952
)
Interest expense (income)
1,531,497
161,646
193,084
(125,239
)
Change in fair value of convertible notes
1,365,904
195,273
961,273
-
Change in fair value of derivative liability
(248,198
)
(376,811
)
(746,852
)
(2,332,075
)
Income tax expense (benefit)
(2,262,225
)
31,185
200
104,667
Depreciation and amortization
5,735,150
3,223,844
2,007,237
-
EBITDA
$
(25,206,583
)
$
(23,653,654
)
$
(13,804,354
)
$
(6,110,599
)
Impairment of long-lived assets
14,383,310
6,887,000
6,887,000
-
Stock-based compensation expense
1,967,817
1,871,069
1,197,589
492,650
Business combination and merger related costs
449,940
3,339,864
1,094,503
733,867
Non-recurring financing fees
458,691
1,316,984
139,594
-
Restructuring charges
2,419,908
490,146
490,146
-
Changes in fair value of contingent consideration
-
(1,991,000
)
(993,000
)
-
Gain on forgiveness of PPP loan
(2,234,730
)
-
-
-
Equity in losses of investee
7,564
16,335
12,643
-
Other non-operating expense (income)
(186,177
)
59,397
59,271
130
Adjusted EBITDA
$
(7,940,260
)
$
(11,663,859
)
$
(4,916,608
)
$
(4,883,952
)
60
Three Months Ended
March 31,
2022
2021
Net loss
$
(21,952,893
)
$
(6,457,703
)
Adjustments:
Interest expense (income)
740
774,380
Change in fair value of convertible notes
1,433,000
1,991,272
Change in fair value of derivative liability
(18,051
)
175,996
Income tax expense
(99,444
)
6,270
Depreciation and amortization
1,993,391
1,052,883
EBITDA
$
(18,643,257
)
$
(2,456,902
)
Impairment of long-lived assets
15,478,521
-
Stock-based compensation expense
312,925
503,379
Business combination and merger related costs (income)
(637
)
43,991
Non-recurring financing fees
27,954
17,884
Restructuring charges
564,234
47,187
Equity in losses of investee
-
3,782
Adjusted EBITDA
$
(2,260,260
)
$
(1,840,679
)
Going Concern and Management's Liquidity
Plans
In accordance with the Financial Accounting Standards
Board's ("FASB") standard on going concern, Accounting Standard Update, or ASU No. 2014-15, The Company assesses going
concern uncertainty in its consolidated financial statements to determine if it has sufficient cash, cash equivalents and working capital
on hand, including marketable equity securities, and any available borrowings on loans, to operate for a period of at least one year from
the date the consolidated financial statements are issued, which is referred to as the "look-forward period" as defined by
ASU No. 2014-15. As part of this assessment, based on conditions that are known and reasonably knowable to The Company, it will consider
various scenarios, forecasts, projections, estimates and will make certain key assumptions, including the timing and nature of projected
cash expenditures or programs, and its ability to delay or curtail expenditures or programs, if necessary, among other factors. Based
on this assessment, as necessary or applicable, The Company makes certain assumptions around implementing curtailments or delays in the
nature and timing of programs and expenditures to the extent The Company deems probable those implementations can be achieved and it has
the proper authority to execute them within the look-forward period in accordance with ASU No. 2014-15.
The accompanying consolidated financial statements
have been prepared on the basis that we will continue as a going concern, which contemplates realization of assets and the satisfaction
of liabilities in the normal course of business. However, since our inception we have incurred recurring operating losses, used cash from
operations, and relied on capital raising transactions to continue ongoing operations. During the year ended December 31, 2021, six
months ended December 31, 2020, and year ended June 30, 2020, we incurred a loss from operations of $33.4 million, $15.7 million,
and $17.3 million, respectively, and used cash in operations of $8.2 million, $8.7 million, and $14.3 million, respectively. At December
31, 2021, the Company had a working capital deficit of $10.9 million with $13.9 million in cash available to fund future operations.
During the three months ended March 31, 2022 and March 31, 2021, we incurred a loss from operations of $20.6 million and $3.5 million,
respectively, and used cash in operations of $3.6 million and $1.4 million, respectively. As of March 31, 2022, a working capital deficit
of $15.1 million with $9.7 million in cash available to fund future operations. These factors raise substantial doubt, as defined by GAAP,
about the ability of the Company to continue to operate as a going concern for the twelve months following the issuance of these
consolidated financial statements. These consolidated financial statements do not include any adjustments related to the recoverability
and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to
continue as a going concern.
61
On July 23, 2021, we entered into an Equity Distribution
Agreement with Oppenheimer & Co. Inc. and A.G.P./Alliance Global Partners ("ATM Program"). Pursuant to the terms of
the ATM Program, we may offer and sell from time to time, up to $25 million of shares of our common stock. As of December 31, 2021,
we have raised gross proceeds of $1.9 million through the issuance of 556,388 shares through the ATM program. While no
assurance can be provided that we will be able to raise further capital under the program, we intend to use the net proceeds from the
sale of our shares of common stock, if any, for general corporate purposes, including working capital, marketing, product development,
capital expenditures and merger and acquisition activities.
On October 5, 2021, we entered into a securities
purchase agreement with the two institutional investors that held the Company's convertible notes issued in June of 2020 (the
"2020 Notes") to sell senior secured notes in a private placement (the "Senior Convertible Notes"). The Senior
Convertible Notes have an aggregate principal amount of $20 million, an aggregate original issue discount of 10%, and rank senior
to all our other outstanding and future indebtedness. Approximately $3.3 million of the proceeds from the Senior Convertible Notes
were used to payoff the 2020 Notes, which were then to be cancelled. The net proceeds from the issuance of the Senior Convertible
Notes was approximately $14.6 million, following the original issue discount and deductions for expenses and paydown of
the 2020 Notes. These net proceeds will be used to support Akerna's ongoing growth initiatives and continued investment
in current and future technology infrastructure. The Senior Convertible Notes are convertible into shares of common stock of Akerna at
a conversion price of $4.05 per share. The Senior Convertible Notes mature on October 5, 2024 and are to be repaid in monthly
installments beginning on January 1, 2022. The Senior Convertible Notes can be repaid in common shares or cash.
Management's plan for the Company to continue
as a going concern includes raising additional capital from our ATM program, subject to certain effects on the Senior Convertible Notes
should we utilize the program, including resetting the conversion price of the Senior Convertible Notes should we raise more than $5 million
under the ATM program and an increase of 10% in the amount payable on the monthly installment payments if they are paid in cash and we
have used the ATM program in the 12 months prior to the installment date, settling our contingent consideration and Senior Convertible
Notes in common stock rather than cash as it comes due, to the extent that this is permissible, and implementing certain cost cutting
strategies throughout the organization, while continuing to seek to grow our customer base and realize synergies as we continue to integrate
our recent acquisitions. If the Company is unable to raise sufficient additional funds through the ATM Program and make it's convertible
debt payments in stock, it will have to develop and implement a plan to extend payables, reduce expenditures (including by laying off
employees and reducing or eliminating the funding of certain business units and initiatives of the Company), or scale back our business
plan until sufficient additional capital is raised through other equity or debt offerings to support further operations and satisfaction
of the debt, and the Company may be subject to additional risks, including retention of key employees. Such offerings may include the
issuance of shares of common stock, warrants to purchase common stock, preferred stock, convertible debt or other instruments that may
dilute our current stockholders. If we are required to raise additional capital as discussed above and if we cannot timely raise additional
funds, we may also be unable to meet the financial covenants of the Senior Convertible Notes, which could result in an event of default
under those instruments which could negatively impact the Company. See the risks detailed in our Form 10-K under "Item 1A. Risk
Factors - Risks Relating to our Convertible Debt".
The ability of the Company to continue as a going
concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure
other sources of financing and attain profitable operations. We will require additional financing in the second quarter of 2022 to meet
our ongoing operational working capital requirements and continue to meet the financial covenants of the Senior Convertible Notes. As
noted above, we plan to meet those requirements in part through the use of our ATM Facility, but there are no guarantees that the ATM
Facility will permit us to raise sufficient cash to meet our ongoing requirements. We also assume that we will be able to pay our convertible
debt in common stock rather than cash, however if at any point our stock price is below $2.00 (which it is as of the date hereof), the
debt holders may request the payments in cash rather than stock. These factors raise substantial doubt about the Company's ability
to continue as a going concern for one year from the issuance of the consolidated financial statements. If we are unable to raise sufficient
capital we may have to reduce operations which could significantly affect our results of operations. If we fail to meet the financial
covenants of the Senior Convertible Notes and cannot obtain a waiver from such provisions or otherwise come to an agreement with the holders
of our debt, such holders may declare a default on the debt which could subject our assets to seizure and sale, negatively impacting our
business. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification
of assets and liabilities that might be necessary if the Company is unable to continue as a going concern.
62
Our corporate liquidity requirements primarily
include payroll costs and corporate general and administrative expenses and our current sources of corporate liquidity include the cash
on hand from our Senior Convertible Notes as well as the proceeds we anticipate from the access to our ATM Program.
Cash Flows
Our cash and restricted cash balance was $14.4
million and $18.3 million as of December 31, 2021 and 2020, respectively. Cash flow information are as follows:
Year ended
December 31,
2021
Six months
ended
December 31,
2020
Cash provided by (used in):
Operating activities
$
(8,167,904
)
$
(8,705,738
)
Investing activities
(10,485,085
)
(7,139,047
)
Financing activities
14,736,252
9,532,380
Effect of change in exchange rates on cash and restricted cash
18,623
(2,783
)
Net decrease in cash and restricted cash
$
(3,898,114
)
$
(6,315,188
)
Our cash and restricted cash balance was $10.2
million as of March 31, 2022. Cash flow information is as follows:
Three Months Ended
March 31,
2022
2021
Cash (used in) provided by:
Operating activities
$
(3,585,394
)
$
(1,373,818
)
Investing activities
(647,022
)
(704,637
)
Financing activities
(5,615
)
(333,847
)
Effect of change in exchange rates on cash and restricted cash
(8,544
)
(1,579
)
Net decrease in cash and restricted cash
$
(4,246,575
)
$
(2,413,881
)
Operating Activities
Our largest source of operating cash is cash collections
from our customers for subscriptions to our products. Our primary uses of cash in operating activities are for employee-related expenditures,
marketing expenses and third-party hosting costs. Net cash used in operating activities is impacted by our net loss adjusted for certain
non-cash items, including depreciation and amortization expenses, change in fair value of convertible notes and derivative liabilities,
stock-based compensation, deferred income taxes, as well as the effect of changes in operating assets and liabilities.
Net cash used in operating activities totaled
$8.2 million during the year ended December 31, 2021 and $8.7 million during the six months ended December 31, 2020. For the year ended
December 31, 2021, cash was consumed from operations by a net loss of $31.3 million, less non-cash items of $24.0 million and a net change
in assets and liabilities of $0.8 million. For the six months ended December 31, 2020, cash was consumed from operations by a net loss
of $16.2 million, less non-cash items of $9.7 million and a net change in assets and liabilities of $2.2 million.
63
Net cash used in operating activities increased
to $3.6 million during the three months ended March 31, 2022, from $1.4 million during the three months ended March 31,
2021, an increase of $2.2 million. For the three months ended March 31, 2022, cash was consumed from operations by a net
loss of $22.0 million, less non-cash items of $19.5 million and a net change in assets and liabilities of $1.1 million. For the three
months ended March 31, 2021, cash was consumed from operations by a net loss of $6.5 million, less non-cash items of $4.6 million and
a net change in assets and liabilities of $0.5 million.
Investing Activities
Our primary investing activities have consisted
of capitalization of internal-use software necessary to deliver significant new features and functionality in our platform which provides
value to our customers. As our business grows, we expect our capital expenditures to continue to increase. Other investing activities
include cash outflows related to purchases of property and equipment, and from time-to-time, the cash paid for asset and business acquisitions.
Net cash used in investing activities totaled
$10.5 million during the year ended December 31, 2021, as a result of net cash paid as consideration for the 365 Cannabis acquisition
and amounts invested in the development of our software products. Net cash used by investing activities during the six months ended December
31, 2020 was $7.1 million as a result of amounts invested in the development of our software products and the net cash paid as consideration
for the acquisition of Ample.
Net cash used in investing activities totaled
$0.6 million during the three months ended March 31, 2022, as a result of cash outflows for the development of our software products.
Net cash used by investing activities during the three months ended March 31, 2021, was $0.7 million which was also related to our software
development.
Financing Activities
Our financing activities have consisted primarily
of proceeds from issuance of our common stock, issuances of convertible debt and proceeds from the exercise of warrants.
Net cash provided by financing activities totaled
$14.7 million during the year ended December 31, 2021 and represents cash proceeds of $18.0 million from the issuance of convertible debt
in October 2021, proceeds from our ATM program in the amount of $1.8 million partially offset by the value of shares withhold for tax
withholdings and payments on our convertible debt in the amount of $0.5 million and $4.6 million, respectively. Net cash provided by financing
activities was $9.5 million for the six months ended December 31, 2020, of which $12 million was related to the common stock offering
that closed on October 30, 2020, partially offset by $1.5 million in payments on our financing obligations and $1.0 million of offering
costs from issuing common stock.
Net cash used in financing activities totaled
less than $0.1 million during the three months ended March 31, 2022 and $0.3 million for the three months ended March 31, 2021. During
both periods the cash used in financing activities was related to the value of shares withhold for tax withholdings.
ATM Program
On July 23, 2021, we entered into an Equity Distribution
Agreement with Oppenheimer & Co. Inc. and A.G.P./Alliance Global Partners (the "ATM Program"). Pursuant to the terms of
the Agreement, we may offer and sell from time to time, up to $25 million of shares of our common stock. As of December 31, 2021, we have
raised gross proceeds of $1.9 million through the issuance of 556,388 shares through the ATM program.
64
Senior Secured Convertible Notes Issuance
On October 5, 2021, we entered into a Securities
Purchase Agreement ("SPA") with the two institutional investors that held the Company's convertible notes issued on June 8,
2020 (the "2020 Notes") to sell a new series of senior secured notes in a private placement (the "Senior Convertible Notes").
The Senior Convertible Notes have an aggregate principal amount of $20,000,000, an aggregate original issue discount of 10%, and rank
senior to all our other outstanding and future indebtedness. Approximately $3.3 million of the proceeds from the Senior Convertible Notes
were used to payoff the 2020 Notes, which were then to be cancelled. The net proceeds from the issuance of the Senior Convertible Notes
was approximately $14.6 million, following the original issue discount and deductions for expenses and paydown of the 2020 Notes. These
net proceeds will be used to support Akerna's ongoing growth initiatives and continued investment in current and future technology infrastructure.
The Senior Convertible Notes are convertible into shares of common stock of Akerna at a conversion price of $4.05 per share. The Senior
Convertible Notes can be repaid in common shares or cash.
Maturity and Repayment Dates
The Senior Convertible Notes mature on October
5, 2024, or the Maturity Date. The principal amount is payable in monthly installments beginning on January 1, 2022. Unless deferred by
the holder, on installment dates from January 1, 2022 through, and including, June 1, 2023, $1.1 million in principal amount will be payable
and on installment date July 1, 2023, $0.2 million in principal amount will be payable. With respect to installment dates from August
1, 2023 through and including the maturity date of October 5, 2024, any deferred payments from prior installment dates will be payable.
We may not prepay any portion of the principal amount nor interest, if any.
Interest
The Senior Convertible Notes are being sold with
an original issue discount and do not bear interest except upon the occurrence of an Event of Default (described below), in which event
the applicable rate will be 15.0% per annum.
Conversion
The Senior Convertible Notes are convertible at
any time in whole or in part, at the option of the Note Holders, into shares of the common stock at a rate equal to the amount of principal,
interest (if any) and unpaid late charges (if any), divided by a conversion price of $4.05, or the Conversion Price. The Conversion Price
is subject to standard adjustments in the event of any stock split, stock dividend, stock combination, recapitalization or other similar
transaction.
In connection with the occurrence of Events of
Default, the Note Holders will be entitled to convert all or any portion of the Senior Convertible Notes at an alternate conversion price
equal to the lower of (i) the conversion price then in effect, and (ii) 80% of the lower of (x) the volume-weighted average price, or
VWAP, of the common stock as of the trading day immediately preceding the applicable date of determination and (y) the quotient of (A)
the sum of the VWAP of the common stock for each of the two trading days with the lowest VWAP of the common stock during the ten consecutive
trading day period ending on and including the trading day immediately prior to the applicable date of determination, divided by (B) two,
but not less than the floor price of $0.54.
Events of Default
The Senior Convertible Notes are subject to certain
customary events of default, see Item 1A. "Risk Factors - Risks Related to our Convertible Debt" for a short discussion of
events of default under the Senior Convertible Notes.
Contractual Obligations
For information concerning our contingent consideration,
convertible debt, and operating lease obligations, see Notes 4, 6, and 7, respectively, to our unaudited condensed consolidated financial
statements for the period ended March 31, 2022, which appear below.
Off-Balance Sheet Arrangements
None.
65
Critical Accounting Policies and Significant
Judgments and Estimates
Our consolidated financial statements and the
related notes included in this prospectus are prepared in accordance with GAAP. The preparation of these consolidated financial statements
requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, and
related disclosures. To the extent that there are material differences between these estimates and actual results, our financial condition
or results of operations would be affected. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on
historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our actual results could
differ from these estimates.
Critical accounting policies and estimates are
those that we consider critical to understanding our historical and future performance, as these policies relate to the more significant
areas involving management's judgments and estimates.
Revenue Recognition
We generate revenue through the sale of our cloud-based
software and the delivery of consulting services. Revenues are recognized when control of these services is transferred to our customers
in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition
through the following steps:
●
Identification of the contract, or contracts, with a customer
●
Identification of the performance obligations in the contract
●
Determination of the transaction price
●
Allocation of the transaction price to the performance obligations
in the contract
●
Recognition of revenue when, or as, we satisfy a performance
obligation
We recognize subscription on a ratable basis over
the contract term beginning on the date that our service is made available to the customer. Our subscription contracts range from twelve
months to thirty-six months in duration, are billed in advance and are non-cancelable. We consider the access to our platform and related
support services in a customer contract to be a series of distinct services which comprise a single performance obligation because they
are substantially the same and have the same pattern of transfer. Amounts that have been invoiced are recorded in accounts receivable
and in deferred revenue or revenue, depending on whether transfer of control to customers has occurred. We record contract liabilities
to deferred revenue when cash payments are received or due. Deferred revenue consists of the unearned portion of customer billings.
Consulting revenue contracts have an initial set
of proprietary deliverables that are provided to clients upfront, which is considered a separate performance obligation. As such, 30%
of the contract value is recognized upfront when deliverables are provided, with the remaining recognized over the life of the contract
as the consulting services are performed.
Capitalized Software Development Costs
We capitalize software development costs incurred
to develop functionality for our commercial software platforms and government regulatory software platform, as well as certain upgrades
and enhancements that are expected to result in enhanced functionality. These costs include personnel and related expenses for employees,
costs of third-party contractors and other services directly associated with the development projects. We capitalize certain software
development costs for new offerings as well as upgrades to our existing software platforms. We amortize these development costs over the
estimated useful life of two to five years on a straight-line basis. We believe there are two key estimates within the capitalized software
balance, which are the determination of the amounts to be capitalized and the determination of the useful life of the software.
We determine the amount of software development
costs to be capitalized based on the amount of time spent by our developers on projects in the application stage of development. Costs
associated with building or significantly enhancing our commercial software platform and our government regulatory platform are capitalized,
while costs associated with planning new developments and maintaining our software platforms are expensed as incurred. There is judgment
involved in estimating the time allocated to a particular project in the application stage as well as the determination of whether the
project is an enhancement to the existing software or maintenance thereof. A significant change in the time spent on each project or the
determination of the nature of projects involving existing software platforms could have a material impact on the amount capitalized and
related amortization expense in subsequent periods.
66
We determined that a two-to-five-year life is
appropriate for our capitalized software based on our best estimate of the useful life of the software after considering factors such
as continuous developments in the technology, obsolescence and anticipated life of the service offering before significant upgrades. Based
on our prior experience, software will generally remain in use for a minimum of two to five years before being significantly replaced
or modified to keep up with evolving client needs. While we do not anticipate any significant changes to this two-to-five-year estimate,
a change in this estimate could produce a material impact on our consolidated financial statements. For example, if we received information
that indicated the useful life of all software was one year rather than two to five, our capitalized software balance would materially
decrease, and our expense would materially increase.
Stock-Based Compensation
Stock-based compensation for all employee and
non-employee stock-based awards, including restricted stock units and restricted stock, is measured at fair value on the date of grant
and recognized over the service period. The fair value of restricted stock units and restricted stock are calculated based on the fair
value of our common stock on the date of grant.
Stock-based compensation expense is recognized
over the requisite service periods of awards, which is typically one to four years for restricted stock units and restricted stock. The
estimated forfeiture rate applied to employee awards is based on historical forfeiture rates. The estimated number of stock-based awards
that will ultimately vest requires judgment, and to the extent actual results, or updated estimates, differ from our current estimates,
such amounts will be recorded as a cumulative adjustment in the period actual results are realized or estimates are revised. A higher
forfeiture rate will result in an adjustment that will decrease stock-based compensation expense, whereas a lower forfeiture rate will
result in an adjustment that will increase stock-based compensation expense. We do not apply a forfeiture rate assumption to value non-employee
awards, given the nature of the services provided.
Business Combinations
We account for business acquisitions using the
purchase method of accounting, in accordance with which assets acquired and liabilities assumed are recorded at their respective fair
values at the acquisition date. Goodwill represents the excess of the purchase price over the estimated fair values of the assets acquired
and liabilities assumed.
Significant judgment is used in determining fair
values of assets acquired and liabilities assumed, as well as intangible assets and their estimated useful lives. Fair value and useful
life determinations are based on, among other factors, estimates of future expected cash flows attributable to the acquired intangible
assets and appropriate discount rates used in computing present values. Management applied significant judgement in estimating the fair
value of the acquired developed technology intangible asset, which involved significant estimates and assumptions with respect to forecasted
revenue growth rates, the revenue attributable to the acquired intangible asset over its estimated economic life and the discount rate.
These judgments may materially impact the estimates used in allocating the purchase price consideration to the fair value of assets acquired
and liabilities assumed, as well as our current and future operating results. Actual results may vary from these estimates that may result
in adjustments to goodwill and acquisition date fair values of assets and liabilities during a measurement period or upon a final determination
of asset and liability fair values, whichever occurs first. Adjustments to the fair value of assets acquired and liabilities assumed made
after the end of the measurement period are recorded within our operating results.
Contingent Consideration Liabilities
ASC 805 requires that contingent consideration
be estimated and recorded at fair value as of the acquisition date as part of the total consideration transferred. Contingent consideration
is an obligation of the acquirer to transfer additional assets or equity interests to the selling shareholders in the future if certain
future events occur or conditions are met, such as the attainment of product development milestones. Contingent consideration also includes
additional future payments to selling shareholders based on achievement of components of earnings, such as "earn-out" provisions
or percentage of future revenues, including royalties paid to the selling shareholders based on a percentage of revenues generated from
CHI and Sera Labs over the contractual period.
67
The fair value of milestone-based contingent consideration
was determined using a scenario analysis valuation method which incorporates our assumptions with respect to the likelihood of achievement
of revenue and gross margin percentage milestones, as defined in the Sera Labs Merger Agreement, credit risk, timing of the contingent
consideration payments and a risk-adjusted discount rate to estimate the present value of the expected payments, all of which require
significant management judgment and assumptions. Since the contingent consideration payments are based on nonfinancial, binary events,
management believes the use of the scenario analysis method is appropriate.
The fair value of all contingent consideration
after the Sera Labs Merger Date is reassessed by us as changes in circumstances and conditions occur, with the subsequent change in fair
value recorded in our consolidated statements of operations. Changes in key assumptions can materially affect the estimated fair value
of contingent consideration liabilities and, accordingly, the resulting gain or loss that we record in our consolidated financial statements.
See Note 17 to our consolidated financial statements included elsewhere in this Report.
Impairment of Goodwill and Acquired Intangible
Assets
Goodwill is not amortized but rather tested for
impairment at least annually, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Goodwill
impairment is recognized when the carrying value of goodwill exceeds our implied fair value. Goodwill is evaluated for impairment annually
on October 31, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable.
Acquisition intangible assets consist primarily
of technology, customer relationships and trade names. Purchased intangible assets are recorded at fair value on the date of acquisition
and amortized over their estimated useful lives following the pattern in which the economic benefits of the assets will be consumed, generally
straight-line. We continually evaluate whether events and circumstances have occurred that indicate the remaining estimated useful life
of amortizable long-lived assets may warrant revision or that the remaining balance may not be recoverable. When factors indicate that
acquisition intangible assets should be evaluated for possible impairment, we use an estimate of the related undiscounted future cash
flows over the remaining life of the amortizable long-lived assets in measuring whether they are recoverable. if the estimated undiscounted
future cash flows do not exceed the carrying value of the asset, a loss is recorded as the excess of the asset's carrying value
over its fair value.
Determining if an impairment triggering event
has occurred (which may include, but is not limited to, a significant adverse change in customer demand or business climate or a significant
decrease in expected cash flows) requires significant management judgement.
Senior Convertible Notes
We determined at the issuance of our Senior Convertible
Notes to elect the fair value option. At issuance, the carrying value of the Senior Convertible Notes was recorded at estimated fair value
calculated using probability weighted valuations of various settlement scenarios. The valuations of the various settlement outcomes were
calculated using Monte Carlo simulation models and discounted cash flow models. We remeasure the Senior Convertible Notes to estimated
fair value on each reporting period using valuation techniques similar to those applied at issuance. The change in the fair value resulting
from changes in instrument specific credit risk is recognized as other comprehensive income with the remainder of the change recognized
in current earnings. We believe key estimates used in accounting for the Senior Convertible Notes are the fair value at the reporting
period end as well as the determination of the portion of the change resulting from instrument specific credit risk, including assumptions
regarding the probability of various outcomes and the volatility of Akerna's common stock. A significant change in the probability weighting
or the volatility could have a material impact to the carrying value of the Senior Convertible Notes as well as the amount of change recognized
during the period in earnings.
68
Income Taxes
Income taxes are accounted for using the asset
and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of
temporary differences between the carrying amounts and the tax basis of other assets and liabilities. We provide for income taxes at the
current and future enacted tax rates and laws applicable in each taxing jurisdiction. We use a two-step approach for recognizing and measuring
tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. We recognize
interest and penalties related to income tax matters in selling, general and administrative expenses in the consolidated statement of
operations.
We recognize deferred tax assets to the extent
that its assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative
evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies,
and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of
its net recorded amount, we will make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for
income taxes.
Going Concern Assessment
With the implementation of FASB's standard
on going concern, ASU No. 2014-15, we assess going concern uncertainty in our consolidated financial statements to determine if we have
sufficient cash and cash equivalents on hand and working capital, including available loans or lines of credit, if any, to operate for
a period of at least one year from the date our consolidated financial statements are issued, which is referred to as the "look-forward
period" as defined by ASU No. 2014-15. As part of this assessment, based on conditions that are known and reasonably knowable to
us, we consider various scenarios, forecasts, projections, and estimates, and we make certain key assumptions, including the timing and
nature of projected cash expenditures or programs, and our ability to delay or curtail those expenditures or programs, if necessary, among
other factors. Based on this assessment, as necessary or applicable, we make certain assumptions around implementing curtailments or delays
in the nature and timing of programs and expenditures to the extent we deem probable those implementations can be achieved and we have
the proper authority to execute them within the look-forward period in accordance with ASU No. 2014-15.
Recent Accounting Pronouncements
Please refer to Note 2 - "Summary of Significant
Accounting Policies" to the consolidated financial statements for our discussion about new accounting pronouncements adopted and
those pending.
69
DIRECTORS AND EXECUTIVE OFFICERS
Directors and Executive Officers
Name
Age
Position
Jessica Billingsley
44
Chairman of the Board and Chief Executive Officer
(3)
Scott Sozio
42
Director
(2)
Matthew R. Kane
41
Director
(1)
Tahira Rehmatullah
40
Director
(1)
Barry Fishman
64
Director
(3)
Larry Dean Ditto, Jr.
56
Interim Chief Financial Officer
Ray Thompson
52
Special Advisor to the Chief Executive Officer
David McCullough
45
Chief Technology Officer
(1)
Class I director.
(2)
Class II director.
(3)
Class III director.
Jessica Billingsley
has served as Chief
Executive Officer and director since the consummation of our Business Combination on June 17, 2019, and Chairman of the Board since July
2019. Ms. Billingsley co-founded MJF, our wholly-owned subsidiary, in 2010 and served as President of MJF from 2010 to April 2018 and
Chief Executive Officer since May 2018. An early investor in one of Colorado's first legal medical cannabis businesses, Ms. Billingsley
created the category of cannabis seed-to-sale technology after seeing the need first-hand. Prior to MJF, Ms. Billingsley was the founder
and chief executive officer of Zoco, a technology services firm with clients across the United States. Ms. Billingsley has 20 years of
technology and systems experience with rapidly scaling businesses, and founded her first business at the age of 22. Ms. Billingsley served
on the board of the National Cannabis Industry Association from 2012 – 2019 and currently serves as Chair of the Board of the United
States Cannabis Council. Ms. Billingsley was named one of Fortune's 10 most promising women entrepreneurs in 2015 and named one
of Inc. Magazine's 100 Female Founders in 2018. Ms. Billingsley holds a dual degree from the University of Georgia in Computer Science
and Communications. Ms. Billingsley was selected to serve on our Board based on her extensive experience with technology and systems companies,
broad experience in the telecommunications industry, and her background as an entrepreneur.
Scott Sozio
has served as a director since
October 2018, prior to the consummation of our merger on June 17, 2019. From October 2018 until the consummation of the merger on June
17, 2019, Mr. Sozio served as President and Secretary of Akerna. From September 2017 and until the merger in June 2019, Mr. Sozio served
as the chief executive officer and a director of MTech Acquisition Corp. Since July 2019, Mr. Sozio has served as Head of Corporate Development.,
Mr. Sozio is the co-founder of Hypur Ventures and since June 2016, has served as its managing director. Since April 2015, Mr. Sozio has
served as a director of Hypur Inc., a financial technology firm focused on banking compliance. Since September 2016, Mr. Sozio has served
as a director of Simplifya Holdings, LLC, a cannabis compliance technology business, both portfolio companies of Hypur Ventures. Since
February 2013, Mr. Sozio has served as a partner in Van Dyke Holdings, where he is responsible for its private investment portfolio. Prior
to joining Van Dyke Holdings, Mr. Sozio was a vice president of Bay Harbour Management L.C., a distressed-debt focused hedge fund. He
joined Bay Harbour in 2004 after working in the Financial Restructuring Advisory Group at CIBC World Markets. Mr. Sozio is the former
Chairman of Island One, Inc., a timeshare company based in Florida (from 2011 to 2012), and acquired by Diamond Resorts as part of Diamond's
initial public offering, and a former director of Great Destinations, Inc., a timeshare sales business based in California (from 2013
to 2016), and acquired by Interval International in 2016. Mr. Sozio holds a B.A. in Architecture from Columbia University. Mr. Sozio was
selected to serve on our Board based on his extensive experience in finance and investment management and his broad experience with working
with cannabis companies.
Matthew R. Kane
has served as a director
since the consummation of our merger on June 17, 2019. Since December 2015, Mr. Kane has served as a director or MJF. In 2002, Mr. Kane
co-founded and served as co-chief executive officer of Green Shades Software, Inc., a human resources, payroll and tax reporting software
company, until 2019 where he has since served as a board member. Additionally, Mr. Kane has served as chief executive officer of Welltality,
a health care technology start-up, from 2014 to 2018, where he has since served as a board member. He received his bachelor's degree
in Computer Information Systems from Jacksonville University in 2001, an MBA from the Warrington College of Business at the University
of Florida in 2006, and a Masters in Information and Data Service at the University of California, Berkeley in 2020. He previously served
for 11 years on the board of Jacksonville University from 2007 to May 2018 and was reappointed in 2019. Mr. Kane was selected to serve
on our Board based on his extensive experience in in the software technology applications industry.
70
Tahira Rehmatullah
has served as a director
since consummation of our merger on June 17, 2019. Since October 2018, prior to the merger and until consummation of the merger in June
2019, Ms. Rehmatullah served as Vice President and Treasurer. Since 2016, Ms. Rehmatullah has been president of T3 Ventures, a strategy
and management consulting firm. From September 2017 to June 2019, Ms. Rehmatullah was the chief financial officer of MTech Acquisitions
Inc. From 2016 to 2019, Ms. Rehmatullah was a managing director of Hypur Ventures, where she was responsible for portfolio company management
as well as investment sourcing and execution. From June 2017 to June 2018, Ms. Rehmatullah served as a director of Dope Media, a cannabis
media company and portfolio company of Hypur Ventures. Prior to joining Hypur Ventures, from 2014 to 2016 Ms. Rehmatullah served as the
general manager of Marley Natural, a cannabis brand based on the life and legacy of Bob Marley, where she was responsible for the brand
launch as well as managing its day-to-day operations. From 2014 to 2016, Ms. Rehmatullah served as an investment manager at Privateer
Holdings, a private equity firm with investments in the legal cannabis industry. Prior to her activities in the cannabis industry, from
2011 to 2012, Ms. Rehmatullah was a portfolio manager at City First Enterprises where she was responsible for underwriting, structuring
and managing deals for their community development and investment portfolio. From 2007 to 2011, Ms. Rehmatullah was an associate at Perry
Capital where she led research initiatives for the asset-backed securities team. Her career began in Ernst & Young's Financial
Services Advisory practice in 2005. Ms. Rehmatullah holds an M.B.A. from the Yale School of Management and a B.S. in Finance and
minor in Life Sciences from The Ohio State University. Ms. Rehmatullah was selected to serve on our Board based on her extensive experience
in finance and investment management and her broad experience working with cannabis companies.
Barry Fishman
has served as a director
since he was elected to the Board at the 2021 Annual Meeting of the Stockholders on June 7, 2021. Over the past two decades, Barry has
been the Chief Executive Officer of four life science companies (two listed on the Toronto Stock Exchange), including VIVO Cannabis from
2017-2020, Merus Labs International from 2014-2017, Teva Canada from 2003-2012 and Taro Canada from 2000-2003. From 1979-1982, Mr. Fishman
was a Senior Associate at Deloitte. Mr. Fishman has also served as a director of five public and three not-for-profit organizations. In
2015, Barry was inaugurated into the Canadian Healthcare Marketing Hall of Fame for his contributions to healthcare and exemplary service
to the community. Mr. Fishman is a Certified Public Accountant. Mr. Fishman holds a Bachelor degree in Communications from McGill University.
Mr. Fishman was selected to serve on our Board based on his extensive public company experience as both a Chief Executive Officer and
a director and based on his being a Certified Public Accountant who can provide better guidance on accounting issues and review on the
Company's audit committee.
Larry Dean Ditto, Jr.
was appointed as
Interim Chief Financial Officer of Akerna effective May 17, 2022, and he has served as accounting and financial consultant for Akerna
since April 21, 2022. Mr. Ditto is the Chief Financial Officer ("CFO") of Mydecine Innovations Group, Inc ("Mydecine"),
where he has served as CFO since December 2020 and will continue to serve as CFO concurrent to his service as the Company's Interim
CFO. Prior to his service at Mydecine, Mr. Ditto served Sigue Corporation from June 2019 through December 2020. He was the company's
CFO and, following his CFO tenure, also supported the company as a Financial Consultant. He served as the Vice President and Corporate
Controller of OSI Systems, Inc. from April 2018 through June 2019 and the CFO of DLH Davinci LLC (Dental Lab Holdings) from January 2016
through April 2018. Mr. Ditto holds a Bachelor of Arts in Economics and Management from Albion College and holds a Master of Business
Administration from the Kelley School of Business at Indiana University.
Ray Thompson
was appointed Special Advisor
to the Chief Executive Officer in May 2022, and he served as President and Chief Operating Officer of Akerna from January 2022 to May
2022 and Chief Operating Officer from November 2018 to January 2022. From November 2016 to January 2018, Mr. Thompson worked as the head
of customer and sales Operations for Gloo, a people development SaaS company. During that time, Mr. Thompson reported to the executive
team to develop and execute on market strategies, product offerings, financial projections, and talent management. From October 2008 to
October 2016, Mr. Thompson served as corporate senior vice president of VisionLink, a multiagency humanitarian software platform, managing
across all aspects of the business providing enterprise SaaS solutions to federal and state governments and international humanitarian
organizations. From 1996 to 2008, Mr. Thompson served in various executive sales and marketing roles across multiple technologies companies.
Mr. Thompson holds a Masters in Business Administration from the University of Denver.
71
David McCullough
has served as Chief Technology
Officer of Akerna since July 1, 2020. Mr. McCullough has been with Akerna and MJF since 2015, previously serving as Akerna's executive
vice president of product & engineering. Before joining MJF, Mr. McCullough was the Chief Technology Officer of StudentPublishing.com,
during that time, he actively managed the technical aspects of Student Publishing's sale to and system integration with lulu.com.
Mr. McCullough has over 16 years of software engineering experience, including extensive government systems experience. Mr. McCullough
has previously served as a professor at New Mexico State University where he taught courses in data communications and networking. Mr.
McCullough holds a master's degree in Computer Science. MCSE, CCNP, A+. N+.
Board Qualifications
Our Board has not formally established any specific,
minimum qualifications that must be met by each of its officers or directors or specific qualities or skills that are necessary for one
or more of its officers or members of the Board to possess. However, we expect to generally evaluate the following qualities: educational
background, diversity of professional experience, including whether the person is a current or was a former chief executive officer or
chief financial officer of a public company or the head of a division of a prominent organization, knowledge of our business, integrity,
professional reputation, independence, wisdom, and ability to represent the best interests of our stockholders.
Our officers and the Board will be composed of
a diverse group of leaders in their respective fields. Many of these officers or directors have senior leadership experience at various
companies. In these positions, they have also gained experience in core management skills, such as strategic and financial planning, public
company financial reporting, compliance, risk management, and leadership development. Many of our officers and directors also have experience
serving on boards of directors and/or board committees of other public companies and private companies, and have an understanding of corporate
governance practices and trends, which provides an understanding of different business processes, challenges, and strategies. Further,
these officers and directors also have other experience that makes them valuable, such as managing and investing assets or facilitating
the consummation of business investments and combinations.
We, along with our officers and directors, believe
that the above-mentioned attributes, along with the leadership skills and other experiences of our officers and board members described
above, provide us with a diverse range of perspectives and judgment necessary to facilitate our goals of shareholder value appreciation
through organic and acquisition growth.
Number and Terms of Office of Officers and
Directors
Our Board is divided into three classes: Class
I; Class II; and Class III. The directors in Class I have a term expiring at this Annual Meeting and again at the 2025 annual meeting
of stockholders, the directors in Class II have a term expiring at the 2023 annual meeting of stockholders, and the directors in
Class III have a term expiring at the 2024 annual meeting of stockholders. The Class I directors are Matthew R. Kane and Tahira Rehmatullah,
the Class II director is Scott Sozio, and the Class III directors are Jessica Billingsley and Barry Fishman.
Our officers are appointed by the Board and serve
at the discretion of the Board, rather than for specific terms of office. Our Board is authorized to appoint persons to the offices set
forth in our Amended and Restated Bylaws as it deems appropriate.
Arrangements between Officers and Directors
To our knowledge, there is no arrangement or understanding
between any of our officers and any other person, including Directors, pursuant to which the officer was selected to serve as an officer.
72
Family Relationships
None of our Directors are related by blood, marriage,
or adoption to any other Director, executive officer, or other key employees.
Other Directorships
None of the Directors of Akerna are currently
also directors of issuers with a class of securities registered under Section 12 of the Exchange Act (or which otherwise are required
to file periodic reports under the Exchange Act).
In the past five years, Mr. Fishman has served as a director to Merus Labs
International Inc., Aurora Cannabis Inc., Field Trip Health Ltd., and VIVO Cannabis Inc.; and Ms. Rehmatullah served as a director for
Good Works Acquisition Corp. from August 2020 to August 2021.
Legal Proceedings
We are not aware of any of our directors or officers
being involved in any legal proceedings in the past ten years relating to any matters in bankruptcy, insolvency, criminal proceedings
(other than traffic and other minor offenses) or being subject to any of the items set forth under Item 401(f) of Regulation S-K.
Director Independence
The Board evaluates the independence of each nominee
for election as a director of our Company in accordance with the Listing Rules (the "Nasdaq Listing Rules") of the Nasdaq
Stock Market LLC ("Nasdaq"). Pursuant to these rules, a majority of our Board must be "independent directors"
within the meaning of the Nasdaq Listing Rules, and all directors who sit on our Audit Committee, Nominating Committee and Compensation
Committee must also be independent directors.
The Nasdaq definition of "independence"
includes a series of objective tests, such as the director or director nominee is not, and was not during the last three years, an employee
of the Company and has not received certain payments from, or engaged in various types of business dealings with, the Company. In
addition, as further required by the Nasdaq Listing Rules, the Board has made a subjective determination as to each independent director
that no relationships exist which, in the opinion of the Board, would interfere with such individual's exercise of independent judgment
in carrying out his or her responsibilities as a director. In making these determinations, the Board reviewed and discussed information
provided by the directors with regard to each director's business and personal activities as they may relate to Company and its
management.
As a result, the Board has affirmatively determined
that each of Matthew R. Kane, Tahira Rehmatullah, and Barry Fishman are independent in accordance with the Nadsaq Listing Rules. The Board
has also affirmatively determined that all members of our Audit Committee, Nominating Committee and Compensation Committee are independent
directors.
73
EXECUTIVE COMPENSATION
Summary
Compensation Table
Our named executive officers for the fiscal
year ended December 31, 2021 are Jessica Billingsley, our Chief Executive Officer, John Fowle, our former Chief Financial Officer,
Ray Thompson, our former President and Chief Operating Officer, David McCullough, our Chief Technology Officer and Nina Simosko, our former
Chief Commercial Officer.
The following table sets forth all information
concerning the compensation earned, for the fiscal year ended December 31, 2021, six-month transition period ended December 31, 2020,
and for the fiscal year ended June 30, 2020 for services rendered to us by persons who served as our named executive officers at the end
of December 31, 2021.
Name and Principal Position
Year
Salary
($)
Bonus
($)
Stock
Awards
($)
All Other
Compensation
($)
Total
($)
(a)
(b)
(c)
(d)
(e)
(i)
(j)
Jessica Billingsley
2021
262,500
201,866
(22)
108,200
(1)
11,774
(2)
584,340
Chief Executive Officer
2020 TP
125,000
81,625
(3)
125,450
(4)
740
(5)
332,815
2020
250,000
54,750
(6)
153,474
(7)
21,780
(8)
480,004
Nina Simosko
(9)
2021
200,000
—
83,200
(10)
—
283,200
Former Chief
2020 TP
100,000
—
94,200
(11)
—
194,200
Commercial Officer
2020
154,545
—
999,996
(12)
—
1,154,541
John Fowle
(13)
2021
200,000
—
83,200
(14)
—
283,200
Former Chief
2020 TP
100,000
—
94,200
(15)
—
194,200
Financial Officer
2020
106,250
—
799,997
(16)
—
906,247
Ray Thompson
2021
200,000
—
83,200
(17)
—
283,200
Former Chief Operating Officer
2020 TP
100,000
—
94,200
(18)
—
194,200
David McCullough
2021
200,000
60,075
(19)
83,200
(20)
—
343,275
Chief Technology Officer
2020 TP
100,000
—
94,200
(21)
—
194,200
(1)
During
the year ended 2021, Ms. Billingsley was awarded 20,000 restricted stock units with a grant date fair value of $83,200. These awards
vest 25% annually on December 1 with the final vesting occurring on December 1, 2024. As compensation for the 2021 fiscal year, Ms. Billingsley
was also awarded a discretionary bonus of 22,322 restricted shares with a grant date fair value of $25,000. These shares fully vested
on April 12, 2022.
(2)
In
addition to cash and stock awards, Ms. Billingsley may redeem loyalty awards generated by corporate purchases made on certain credit
cards for her personal use. During the year ended 2021, Ms. Billingsley redeemed $11,774 in loyalty awards for her personal use.
(3)
Pursuant
to Ms. Billingsley's employment agreement with Akerna, she is eligible for a bonus that is determined by the Board on the basis
of fulfillment of the objective performance criteria established in its discretion. For the transition period 2020, the transition period
bonus was determined based Akerna's relative performance against budgeted targets, as further described below. The Board evaluated
the achievement of these targets and Ms. Billingsley's transition period 2020 bonus amount was $81,625.
(4)
During
the transition period 2020, Ms. Billingsley was awarded 20,000 restricted stock units with a grant date fair value of $94,200. These
awards vest 25% annually on July 1 with the final vesting occurring on July 1, 2024. As compensation for the 2020 transition period,
Ms. Billingsley was also awarded a discretionary bonus of 7,548 restricted shares with a grant date fair value of $31,250. These shares
fully vested on April 26, 2021.
(5)
In
addition to cash and stock awards, Ms. Billingsley may redeem loyalty awards generated by corporate purchases made on certain credit
cards for her personal use. During the transition period 2020, Ms. Billingsley redeemed $740 in loyalty awards for her personal use.
74
(6)
Pursuant
to Ms. Billingsley's employment agreement with Akerna, she is eligible for an annual bonus that is determined by the Board on the
basis of fulfillment of the objective performance criteria established in its discretion. For the 2020 fiscal year, the annual bonus
was determined based Akerna's relative performance against budgeted targets, as further described below. The Board evaluated the
achievement of these targets and Ms. Billingsley's 2020 annual bonus amount was $54,750.
(7)
During
2020, Ms. Billingsley was awarded 10,000 restricted stock units with a grant date fair value of $57,900. These awards vest 25% annually
on July 1 with the final vesting occurring on July 1, 2023. Ms. Billingsley was awarded share-based compensation that was conditioned
upon the price of a share of our Common Stock achieving a specified total return as of June 30, 2020. This award had a grant date fair
value of $12,465. The total return target was not achieved, as such no shares will be issued pursuant to this award. Ms. Billingsley
was also awarded a share based annual bonus award of 19,694 shares of Common Stock. This award had a grant date fair value of $83,109.
(8)
In
addition to cash and stock awards, Ms. Billingsley may redeem loyalty awards generated by corporate purchases made on certain credit
cards for her personal use. During 2020, Ms. Billingsley redeemed $21,780 in loyalty awards for her personal use.
(9)
Ms.
Simosko became Chief Revenue Officer of Akerna on September 23, 2019, her title was subsequently changed to Chief Commercial Officer
without any change in duties or compensation. Ms. Simosko ceased to be the Chief Commercial Officer on January 31, 2022.
(10)
During
the year ended 2021, Ms. Simosko was awarded 20,000 restricted stock units with a grant date fair value of $83,200. These awards vest
25% annually on December 1 with the final vesting occurring on December 1, 2024.
(11)
During
the transition period 2020, Ms. Simosko was awarded 20,000 restricted stock units with a grant date fair value of $94,200. These awards
vest 25% annually on July 1 with the final vesting occurring on July 1, 2024.
(12)
During
2020, Ms. Simosko was awarded 125,156 restricted stock units with a grant date fair value of $999,996, these awards vest 25% annually
on the grant date anniversary in each of the subsequent four years.
(13)
Mr.
Fowle became Chief Financial Officer of Akerna on December 17, 2019. Mr. Fowle ceased to be the Chief Financial Officer on May 17, 2022.
(14)
During
the year ended 2021, Mr. Fowle was awarded 20,000 restricted stock units with a grant date fair value of $83,200. These awards vest 25%
annually on December 1 with the final vesting occurring on December 1, 2024.
(15)
During
the transition period 2020, Mr. Fowle was awarded 20,000 restricted stock units with a grant date fair value of $94,200. These awards
vest 25% annually on July 1 with the final vesting occurring on July 1, 2024.
(16)
During
2020, Mr. Fowle was awarded 72,727 restricted stock units with a grant date fair value of $799,997, these awards vest 25% annually on
the grant date anniversary in each of the subsequent four years.
(17)
During
the year ended 2021, Mr. Thompson was awarded 20,000 restricted stock units with a grant date fair value of $83,200. These awards vest
25% annually on December 1 with the final vesting occurring on December 1, 2024.
(18)
During
the transition period 2020, Mr. Thompson was awarded 20,000 restricted stock units with a grant date fair value of $94,200. These awards
vest 25% annually on July 1 with the final vesting occurring on July 1, 2024.
(19)
During
the year ended 2021, Mr. McCullough was awarded a discretionary cash bonus of $60,075.
(20)
During
the year ended 2021, Mr. McCullough was awarded 20,000 restricted stock units with a grant date fair value of $83,200. These awards vest
25% annually on December 1 with the final vesting occurring on December 1, 2024.
75
(21)
During
the transition period 2020, Mr. McCullough was awarded 20,000 restricted stock units with a grant date fair value of $94,200. These awards
vest 25% annually on July 1 with the final vesting occurring on July 1, 2024.
(22)
Pursuant
to Ms. Billingsley's employment agreement with Akerna, she is eligible for a bonus that is determined by the Board on the basis
of fulfillment of the objective performance criteria established in its discretion. For the year ended 2021, the bonus was determined
based Akerna's relative performance against budgeted targets, as further described below. The Board evaluated the achievement of
these targets and Ms. Billingsley's 2021 fiscal year bonus amount was $201,866.
Employment Agreements
Jessica Billingsley
In connection with the consummation of the mergers
on June 17, 2019, Ms. Billingsley and Akerna entered into an employment agreement, dated June 17, 2019 (the "
Billingsley Employment
Agreement
"). Under the terms of the Billingsley Employment Agreement, Ms. Billingsley serves at the Chief Executive Officer
of Akerna at will, and must devote substantially all of her working time, skill and attention to her position and to the business and
interests of Akerna (except for customary exclusions).
Akerna pays Ms. Billingsley an annual base salary
in the amount of $250,000. The base salary is subject to (1) review at least annually by the Board for increase, but not decrease,
and (2) automatic increase by an amount equal to $50,000 from its then current level on the date upon which Akerna's aggregate,
gross consolidated trailing twelve month (TTM) revenue equals the product of (x) two
multiplied
by (y) Akerna's TTM revenue
as of the Closing. Effective October 1, 2021, Ms. Billingsley's annual base salary was increased to $300,000. Within ten days of
the consummation of the Merger Agreement, Akerna paid Ms. Billingsley a completion award in a single lump sum of $95,000.
Ms. Billingsley will be eligible for an annual
bonus (the "Annual Bonus") with respect to each fiscal year ending during her employment. Her target annual cash bonus shall
be in the amount of one hundred percent (100%) of her base salary (the "Target Bonus") with the opportunity to earn greater
than the Target Bonus upon achievement of above target performance. The amount of the Annual Bonus shall be determined by the Board on
the basis of fulfillment of the objective performance criteria established in its reasonable discretion. The performance criteria for
any particular fiscal year shall be set no later than ninety days after the commencement of the relevant fiscal year. For the 2021 fiscal
year, the Annual Bonus shall be determined based upon four (4) budget components (B2B Software Revenue, B2G Software Revenue, Services
Revenue and Adjusted EBITDA) and NPS Scores With regards to the budget components, each scales linearly between achieving 75% to 100%,
and greater than 100% with respect to the B2B Software Revenue, B2G Software Revenue, and Adjusted EBITDA target budget components respectively,
of the applicable fiscal year's budget for each such component (with 50% of the Target Bonus payable upon achievement of 75% of
budget, 100% of the Target Bonus payable upon achievement of budget (and, with respect to the B2B Software Revenue, B2G Software Revenue,
and Adjusted EBITDA budget components, with 200% of each weighted portion of the Target Bonus payable upon achievement of 125% of the
corresponding component of budget, with linear interpolation between points. Accelerator to be paid at the discretion of the Board of
Directors in cash, stock, or both. For the transition period 2020 and the 2020 fiscal year, the Annual Bonus was determined based upon
the following four (4) budget components, each of which scales linearly between achieving 75% to 100%, and greater than 100% with respect
to the Platform Recurring Revenue (as defined in Billingsley Employment Agreement) and Government Recurring Revenue (as defined in Billingsley
Employment Agreement) budget components respectively, of the applicable fiscal year's budget for each such component (with 50% of
the Target Bonus payable upon achievement of 75% of budget, 100% of the Target Bonus payable upon achievement of budget (and, with respect
to the Platform Recurring Revenue and Government Recurring Revenue budget components, with 200% of each weighted portion of the Target
Bonus payable upon achievement of 125% of the corresponding component of budget, with linear interpolation between points)). During the
fiscal year ended June 30, 2020, due to achieving targets Ms. Billingsley received a bonus of $54,750 and she received a discretionary
share bonus of $90,000 worth of the Company's shares of Common Stock based on the 10-day volume weighted average price as of the
date of the award, which resulted in the issuance of 19,694 shares of Common Stock with a grant date fair value of $83,109. During the
transition period ended December 31, 2020, due to achieving targets Ms. Billingsley received a bonus of $81,625.
76
Ms. Billingsley is entitled to participate in
annual equity awards and employee benefits. She is indemnified by Akerna to for any and all expenses (including advancement and payment
of attorneys' fees) and losses arising out of or relating to any of her actual or alleged acts, omissions, negligence or active
or passive wrongdoing, including, the advancement of expenses she incurs. The foregoing indemnification is in addition to the indemnification
provided to her by Akerna pursuant to her Indemnification Agreement.
In the event of Ms. Billingsley's termination
for cause or without good reason, Akerna will be obligated to pay any accrued but unpaid base salary and any annual bonus earned and awarded
for the fiscal year prior to that in which the termination occurs. In the event of Ms. Billingsley's termination without cause or
with good reason, Akerna will be obligated to pay any accrued but unpaid base salary, any annual bonus earned and awarded for the fiscal
year prior to that in which the termination occurs, a cash severance payment equal to her base salary, pro-rated annual bonus for the
fiscal year in which the termination occurs through the date of termination, and twelve months of health benefits.
The Billingsley Employment Agreement also contains
noncompetition and non-solicitation provisions that apply through her employment and for a term of one year thereafter, and which are
in addition to the noncompetition and non-solicitation provisions prescribed under a certain Non-Competition Agreement between Ms. Billingsley
and Akerna. The Billingsley Employment Agreement also contains a non-disparagement provision that apply through her employment and for
a term of two years thereafter.
John Fowle
On December 17, 2019, Mr. Fowle entered into a
letter agreement with Akerna. Mr. Fowle served as the Chief Financial Officer of Akerna at will. Akerna paid Mr. Fowle an annual base
salary of $200,000 in 2021. At the Board's discretion, Mr. Fowle may be eligible for a bonus. Under the Company's 2022 executive
compensation structure, Mr. Fowle received a base salary of $250,000 and Mr. Fowle's performance target annual cash bonus was to
be 25% of his base salary. Mr. Fowle received a grant of approximately $800,000 of restricted stock units, which will vest as to 25% on
the first anniversary of the grant date, as to the next 25% on the second anniversary of the grant date, as to the next 25% on the third
anniversary of the grant date and as to the remaining 25% on the fourth anniversary of the grant date. Mr. Fowle was entitled to participate
in employee benefits. Upon a change of control transaction, Mr. Fowle's unvested restricted stock units or any other equity interests
that he may be granted, will immediately vest. If Mr. Fowle's employment is terminated by Akerna without cause or by him with good
reason, he is entitled to his base salary through the date of termination.
Akerna entered into an Employee Covenant Agreement
with Mr. Fowle, which obligates Mr. Fowle from disclosing any confidential information, including without limitation, trade secrets. The
agreement also prohibits Mr. Fowle during the term of his employment and for a period of two years after his employment from soliciting
any customer, client, employee, supplier or vendor of Akerna, and rendering any services or giving advice to any competitor or affiliate
of a competitor. The agreement also requires Mr. Fowle to return all Akerna property and disclose all work product to Akerna.
On May 11, 2022, Akerna and Mr. Fowle agreed to
a mutual separation effective as of May 17, 2022.
Larry Dean Ditto, Jr.
Prior to Mr. Ditto's
appointment as Interim CFO, the Company and Mr. Ditto entered into a consultant agreement dated April 21, 2022 (the "Consulting
Agreement"). Pursuant to the Consulting Agreement, Mr. Ditto has agreed to perform certain financial and accounting related services.
The Company will pay Mr. Ditto a monthly fee of $12,000 for performance of services up to 80 hours per calendar month. If Mr. Ditto performs
more than 240 hours of service per calendar quarter, Mr. Ditto will be paid $150 per hour for additional services performed exceeding
240 hours per calendar quarter, subject to the Company's approval of such additional services. In the event that Mr. Ditto becomes
a full-time employee during the term of the Consulting Agreement, the Company will grant Mr. Ditto restricted stock units that are valued
at $25,000 and will immediately vest upon the grant. Unless terminated by either party in accordance with the Consulting Agreement, the
Consulting Agreement will terminate after 12 months. The term of the Consulting Agreement can be extended by mutual agreement between
the Company and Mr. Ditto. Mr. Ditto is also eligible for a one-time $18,000 bonus if an acquisition of the Company occurs, subject to
certain terms and conditions. Mr. Ditto's compensation as described above under the Consulting Agreement has not changed as a result
of his appointment as Interim CFO.
77
Ray Thompson
On October 19, 2018, Mr. Thompson entered into
a letter agreement with Akerna's wholly owned subsidiary MJ Freeway LLC. Mr. Thompson served as the President and Chief Operating
Officer of Akerna at will. Akerna paid Mr. Thompson an annual base salary of $200,000 in 2021. As part of his appointment as the Company's
President under the Company's 2022 executive compensation structure, Mr. Thompson received an annual base salary of $275,000 and
Mr. Thompson's performance target annual cash bonus shall be 25% of his base salary. At the Board's discretion, Mr. Thompson
may be eligible for a bonus. Upon a change of control transaction, Mr. Thompson's unvested restricted stock units or any other equity
interests that he may be granted, will immediately vest. If Mr. Thompson's employment is terminated by Akerna without cause or by
him with good reason, he is entitled to his base salary through the date of termination.
Akerna entered into an Employee Covenant Agreement
with Mr. Thompson, which obligates Mr. Thompson from disclosing any confidential information, including without limitation, trade secrets.
The agreement also prohibits Mr. Thompson during the term of his employment and for a period of two years after his employment from soliciting
any customer, client, employee, supplier or vendor of Akerna, and rendering any services or giving advice to any competitor or affiliate
of a competitor. The agreement also requires Mr. Thompson to return all Akerna property and disclose all work product to Akerna.
On May 16, 2022, Akerna and Mr. Thompson agreed
to a transition, effective immediately, by which Mr. Thompson will move from his current role as President and Chief Operating Officer
to Special Advisor to the Chief Executive Officer. In that role, Mr. Thompson will continue to assist the Chief Executive Officer with
certain of the day-to-day operations of the Company and advise the Company on various aspects of corporate strategy.
David McCullough
Mr. McCullough does not have a formal letter agreement
with Akerna in relation to his employment as the Chief Technology Officer. Akerna paid Mr. McCullough an annual base salary of $200,000
for 2021. Under the Company's 2022 executive compensation structure, Mr. McCullough will receive a base salary of $250,000 and Mr.
McCullough's performance target annual cash bonus shall be 25% of his base salary. At the Board's discretion, Mr. McCullough
may be eligible for a bonus. Upon a change of control transaction, Mr. McCullough's unvested restricted stock units or any other
equity interests that he may be granted, will immediately vest. If Mr. McCullough's employment is terminated by Akerna without cause
or by him with good reason, he is entitled to his base salary through the date of termination.
Akerna entered into an Employee Covenant Agreement
with Mr. McCullough, which obligates Mr. McCullough from disclosing any confidential information, including without limitation, trade
secrets. The agreement also prohibits Mr. McCullough during the term of his employment and for a period of two years after his employment
from soliciting any customer, client, employee, supplier or vendor of Akerna, and rendering any services or giving advice to any competitor
or affiliate of a competitor. The agreement also requires Mr. McCullough to return all Akerna property and disclose all work product to
Akerna.
Nina Simosko
On September 23, 2019, Ms. Simosko entered into
a letter agreement with Akerna. Ms. Simosko serves as the Chief Revenue Officer of Akerna at will. Akerna pays Ms. Simosko an annual base
salary of $200,000. At the Board's discretion, Ms. Simosko may be eligible for a bonus. Ms. Simosko received an approximate grant
of $1,000,000 of restricted stock units, which will vest as to 25% on the first anniversary of the grant date, as to the next 25% on the
second anniversary of the grant date, as to the next 25% on the third anniversary of the grant date and as to the remaining 25% on the
fourth anniversary of the grant date. Upon a change of control transaction, Ms. Simosko's unvested restricted stock units or any
other equity interests that she may be granted, will immediately vest. If Ms. Simosko's employment is terminated by Akerna
without cause or by her with good reason, she is entitled to her base salary through the date of termination and the immediate vesting
of 33% of the restricted stock units that are unvested on the date of termination. Ms. Simosko is entitled to reimbursement of reasonable
expense incurred with her relocation to Denver, Colorado, in amount not to exceed $5,000. Ms. Simosko is entitled to participate in employee
benefits.
78
Akerna entered into an Employee Covenant Agreement
with Ms. Simosko, which obligates Ms. Simosko from disclosing any confidential information, including without limitation, trade secrets.
The agreement also prohibits Ms. Simosko during the term of her employment and for a period of two years after her employment from soliciting
any customer, client, employee, supplier or vendor of Akerna, and rendering any services or giving advice to any competitor or affiliate
of a competitor. The agreement also requires Ms. Simosko to return all Akerna property and disclose all work product to Akerna.
Ms. Simosko ceased to be the Chief Commercial
Officer on January 31, 2022.
Outstanding Equity Awards at Fiscal Year-End
A summary of the number and the value of the outstanding
equity awards as of December 31, 2021 held by the named executive officers is set out in the table below.
Stock Awards
(1)
Name
Number
of Shares
or Units
of Stock
That
Have Not
Vested (#)
Market
Value of
Shares or
Units of
Stock
That
Have
Not
Vested ($)
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 ($)
Jessica Billingsley
-
-
5,000
(2)
8,750
Chief Executive Officer
-
-
15,000
(3)
26,250
-
-
15,000
(4)
26,250
-
-
22,322
(12)
25,000
Nina Simosko
-
-
62,578
(5)
109,512
Former Chief Commercial
-
-
15,000
(3)
26,250
Officer
-
-
15,000
(4)
26,250
John Fowle
-
-
36,363
(6)
63,635
Former Chief Financial Officer
-
-
15,000
(3)
26,250
-
-
15,000
(4)
26,250
Ray Thompson
13,358
(7)
23,377
5,000
(2)
8,750
Former Chief Operating Officer
-
-
13,358
(8)
23,377
-
-
12,500
(9)
21,875
-
-
15,000
(3)
26,250
-
-
15,000
(4)
26,250
David McCullough
6,679
(10)
11,688
4,000
(11)
7,000
Chief Technology Officer
-
-
15,000
(3)
26,250
-
-
15,000
(4)
26,250
(1)
Each
RSU represents a contingent right to receive one share of Common Stock of the Company.
79
(2)
Represents
5,000 RSUs, which vest as follows: 2,500 units shall vest on July 1, 2022, and 2,500 units shall vest on July 1, 2023.
(3)
Represents
15,000 RSUs, which vest as follows: 5,000 units shall vest on July 1, 2022, 5,000 units shall vest on July 1, 2023, and 5,000 units shall
vest on July 1, 2024.
(4)
Represents
15,000 RSUs, which vest as follows: 5,000 units shall vest on December 1, 2022, 5,000 units shall vest on December 1, 2023, and 5,000
units shall vest on December 1, 2024.
(5)
Represents
62,578 RSUs, which vest as follows; 31,289 units shall of October 7, 2022, and 31,289 units shall on October 7, 2023; however, there
is immediate vesting in the event of a Change in Control (as defined in the award) and there is immediate vesting of 33% of the restricted
stock units that are unvested on the date that she is terminated without cause or by her with good reason.
(6)
Represents
36,363 RSUs, which vest as follows; 18,182 shares shall vest on December 17, 2022 and 18,182 shares shall vest on December 17, 2023.
(7)
Represents
13,358 shares of restricted stock, which vest as follows: 6,679 units shall vest on January 1, 2022, and 6,679 units shall vest on January
1, 2023.
(8)
Represents
13,358 RSUs, which vest as follows: 6,679 units shall vest on January 1, 2022, and 6,679 units shall vest on January 1, 2023.
(9)
Represents
12,500 RSUs, which vest as follows: 6,250 units shall vest on January 1, 2022, and 6,250 units shall vest on January 1, 2023.
(10)
Represents
6,679 shares of restricted stock, which vest as follows: 6,679 units shall vest on January 1, 2022.
(11)
Represents
4,000 RSUs, which vest as follows: 2,000 units shall vest on July 1, 2022, and 2,000 units shall vest on July 1, 2023.
(12)
Represents
22,322 restricted shares, which vest on April 12, 2022.
Options
There were no options granted in the fiscal year
ended December 31, 2021.
Pension Benefits
None of our employees participate in or have account
balances in qualified or non-qualified defined benefit plans sponsored by us. Our Compensation Committee may elect to adopt qualified
or non-qualified benefit plans in the future if it determines that doing so is in our company's best interest.
Non-qualified Deferred Compensation
None of our employees participate in or have account
balances in non-qualified defined contribution plans or other non-qualified deferred compensation plans maintained by us. Our Compensation
Committee may elect to provide our officers and other employees with non-qualified defined contribution or other non-qualified compensation
benefits in the future if it determines that doing so is in our company's best interest.
80
Director Compensation
The following table sets forth the compensation
granted to our directors who are not also executive officers during the fiscal year ended December 31, 2021. Compensation to directors
that are also executive officers is detailed above and is not included on this table.
Name
Fees
earned or
paid in cash
($)
Stock
awards
($)
Option
award
($)
Non-equity
incentive
plan
compensation
($)
Nonqualified
deferred
compensation
earnings
($)
All other
compensation
($)
Total
($)
Barry Fishman
(1)
12,310
12,310
-
-
-
-
24,620
Matthew Kane
21,750
21,750
-
-
-
-
43,500
Mark Iwanowski
(2)
9,440
9,440
-
-
-
-
18,880
Tahira Remhatullah
21,750
21,750
-
-
-
-
43,500
Scott Sozio
(3)
250,000
136,937
-
-
-
-
386,937
(1)
Mr. Fishman joined the
    Board on June 7, 2021.
(2)
Mr. Iwanowski left the
    Board on June 7, 2021.
(3)
Mr. Sozio receives compensation
    pursuant to his role as Head of Corporate Development and is not compensated independently as a director.
Narrative Disclosure to Director Compensation
Table
Compensation granted to our directors who are
not also executive officers or employees during the fiscal year ended December 31, 2021 included $43,500 paid in 50% in cash and 50%
in stock. Amounts earned in cash are paid quarterly. Stock awards vest quarterly over the fiscal year.
Compensation Policies and Practices and Risk
Management
The Compensation Committee has reviewed the design
and operation of Akerna's compensation policies and practices for all employees, including executives, as they relate to risk management
practices and risk-taking incentives. The Compensation Committee believes that Akerna's compensation policies and practices do
not encourage unnecessary or excessive risk taking and that any risks arising from Akerna's compensation policies and practices
for its employees are not reasonably likely to have a material adverse effect on Akerna.
Compensation Committee Interlocks and Insider
Participation
No member of the Compensation Committee has ever
been an officer or employee of Akerna. None of Akerna's executive officers serve, or have served during the last fiscal year, as
a member of the board of directors, compensation committee, or other board committee performing equivalent functions of any other entity
that has one or more executive officers serving as one of Akerna's directors or on the Compensation Committee.
81
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The following table sets forth information concerning
beneficial ownership of Akerna's capital stock outstanding as of the date of this prospectus, by: (1) each stockholder known to
be the beneficial owner of more than five percent of any class of Akerna's voting stock then outstanding; (2) each of Akerna's
directors and nominees to serve as director; (3) each of Akerna's named executive officers; and (4) Akerna's current directors
and executive officers as a group.
As
of June 3, 2022 there were 36,574,158 shares of Common Stock issued and outstanding. Each share entitles the holder thereof to one
vote.
The information regarding beneficial ownership
of shares of Common Stock has been presented in accordance with the rules of the SEC. Under these rules, a person may be deemed to beneficially
own any shares of capital stock as to which such person, directly or indirectly, has or shares voting power or investment power, and
as to which such person has the right to acquire voting or investment power within 60 days through the exercise of any stock option or
other right. The percentage of beneficial ownership as to any person as of a particular date is calculated by dividing (1) (i) the number
of shares beneficially owned by such person plus (ii) the number of shares as to which such person has the right to acquire voting or
investment power within 60 days by (2) the total number of shares outstanding as of such date, plus any shares that such person has the
right to acquire from Akerna within 60 days. Including those shares in the tables does not, however, constitute an admission that the
named stockholder is a direct or indirect beneficial owner of those shares. Unless otherwise indicated, each person or entity named in
the table has sole voting power and investment power (or shares that power with that person's spouse) with respect to all shares
of capital stock listed as owned by that person or entity.
Beneficial Ownership
Name and Address of Beneficial Owner
(1)
Number of
Akerna
Shares of
Common
Stock
Percentage
(2)
DIRECTORS AND OFFICERS
Jessica Billingsley
(3)
1,190,661
3
%
Matthew Kane
(4)
613,307
2
%
Scott Sozio
(5)
290,654
1
%
Tahira Rehmatullah
(6)
56,912
*
Mark Iwanowski
(7)
6,261
*
David McCullough
(8)
64,306
*
Ray Thompson
(9)
63,410
*
Nina Simosko
77,756
*
John Fowle
(10)
34,205
*
Barry Fishman
(11)
2,646
*
Larry Dean Ditto, Jr.
0
-
All directors and officers as a group (eleven persons)
2,400,118
7
%
*
Less than one percent.
(1)
Unless otherwise noted, the address of each of the persons listed above is 1550 Larimer Street #246 Denver, Colorado 80202.
(2)
The percentage is based on 36,574,158 shares of Common Stock issued and outstanding as of June 3, 2022.
82
(3)
Represents 1,078,290 shares held by Jessica Billingsley Living Trust and 112,371 shares held directly by Ms. Billingsley. Ms. Billingsley, the trustee of the Jessica Billingsley Living Trust, has sole and dispositive power over the shares held by the Jessica Billingsley Living Trust. Does not reflect 27,500 restricted stock units issued pursuant to Akerna's Incentive Plan, which vest as follows: 2,500 RSUs, which vest as follows: 2,500 units shall vest on July 1, 2023, 10,000 RSUs, which vest as follows: 5,000 units shall vest on July 1, 2023, and 5,000 units shall vest on July 1, 2024, and 15,000 RSUs, which vest as follows: 5,000 units shall vest on December 1, 2022, 5,000 units shall vest on December 1, 2023, and 5,000 units shall vest on December 1, 2024.
(4)
Includes 261,340 shares held by Seam Capital, LLC. Mr. Kane is a manager of Seam Capital, LLC, and as such, Mr. Kane has sole and dispositive power of the shares held by Seam Capital, LLC. Also, includes 351,967 shares of Common Stock held directly by Mr. Kane.
(5)
Represents 290,654 shares and warrants to acquire 32,310 common shares held by Mr. Sozio. Does not reflect 58,582 restricted stock units issued pursuant to Akerna's Incentive Plan, which vest as follows: 25,542 units shall vest on July 1, 2023 and 25,542 units shall vest on July 1, 2024, and 7,500 RSUs, which vest as follows: 2,500 units shall vest on December 1, 2022, 2,500 units shall vest on December 1, 2023, and 2,500 units shall vest on December 1, 2024.
(6)
Represents 56,912 shares of Common Stock.
(7)
Represents 6,261 shares of Common Stock.
(8)
Reflects 64,306 shares of Common Stock. Does not reflect 27,000 restricted stock units issued pursuant to Akerna's Incentive Plan, which vest as follows: 2,000 RSUs, which vest as follows: 2,000 units shall vest on July 1, 2023, 10,000 RSUs, which vest as follows: 5,000 units shall vest on July 1, 2023, and 5,000 units shall vest on July 1, 2024, and 15,000 RSUs, which vest as follows: 5,000 units shall vest on December 1, 2022, 5,000 units shall vest on December 1, 2023, and 5,000 units shall vest on December 1, 2024.
(9)
Reflects 63,410 shares of Common Stock. Does not reflect 39,792 restricted stock units issued pursuant to Akerna's Incentive Plan, which vest as follows: 2,500 RSUs, which vest as follows: 2,500 units shall vest on July 1, 2023, 6,679 RSUs, which vest as follows: 6,679 units shall vest on January 1, 2023. 6,250 RSUs, which vest as follows: 6,250 units shall vest on January 1, 2023, 10,000 RSUs, which vest as follows: 5,000 units shall vest on July 1, 2023, and 5,000 units shall vest on July 1, 2024, and 15,000 RSUs, which vest as follows: 5,000 units shall vest on December 1, 2022, 5,000 units shall vest on December 1, 2023, and 5,000 units shall vest on December 1, 2024.
(10)
Represents 34,205 shares of Common Stock.
(11)
Represents 2,646 shares of Common Stock.
Change in Control
We are not aware of any arrangement that might
result in a change in control in the future. We have no knowledge of any arrangements, including any pledge by any person of our securities,
the operation of which may at a subsequent date result in a change in Akerna's control.
83
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
AND DIRECTOR INDEPENDENCE
Employment of Scott Sozio
In July 2019, we hired Mr. Scott Sozio, at will,
to serve as our Head of Corporate Development. As restructured in August 2020, Mr. Sozio receives an annual base salary of $150,000,
a one-time grant of $600,000 in restricted stock units (92,166 restricted stock units) issued in August 2020 vesting over 4 years, as
discussed below, and deal related compensation of 0.5% of the transaction value of acquisition completed by Akerna, payable one-half
in restricted stock units of Akerna at the option of the Board.
In April 2020, Mr. Sozio was granted 1,230 restricted
stock units of the Akerna under our 2019 Equity Incentive Plan in relation to the closing of our acquisition of Trellis, which vested
immediately. In August of 2020, Mr. Sozio's compensation was restructured and he was granted 92,166 restricted stock units, which
vest one quarter each year beginning on July 1, 2021. In September 2020, Mr. Sozio was granted 10,000 restricted stock units as part
of our annual employee grants, which vest one quarter each year beginning on July 1, 2021 and 38,527 restricted stock units in connection
with the closing of our acquisition of Ample, which vested immediately. In April 2021, Mr. Sozio was granted 2,976 restricted stock units
of the Akerna under our 2019 Equity Incentive Plan in relation to the closing of our acquisition of Viridian, which vested immediately.
In October 2021, Mr. Sozio was granted 29,210 restricted stock units of the Akerna under our 2019 Equity Incentive Plan in relation to
the closing of our acquisition of 365 Cannabis, which vested immediately. In April 2021, Mr. Sozio was granted 10,000 restricted stock
units as part of our annual employee grants, which vest one quarter each year beginning on December 1, 2021.
TechMagic
During the fiscal year ended June 30, 2020, we
have been invoiced through our wholly-owned subsidiary Solo by TechMagic USA LLC, a Massachusetts limited liability, in an amount of
approximately $657,000. When we acquired Solo in January 2020, there was an open balance payable to TechMagic of approximately $265,000.
Subsequently, during the remainder of our fiscal year ended June 30, 2020, we received invoices totaling an aggregate additional amount
of approximately $392,000. After our year ended June 30, 2020, through to the date hereof, we have received invoices totaling an aggregate
amount of approximately $375,000. Currently, there are outstanding invoices totaling approximately $767,000. The invoices set forth services
that TechMagic USA LLC purports to have provided to Solo regarding development of mobile software applications for MJF and Solo between
March and November 2020. Mr. Ashesh Shah, formerly the president of Solo and currently the beneficial holder of 6.2% of our issued and
outstanding shares of Common Stock is, to our knowledge, the founder and one of the principal managers of TechMagic USA LLC. The invoices
state that the services were rendered pursuant to the terms of an agreement regarding the development of mobile software products for
Solo, entered into between Solo and TechMagic at a time when Mr. Shah was a principal at both entities. On December 4, 2020, TechMagic
filed suit against Solo in Massachusetts Superior Court seeking recovery of up to approximately $1.07 million. Akerna provided a notice
of termination of the Master Services Agreement on November 23, 2020 and the parties dispute the effective date of the termination. Solo
disputes the validity of the invoices, in whole or in part, and intends to defend the suit vigorously. Mr. Ashesh Shah, formerly the
president of Solo and currently the holder of less than 5% of our issued and outstanding shares of common stock is, to our knowledge,
the founder and one of the principal managers of TechMagic USA LLC. As of December 31, 2021 and December 31, 2020, we recognized a loss
contingency of $0.5 million and $0.6 million, respectively.
Indemnification
Akerna's amended and restated certificate
of incorporation contains provisions limiting the liability of directors, and its amended and restated bylaws provides that it will indemnify
the directors and executive officers to the fullest extent permitted under Delaware law. Akerna's amended and restated certificate
of incorporation and bylaws also provides the board of directors with discretion to indemnify the other officers, employees, and agents
when determined appropriate by the board of directors. In addition, Akerna entered into an indemnification agreement with each of its
directors and executive officers, which requires it to indemnify them.
84
Related Person Transactions Policy and Procedure
Akerna's Code of Ethics requires it to
avoid, wherever possible, all related party transactions that could result in actual or potential conflicts of interests, except under
guidelines approved by the Board (or the audit committee). Related-party transactions are defined as transactions in which (1) the aggregate
amount involved will or may be expected to exceed $120,000 in any calendar year, (2) Akerna or any of its subsidiaries is a participant,
and (3) any (a) executive officer, director or nominee for election as a director, (b) greater than 5% beneficial owner of Akerna's
shares of common stock, or (c) immediate family member, of the persons referred to in clauses (a) and (b), has or will have a direct
or indirect material interest (other than solely as a result of being a director or a less than 10% beneficial owner of another entity).
A conflict of interest situation can arise when a person takes actions or has interests that may make it difficult to perform his or
her work objectively and effectively. Conflicts of interest may also arise if a person, or a member of his or her family, receives improper
personal benefits as a result of his or her position.
Ours audit committee, pursuant to its written
charter, is responsible for reviewing and approving related-party transactions to the extent we enter into such transactions. The audit
committee will consider all relevant factors when determining whether to approve a related party transaction, including whether the related
party transaction is on terms no less favorable to us than terms generally available from an unaffiliated third-party under the same
or similar circumstances and the extent of the related party's interest in the transaction.
Director Independence
The Board evaluates the independence of each
nominee for election as a director of our Company in accordance with the Nasdaq Listing Rules. Pursuant to these rules, a majority
of our Board must be "independent directors" within the meaning of the Nasdaq Listing Rules, and all directors who sit on
our Audit Committee, Nominating Committee and Compensation Committee must also be independent directors.
The Nasdaq definition of "independence"
includes a series of objective tests, such as the director or director nominee is not, and was not during the last three years, an employee
of Akerna or our subsidiaries and has not received certain payments from, or engaged in various types of business dealings with us. In
addition, as further required by the Nasdaq Listing Rules, the Board has made a subjective determination as to each independent director
that no relationships exist, which, in the opinion of the Board, would interfere with such individual's exercise of independent
judgment in carrying out his or her responsibilities as a director. In making these determinations, the Board reviewed and discussed
information provided by the directors with regard to each director's business and personal activities as they may relate to Company
and its management.
As a result, the Board has affirmatively determined
that each of Matthew R. Kane, Tahira Rehmatullah, and Barry Fishman are independent in accordance with the Nadsaq Listing Rules. The
Board has also affirmatively determined that all members of our Audit Committee, Nominating Committee and Compensation Committee are
independent directors.
CERTAIN MATERIAL U.S. FEDERAL INCOME TAX
CONSIDERATIONS
The following is a general discussion of certain
material U.S. federal income tax considerations relating to the purchase, ownership and disposition of units, consisting of shares of
common stock and warrants, and pre-funded units, consisting of pre-funded warrants and warrants, the acquisition, ownership, and disposition
of shares of common stock acquired as part of the units, the acquisition, ownership, and disposition of pre-funded warrants acquired
as part of the pre-funded units, the exercise, disposition, or expiration of warrants acquired as part of the units or pre-funded units,
the acquisition, ownership, and disposition of shares of common stock received upon exercise of the pre-funded warrants, and the acquisition,
ownership, and disposition of shares of common stock received upon exercise of the warrants (the "warrant shares"), all as
acquired pursuant to this prospectus. This discussion is based on current provisions of the Internal Revenue Code of 1986, as amended
(the "Internal Revenue Code"), existing and proposed U.S. Treasury Regulations promulgated or proposed thereunder and current
administrative and judicial interpretations thereof, all as in effect as of the date of this prospectus and all of which are subject
to change or to differing interpretation, possibly with retroactive effect. This summary does not discuss the potential effects, whether
adverse or beneficial, of any proposed legislation that, if enacted, could be applied on a retroactive or prospective basis. We have
not sought and will not seek any rulings from the Internal Revenue Service (the "IRS"), regarding the matters discussed below.
There can be no assurance that the IRS or a court will not take a contrary position.
85
This discussion is limited to U.S. holders and
non-U.S. holders who hold units, pre-funded units, shares of common stock, pre-funded warrants, warrants, or warrant shares, as applicable,
as a capital asset within the meaning of Section 1221 of the Internal Revenue Code (generally, as property held for investment). This
discussion does not address all aspects of U.S. federal income taxation, such as the U.S. alternative minimum income tax and the additional
tax on net investment income, nor does it address any aspect of state, local or non-U.S. taxes, or U.S. federal taxes other than income
taxes, such as federal estate and gift taxes. Except as provided below, this summary does not address tax reporting requirements. This
discussion does not consider any specific facts or circumstances that may apply to a holder and does not address the special tax considerations
that may be applicable to particular holders, such as:
●
insurance companies;
●
tax-exempt organizations
    and governmental organizations;
●
banks or other financial
    institutions;
●
brokers or dealers in securities
    or foreign currency;
●
traders in securities who
    elect to apply a mark-to-market method of accounting;
●
real estate investment
    trusts, regulated investment companies or mutual funds;
●
pension plans;
●
controlled foreign corporations;
●
passive foreign investment
    companies;
●
corporations organized
    outside the United States, any state thereof, or the District of Columbia that are nonetheless treated as U.S. persons for U.S. federal
    income tax purposes;
●
persons that own (directly,
    indirectly or constructively) more than 5% of the total voting power or total value of our common stock;
●
corporations that accumulate
    earnings to avoid U.S. federal income tax;
●
persons subject to the
    alternative minimum tax;
●
U.S. expatriates and certain
    former citizens or long-term residents of the United States;
●
persons that have a "functional
    currency" other than the U.S. dollar;
●
persons that acquire units,
    pre-funded units, shares of common stock, pre-funded warrants, warrants or warrant shares as compensation for services;
●
owners that hold our stock
    as part of a straddle, hedge, conversion transaction, synthetic security or other integrated investment;
●
holders subject to special
    accounting rules;
●
S corporations (and shareholders
    thereof);
●
partnerships or other entities
    treated as partnerships for U.S. federal income tax purposes (and partners or other owners thereof); and
●
U.S. holders that are subject
    to taxing jurisdictions other than, or in addition to, the United States.
86
If any entity taxable as a partnership for U.S.
federal income tax purposes holds our units, pre-funded units, shares of common stock, pre-funded warrants, warrants or warrant shares,
the U.S. federal income tax treatment of a partner in the partnership generally will depend on the status of the partner, the activities
of the partnership and certain determinations made at the partner level. A partner in a partnership or other pass-through entity that
holds our units, pre-funded units, shares of common stock, pre-funded warrants, warrants or warrant shares should consult its own tax
advisor regarding the applicable tax consequences.
For purposes of this discussion, the term "U.S.
holder" means a beneficial owner of our common stock that is, for U.S. federal income tax purposes:
●
an individual who is a
    citizen or resident of the United States;
●
a corporation created or
    organized in or under the laws of the United States, any state thereof or the District of Columbia;
●
an estate the income of
    which is subject to U.S. federal income taxation regardless of its source; or
●
a trust, if (1) a U.S.
    court is able to exercise primary supervision over the administration of the trust and one or more U.S. persons have authority to
    control all substantial decisions of the trust or (2) the trust has a valid election to be treated as a U.S. person under applicable
    U.S. Treasury Regulations.
A "non-U.S. holder" is a beneficial
owner of our common stock that is neither a U.S. holder nor a partnership (or other entity treated as a partnership for U.S. federal
income tax purposes).
THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES
ONLY AND IS NOT, AND IS NOT INTENDED TO BE, LEGAL OR TAX ADVICE. PROSPECTIVE INVESTORS SHOULD CONSULT THEIR OWN TAX ADVISORS REGARDING
THE U.S. FEDERAL, STATE, LOCAL, AND NON-U.S. INCOME, ESTATE AND OTHER TAX CONSIDERATIONS OF ACQUIRING, HOLDING AND DISPOSING OF OUR UNITS,
PRE-FUNDED UNITS, SHARES OF COMMON STOCK, PRE-FUNDED WARRANTS, WARRANTS OR WARRANT SHARES.
U.S. Federal Income Tax Consequences of the
Acquisition of Units or Pre-Funded Units
For U.S. federal income tax purposes, the acquisition
by a U.S. holder or a non-U.S. holder of a unit will be treated as the acquisition of one share of common stock ("Share")
and one warrant. The purchase price for each unit will be allocated between these two components in proportion to their relative fair
market values at the time the unit is purchased by the U.S. holder or non-U.S. holder. This allocation of the purchase price for each
unit will establish a U.S. holder's or non-U.S. holder's initial tax basis for U.S. federal income tax purposes in the one
Share and one warrant that comprise each unit.
For this purpose, we will allocate US$____ of
the purchase price for the unit to the Share and US$____ of the purchase price for each unit to the warrant. However, the IRS will not
be bound by such allocation of the purchase price for the units, and therefore, the IRS or a U.S. court may not respect the allocation
set forth above. Each U.S. holder and non-U.S. holder should consult its own tax advisor regarding the allocation of the purchase price
for the units.
For U.S. federal income tax purposes, the acquisition
by a U.S. holder or a non-U.S. holder of a pre-funded unit will be treated as the acquisition of one pre-funded warrant and one warrant.
The purchase price for each pre-funded unit will be allocated between these two components in proportion to their relative fair market
values at the time the pre-funded unit is purchased by the U.S. holder or non-U.S. holder. This allocation of the purchase price for
each pre-funded unit will establish a U.S. holder's or non-U.S. holder's initial tax basis for U.S. federal income tax purposes
in the one pre-funded warrant and one warrant that comprise each pre-funded unit.
For this purpose, we will allocate US$____ of
the purchase price for the pre-funded unit to the pre-funded warrant and US$____ of the purchase price for each pre-funded unit to the
warrant. However, the IRS will not be bound by such allocation of the purchase price for the pre-funded units, and therefore, the IRS
or a U.S. court may not respect the allocation set forth above. Each U.S. holder and non-U.S. holder should consult its own tax advisor
regarding the allocation of the purchase price for the pre-funded units.
87
Treatment of Pre-Funded Warrants
Although it is not entirely free from doubt,
we believe that a pre-funded warrant should be treated as a separate class of our common shares for U.S. federal income tax purposes
and a U.S. holder or non-U.S. holder of pre-funded warrants should generally be taxed in the same manner as a holder of shares of common
stock except as described below. Accordingly, no gain or loss should be recognized upon the exercise of a pre-funded warrant and, upon
exercise, the holding period of a pre-funded warrant should carry over to the shares of common stock received. Similarly, the tax basis
of the pre-funded warrant should carry over to the shares of common stock received upon exercise, increased by the exercise price of
$0.0001 per share. However, such characterization is not binding on the IRS, and the IRS may treat the pre-funded warrants as warrants
to acquire shares of common stock. If so, the amount and character of a U.S. holder's or non-U.S. holder's gain with respect
to an investment in pre-funded warrants could change. Accordingly, each U.S. holder and non-U.S. holder should consult its own tax advisors
regarding the risks associated with the acquisition of a pre-funded warrant pursuant to this prospective (including potential alternative
characterizations). The balance of this discussion generally assumes that the characterization described above is respected for U.S.
federal income tax purposes.
U.S. Holders
U.S. Federal Income Tax Consequences of the Exercise, Disposition
or Expiration of Warrants
Exercise of Warrants
A U.S. holder should not recognize gain or loss
on the exercise of a warrant and related receipt of a warrant share (unless cash is received in lieu of the issuance of a fractional
warrant share). A U.S. holder's initial tax basis in the warrant share received on the exercise of a warrant should be equal to
the sum of (a) such U.S. holder's tax basis in such warrant plus (b) the exercise price paid by such U.S. holder on the exercise
of such warrant. It is unclear whether a U.S. holder's holding period for the warrant share received on the exercise of a warrant would
commence on the date of exercise of the warrant or the day following the date of exercise of the warrant.
In certain limited circumstances, a U.S. holder
may be permitted to undertake a cashless exercise of warrants into warrant shares. The U.S. federal income tax treatment of a cashless
exercise of warrants into warrant shares is unclear, and the tax consequences of a cashless exercise could differ from the consequences
upon the exercise of a warrant described in the preceding paragraph. U.S. holders should consult their own tax advisors regarding the
U.S. federal income tax consequences of a cashless exercise of warrants.
Disposition of Warrants
A U.S. holder will recognize gain or loss on
the sale or other taxable disposition of a warrant in an amount equal to the difference, if any, between (a) the amount of cash plus
the fair market value of any property received and (b) such U.S. holder's tax basis in the warrant sold or otherwise disposed of.
Any such gain or loss generally will be a capital gain or loss, which will be long-term capital gain or loss if the warrant is held for
more than one year. Deductions for capital losses are subject to complex limitations under the Internal Revenue Code.
Expiration of Warrants Without Exercise
Upon the lapse or expiration of a warrant, a
U.S. holder will recognize a loss in an amount equal to such U.S. holder's tax basis in the Common Stock Warrant. Any such loss
generally will be a capital loss and will be long-term capital loss if the warrants are held for more than one year. Deductions for capital
losses are subject to complex limitations under the Internal Revenue Code.
Certain Adjustments to the Warrants
Under Section 305 of the Internal Revenue Code,
an adjustment to the number of warrant shares that will be issued on the exercise of the warrants, or an adjustment to the exercise price
of the warrants, may be treated as a constructive distribution to a U.S. holder of the warrants if, and to the extent that, such adjustment
has the effect of increasing such U.S. holder's proportionate interest in the "earnings and profits" or our assets,
depending on the circumstances of such adjustment (for example, if such adjustment is to compensate for a distribution of cash or other
property to the shareholders). Adjustments to the exercise price of warrants made pursuant to a bona fide reasonable adjustment formula
that has the effect of preventing dilution of the interest of the holders of the warrants should generally not be considered to result
in a constructive distribution. Any such constructive distribution would be taxable whether or not there is an actual distribution of
cash or other property. (See more detailed discussion of the rules applicable to distributions made by us at "
Distributions
on Shares of Common Stock, Pre-Funded Warrants and Warrant Shares
" below).
88
U.S. Federal Income Tax Consequences of
the Acquisition, Ownership, and Disposition of Shares of Common Stock, Pre-Funded Warrants and Warrant Shares
Distributions on Shares of Common Stock, Pre-Funded Warrants and
Warrant Shares
A U.S. holder that receives a distribution, including
a constructive distribution, with respect to a Share, pre-funded warrant or warrant share (as well as any constructive distribution on
a warrant as described above) will be required to include the amount of such distribution in gross income as a dividend to the extent
of our current and accumulated "earnings and profits", as computed under U.S. federal income tax principles. To the extent
that a distribution exceeds our current and accumulated "earnings and profits", such distribution will be treated first as
a tax-free return of capital to the extent of a U.S. holder's tax basis in the shares of common stock, pre-funded warrants or warrant
shares and thereafter as gain from the sale or exchange of such shares of common stock, pre-funded warrants or warrant shares (see "
Sale
or Other Taxable Disposition of Shares of Common Stock, Pre-Funded Warrants and/or Warrant Shares
" below). Dividends received
on shares of common stock, pre-funded warrants or warrant shares may be eligible for a dividends received deduction, subject to certain
restrictions relating to, among others, the corporate U.S. holder's taxable income, holding period and debt financing. Dividends
paid by us to non-corporate U.S. holders, including individuals, generally will be eligible for the preferential tax rates applicable
to long-term capital gains for dividends, provided certain holding period and other conditions are satisfied. The dividend rules are
complex, and each U.S. holder should consult its own tax advisor regarding the application of such rules.
Sale or Other Taxable Disposition of Shares of Common Stock, Pre-Funded
Warrants and/or Warrant Shares
Upon the sale or other taxable disposition of
shares of common stock, pre-funded warrants or warrant shares, a U.S. holder generally will recognize capital gain or loss in an amount
equal to the difference between (a) the amount of cash plus the fair market value of any property received and (b) such U.S. holder's
tax basis in such shares of common stock, pre-funded warrants or warrant shares sold or otherwise disposed of. Gain or loss recognized
on such sale or other taxable disposition generally will be long-term capital gain or loss if, at the time of the sale or other taxable
disposition, the shares of common stock, pre-funded warrants or warrant shares have been held for more than one year. Preferential tax
rates may apply to long-term capital gain of a U.S. holder that is an individual, estate, or trust. There are no preferential tax rates
for long-term capital gain of a U.S. holder that is a corporation. Deductions for capital losses are subject to significant limitations
under the Internal Revenue Code.
Non-U.S. Holders
U.S. Federal Income Tax Consequences of the Exercise, Disposition
or Expiration of Warrants
Exercise of Warrants
A non-U.S. holder generally will not recognize
gain or loss on the exercise of a warrant and related receipt of a warrant share (unless cash is received in lieu of the issuance of
a fractional warrant share and certain other conditions are present, as discussed below under "
Gain on Sale, Exchange or Other
Taxable Disposition of Shares of Common Stock, Pre-Funded Warrants, Warrants and Warrant Shares
"). A non-U.S. holder's
initial tax basis in the warrant share received on the exercise of a warrant should be equal to the sum of (i) the non-U.S. holder's
tax basis in the warrant, plus (ii) the exercise price paid by the non-U.S. holder on the exercise of the warrant. It is unclear whether
a non-U.S. holder's holding period for the warrant share received on the exercise of a warrant would commence on the date of exercise
of the warrant or the day following the date of exercise of the warrant.
In certain limited circumstances, a non-U.S.
holder may be permitted to undertake a cashless exercise of warrants into warrant shares. The U.S. federal income tax treatment of a
cashless exercise of warrants into warrant shares is unclear, and the tax consequences of a cashless exercise could differ from the consequences
upon the exercise of a warrant described in the preceding paragraph. Non-U.S. holders should consult their own tax advisors regarding
the U.S. federal income tax consequences of a cashless exercise of warrants.
89
Disposition of Warrants
A non-U.S. Holder will recognize gain or loss
on the sale or other taxable disposition of a warrant in an amount equal to the difference, if any, between (a) the amount of cash plus
the fair market value of any property received and (b) such non-U.S. holder's tax basis in the warrant sold or otherwise disposed
of. Any such gain or loss generally will be a capital gain or loss, which will be long-term capital gain or loss if the warrant is held
for more than one year. Any such gain recognized by a non-U.S. holder will be taxable for U.S. federal income tax purposes according
to rules discussed under the heading "
Gain on Sale, Exchange or Other Taxable Disposition of Shares of Common Stock, Pre-Funded
Warrants, Warrants and Warrant Shares
" below.
Expiration of Warrants without Exercise
Upon the lapse or expiration of a warrant, a
non-U.S. holder will recognize loss in an amount equal to such non-U.S. holder's tax basis in the warrant. Any such loss generally
will be a capital loss and will be long-term capital loss if the warrants are held for more than one year. Deductions for capital losses
are subject to complex limitations under the Internal Revenue Code.
Certain Adjustments to the Warrants
Under Section 305 of the Internal Revenue Code,
an adjustment to the number of warrant shares that will be issued on the exercise of the warrants, or an adjustment to the exercise price
of the warrants, may be treated as a constructive distribution to a non-U.S. holder of the warrants if, and to the extent that, such
adjustment has the effect of increasing such non-U.S. holder's proportionate interest in the "earnings and profits"
or assets, of the Company, depending on the circumstances of such adjustment (for example, if such adjustment is to compensate for a
distribution of cash or other property to the Company's shareholders). Adjustments to the exercise price of a warrant made pursuant
to a bona fide reasonable adjustment formula that has the effect of preventing dilution of the interest of the holders of the warrants
should generally not result in a constructive distribution. See the more detailed discussion of the rules applicable to distributions
made by the Company under the heading "
Distributions on Shares of Common Stock, Pre-Funded Warrants and Warrant Shares
"
below.
U.S. Federal Income Tax Consequences of
the Acquisition, Ownership, and Disposition of Shares of Common Stock, Pre-Funded Warrants and Warrant Shares
Distributions on Shares of Common Stock, Pre-Funded
Warrants and Warrant Shares
If we pay distributions of cash or property with
respect to our shares of common stock, pre-funded warrants or warrant shares, those distributions generally will constitute dividends
for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S.
federal income tax principles. If a distribution exceeds our current and accumulated earnings and profits, the excess will be treated
as a tax-free return of the non-U.S. holder's investment, up to such holder's tax basis in its shares of our common stock.
Any remaining excess will be treated as capital gain, subject to the tax treatment described below under the heading "—
Gain
on Sale, Exchange or Other Taxable Disposition of Shares of Common Stock, Pre-Funded Warrants, Warrants and Warrant Shares
."
Dividends paid to a non-U.S. holder generally will be subject to withholding of U.S. federal income tax at a 30% rate, or such lower
rate as may be specified by an applicable income tax treaty between the United States and such holder's country of residence. In
the case of any constructive distribution, it is possible that this tax would be withheld from any amount owed to the non-U.S. holder,
including, but not limited to, distributions of cash, shares of common stock or sales proceeds subsequently paid or credited to that
holder. If we are unable to determine, at the time of payment of a distribution, whether the distribution will constitute a dividend,
we may nonetheless choose to withhold any U.S. federal income tax on the distribution as permitted by U.S. Treasury Regulations.
Distributions that are treated as effectively
connected with a trade or business conducted by a non-U.S. holder within the United States are generally not subject to the 30% (or lower
rate as may be specified by an applicable tax treaty) withholding tax if the non-U.S. holder provides a properly executed IRS Form W-8ECI
stating that the distributions are not subject to withholding because they are effectively connected with the non-U.S. holder's
conduct of a trade or business in the United States. If a non-U.S. holder is engaged in a trade or business in the United States and
the distribution is effectively connected with the conduct of that trade or business, the distribution will generally have the consequences
described above for a U.S. holder (subject to any modification provided under an applicable income tax treaty). Any U.S. effectively
connected income received by a non-U.S. holder that is treated as a corporation for U.S. federal income tax purposes may also, under
certain circumstances, be subject to an additional "branch profits tax" at a 30% rate (or such lower rate as may be specified
by an applicable income tax treaty).
90
A non-U.S. holder who claims the benefit of an
applicable income tax treaty between the United States and such holder's country of residence generally will be required to provide
a properly executed IRS Form W-8BEN or W-8BEN-E, as applicable, and satisfy applicable certification and other requirements. A non-U.S.
holder that is eligible for a reduced rate of U.S. withholding tax under an income tax treaty generally may obtain a refund or credit
of any excess amounts withheld by timely filing an appropriate claim with the IRS. Non-U.S. holders should consult their own tax advisors
regarding their entitlement to benefits under a relevant income tax treaty.
Gain on Sale, Exchange or Other Taxable Disposition of Shares of
Common Stock, Pre-Funded Warrants, Warrants and Warrant Shares
Subject to the discussions below in
"—Information
Reporting and Backup Withholding
" and
"—Foreign Account Tax Compliance Act
," a non-U.S. holder generally
will not be subject to U.S. federal income tax on gain recognized on a sale, exchange or other taxable disposition of our shares of common
stock, pre-funded warrants, warrants, or warrant shares 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 an applicable income tax treaty
    so provides, the gain is attributable to a permanent establishment maintained by the non-U.S. holder in the United States; in these
    cases, the non-U.S. holder will be taxed on a net income basis at the regular graduated rates and in the manner applicable to a U.S.
    holder, and, if the non-U.S. holder is a corporation, an additional branch profits tax at a rate of 30%, or a lower rate as may be
    specified by an applicable income tax treaty, may also apply;
●
the non-U.S. holder is
    an individual present in the United States for 183 days or more in the taxable year of the disposition and certain other conditions
    are met, in which case the non-U.S. holder will be subject to a 30% tax (or such lower rate as may be specified by an applicable
    income tax treaty) on the amount by which such non-U.S. holder's capital gains allocable to U.S. sources exceed capital losses
    allocable to U.S. sources during the taxable year of the disposition; or
●
the Company is or has been
    a "U.S. real property holding corporation" ("
USRPHC
") for U.S. federal income tax purposes at any
    time during the shorter of the non-U.S. holder's holding period or the 5-year period ending on the date of disposition of shares
    of common stock, pre-funded warrants, warrants or warrant shares; provided, with respect to the shares of common stock and warrant
    shares, that as long as the Company's shares of common stock are regularly traded on an established securities market as determined
    under the Treasury Regulations (the "
Regularly Traded Exception
"), a non-U.S. holder would not be subject to taxation
    on the gain on the sale of shares of common stock or warrant shares under this rule unless the non-U.S. holder has owned: (i) more
    than 5% of the Company's shares of common stock at any time during such 5-year or shorter period; (ii) pre-funded warrants
    with a fair market value on the date acquired by such holder greater than the fair market value on that date of 5% of the Company's
    shares of common stock; (iii) warrants with a fair market value on the date acquired by such holder greater than the fair market
    value on that date of 5% of the Company's shares of common stock; or (iv) aggregate equity securities of the Company with a
    fair market value on the date acquired in excess of 5% of the fair market value of the Company's shares of common stock on
    such date (in any case, a "
5% Shareholder
"). Since the warrants are not expected to be listed on a securities
    market, the warrants are unlikely to qualify for the Regularly Traded Exception. Special rules apply to the pre-funded warrants.
    Non-U.S. holders holding pre-funded warrants should consult their own tax advisors regarding such rules. In determining whether a
    non-U.S. holder is a 5% Shareholder, certain attribution rules apply in determining ownership for this purpose. The Company believes
    that it is not currently, and it does not anticipate becoming in the future, a USRPHC for U.S. federal income tax purposes. The Company
    can provide no assurances that it is not currently, or will not become, a USRPHC, or if it is or becomes a USRPHC, that the shares
    of common stock, pre-funded warrants, warrants or warrant shares will meet the Regularly Traded Exception at the time a non-U.S.
    holder purchases such securities or sells, exchanges or otherwise disposes of such securities. Non-U.S. holders should consult with
    their own tax advisors regarding the consequences to them of investing in a USRPHC. If the Company is a USRPHC, a non-U.S. holder
    will be taxed as if any gain or loss were effectively connected with the conduct of a trade or business as described above in "
Distributions
    on Shares of Common Stock, Pre-Funded Warrants and Warrant Shares
" in the event that (i) such holder is a 5% Shareholder,
    or (ii) the Regularly Traded Exception is not satisfied during the relevant period.
91
Information Reporting and Backup Withholding
Distributions on, and the payment of the proceeds
of a disposition of, our shares of common stock, pre-funded warrants and warrant shares generally will be subject to information reporting
if made within the United States or through certain U.S.-related financial intermediaries. Information returns are required to be filed
with the IRS and copies of information returns may be made available to the tax authorities of the country in which a holder resides
or is incorporated under the provisions of a specific treaty or agreement.
Backup withholding may also apply if the holder
fails to provide certification of exempt status or a correct U.S. taxpayer identification number and otherwise comply with the applicable
backup withholding requirements. Generally, a holder will not be subject to backup withholding if it provides a properly completed and
executed IRS Form W-9 or appropriate IRS Form W-8, as applicable. Backup withholding is not an additional tax. Amounts withheld under
the backup withholding rules may be refunded or credited against the holder's U.S. federal income tax liability, if any, provided
certain information is timely filed with the IRS.
Foreign Account Tax Compliance Act
Sections 1471 through 1474 of the Internal Revenue
Code (commonly referred to as "
FATCA
") impose a separate reporting regime and potentially a 30% withholding tax on
certain payments, including payments of dividends on our shares of common stock, pre-funded warrants and warrant shares. Withholding
under FATCA generally applies to payments made to or through a foreign entity if such entity fails to satisfy certain disclosure and
reporting rules. These rules generally require (i) in the case of a foreign financial institution, that the financial institution agree
to identify and provide information in respect of financial accounts held (directly or indirectly) by U.S. persons and U.S.-owned entities,
and, in certain instances, to withhold on payments to account holders that fail to provide the required information, and (ii) in the
case of a non-financial foreign entity, that the entity either identify and provide information in respect of its substantial U.S. owners
or certify that it has no such U.S. owners.
FATCA withholding also potentially applies to
payments of gross proceeds from the sale or other disposition of our shares of common stock, pre-funded warrants and warrant shares.
Proposed regulations, however, would eliminate FATCA withholding on such payments, and the U.S. Treasury Department has indicated that
taxpayers may rely on this aspect of the proposed regulations until final regulations are issued.
Non-U.S. holders typically will be required to
furnish certifications (generally on the applicable IRS Form W-8) or other documentation to provide the information required by FATCA
or to establish compliance with or an exemption from withholding under FATCA. FATCA withholding may apply where payments are made through
a non-U.S. intermediary that is not FATCA compliant, even where the non-U.S. holder satisfies the holder's own FATCA obligations.
The United States and a number of other jurisdictions
have entered into intergovernmental agreements to facilitate the implementation of FATCA. Any applicable intergovernmental agreement
may alter one or more of the FATCA information reporting and withholding requirements. You are encouraged to consult with your own tax
advisor regarding the possible implications of FATCA on your investment in our shares of common stock, pre-funded warrants or warrant
shares, including the applicability of any intergovernmental agreements.
92
UNDERWRITING
A.G.P./Alliance Global Partners, or A.G.P., is
acting as the sole book-running manager in connection with this offering. Subject to the terms and conditions of the underwriting agreement
dated ____, 2022, A.G.P., as the underwriter, has agreed to purchase from us, and we have agreed to sell, ____ units and/or pre-funded
units at the public offering price, less the underwriting discount and commissions set forth on the cover page of this prospectus.
The underwriting agreement provides that the
obligation of the underwriter to purchase all of the shares, warrants, and pre-funded warrants being offered to the public, other than
those covered by the over-allotment option, is subject to certain conditions, and the underwriter is obligated to purchase all of the
shares of common stock, warrants, and pre-funded warrants offered hereby if any of the shares, warrants, and pre-funded warrants are
purchased.
Underwriting Discounts, Commissions and Expenses
We have agreed to sell the securities to the underwriter
at the offering price of $____ per unit or $____ per pre-funded unit, as applicable, which represents the offering price of such securities
set forth on the cover page of this prospectus, less the applicable 7% underwriting discount and a cash fee equal to 7% of the aggregate
gross proceeds received by us upon the exercise of any warrants.
The following table shows the underwriting discounts
and commissions payable to the underwriter by us in connection with this offering (assuming both the exercise and non-exercise of the
over-allotment option to purchase additional shares of common stock and/or warrants, or pre-funded units that we have granted to the
underwriter):
No
    Exercise
Full
    Exercise
Per Unit
$
$
Per Pre-Funded Unit
$
$
Total
$
$
We have also agreed to reimburse the underwriter
for legal and other expenses incurred by them in connection with the Offering in an amount not to exceed $70,000 and to pay the underwriter
a non-accountable expense allowance up to $15,000. We estimate the total offering expenses of this offering that will be payable by us,
excluding the underwriting discount and commissions, will be approximately $____.
Underwriter Warrants
We have also agreed to issue to the underwriter
warrants (the "Underwriter Warrants") to purchase that number of shares of common stock equal to 5% of the aggregate number
of the shares of common stock (including shares underlying warrants and/or pre-funded warrants, but excluding shares issued upon the exercise
of the underwriter's over-allotment option) issued in this offering, subject to any reductions necessary to comply with the rules
and regulations of the Financial Industry Regulatory Authority ("FINRA"). The Underwriter Warrants shall be exercisable, in
whole or in part, immediately upon the closing of this offering and expire on the ____-year anniversary of the date of issuance at an
initial exercise price per share of $____.
93
The Underwriter Warrants and underlying shares
of common stock are being registered pursuant to the registration statement of which this prospectus is a part, and we have agreed to
maintain such registration during the term of the Underwriter Warrants. Pursuant to FINRA Rule 5110(g), the Underwriter Warrants and
any shares issued upon exercise of the Underwriter Warrants shall not 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
the securities by any person for a period of 180 days immediately following the date of effectiveness or commencement of sales of this
offering, except the transfer of any security: (i) by operation of law or by reason of our reorganization; (ii) to any FINRA member firm
participating in the offering and the officers or partners thereof, if all securities so transferred remain subject to the lock-up restriction
set forth below for the remainder of the time period; (iii) if the aggregate amount of our securities held by the underwriter or related
persons do not exceed 1% of the securities being offered; (iv) that is beneficially owned on a pro rata basis by all equity owners of
an investment fund, provided that no participating member manages or otherwise directs investments by the fund and the participating members
in the aggregate do not own more than 10% of the equity in the fund; or (v) the exercise or conversion of any security, if all securities
remain subject to the lock-up restriction set forth below for the remainder of the time period.
Over-Allotment Option
We have granted the underwriter an over-allotment
option. This option, which is exercisable for up to 45 days after the date of this prospectus, permits the underwriter to purchase up
to (i) ________ shares of our common stock and/or warrants to purchase up to ________ shares of common stock, in any combination thereof;
and/or (ii) ________ pre-funded units, consisting of ____________ warrants to purchase up to ________ shares of common stock and ____________
pre-funded warrants to purchase up to __________ shares of common stock, from us to cover over-allotments, in each case at the public
offering price that appears on the cover page of this prospectus, less the underwriting discounts and commissions.
Indemnification
We have agreed to indemnify the underwriter against
liabilities under the Securities Act. We have also agreed to contribute to payments the underwriter may be required to make in respect
of such liabilities.
Listing
Our common stock is listed on the Nasdaq Capital
Market under the trading symbol "KERN".
Lock-up Agreements
Our executive officers, directors and certain
of our significant stockholders have agreed, subject to certain exceptions, to a ____-day "lock-up" from the date of this
prospectus relating to shares of our common stock that they beneficially own, including the issuance of shares of common stock upon the
exercise of currently outstanding options and options which may be issued without the prior written consent of A.G.P. This means that,
for a period of ____ days following the date of this prospectus, such persons may not offer, sell, pledge or otherwise dispose of these
securities without the prior written consent of A.G.P., subject to certain exceptions.
In addition, the underwriting agreement provides
that we will not, for a period of ____ days following the date of this prospectus, offer, sell or distribute any of our securities, without
the prior written consent of A.G.P.
Stabilization
The rules of the SEC generally prohibit the underwriter
from trading in our securities on the open market during this offering. However, the underwriter is allowed to engage in some open market
transactions and other activities during this offering that may cause the market price of our securities to be above or below that which
would otherwise prevail in the open market. These activities may include stabilization, short sales and over-allotments, syndicate covering
transactions and penalty bids in accordance with Regulation M.
●
Stabilizing
                                            transactions consist of bids or purchases made by the representative for the purpose of preventing
                                            or slowing a decline in the market price of our securities while this offering is in progress.
●
Short
                                            sales and over-allotments occur when the representative sells more of our shares of common
                                            stock than it purchases from us in this offering. To cover the resulting short position,
                                            the representative may exercise the over-allotment option described above or may engage in
                                            syndicate covering transactions. There is no contractual limit on the size of any syndicate
                                            covering transaction. The representative will make available a prospectus in connection with
                                            any such short sales. Purchasers of shares sold short by the representative are entitled
                                            to the same remedies under the federal securities laws as any other purchaser of shares covered
                                            by the registration statement.
94
●
Syndicate
                                            covering transactions are bids for or purchases of our securities on the open market by the
                                            representative in order to reduce a short position.
●
Penalty
                                            bids permit the representative to reclaim a selling concession from a syndicate member when
                                            the shares of Common Stock originally sold by the syndicate member are purchased in a syndicate
                                            covering transaction to cover syndicate short positions.
Neither we nor the underwriter make any representation
or prediction as to the effect that the transactions described above may have on the prices of our securities. These transactions may
occur on any trading market. If any of these transactions are commenced, they may be discontinued without notice at any time.
Other Activities and Relationships
From time to time, the underwriter and/or its
affiliates have provided, and may in the future provide, various investment banking, financial advisory and other services to us and
our affiliates for which services they have received, and may in the future receive, customary fees. In the course of its business, the
underwriter and its affiliates may actively trade our securities or loans for its own account or for the accounts of customers, and,
accordingly, the underwriter and its affiliates may at any time hold long or short positions in such securities or loans. Except for
services provided in connection with this offering, the underwriter has not provided any investment banking or other financial services
during the 180-day period preceding the date of this prospectus and we do not expect to retain the underwriter to perform any investment
banking or other financial services for at least 90 days after the date of this prospectus.
Offer and Sale Restrictions Outside the United
States
Other than in the United States, no action has
been taken by us or the underwriter that would permit a public offering of the securities offered by this prospectus in any jurisdiction
where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly,
nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities
be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules
and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and
to observe any restrictions relating to the Offering and the distribution of this prospectus. This prospectus does not constitute an
offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer
or a solicitation is unlawful.
Electronic Distribution
This prospectus may be made available in electronic
format on websites or through other online services maintained by the underwriter, or by its affiliates. Other than this prospectus in
electronic format, the information on the underwriter's website and any information contained in any other website maintained by
the underwriter is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved
and/or endorsed by us or the underwriter, and should not be relied upon by any purchaser of the securities offered pursuant to the registration
statement of which this prospectus forms a part.
95
EXPERTS
The consolidated financial statements of Akerna
as of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive loss, changes in equity and cash flows
for the year ended December 31, 2021, for the transitional six months ended December 31, 2020, and for the year ended June 30, 2020 included
herein have been audited by Marcum LLP, independent registered public accounting firm, as set forth in their report thereon and are included
in reliance upon such report given on the authority of such firm as experts in accounting and auditing.
The financial statements of
The Nav People, Inc. & Subsidiary, which comprise the consolidated
balance sheet as of December 31,
2020, and the related consolidated
statements of operations and comprehensive loss, changes in stockholders'
deficit and cash flows for the year then ended, and the related notes to the financial statements included herein have been audited
by Marcum LLP, independent auditors, as set forth in their report thereon and are included in reliance upon such report given on the
authority of such firm as experts in accounting and auditing.
No expert or counsel named in this prospectus
as having prepared or having certified any part of this prospectus or having given an opinion upon the validity of the securities being
registered or upon other legal matters in connection with the registration or offering of the common stock was employed on a contingency
basis or had, or is to receive, in connection with the offering, a substantial interest, direct or indirect, in the registrant or any
of its parents or subsidiaries. Nor was any such person connected with the registrant or any of its parent or subsidiaries as a promoter,
managing or principal underwriter, voting trustee, director, officer or employee.
LEGAL MATTERS
The validity of the securities offered by this
prospectus and other legal matters concerning this offering relating to United States federal law and New York law has been passed upon
for us by Dorsey & Whitney LLP, Denver, Colorado. Certain legal matters in connection with this offering will be passed upon for
the underwriter by Thompson Hine LLP, New York, New York.
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. The registration statement, including
the attached exhibits and schedules, contains additional relevant information about us and the securities. This prospectus does not contain
all of the information set forth in the registration statement and the exhibits and schedules thereto. For further information respecting
our company and the shares offered by this prospectus, you should refer to the registration statement, including the exhibits and schedules
thereto.
We file annual, quarterly and other reports,
proxy statements and other information with the SEC. Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports
on Form 8-K, including any amendments to those reports, and other information that we file with or furnish to the SEC pursuant to Section
13(a) or 15(d) of the Exchange Act can be accessed free of charge through the Internet. These reports and other information will be available
at the website of the SEC at http://www.sec.gov. We also maintain a website at www.akerna.com, at which you may access these materials
free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. However, the information
contained in or accessible through our website is not part of this prospectus or the registration statement of which this prospectus
forms a part, and you should not rely on such information in making a decision to purchase our securities in this offering.
96
INDEX
TO AKERNA'S FINANCIAL STATEMENTS
Unaudited
    Condensed Consolidated Quarterly Financial Statements
(Please note unless
    otherwise indicated, dollar amounts refer to U.S. dollars)
Condensed Consolidated Balance Sheets (unaudited)
F-2
Condensed Consolidated Statements of Operations (unaudited)
F-
3
Condensed Consolidated Statements of Comprehensive Loss (unaudited)
F-
4
Condensed Consolidated Statements of Changes in Equity (unaudited)
F-
5
Condensed Consolidated Statements of Cash Flows (unaudited)
F-
7
Notes
F-8
Annual Financial
    Statements
(Please note unless
    otherwise indicated, dollar amounts refer to U.S. dollars)
Report of Independent Registered Public Accounting Firm
F-22
Consolidated Balance Sheets
F-
23
Consolidated Statements of Operations
F-
24
Consolidated Statements of Comprehensive Loss
F-
25
Consolidated Statements of Stockholders' Equity
F-
26
Consolidated Statements of Cash Flows
F-
27
Notes
F-
28
INDEX
TO THE NAV PEOPLE'S FINANCIAL STATEMENTS
Unaudited Condensed Consolidated Quarterly Financial Statements
FINANCIAL STATEMENTS
Consolidated Balance Sheet
F-65
Consolidated Statement of Operations and Comprehensive Income
F-
66
Consolidated Statement of Stockholders' Deficit
F-
67
Consolidated Statement of Cash Flows
F-
68
Notes to the Consolidated Financial Statements
F-
69
Annual
Financial Statements
Page
INDEPENDENT AUDITORS' REPORT
F-79
FINANCIAL STATEMENTS
Consolidated Balance Sheet
F-
80
Consolidated Statement of Operations and Comprehensive Loss
F-
81
Consolidated Statement of Stockholders' Deficit
F-
82
Consolidated Statement of Cash Flows
F-
83
Notes to the Consolidated Financial Statements
F-
84
F-
1
AKERNA CORP.
Condensed Consolidated
Balance Sheets
(unaudited)
March 31,
December 31,
2022
2021
Assets
Current assets:
Cash
$
9,687,690
$
13,934,265
Restricted cash
508,261
508,261
Accounts receivable, net
2,579,187
1,403,774
Prepaid expenses and other current assets
2,492,089
2,383,764
Total current assets
15,267,227
18,230,064
Fixed assets, net
159,159
153,151
Investment, net
226,101
226,101
Capitalized software, net
8,012,387
7,311,676
Intangible assets, net
20,708,046
21,609,794
Goodwill
29,964,160
46,942,681
Other noncurrent assets
9,700
9,700
Total Assets
$
74,346,780
$
94,483,167
Liabilities and Equity
Current liabilities:
Accounts payable, accrued expenses and other accrued liabilities
$
7,463,341
$
6,063,520
Contingent consideration payable
6,300,000
6,300,000
Current portion of deferred revenue
3,369,631
3,543,819
Current portion of long-term debt
13,200,000
13,200,000
Derivative liability
45,127
63,178
Total current liabilities
30,378,099
29,170,517
Long-term portion of deferred revenue
486,201
582,676
Long-term debt, less current portion
2,137,000
4,105,000
Deferred tax liabilities
565,184
675,291
Total liabilities
33,566,484
34,533,484
Commitments and contingencies (Note 7)
Equity:
Preferred stock, par value $
0.0001
;
5,000,000
shares authorized,
1
share special voting preferred stock issued and outstanding at March 31, 2022 and December 31, 2021
—
—
Special voting preferred stock, par value $
0.0001
;
1
share authorized, issued and outstanding as of March 31, 2022 and December 31, 2021, with $
1
preference in liquidation; exchangeable shares,
no
par value,
306,852
and
309,286
shares issued and outstanding as of March 31, 2022 and December 31, 2021 respectively
2,347,418
2,366,038
Common stock, par value $
0.0001
;
75,000,000
shares authorized,
34,175,088
and
31,001,884
issued and outstanding at March 31, 2022 and December 31, 2021, respectively
3,417
3,100
Additional paid-in capital
148,761,867
146,027,258
Accumulated other comprehensive loss
128,723
61,523
Accumulated deficit
(
110,461,129
)
(
88,508,236
)
Total equity
40,780,296
59,949,683
Total liabilities and equity
$
74,346,780
$
94,483,167
The accompanying notes are an integral part
of these condensed consolidated financial statements
F-
2
AKERNA CORP.
Condensed Consolidated Statements of Operations
(unaudited)
For the Three Months Ended
March 31,
2022
2021
Revenue:
Software
$
6,508,513
$
3,795,153
Consulting
427,009
172,747
Other revenue
15,319
46,124
Total revenue
6,950,841
4,014,024
Cost of revenue
2,203,671
1,454,167
Gross profit
4,747,170
2,559,857
Operating expenses:
Product development
2,105,361
1,424,100
Sales and marketing
3,236,113
1,735,915
General and administrative
2,570,432
1,852,962
Depreciation and amortization
1,993,391
1,052,883
Impairment of long-lived assets
15,478,521
—
Total operating expenses
25,383,818
6,065,860
Loss from operations
(
20,636,648
)
(
3,506,003
)
Other (expense) income:
Interest (expense) income, net
(
740
)
(
774,380
)
Change in fair value of convertible notes
(
1,433,000
)
(
1,991,272
)
Change in fair value of derivative liability
18,051
(
175,996
)
Total other (expense) income
(
1,415,689
)
(
2,941,648
)
Net loss before income taxes and equity in losses of investee
(
22,052,337
)
(
6,447,651
)
Income tax (expense) benefit
99,444
(
6,270
)
Equity in losses of investee
—
(
3,782
)
Net loss
$
(
21,952,893
)
$
(
6,457,703
)
Basic and diluted weighted average common stock outstanding
31,605,783
22,209,072
Basic and diluted net loss per common share
$
(
0.69
)
$
(
0.29
)
The accompanying notes are an integral part
of these condensed consolidated financial statements
F-
3
AKERNA CORP.
Condensed Consolidated Statements of Comprehensive
Loss
(unaudited)
Three Months Ended
March 31,
2022
2021
Net loss
$
(
21,952,893
)
$
(
6,457,703
)
Other comprehensive (loss) income:
Foreign currency translation
(
33,800
)
(
230
)
Unrealized (loss) gain on convertible notes
101,000
(
13,000
)
Comprehensive loss
$
(
21,885,693
)
$
(
6,470,933
)
The accompanying notes
are an integral part of these condensed consolidated financial statements
F-
4
AKERNA CORP.
Condensed Consolidated Statements of Changes
in Equity
For the Three Months Ended March 31, 2022
(unaudited)
Special Voting Preferred Stock
Common
Additional
Paid-In
Accumulated Other
Comprehensive
Accumulated
Total
Share
Amount
Shares
Amount
Capital
Income
Deficit
Equity
Balance – January 1, 2022
309,286
$
2,366,038
31,001,884
$
3,100
$
146,027,258
$
61,523
$
(
88,508,236
)
$
59,949,683
Conversion of Exchangeable Shares to common stock
(
2,434
)
(
18,620
)
2,434
—
18,620
—
—
—
Settlement of convertible debt
—
—
3,396,842
340
3,299,660
—
—
3,300,000
Shares withheld for withholding taxes
—
—
(
4,421
)
—
(
5,615
)
—
—
(
5,615
)
Shares returned in connection with 365 Cannabis acquisition
—
—
(
279,762
)
(
28
)
(
939,972
)
—
—
(
940,000
)
Stock-based compensation
—
—
—
—
316,855
—
—
316,855
Restricted stock vesting
—
—
43,479
4
(
4
)
—
—
—
Liabilities settled with shares
—
—
14,632
1
45,065
—
—
45,066
Foreign currency translation adjustments
—
—
—
—
—
(
33,800
)
—
(
33,800
)
Unrealized (loss) gain on convertible notes
—
—
—
—
—
101,000
—
101,000
Net loss
—
—
—
—
—
—
(
21,952,893
)
(
21,952,893
)
Balance – March 31, 2022
306,852
$
2,347,418
34,175,088
$
3,417
$
148,761,867
$
128,723
$
(
110,461,129
)
$
40,780,296
The accompanying notes
are an integral part of these condensed consolidated financial statements
F-
5
AKERNA CORP.
Condensed Consolidated
Statements of Changes in Equity
For the Three
Months Ended March 31, 2021
(unaudited)
Special Voting Preferred Stock
Common
Additional
Paid-In
Accumulated Other
Comprehensive
Accumulated
Total
Share
Amount
Shares
Amount
Capital
Income
Deficit
Equity
Balance – January 1, 2021
2,667,349
$
20,405,219
19,901,248
$
1,990
$
94,086,433
$
(
91,497
)
$
(
57,179,525
)
$
57,222,620
Conversion of Exchangeable Shares to common stock
(
1,020,062
)
(
7,803,475
)
1,020,062
102
7,803,373
—
—
—
Settlement of convertible debt
—
—
2,080,140
208
8,467,292
—
—
8,467,500
Shares withheld for withholding taxes
—
—
(
48,948
)
(
5
)
(
333,842
)
—
—
(
333,847
)
Stock-based compensation
—
—
—
—
503,379
—
—
503,379
Settlement of liabilities with shares
—
—
101,705
10
377,315
—
—
377,325
Restricted stock vesting
—
—
13,978
1
(
1
)
—
—
—
Forfeitures of restricted shares
—
—
(
668
)
—
—
—
—
—
Foreign currency translation adjustments
—
—
—
—
—
(
230
)
—
(
230
)
Unrealized (loss) gains on convertible notes
—
—
—
—
—
(
13,000
)
—
(
13,000
)
Net loss
—
—
—
—
—
—
(
6,457,703
)
(
6,457,703
)
Balance – March 31, 2021
1,647,287
$
12,601,744
23,067,517
$
2,306
$
110,903,949
$
(
104,727
)
$
(
63,637,228
)
$
59,766,044
The accompanying notes are an integral part
of these condensed consolidated financial statements
F-
6
AKERNA CORP.
Condensed Consolidated Statements of Cash Flows
(unaudited)
For the Three Months Ended
March 31,
2022
2021
Cash flows from operating activities:
Net loss
$
(
21,952,893
)
$
(
6,457,703
)
Adjustment to reconcile net loss to net cash used in operating activities:
Equity in losses of investment
—
3,782
Bad debt
174,794
(
10,516
)
Stock-based compensation expense
304,237
503,379
Amortization of deferred contract cost
113,251
118,519
Non-cash interest expense
—
769,773
Depreciation and amortization
1,993,391
1,052,882
Foreign currency loss (gain)
5,596
(
18,801
)
Impairment of long-lived assets
15,478,521
—
Change in fair value of convertible notes
1,433,000
1,991,272
Change in fair value of derivative liability
(
18,051
)
175,996
Changes in operating assets and liabilities:
Accounts receivable
(
1,335,939
)
(
177,832
)
Prepaid expenses and other current assets
178,869
236,339
Accounts payable and accrued liabilities
445,969
152,455
Deferred tax liabilities
(
110,107
)
—
Deferred revenue
(
296,032
)
286,637
Net cash used in operating activities
(
3,585,394
)
(
1,373,818
)
Cash flows from investing activities:
Developed software additions
(
647,022
)
(
704,637
)
Net cash used in investing activities
(
647,022
)
(
704,637
)
Cash flows from financing activities:
Value of shares withheld related to tax withholdings
(
5,615
)
(
333,847
)
Net cash used in financing activities
(
5,615
)
(
333,847
)
Effect of exchange rate changes on cash and restricted cash
(
8,544
)
(
1,579
)
Net change in cash and restricted cash
(
4,246,575
)
(
2,413,881
)
Cash and restricted cash - beginning of period
14,442,526
18,340,640
Cash and restricted cash - end of period
$
10,195,951
$
15,926,759
Cash paid for interest
$
—
$
—
Cash paid for taxes
5,210
—
Supplemental Disclosure of non-cash investing and financing activity:
Settlement of convertible notes in common stock
$
3,300,000
$
8,467,292
Conversion of exchangeable shares to common stock
18,620
7,803,475
Settlement of other liabilities in common stock
45,065
377,325
Stock-based compensation capitalized as software development
12,618
—
Vesting of restricted stock units
4
—
Capitalized software included in accrued expenses
1,114,108
—
Fixed asset purchases accrued or in accounts payable
24,614
—
Shares returned in connection with 365 Cannabis acquisition
940,000
—
365 Cannabis working capital funds released from accrued expenses
160,000
—
365 Cannabis working capital adjustment funds recorded in other current assets
400,000
—
The accompanying notes are an integral part
of these condensed consolidated financial statements
F-
7
AKERNA CORP.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1 - Description of Business
Description of Business
Akerna Corp., herein referred
to as we, us, our or Akerna, through our wholly-owned subsidiaries MJ Freeway, LLC, or MJF, Trellis Solutions, Inc., or Trellis, Ample
Organics, Inc, or Ample, solo sciences, inc., or Solo, Viridian Sciences Inc., or Viridian, and The NAV People, Inc. d.b.a. 365 Cannabis,
or 365 Cannabis, provides enterprise software solutions that enable regulatory compliance and inventory management. Our proprietary, broad
and growing suite of solutions are adaptable for industries in which interfacing with government regulatory agencies for compliance purposes
is required, or where the tracking of organic materials from seed or plant to end products is desired. We develop products intended to
assist states in monitoring licensed businesses' compliance with state regulations and to help state-licensed businesses operate
in compliance with such law. We provide our commercial software platform, MJ Platform®, Trellis®, Ample, Viridian and 365 Cannabis
to state-licensed businesses, and our regulatory software platform, Leaf Data Systems®, to state government regulatory agencies. Through
Solo, we provide an innovative, next-generation solution for state and national governments to securely track product and waste throughout
the supply chain with solo*TAG™. The integration of MJ Platform® and solo*CODE™ results in technology for consumers and
brands that brings a consumer-facing mark designed to highlight the authenticity and signify transparency.
Our Viridian and 365 Cannabis
offerings are considered enterprise offerings and all other solutions are considered non-enterprise offerings that meet the needs of our
small and medium business customers.
We consult with clients
on a wide range of areas to help them successfully maintain compliance with state laws and regulations. We provide project-focused consulting
services to clients who are initiating or expanding their cannabis business operations or are interested in data consulting engagements
with respect to the legal cannabis industry. Our advisory engagements include service offerings focused on compliance requirement assessments,
readiness and best practices, compliance monitoring systems, application processes, inspection readiness, and business plan and compliance
reviews. We typically provide our consulting services to clients in emerging markets that are seeking consultation on newly introduced
licensing regimes and assistance with the regulatory compliant build-out of operations.
Going Concern and Management's Liquidity
Plans
In accordance with the Financial
Accounting Standards Board's ("FASB") standard on going concern, Accounting Standard Update No. 2014-15, or ASU No.
2014-15, the Company assesses going concern uncertainty in its consolidated financial statements to determine if it has sufficient cash,
cash equivalents and working capital on hand, including marketable equity securities, and any available borrowings on loans, to operate
for a period of at least one year from the date the consolidated financial statements are issued, which is referred to as the "look-forward
period" as defined by ASU No. 2014-15. As part of this assessment, based on conditions that are known and reasonably knowable to
the Company, it will consider various scenarios, forecasts, projections, estimates and will make certain key assumptions, including the
timing and nature of projected cash expenditures or programs, and its ability to delay or curtail expenditures or programs, if necessary,
among other factors. Based on this assessment, as necessary or applicable, the Company makes certain assumptions around implementing curtailments
or delays in the nature and timing of programs and expenditures to the extent The Company deems probable those implementations can be
achieved and it has the proper authority to execute them within the look-forward period in accordance with ASU No. 2014-15.
The
accompanying condensed consolidated financial statements have been prepared on the basis that we will continue as a going concern, which
contemplates realization of assets and the satisfaction of liabilities in the normal course of business. However, since our inception
we have incurred recurring operating losses, used cash from operations, and relied on capital raising transactions to continue ongoing
operations. During the three months ended March 31, 2022 and March 31, 2021, we incurred a loss from operations of $
20.6
million and $
3.5
million, respectively, and used cash in operations of $
3.6
million and $
1.4
million, respectively. As of March 31, 2022, a working
capital deficit of $
15.1
million with $
9.7
million in cash available to fund future operations.
Management's
plan for the Company to continue as a going concern includes raising additional capital from our ATM program, subject to certain effects
on the Senior Convertible Notes should we utilize the program, including resetting the conversion price of the Senior Convertible Notes
should we raise more than $
5
million under the ATM program and an increase of
10
% in the amount payable on the monthly installment
payments if they are paid in cash and we have used the ATM program in the 12 months prior to the installment date, settling our contingent
consideration and Senior Convertible Notes in common stock rather than cash as it comes due, to the extent that this is permissible,
and implementing certain cost cutting strategies throughout the organization, while continuing to seek to grow our customer base and realize
synergies as we continue to integrate our recent acquisitions. If the Company is unable to raise sufficient additional funds through the
ATM Program and make it's convertible debt payments in stock, it will have to develop and implement a plan to extend payables, reduce
expenditures (including by laying off employees and reducing or eliminating the funding of certain business units and initiatives of the
Company), or scale back our business plan until sufficient additional capital is raised through other equity or debt offerings to support
further operations and satisfaction of the debt, and the Company may be subject to additional risks, including retention of key employees.
Such offerings may include the issuance of shares of common stock, warrants to purchase common stock, preferred stock, convertible debt
or other instruments that may dilute our current stockholders.  If we are required to raise additional capital as discussed above
and if we cannot timely raise additional funds, we may also be unable to meet the financial covenants of the Senior Convertible Notes,
which could result in an event of default under those instruments which could negatively impact the Company. See the risks detailed in
our Form 10-K under "Item 1A. Risk Factors – Risks Relating to our Convertible Debt".
F-
8
The
ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in
the preceding paragraph and eventually secure other sources of financing and attain profitable operations. We will require additional
financing in the second quarter of 2022 to meet our ongoing operational working capital requirements and continue to meet the financial
covenants of the Senior Convertible Notes. As noted above, we plan to meet those requirements in part through the use of our ATM Facility,
but there are no guarantees that the ATM Facility will permit us to raise sufficient cash to meet our ongoing requirements.
We also assume
that we will be able to pay our convertible debt in common stock rather than cash, however if at any point our stock price is below $2.00(which
it is as of the date hereof),  the debt holders may request the payments in cash rather than stock.
These factors raise substantial
doubt about the Company's ability to continue as a going concern for one year from the issuance of the consolidated financial statements.
If we are unable to raise sufficient capital we may have to reduce operations which could significantly affect our results of operations.
If we fail to meet the financial covenants of the Senior Convertible Notes and cannot obtain a waiver from such provisions or otherwise
come to an agreement with the holders of our debt, such holders may declare a default on the debt which could subject our assets to seizure
and sale, negatively impacting our business. The accompanying consolidated financial statements do not include any adjustments relating
to the recoverability and classification of assets and liabilities that might be necessary if the Company is unable to continue as a going
concern.
Note 2 - Summary of Significant Accounting
Policies
Basis of Presentation
The accompanying unaudited
condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America ("GAAP") and with the instructions to the Quarterly Report on Form 10-Q and Article 8 of Regulation S-X
for interim financial information. Accordingly, these financial statements do not include all of the information normally required by
GAAP or Securities and Exchange Commission rules and regulations for complete financial statements. In management's opinion,
these condensed consolidated financial statements include all adjustments, consisting of normal recurring items, considered necessary
for the fair presentation of the results of operations for the interim periods presented. The operating results for the three months
ended March 31, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending December
31, 2022.
The condensed consolidated
balance sheet as of and for the period ended December 31, 2021, has been derived from our audited financial statements at that date but
does not include all disclosures and financial information required by GAAP for complete financial statements. The information included
in this quarterly report on Form 10-Q should be read in conjunction with our consolidated financial statements and notes thereto for the
period ended December 31, 2021, which were included in our report on Form 10-K filed on March 31, 2022.
Principles of Consolidation
Our accompanying consolidated
financial statements include the accounts of Akerna, our wholly-owned subsidiaries, and those entities in which we otherwise have a controlling
financial interest. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of our consolidated
financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included
in the consolidated financial statements and accompanying notes thereto. Our most significant estimates and assumptions are related to
the valuation of acquisition-related assets and liabilities, capitalization of internal costs associated with software development,
fair value measurements, impairment assessments, loss contingencies, valuation allowance associated with deferred tax assets, stock based
compensation expenses, and useful lives of long-lived intangible assets. We base our estimates on historical experience and on various
other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results could differ from those estimates.
Accounts Receivable, Net
We maintain an allowance for
doubtful accounts equal to the estimated uncollectible amounts based on our historical collection experience and review of the current
status of trade accounts receivable. Receivables are written-off and charged against the recorded allowance when we have exhausted
collection efforts without success. The allowance for doubtful accounts was $
0.6
million and $
0.3
million as of March 31,
2022 and December 31, 2021, respectively.
Concentrations of Credit Risk
We grant credit in the normal
course of business to customers in the United States. We periodically perform credit analysis and monitor the financial condition of our
customers to reduce credit risk.
During the three months
ended March 31, 2022 and 2021,
one
government client accounted for
12
% and
12
% of total revenues, respectively.  As of March
31, 2022,
one
government client accounted for
19
% of net accounts receivable and as of December 31, 2021
two
government
clients accounted for
34
% of net accounts receivable.
F-
9
Segment Reporting
The Company operates its
business as one operating segment. Operating segments are defined as components of an enterprise about which separate financial information
is evaluated regularly by the chief operating decision maker, the Company's Chief Executive Officer, in deciding how to allocate
resources and assess performance. The Company's chief operating decision maker allocates resources and assesses performance based
upon discrete financial information at the consolidated level.
In the following table,
we disclose the combined gross balance of our fixed assets, capitalized software, and intangible assets by geographical location (in thousands):
As of
March 31,
2022
As of
December 
    31,
2021
Long-lived assets:
United States
$
33,793
$
32,356
Canada
5,590
5,229
Total
$
39,383
$
37,585
Recent Accounting Pronouncements
ASU 2016-02
The Financial Accounting Standards
Board, or the FASB, has issued new guidance related to the accounting for leases. The new standard establishes a right-of-use model that
requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months.
Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement
of operations. We have adopted this new standard on January 1, 2022 and due to the immaterial impact of applying this standard to
our limited assets subject to operating leases, there was no material impact to our results of operations.
ASU 2016-13
The FASB has issued guidance
to introduce a new model for recognizing credit losses on financial instruments based on estimated current expected credit losses, or
CECL. Under the new standard, an entity is required to estimate CECL on trade receivables at inception, based on historical information,
current conditions, and reasonable and supportable forecasts. Following our change in fiscal year-end effective December 31, 2020, the
new guidance is effective for us beginning on January 1, 2023. We are evaluating the impact of adoption of the new standard on our
consolidated financial statements.
ASU 2020-01
The FASB has issued guidance
clarifying the interactions between various standards governing investments in equity securities. The new guidance addresses accounting
for the transition into and out of the equity method and measurement of certain purchased options and forward contracts to acquire investments.
The standard is effective for us for annual and interim periods beginning on January 1, 2022. We have adopted this new standard on
January 1, 2022 and there was no material impact to our results of operations as a result.
F-
10
ASU 2020-06
In August 2020, the FASB
issued ASU 2020-06, Debt - Debt with Conversion and Other Options and Derivative and Hedging - Contracts in Entity's Own Equity,
which simplifies the accounting for convertible instruments. This guidance eliminates certain models that require separate accounting
for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminates certain of the conditions
for equity classification for contracts in an entity's own equity. The guidance also requires entities to use the if-converted method
for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments
that may be settled in cash or shares, except for certain liability-classified share-based payment awards. This guidance is required to
be adopted by us in the first quarter of 2023 and must be applied using either a modified or full retrospective approach. We are currently
evaluating the impact this guidance will have on our consolidated financial statements.
ASU 2021-04
On May 3, 2021, FASB issued
ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock
Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Issuer's Accounting
for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This new standard provides clarification
and reduces diversity in an issuer's accounting for modifications or exchanges of freestanding equity-classified written call options
(such as warrants) that remain equity classified after modification or exchange. This standard is effective for fiscal years beginning
after December 15, 2021, including interim periods within those fiscal years. Issuers should apply the new standard prospectively to modifications
or exchanges occurring after the effective date of the new standard. We have adopted this new standard on January 1, 2022 and there
was no material impact to our results of operations as a result.
ASU 2021-08
In October 2021, the FASB issued
ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,
which amends the accounting related to contract assets and liabilities acquired in business combinations. Under current GAAP, an
entity generally recognizes assets and liabilities acquired in a business combination, including contract assets and contract liabilities
arising from revenue contracts with customers, at fair value on the acquisition date. ASU 2021-08 requires that entities recognize and
measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contracts
with Customers. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal
years, and should be applied prospectively to businesses combinations occurring on or after the effective date of the amendment. We
are currently evaluating the impact this guidance will have on our consolidated financial statements.
Note 3 – Revenue
In accordance with ASC 606,
revenue is recognized when a customer obtains the benefit of promised services, in an amount that reflects the consideration the Company
expects to be entitled to receive in exchange for those services. In determining the amount of revenue to be recognized, the Company performs
the following steps: (i) identification of the contract with a customer; (ii) identification of the promised services in the contract
and determination of whether the promised services are performance obligations, including whether they are distinct in the context of
the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations based
on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.
Software Revenue.
Our
software revenue is generated from subscriptions and services related to the use of our commercial software platforms, MJ Platform®,
Ample, Trellis, Viridian, 365 Cannabis, and our government regulatory platform, Leaf Data Systems, and the sale of business
intelligence, data analytics and other software related services. For our SMB customers, software contracts are generally annual contracts
paid monthly in advance of service and typically cancellable upon 30 days' notice after the end of the contract period.
Leaf Data Systems contracts are generally multi-year contracts payable annually or quarterly in advance of service. Commercial software
and Leaf Data Systems contracts generally may only be terminated early for breach of contract as defined in the respective agreements.
Our enterprise contracts are typically multi-year contracts paid monthly in advance of services and are generally cancellable with at
least a month's notice before the end of the contract period. Amounts that have been invoiced are initially recorded as deferred revenue
or contract liabilities. Subscription revenue is recognized on a straight-line basis over the service term of the arrangement beginning
on the date that our solution is made available to the customer and ending at the expiration of the subscription term. We typically
invoice customers at the beginning of the term, in multi-year, annual, quarterly, or monthly installments. When a collection of fees occurs
in advance of service delivery, revenue recognition is deferred until such services commence. Revenue for implementation fees is recognized
ratably over the expected term of the contract, including expected renewals.
F-
11
We
include service level commitments to customers warranting certain levels of uptime reliability and performance and permitting those customers
to receive credits if those levels are not met. In addition, customer contracts often include: specific obligations that require us to
maintain the availability of the customer's data through the service and that customer content is secured against unauthorized access
or loss, and indemnity provisions whereby we indemnify customers from third-party claims asserted against them that result from our failure
to maintain the availability of their content or securing the same from unauthorized access or loss. To date, we have not incurred any
material costs as a result of such commitments. Any such credits or payments made to customers under these arrangements are recorded as
a reduction of revenue.
Consulting
Revenue.
Consulting services revenue is generated by providing solutions for operators in the pre-application of licensures and
pre-operational phases of development and consists of contracts with fixed terms and fee structures based upon the volume and activity
or fixed-price contracts for consulting and strategic services. These services include application and business plan preparation
as they seek licenses to be granted. Consulting projects completed during the pre-application phase generally solidify us as the software
vendor of choice for subsequent operational phases once the operator is granted the license. As a result, our consulting revenue is driven
as new emerging states pass legislation, and as our client-operators gain licenses. Accordingly, we expect our consulting services to
continue to grow as more states emerge with legalization reform. When these services are not combined with subscription revenues
as a single unit of account, these revenues are recognized as services are rendered and accepted by the customer.
Other Revenue.
Our other
revenue is derived primarily from point-of-sale hardware and other non-recurring revenue. We recognize revenue as these products
are delivered.
Cost of Revenue.
Cost
of revenue consists primarily of costs related to providing subscription and other services to our customers, including employee compensation
and related expenses for data center operations, customer support and professional services personnel, payments to outside technology
service providers, security services, and other tools.
Deferred Revenue.
Deferred
revenue consists of payments received in advance of revenue recognition from subscription, implementation and consulting services. The
deferred revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, contract duration,
and invoice frequency. Deferred revenue that will be recognized during the succeeding twelve-month period is recorded as deferred
revenue, which is a current liability on the accompanying consolidated balance sheets.
Disaggregation of Revenue
The Company derives the majority
of its revenue from subscription fees paid for access to and usage of its SaaS solutions for a specified period of time, typically one to
three years. In addition to subscription fees, contracts with customers may include implementation fees for launch assistance and training.
Fixed subscription and implementation fees are billed in advance of the subscription term and are due in accordance with contract terms,
which generally provide for payment within 30 days. The Company's contracts typically have a one to three year term. The
Company's contractual arrangements include performance, termination and cancellation provisions, but do not provide for refunds. Customers
do not have the contractual right to take possession of the Company's software at any time.
Sales taxes collected from customers and remitted
to government authorities are excluded from revenue.
F-
12
The following table summarizes
our revenue disaggregation of enterprise offerings and non-enterprise offerings for the following periods (in thousands):
For the Three Months Ended
March 31,
2022
2021
Enterprise
$
3,035
$
—
Non-enterprise
3,916
4,014
$
6,951
$
4,014
For the Three Months Ended
March 31,
2022
2021
United States
$
4,989
$
2,659
Canada
1,962
1,355
$
6,951
$
4,014
Contracts with Multiple Performance Obligations
Customers may elect to purchase
a subscription to multiple modules, multiple modules with multiple service levels, or, for certain of the Company's solutions. We evaluate
such contracts to determine whether the services to be provided are distinct and accordingly should be accounted for as separate performance
obligations. If we determine that a contract has multiple performance obligations, the transaction price, which is the total price of
the contract, is allocated to each performance obligation based on a relative standalone selling price method. We estimate standalone
selling price based on observable prices in past transactions for which the product offering subject to the performance obligation has
been sold separately. As the performance obligations are satisfied, revenue is recognized as discussed above in the product descriptions.
F-
13
Transaction Price Allocated to Future Performance
Obligation
ASC 606 provides certain
practical expedients that limit the required disclosure of the aggregate amount of transaction price that is allocated to performance
obligations that have not yet been satisfied. As many of the contracts the Company has entered into with customers are for a twelve-month
subscription term, a significant portion of performance obligations that have not yet been satisfied as of March 31, 2022 are
part of a contract that has an original expected duration of one year or less. For contracts with an original expected duration
of greater than one year, for which the practical expedient does not apply, the aggregate transaction price allocated to the
unsatisfied performance obligations was $
15.1
million as of March 31, 2022, of which $
8.4
million is expected
to be recognized as revenue over the next twelve months.
Deferred Revenue
Deferred revenue represents
the unearned portion of subscription and implementation fees. Deferred revenue is recorded when cash payments are received in advance
of performance. Deferred amounts are generally recognized within one to three years. Deferred revenue is included in the accompanying
consolidated balance sheets under Total current liabilities, net of any long-term portion that is included in Other long-term liabilities.
The following table summarizes
deferred revenue activity for the three months ended March 31, 2022 (in thousands):
As of
December  31,
2021
Net additions
Revenue recognized
As of
March 31,
2022
Deferred revenue
$
4,126
6,069
(
6,339
)
$
3,856
O
f
the $
7.0
million of
revenue recognized in the three months ended March 31, 2022,
$
2.4
million w
as
included in deferred revenue at December 31, 2021.
Costs to Obtain Contracts
In accordance with ASC 606,
we capitalize sales commissions that are directly related to obtaining customer contracts and that would not have been incurred if the
contract had not been obtained. These costs are included in the accompanying consolidated balance sheets and are classified as Prepaid
expenses and other current assets. Deferred contract costs are amortized to sales and marketing expense over the expected period of benefit,
which we have determined to be one to three years based on the estimated customer relationship period.
The following table summarizes
deferred contract cost activity for the three months ended March 31, 2022 (in thousand):
As of
December 31,
2021
Additions
Amortized costs (1)
As of
March 31,
2022
Deferred contract costs
$
301
112
(
113
)
$
300
(1)
Includes contract costs amortized
to sales and marketing expense during the period.
F-
14
Note 4 – Significant Transactions
2021 Transactions
Viridian Sciences
On April 1, 2021, we completed
the acquisition of Viridian Sciences Inc. ("Viridian"), a cannabis business management software provider that is built on
SAP Business One. We acquired Viridian in exchange for
1.0
million shares of our common stock valued at $
6.0
million. In addition to the
stock consideration, the agreement provides for contingent consideration of up to $
1.0
million, payable in additional common stock, if
Viridian meets certain revenue criteria. We finalized our purchase price accounting during the three months ended March 31, 2022 and there
were no changes to the previously disclosed purchase price accounting.
365 Cannabis
On
October 1, 2021, we acquired all the issued and outstanding shares of 365 Cannabis. Under the terms of the Agreement, the aggregate
consideration for the 365 Cannabis shares consisted of an initial purchase price of (1) $
5,000,000
in cash, (2) $
12,000,000
in
stock, which was to be settled by issuing
3.6
million shares of our common stock, and (3) contingent value rights to be
issued pursuant to a rights indenture entitling the holders thereof to receive, subject to certain adjustments as set forth in the Agreement,
an aggregate of up to $
8,000,000
in stock, in the event that 365 Cannabis achieves certain revenue targets as specified in the Agreement. These
rights are accounted for as contingent consideration and are currently recorded at preliminary fair value which will be updated upon finalization
of purchase accounting.
We
reached a working capital settlement agreement during the three months ended March 31, 2022 in the amount of $
1.5
million. As a result
of this post-close adjustment, the 365 Cannabis purchase price was reduced by $
1.5
million during the first quarter of 2022. This was
recorded as follows: 1) a receivable of $
400,000
was booked in other current assets in our condensed consolidated balance sheet as of
March 31, 2022 and was received subsequent to March 31, 2022, 2) a reduction of $
160,000
was made to the working capital accrual that
was booked as of December 31, 2021, and 3)
279,762
shares worth $
940,000
that were held in escrow were released back to Akerna to
cover the remainder of the working capital adjustment. The updated consideration transferred is reflected in the table below (in thousands):
Preliminary
Fair Value
Shares issued
$
11,060
Cash
4,982
Contingent consideration
6,300
Total preliminary fair value of consideration transferred
$
22,342
The opening balance
sheet presented below reflects our updated purchase price allocation, summarizing the preliminary fair values of assets acquired
and liabilities assumed as of the date of acquisition (in thousands):
Preliminary
Fair Value
Cash
$
527
Accounts receivable
486
Prepaid expenses and other current asset
261
Fixed Assets
93
Non-compete agreement
80
Acquired technology
1,040
Customer relationships
13,810
Acquired trade name
270
Goodwill
12,543
Accounts payable and accrued expenses
(
826
)
Deferred tax liabilities
(
2,642
)
Deferred revenue
(
3,300
)
Net assets acquired
$
22,342
F-
15
The excess of purchase consideration
over the fair value of assets acquired and liabilities assumed was recorded as goodwill, which is primarily attributed to the assembled
workforce and expanded market opportunities, for which there is no basis for U.S. income tax purposes. The fair values assigned to identifiable
assets acquired and liabilities assumed are based on management's estimates and assumptions. We expect to finalize the valuation
as soon as practicable, but no later than one year from the acquisition date.
Pro Forma Financial Information
The following unaudited pro
forma consolidated operating results give effect to the Viridian and 365 Cannabis acquisitions, as if they had been completed as of January
1, 2020 (in thousands):
Three Months
Ended
March 31,
2021
Revenue
$
7,407
Net loss
$
(
6,574
)
The pro forma financial information
for the period presented above has been calculated after adjusting the results of Viridian and 365 Cannabis to reflect the business combination
accounting effects resulting from this acquisition, including the amortization expense from acquired intangible assets as though the acquisition
occurred as of the beginning of the periods indicated above as well as direct acquisition costs. The pro forma financial information is
for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had
taken place at the beginning of the years indicated above.
Special Voting Preferred Stock and Exchangeable Shares
In connection with the Ample
acquisition, which was completed on July 7, 2020, we entered into agreements with our wholly-owned subsidiary and the Ample shareholder
representative that resulted in the issuance of a single share of our special voting preferred stock, for the purpose of ensuring that
each Exchangeable Share is substantially the economic and voting equivalent of a share of Akerna common stock, and, following the
registration of the Akerna shares issuable upon exchange of the Exchangeable Shares under the Securities Act of 1933, ensuring that
each Exchangeable Share is exchangeable on a one-for-one basis for a share of Akerna common stock, subject to certain limitations.
As a result of these agreements and the issuance of the special voting preferred stock, each holder of Exchangeable Shares effectively
has the ability to cast votes along with holders of Akerna common stock. Additionally, these agreements grant exchange rights to
the holders of exchangeable shares upon the event of our liquidation, dissolution or winding up.
The special voting preferred
stock has a par value of $
0.0001
per share and a preference in liquidation of $
1.00
. The special voting preferred stock entitles the holder
to an aggregate number of votes equal to the number of the exchangeable shares issued and outstanding from time to time and which we do
not own. The holder of the special voting preferred stock and the holders of shares of Akerna common stock will both together
as a single class on all matters submitted to a vote of our shareholders. At such time as the special voting preferred stock has no votes
attached to it, the share shall be automatically cancelled. The exchangeable shares do not have a par value.
During the three months
ended March 31, 2022, several Ample shareholders exchanged a total of
2,434
exchangeable shares with a value of $
18,620
for the same number
of shares of Akerna common stock. The exchange was accounted for as an equity transaction and we did not recognize a gain or
loss on this transaction. As of March 31, 2022, there were a total of
306,852
exchangeable shares issued and outstanding.
Note 5 - Balance Sheet
Disclosures
Prepaid expenses and other current assets
consisted of the following:
As of
March 31,
As of
December 31,
2022
2021
Software and technology
$
723,513
$
687,740
Professional services, dues and subscriptions
284,333
546,126
Insurance
143,355
264,097
Deferred contract costs
254,771
260,899
Unbilled receivables
547,675
506,984
Other
538,442
117,918
Total prepaid expenses and other current assets
$
2,492,089
$
2,383,764
F-
16
Accounts payable, accrued
expenses, and other accrued liabilities consisted of the following:
As of
March 31,
As of
December 31,
2022
2021
Accounts payable
$
3,065,862
$
1,943,457
Professional fees
230,127
319,590
Sales taxes
422,580
360,361
Compensation
1,217,392
1,123,467
Contractors
1,158,447
1,288,730
Settlements and legal
1,189,561
681,045
Other
179,372
346,870
Total accounts payable, accrued expenses, and other accrued liabilities
$
7,463,341
$
6,063,520
Note 6- Fair Value
Fair Value Option Election – Convertible Notes
We issued convertible notes
with a principal amount of $
17.0
million at a purchase price of $
15.0
million (the "2020 Notes") on June 9, 2020. The 2020
Notes were paid in full on
October 5, 2021
and were replaced by convertible notes of $
20.0
million at a purchase price of $
18.0
million
(the "2021 Notes") on the same date. We elected to account for both the 2020 Notes and the 2021 Notes using the fair value
option. Under the fair value option, the financial liability is initially measured at its issue-date estimated fair value and subsequently
remeasured at its estimated fair value on a recurring basis at each reporting period date. The change in estimated fair value resulting
from changes in instrument-specific credit risk is recorded in other comprehensive income as a component of equity. The remaining estimated
fair value adjustment is presented as a single line item within other (expense) income in our condensed consolidated statement of operations
under the caption, change in fair value of convertible notes
.
For the 2020 Note and 2021
Notes, which are measured at fair value categorized within Level 3 of the fair value hierarchy, the following is a reconciliation
of the fair values for the three months ended March 31, 2022 and three months ended March 31, 2021:
Three Months Ended
March 31,
2022
2021
Fair value balance at beginning of period
$
17,305,000
$
13,398,000
Payments on Convertible Notes
(
3,300,000
)
(
7,697,727
)
Change in fair value reported in the statements of operations
1,433,000
1,991,272
Change in fair value reported in other comprehensive loss
(
101,000
)
13,000
Fair value balance at end of period
$
15,337,000
$
7,704,545
The estimated fair value
of the Convertible Notes as of March 31, 2022 and December 31, 2021, was computed using a Monte Carlo simulation, which incorporates significant
inputs that are not observable in the market, and thus represents a Level 3 measurement as defined by GAAP. The unobservable
inputs utilized for measuring the fair value of the Convertible Notes reflect our assumptions about the assumptions that market participants
would use in valuing the Convertible Notes as of the issuance date and subsequent reporting period.
We estimated the fair value
by using the following key inputs to the Monte Carlo Simulation Model:
Fair Value Assumptions - Convertible Notes
March 31,
2022
December 31,
2021
Face value principal payable
$
16,700,000
$
20,000,000
Original conversion price
$
4.05
$
4.05
Value of Common Stock
$
1.14
$
1.75
Expected term (years)
2.5
2.8
Volatility
79
%
75
%
Market yield
40.2
%
37.1
%
Risk free rate
2.4
%
1
%
Issue date
October 5, 2021
October 5, 2021
Maturity date
October 5, 2024
October 5, 2024
F-
17
Fair Value Measurement – Warrants
In connection with MTech Acquisition
Corp.'s ("MTech") initial public offering, MTech sold
5,750,000
units at a purchase price of $
10.00
per unit, inclusive
of
750,000
units sold to the underwriters on February 8, 2018, upon the underwriters' election to fully exercise their over-allotment
option. Each unit consisted of
one
share of MTech's common stock and
one
warrant of MTech ("MTech Public Warrant").
Each MTech Public Warrant entitled the holder to purchase
one
share of MTech's common stock at an exercise price of $
11.50
. Concurrently
with MTech's initial public offering, MTech sold
243,750
units at a purchase price of $
10.00
per unit on a private offering basis. 
Each unit consisted of
one
share of MTech's common stock and
one
warrant of MTech ("MTech Private Warrant"). Each MTech
Private Warrant entitled the holder to purchase
one
share of MTech's common stock at an exercise price of $
11.50
.
Upon completion of the mergers
between MTech and MJF on June 17, 2019, as contemplated by the Merger Agreement dated October 10, 2018, as amended ("Mergers"),
the MTech Public Warrants and the MTech Private Warrants were converted, respectively, at an exchange ratio of one-for-one to a warrant
to purchase
one
share of Akerna's common stock with identical terms and conditions as the MTech Public Warrants ("Public Warrant")
and the MTech Private Warrants ("Private Warrant", collectively with the Public Warrants, "Warrants")  In
connection with the completion of the Mergers, we also issued
189,365
common stock purchase warrants upon the cashless exercise of a unit
purchase option, which warrants have identical terms to the Public Warrants and are included in references to Public Warrants and Warrants
herein.
For the Private Warrants classified
as derivative liabilities, which are measured at fair value categorized within Level 3 of the fair value hierarchy, the following
is a reconciliation of the fair values for the three months ended March 31, 2022 and March 31, 2021:
Three Months Ended
March 31,
2022
2021
Fair value balance at beginning of period
$
63,178
$
311,376
Change in fair value reported in the statements of operations
(
18,051
)
175,996
Fair value balance at end of period
$
45,127
$
487,372
We utilized a binomial lattice
model, which incorporates significant inputs, specifically the expected volatility, that are not observable in the market, and thus represents
a Level 3 measurement as defined in GAAP. The unobservable inputs utilized for measuring the fair value of the Private Warrants reflect
our estimates regarding the assumptions that market participants would use in valuing the Warrants as of the end of the reporting periods.
We record the fair value of
the Private Warrants in the consolidated balance sheets under the caption "derivative liability" and recognize changes
to the liability against earnings or loss each reporting period. Upon exercise of the Private Warrants, holders will receive a delivery
of Akerna shares on a net or gross share basis per the terms of the Private Warrants and any exercise will reclassify the Private Warrants,
at the time of exercise, to shareholder's equity to reflect the equity transaction.  There are no periodic settlements prior
to the holder exercising the Private Warrants. There were no transfers in or out of Level 3 from other levels for the fair value
hierarchy.
We estimated the fair value
by using the following key inputs:
Fair Value Assumptions - Private Warrants
March 31,
2022
December 31,
2021
Number of Private Warrants
225,635
225,635
Original conversion price
$
11.50
$
11.50
Value of Common Stock
$
1.14
$
1.75
Expected term (years)
2.21
2.46
Volatility
114.4
%
93.9
%
Risk free rate
2.3
%
0.8
%
F-
18
Note 7 - Commitments and Contingencies
Litigation
On December 4, 2020, TechMagic
USA LLC filed suit against our wholly-owned subsidiary, Solo, in Massachusetts Superior Court, Department Business Litigation, seeking
recovery of up to approximately $
1.07
million for unpaid invoices pursuant to a Master Services Agreement dated February 5, 2018 by and
between TechMagic and Solo. The invoices set forth services that TechMagic USA LLC purports to have provided to Solo regarding development
of mobile software applications for MJF and Solo between March and November 2020 totaling approximately $
787,000
. The suit seeks continued
fees under the Master Services Agreement through the end of January 2021. Akerna provided a notice of termination of the Master Services
Agreement on November 23, 2020 and the parties dispute the effective date of the termination. Solo disputes the validity of the invoices,
in whole or in part, and intends to defend the suit vigorously. Mr. Ashesh Shah, formerly the president of Solo and currently the holder
of less than
5
% of our issued and outstanding shares of common stock is, to our knowledge, the founder and one of the principal managers
of TechMagic USA LLC. As of December 31, 2021 and March 31, 2022, we recognized a loss contingency of $
0.5
million.
On April 2, 2021, TreCom Systems
Group, Inc. ("TreCom") filed suit against Akerna and our wholly-owned subsidiary, MJ Freeway, LLC, in federal District Court
for the Eastern District of Pennsylvania, seeking recovery of up to approximately $
2
million for services allegedly provided pursuant
to a Subcontractor Agreement between MJ Freeway and TreCom. MJ Freeway provided a notice of termination of the operative Subcontractor
Agreement on August 4, 2020. MJ Freeway disputes the validity of TreCom's invoices and the enforceability of the alleged agreement
that TreCom submitted to the court. Akerna filed counterclaims against TreCom for breach of contract, a declaratory judgment, commercial
disparagement, and defamation. TreCom failed to return Akerna's intellectual property and issued numerous disparaging statements
to one of Akerna's clients. TreCom subsequently filed a motion to dismiss these counterclaims, which was
denied by the court. Akerna intends to vigorously defend against TreCom's claims, and pursue its own claims. As of December
31, 2021 and March 31, 2022, we recognized a loss contingency of $
0.2
million.
On May 21, 2021, our wholly-owned
subsidiary, Solo, filed suit against two of Solo's former directors, Ashesh Shah and Palle Pedersen.  Solo seeks recovery
for Mr. Shah's intentional interference with contractual relations, and the defendants' breaches of various fiduciary duties
owed to Solo.  Defendant Shah engaged in improper communications with Solo's customers with the intent that those customers
cease their contractual relations with Solo.  The defendants also entered into an improper contract with a contractual counter
party that the defendants had a conflict of interest with. The defendants have filed a motion to dismiss, which the court found unpersuasive
and denied. Defendants have not asserted any counterclaims, and we therefore have not recognized a loss contingency.
From time to time, we may
be involved in litigation relating to claims arising out of our operations in the normal course of business. We will accrue a liability
for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range
of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate
than any other amount within the range, the minimum amount in the range is accrued. The accrual for a litigation loss contingency might
include, for example, estimates of potential damages, outside legal fees and other directly related costs expected to be incurred. As
of March 31, 2022, and through the date these consolidated financial statements were issued, there were no other legal proceedings
requiring recognition or disclosure in the consolidated financial statements.
F-
19
Operating Leases
During the three months
ended March 31, 2022, we began negotiations to terminate the 365 Cannabis office lease in Las Vegas, Nevada. We booked a liability and
lease termination expense of $
564,234
which is management's best estimate of the costs to exit our existing lease. The lease termination
expense is included within the General and Administrative expense line item on the condensed consolidated statement of operations.
Note 8 - Loss Per Share
During the three months
ended March 31, 2022 and 2021, we used the two-class method to compute net loss per share because we issued securities other than
common stock that is economically equivalent to a common share in that the class of stock has the right to participate in dividends should
a dividend be declared payable to holders of Akerna common stock. These participating securities were the Exchangeable Shares
issued by our wholly owned subsidiary in exchange for interest in Ample. The two-class method requires earnings for the period to be allocated
between common stock and participating securities based on their respective rights to receive distributed and undistributed earnings.
Under the two-class method, for periods with net income, basic net income per common share is computed by dividing the net income attributable
to common stockholders by the weighted average number of shares of common stock outstanding during the period. Net income attributable
to common stockholders is computed by subtracting from net income the portion of current period earnings that the participating securities would
have been entitled to receive pursuant to their dividend rights had all of the period's earnings been distributed. No such adjustment
to earnings is made during periods with a net loss, as the holders of the Exchangeable Shares have no obligation to fund losses.
Diluted net loss per common
share is calculated under the two-class method by giving effect to all potentially dilutive common stock, including warrants, restricted
stock awards, restricted stock units, and shares of common stock issuable upon conversion of our Convertible Notes. We analyzed the potential
dilutive effect of any outstanding convertible securities under the "if-converted" method, in which it is assumed that the outstanding
Exchangeable Shares and Convertible Notes are converted to shares of common stock at the beginning of the period or date of issuance,
if later. We report the more dilutive of the approaches (two-class or "if-converted") as the diluted net loss per share during
the period. The dilutive effect of unvested restricted stock awards and restricted stock units is reflected in diluted loss per share
by application of the treasury stock method and is excluded when the effect would be anti-dilutive.
The
weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of potential
outstanding common shares that would have been anti-dilutive for the period.
F-
20
The
table below details potentially outstanding shares on a fully diluted basis that were not included in the calculation of diluted earnings
per share:
As of
March 31,
2022
2021
Shares issuable upon exchange of Exchangeable Shares
306,852
1,647,287
Shares of common stock issuable upon conversion of Convertible Notes
12,370,370
612,609
Warrants
5,813,804
5,813,804
Unvested restricted stock units
627,840
664,258
Unvested restricted stock awards
6,679
33,062
Total
19,125,545
8,771,020
Note 9 - Goodwill and Intangible Assets, net
Impairment
Based on our qualitative assessment of goodwill, we determined it was necessary to perform a quantitative valuation of goodwill
as of March 31, 2022. Unchanged from the year ended December 31, 2021, we determined there were two reporting units: the enterprise reporting
unit which is comprised of the enterprise software offerings and the non-enterprise reporting unit which is comprised of the
non-enterprise software offerings. The valuation of our goodwill was determined with the assistance of an independent valuation firm using
the income approach (discounted cash flows method) and the market approach (guideline public company method). Our significant assumptions
in these analyses include, but are not limited to, future cash flow projections, the weighted average cost of capital, the discount rate,
the implied control premium, the terminal growth rate, and the tax rate. The Company's estimates of future cash flows are based
on current regulatory and economic climates, recent operating results, and planned business strategies. These estimates could be negatively
affected by changes in federal, state, or local regulations or economic downturns. Future cash flow estimates are, by their nature, subjective
and actual results may differ materially from the Company's estimates. If the Company's ongoing estimates of future cash flows
are not met, the Company may have to record additional impairment charges in future periods. The Company also uses the Guideline Public
Company Method, a form of the market approach (utilizing Level 3 unobservable inputs), which is derived from metrics of publicly
traded companies or historically completed transactions of comparable businesses. The selection of comparable businesses is based on the
markets in which the reporting units operate giving consideration to risk profiles, size, geography, and diversity of products and services.
As such, we believe the current assumptions and estimates utilized are both reasonable and appropriate.
Enterprise Reporting Unit
For the three
months ended March 31, 2022, no impairment to goodwill was recorded for our enterprise reporting unit as the fair value exceeded
the carrying value as of March 31, 2022. To perform our analysis, we applied a
50
% weighting to the market approach and
50
%
weighted to the income approach.
Non-Enterprise Reporting Unit
For
the three months ended March 31, 2022, primarily due to a continued decline in market valuation from December 31, 2021, we recorded
an impairment expense of $
15.5
million related to our non-enterprise reporting unit. To perform our analysis, we applied a
25
%
weighting to the income approach and a
75
% weighting to the market approach.
Finite-lived Intangible Assets, Net
We performed a two step impairment test for the asset groups
that had indicators of impairment during the three months ended March 31, 2022 under ASC 360 and as a result of this analysis
we did not identify any impairment.
Note 10- Income Taxes
The
Company's effective tax rate was
0.45
% and
0.00
% for the three months ended March 31, 2022 and 2021, respectively. Differences between
the statutory rate and the Company's effective tax rate resulted from changes in valuation allowance and permanent differences for tax
purposes in the treatment of certain nondeductible expenses. The Company's effective tax rate is impacted by activity related to deferred
tax liabilities, resulting primarily from the acquisition of 365 Cannabis, which cannot be considered as a source of future taxable
income available to utilize recorded deferred tax assets based on the Company's scheduling and the
80%
limit on the utilization of
net operating loss carry forwards under current US tax law.
F-
21
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
To the Stockholders and Board of Directors of
Akerna Corp.
Opinion on the Financial Statements
We have audited the accompanying consolidated
balance sheets of Akerna Corp. (the "Company") as of December 31, 2021 and 2020, the related consolidated statements of operations,
comprehensive loss, changes in equity and cash flows for the year ended December 31, 2021, for the transitional six months ended December
31, 2020, and for the year ended June 30, 2020, 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 2020, and the results of its operations and its cash flows for the year ended December 31, 2021, for the transitional six
months ended December 31, 2020, and for the year ended June 30, 2020, in conformity with accounting principles generally accepted in the
United States of America.
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 a significant
working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in
regard to these matters are also described in Note 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 audits. We
are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal
control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ Marcum
llp
Marcum
llp
We have served as the Company's auditor since 2018.
Los Angeles, CA
March 31, 2022
F-
22
AKERNA CORP.
Consolidated Balance Sheets
December 31,
December 31,
2021
2020
Assets
Current assets:
Cash
$
13,934,265
$
17,840,640
Restricted cash
508,261
500,000
Accounts receivable, net
1,403,774
1,753,547
Prepaid expenses and other current assets
2,383,764
2,458,727
Total current assets
18,230,064
22,552,914
Fixed assets, net
153,151
1,193,433
Investment, net
226,101
233,664
Capitalized software, net
7,311,676
3,925,739
Intangible assets, net
21,609,794
7,388,795
Goodwill
46,942,681
41,874,527
Other noncurrent assets
9,700
—
Total assets
$
94,483,167
$
77,169,072
Liabilities and Equity
Current liabilities:
Accounts payable, accrued expenses and other current liabilities
$
6,063,520
$
3,188,576
Contingent consideration payable
6,300,000
—
Deferred revenue
3,543,819
843,900
Current portion of long-term debt
13,200,000
11,707,363
Derivative liability
63,178
311,376
Total current liabilities
29,170,517
16,051,215
Long-term portion of deferred revenue
582,676
—
Long-term debt, less current portion
4,105,000
3,895,237
Deferred tax liabilities
675,291
—
Total liabilities
34,533,484
19,946,452
Commitments and contingencies (Note 14)
Equity:
Preferred stock, par value $
0.0001
;
5,000,000
shares authorized,
1
share special voting preferred stock issued and outstanding at December 31, 2021 and December 31, 2020
—
—
Special voting preferred stock, par value $
0.0001
;
1
share authorized, issued and outstanding as of December 31, 2021 and December 31, 2020, with $
1
preference in liquidation; exchangeable shares,
no
par value,
309,286
and
2,667,349
shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively (See Note 4)
2,366,038
20,405,219
Common stock, par value $
0.0001
;
75,000,000
shares authorized,
31,001,884
and
19,901,248
, issued and outstanding at December 31, 2021 and December 31, 2020, respectively
3,100
1,990
Additional paid-in capital
146,027,258
94,086,433
Accumulated other comprehensive loss
61,523
(
91,497
)
Accumulated deficit
(
88,508,236
)
(
57,179,525
)
Total equity
59,949,683
57,222,620
Total liabilities and equity
$
94,483,167
$
77,169,072
The accompanying notes are an integral part of
these consolidated financial statements.
F-
23
AKERNA CORP.
Consolidated Statements
of Operations
Year Ended
December 31,
Six Months
Ended
December 31,
Year Ended
June 30,
2021
2020
2020
Revenue
Software
$
18,998,409
$
6,766,985
$
9,976,580
Consulting
1,510,413
916,099
2,379,947
Other revenue
176,152
141,700
216,749
Total revenue
20,684,974
7,824,784
12,573,276
Cost of revenue
8,119,487
3,141,041
6,209,724
Gross profit
12,565,487
4,683,743
6,363,552
Total Operating expenses:
Product development
6,271,966
3,166,088
3,206,310
Sales and marketing
9,108,173
3,928,028
7,792,480
General and administrative
10,422,207
4,435,067
11,320,715
Depreciation and amortization
5,735,150
2,007,237
1,315,898
Impairment of long-lived assets
14,383,310
6,887,000
—
Total operating expenses
45,920,806
20,423,420
23,635,403
Loss from operations
(
33,355,319
)
(
15,739,677
)
(
17,271,851
)
Other (expense) income:
Interest (expense) income, net
(
1,531,497
)
(
193,084
)
156,678
Change in fair value of convertible notes
(
1,365,904
)
(
961,273
)
766,000
Change in fair value of derivative liability
248,198
746,852
1,962,034
Gain on forgiveness of PPP Loan
2,234,730
—
—
Other (expense) income
186,420
(
59,273
)
(
254
)
Total other (expense) income
(
228,053
)
(
466,778
)
2,884,458
Net loss before income taxes and equity in losses of investee
(
33,583,372
)
(
16,206,455
)
(
14,387,393
)
Income tax (expense) benefit
2,262,225
(
200
)
(
30,985
)
Equity in losses of investee
(
7,564
)
(
12,641
)
(
3,692
)
Net Loss
$
(
31,328,711
)
$
(
16,219,296
)
$
(
14,422,070
)
Net loss attributable to noncontrolling interest in consolidated subsidiary
—
8,815
849,759
Net loss attributable to Akerna shareholders
$
(
31,328,711
)
$
(
16,210,481
)
$
(
13,572,311
)
Basic and diluted weighted average common shares outstanding
25,641,950
16,056,030
11,860,212
Basic and diluted net loss per common share
$
(
1.22
)
$
(
1.01
)
$
(
1.14
)
The accompanying notes are an integral part of
these consolidated financial statements
F-
24
AKERNA CORP.
Consolidated Statements
of Comprehensive Loss
Year Ended
December 31,
Six Months
Ended
December 31,
Year Ended
June 30,
2021
2020
2020
Net loss
$
(
31,328,711
)
$
(
16,219,296
)
$
(
14,422,070
)
Other comprehensive (loss) income:
Foreign currency translation
53,020
(
21,497
)
—
Unrealized (loss) gain on convertible notes
100,000
(
133,000
)
63,000
Comprehensive loss
(
31,175,691
)
(
16,373,793
)
(
14,359,070
)
Comprehensive loss attributable to the noncontrolling interest
—
8,815
849,759
Comprehensive loss attributable to Akerna shareholders
$
(
31,175,691
)
$
(
16,364,978
)
$
(
13,509,311
)
The accompanying notes are an integral part of
these consolidated financial statements.
F-
25
AKERNA CORP.
Consolidated Statements of Changes in
Equity
Special Voting
Common Stock
Additional
Paid-In
Accumulated
Other
Comprehensive
Accumulated
Total
Stockholder's
Noncontrolling
Interest in
Consolidated
Total
Preferred Stock
Shares
Amount
Capital
Loss
Deficit
Equity
Subsidiary
Equity
Balance as of June 30, 2019
—
$
—
10,589,746
$
1,059
$
46,299,233
$
—
$
(
27,582,558
)
$
18,717,734
$
—
$
18,717,734
Common stock issued upon warrant exercise
—
—
369,311
37
4,247,028
—
—
4,247,065
—
4,247,065
Common stock issued in business combinations
—
—
2,299,650
230
20,081,236
—
—
20,081,466
—
20,081,466
Non-controlling interest in acquired subsidiary
—
—
—
—
—
—
—
—
5,554,011
5,554,011
Stock-based compensation amortization
—
—
—
—
1,253,234
—
—
1,253,234
—
1,253,234
Forfeitures of restricted shares
—
—
(
54,901
)
(
5
)
5
—
—
—
—
—
Change in fair value of Convertible Notes
—
—
—
—
—
63,000
—
63,000
—
63,000
Warrant Adjustment
—
—
—
—
21,738
—
—
21,738
—
21,738
Net loss
—
—
—
—
—
—
(
13,572,311
)
(
13,572,311
)
(
849,759
)
(
14,422,070
)
Balance as of June 30, 2020
—
$
—
13,203,806
$
1,321
$
71,902,474
$
63,000
$
(41,154,869
)
$
30,811,926
$
4,704,252
$
35,516,178
Adoption of ASC 606 Adjustment
—
—
—
—
—
—
185,825
185,825
—
185,825
Balance as of July 1, 2020
—
$
—
13,203,806
$
1,321
$
71,902,474
$
63,000
$
(
40,969,044
)
$
30,997,751
$
4,704,252
$
35,702,003
Issuance of common stock
—
—
5,000,000
500
11,031,880
—
—
11,032,380
—
11,032,380
Special voting preferred stock issued in business combination
3,294,574
25,203,490
—
—
—
—
—
25,203,490
—
25,203,490
Conversion of exchangable shares to common
(
627,225
)
(
4,798,271
)
627,225
63
4,798,208
—
—
—
—
—
Acquisition of noncontrolling interest
—
—
800,000
80
4,695,357
—
—
4,695,437
(
4,695,437
)
—
Stock-based compensation amortization
—
—
—
—
1,298,540
—
—
1,298,540
—
1,298,540
Settlement of convertible debt
—
—
112,867
11
359,989
—
—
360,000
—
360,000
Restricted stock unit vesting
—
—
157,350
15
(
15
)
—
—
—
—
—
Unrealized loss (gains) on Convertible Notes
—
—
—
—
—
(
133,000
)
—
(
133,000
)
—
(
133,000
)
Foreign currency translation adjustments
—
—
—
—
—
(
21,497
)
—
(
21,497
)
—
(
21,497
)
Net loss
—
—
—
—
—
—
(
16,210,481
)
(
16,210,481
)
(
8,815
)
(
16,219,296
)
Balance – December 31, 2020
2,667,349
$
20,405,219
19,901,248
$
1,990
$
94,086,433
$
(
91,497
)
$
(
57,179,525
)
$
57,222,620
$
—
$
57,222,620
Conversion of Exchangeable Shares to common stock
(
2,358,063
)
(
18,039,181
)
2,358,063
237
18,038,944
—
—
—
—
—
Settlement of convertible debt
—
—
3,094,129
309
11,610,277
—
—
11,610,586
—
11,610,586
Shares withheld for withholding taxes
—
—
(
121,786
)
(
12
)
(
520,383
)
—
—
(
520,395
)
—
(
520,395
)
Shares issued in connection with Viridian Acquisition
—
—
1,031,000
103
6,187,897
—
—
6,188,000
—
6,188,000
Shares issued in connection with Asset Purchase
—
—
83,333
8
299,992
—
—
300,000
—
300,000
Shares issued in connection with 365 Cannabis Acquisition
—
—
3,571,429
357
11,995,704
—
—
11,996,061
—
11,996,061
Stock-based compensation
—
—
—
—
2,070,358
—
—
2,070,358
—
2,070,358
Shares issued in connection with the ATM program
—
—
556,388
56
1,828,063
—
—
1,828,119
—
1,828,119
Settlement of liabilities with shares
—
—
101,705
10
430,015
—
—
430,025
—
430,025
Restricted stock vesting
—
—
427,711
42
(
42
)
—
—
—
—
—
Forfeitures of restricted shares
—
—
(
1,336
)
—
—
—
—
—
—
—
Foreign currency translation adjustments
—
—
—
—
—
53,020
—
53,020
—
53,020
Unrealized loss (gains) on convertible notes
—
—
—
—
—
100,000
—
100,000
—
100,000
Net loss
—
—
—
—
—
—
(
31,328,711
)
(
31,328,711
)
—
(
31,328,711
)
Balance – December 31, 2021
309,286
$
2,366,038
31,001,884
$
3,100
$
146,027,258
$
61,523
$
(
88,508,236
)
$
59,949,683
$
—
$
59,949,683
The accompanying notes are an integral part of
these consolidated financial statements.
F-
26
AKERNA CORP.
Consolidated Statements of Cash Flows
Year Ended
December 31,
Six Months
Ended
December 31,
Year Ended
June 30,
2021
2020
2020
Cash flows from operating activities
Net Loss
$
(
31,328,711
)
$
(
16,219,296
)
$
(
14,422,070
)
Adjustment to reconcile net loss to net cash used in operating activities
Equity in losses of investment
7,564
12,643
3,692
Bad debt expense
556,890
72,832
1,094,507
Stock-based compensation expense
2,070,359
1,197,589
1,166,130
Loss on write off of fixed assets
1,045,179
—
—
Gain on forgiveness of PPP loan
(
2,234,730
)
—
—
Depreciation and amortization
5,735,150
2,007,237
1,315,898
Amortization of deferred contract costs
492,683
228,766
—
Non-cash interest expense
1,009,331
32,727
—
Foreign currency gain
(
3,312
)
—
—
Impairment of long-lived assets
14,383,310
6,887,000
—
Gain on debt extinguishment
(
186,177
)
—
—
Loss on sale of fixed asset
—
84,835
—
Debt issuance costs
—
—
1,177,390
Change in fair value of convertible notes
1,365,904
961,273
(
766,000
)
Change in fair value of derivative liability
(
248,198
)
(
746,852
)
(
1,962,034
)
Change in fair value of contingent consideration
—
(
993,000
)
(
998,000
)
Changes in operating assets and liabilities:
Accounts receivable
849,785
1,008,775
(
1,621,262
)
Prepaid expenses and other current assets
(
8,988
)
(
689,729
)
(
592,807
)
Other assets
—
41,925
(
58,925
)
Accounts payable, accrued expenses and other current liabilities
1,610,470
(
2,498,375
)
1,602,751
Deferred tax liabilities
(
2,274,295
)
—
—
Deferred revenue
(
1,010,118
)
(
94,088
)
(
286,922
)
Net cash used in operating activities
(
8,167,904
)
(
8,705,738
)
(
14,347,652
)
Cash flows from investing activities
Developed software additions
(
5,427,230
)
(
1,847,710
)
(
3,102,728
)
Furniture, fixtures, and equipment additions
(
39,263
)
(
12,203
)
(
156,636
)
Cash paid for business combinations, net of cash acquired
(
5,018,592
)
(
5,279,134
)
(
88,720
)
Investment in equity method investee
—
—
(
250,000
)
Net cash used by investing activities
(
10,485,085
)
(
7,139,047
)
(
3,598,084
)
Cash flows from financing activities
Value of shares withheld related to tax withholdings
(
520,395
)
—
—
Proceeds from stock offering, net
1,828,119
—
—
Proceeds from the issuance of long term debt
18,000,000
—
17,164,600
Payments of principal amounts of debt
—
—
—
Payments on debt
(
4,571,472
)
(
1,500,000
)
—
Cash paid for debt issuance costs
—
—
(
1,177,390
)
Proceeds from the exercise of warrants
—
—
4,247,065
Proceeds from the issuance of common stock
—
12,000,000
—
Offering costs from the issuance of common stock
—
(
967,620
)
—
Net cash provided by financing activities
14,736,252
9,532,380
20,234,275
Effect of exchange rate changes on cash and restricted cash
18,623
(
2,783
)
—
Net (decrease) increase in cash and restricted cash
$
(
3,898,114
)
$
(
6,315,188
)
$
2,288,539
Cash and restricted cash - beginning of period
18,340,640
24,655,828
22,367,289
Cash and restricted cash - end of period
$
14,442,526
$
18,340,640
$
24,655,828
Cash paid for taxes
$
10,570
$
—
$
—
Cash paid for interest
$
507,941
$
150,000
$
—
Supplemental disclosure of non-cash investing and financing activity:
Adjustments due to the adoption of ASC 606
—
185,826
—
Vesting of restricted stock units
42
15
—
Settlement of convertible notes in common stock
11,610,586
327,273
—
Stock-based compensation capitalized as software development
36,915
100,951
87,104
Acquisition of noncontrolling interest
—
4,695,437
—
Capitalized software included in accrued expenses
554,127
189,198
—
Special voting preferred stock issued in business combination
—
25,203,490
—
Conversion of exchangeable shares to common stock
18,038,944
4,798,271
—
Adjustment to Trellis purchase price allocation
—
14,300
—
Settlement of liabilities with common stock
430,015
—
—
Shares issued in connection with an asset purchase
8
—
—
Assets acquired and liabilities assumed in business combinations:
Cash
527,346
445,269
—
Accounts receivable
1,041,912
917,205
77,505
Prepaid expenses and other current assets
408,973
596,233
27,860
Fixed assets
93,365
1,326,996
2,410
Intangible assets
16,933,000
3,795,000
8,010,000
Goodwill
19,451,464
25,805,615
20,254,309
Accounts payable and accrued liabilities
1,174,961
805,114
1,441,062
Deferred tax liabilities
2,949,586
—
—
Deferred revenue
4,301,514
549,311
31,220
Contingent consideration
6,300,000
604,000
1,387,000
The accompanying notes are an integral part of
these consolidated financial statements.
F-
27
AKERNA CORP.
Notes to Consolidated
Financial Statements
December 31, 2021
Note 1
-
Description of Business,
Liquidity, and Capital Resources
Description of Business
Akerna Corp., herein referred
to as we, us, our or Akerna, through our wholly-owned subsidiaries MJ Freeway, LLC, or MJF, Trellis Solutions, Inc., or Trellis, Ample
Organics, Inc, or Ample, solo sciences, inc., or Solo, Viridian Sciences Inc., or Viridian, and The NAV People, Inc. d.b.a. 365 Cannabis,
or 365 Cannabis, provides enterprise software solutions that enable regulatory compliance and inventory management. Our proprietary, broad
and growing suite of solutions are adaptable for industries in which interfacing with government regulatory agencies for compliance purposes
is required, or where the tracking of organic materials from seed or plant to end products is desired. We develop products intended
to assist states in monitoring licensed businesses' compliance with state regulations and to help state-licensed businesses operate
in compliance with such law. We provide our commercial software platform, MJ Platform®, Trellis®, Ample, Viridian and 365 Cannabis
to state-licensed businesses, and our regulatory software platform, Leaf Data Systems®, to state government regulatory agencies.
Through Solo, we provide an innovative, next-generation solution for state and national governments to securely track product and
waste throughout the supply chain with solo*TAG
™
. The integration of MJ Platform® and solo*CODE
™
results
in technology for consumers and brands that brings a consumer-facing mark designed to highlight the authenticity and signify transparency.
Our Viridian and 365 Cannabis offerings are considered enterprise offerings and all other solutions are considered non-enterprise offerings
that meet the needs of our small and medium business customers.
We consult with clients on
a wide range of areas to help them successfully maintain compliance with state laws and regulations. We provide project-focused consulting
services to clients who are initiating or expanding their cannabis business operations or are interested in data consulting engagements
with respect to the legal cannabis industry. Our advisory engagements include service offerings focused on compliance requirement assessments,
readiness and best practices, compliance monitoring systems, application processes, inspection readiness, and business plan and compliance
reviews. We typically provide our consulting services to clients in emerging markets that are seeking consultation on newly introduced
licensing regimes and assistance with the regulatory compliant build-out of operations.
Going Concern and Management's Liquidity Plans
In
accordance with the Financial Accounting Standards Board's ("FASB") standard on going concern, Accounting Standard Update,
or ASU No. 2014-15, The Company assesses going concern uncertainty in its consolidated financial statements to determine if it has sufficient
cash, cash equivalents and working capital on hand, including marketable equity securities, and any available borrowings on loans, to
operate for a period of at least one year from the date the consolidated financial statements are issued, which is referred to as the
"look-forward period" as defined by ASU No. 2014-15. As part of this assessment, based on conditions that are known and reasonably
knowable to The Company, it will consider various scenarios, forecasts, projections, estimates and will make certain key assumptions,
including the timing and nature of projected cash expenditures or programs, and its ability to delay or curtail expenditures or programs,
if necessary, among other factors. Based on this assessment, as necessary or applicable, The Company makes certain assumptions around
implementing curtailments or delays in the nature and timing of programs and expenditures to the extent The Company deems probable those
implementations can be achieved and it has the proper authority to execute them within the look-forward period in accordance with ASU
No. 2014-15.
The
accompanying consolidated financial statements have been prepared on the basis that we will continue as a going concern, which contemplates
realization of assets and the satisfaction of liabilities in the normal course of business.  However, since our inception we
have incurred recurring operating losses, used cash from operations, and relied on capital raising transactions to continue ongoing operations. During
the year ended December 31, 2021, six months ended December 31, 2020, and year ended June 30, 2020, we incurred a loss from operations
of $
33.4
million, $
15.7
million, and $
17.3
million, respectively, and used cash in operations of $
8.2
million,
$
8.7
million, and $
14.3
million, respectively. At December 31, 2021, the Company had a working capital deficit of $
10.9
million
with $
13.9
million in cash available to fund future operations. These factors raise substantial doubt, as defined by generally
accepted accounting principles in the United States of America ("GAAP"), about the ability of the Company to continue to operate
as a going concern for the twelve months following the issuance of these consolidated financial statements. These consolidated
financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification
of liabilities that might be necessary should the Company be unable to continue as a going concern.
On
July 23, 2021, we entered into an Equity Distribution Agreement with Oppenheimer & Co. Inc. and A.G.P./Alliance Global Partners
("ATM Program"). Pursuant to the terms of the ATM Program, we may offer and sell from time to time, up to $
25
million of
shares of our common stock. As of December 31, 2021, we have raised gross proceeds of $
1.9
million through the issuance of
556,388
shares
through the ATM program. While no assurance can be provided that we will be able to raise further capital under the program, we intend
to use the net proceeds from the sale of our shares of common stock, if any, for general corporate purposes, including working capital,
marketing, product development, capital expenditures and merger and acquisition activities.
F-
28
AKERNA CORP.
Notes to Consolidated
Financial Statements
December 31, 2021
On
October 5, 2021, we entered into a securities purchase agreement with the two institutional investors that held the Company's
convertible notes issued in June of 2020 (the "2020 Notes") to sell senior secured notes in a private placement
(the "Senior Convertible Notes"). The Senior Convertible Notes have an aggregate principal amount of $
20
million, an aggregate
original issue discount of
10
%, and rank senior to all our other outstanding and future indebtedness. Approximately $
3.3
million
of the proceeds from the Senior Convertible Notes were used to payoff the 2020 Notes, which were then to be cancelled. The net
proceeds from the issuance of the Senior Convertible Notes was approximately $
14.6
million, following the original issue discount
and deductions for expenses and paydown of the 2020 Notes. These net proceeds will be used to support Akerna's ongoing
growth initiatives and continued investment in current and future technology infrastructure. The Senior Convertible Notes are convertible
into shares of common stock of Akerna at a conversion price of $
4.05
per share.
The Senior Convertible Notes mature on
October 5, 2024 and are to be repaid in monthly installments beginning on January 1, 2022. The Senior Convertible Notes can be repaid
in common shares or cash.
Management's plan for
the Company to continue as a going concern includes raising additional capital from our ATM program, subject to certain effects on the
Senior Convertible Notes should we utilize the program, including resetting the conversion price of the Senior Convertible Notes should
we raise more than $
5
million under the ATM program, settling our contingent consideration and Senior Convertible Notes in common
stock rather than cash as it comes due, and implementing certain cost cutting strategies throughout the organization, while continuing
to seek to grow our customer base and realize synergies as we continue to integrate our recent acquisitions. If the Company is unable
to raise sufficient additional funds through the ATM Program, it will have to develop and implement a plan to extend payables, reduce
expenditures, or scale back our business plan until sufficient additional capital is raised through other equity or debt offerings to
support further operations. Such offerings may include the issuance of shares of common stock, warrants to purchase common stock, preferred
stock, convertible debt or other instruments that may dilute our current stockholders.
The ability of the Company
to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph
and eventually secure other sources of financing and attain profitable operations. We will require additional financing in the second
quarter of 2022 to meet our ongoing operational working capital requirements and continue to meet the financial covenants of the Senior
Convertible Notes. As noted above, we plan to meet those requirements in part through the use of our ATM Facility, but there are no guarantees
that the ATM Facility will permit us to raise sufficient cash to meet our ongoing requirements. These factors raise substantial doubt
about the Company's ability to continue as a going concern for one year from the issuance of the consolidated financial statements.
If we are unable to raise sufficient capital we may have to reduce operations which could significantly affect our results of operations.
If we fail to meet the financial covenants of the Senior Convertible Notes and cannot obtain a waiver from such provisions or otherwise
come to an agreement with the holders of our debt, such holders may declare a default on the debt which could subject our assets to seizure
and sale, negatively impacting our business. The accompanying consolidated financial statements do not include any adjustments relating
to the recoverability and classification of assets and liabilities that might be necessary if the Company is unable to continue as a going
concern.
Note 2 - Summary of Significant Accounting
Policies
Basis of Presentation
The accompanying consolidated
financial statements have been prepared in accordance with GAAP.
In September 2020, the Company
changed its fiscal year from June 30 to December 31. As a result, this annual report on Form 10-K includes the consolidated financial
statements as of December 31, 2021 and December 31, 2020 and for (i) the calendar year ended December 31, 2021, (ii) the transitional
six months ended December 31, 2020; and (iii) the fiscal year ended June 30, 2020.
Principles of Consolidation
Our accompanying consolidated
financial statements include the accounts of Akerna, our wholly-owned subsidiaries, and those entities in which we otherwise have a controlling
financial interest. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of our consolidated
financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included
in the consolidated financial statements and accompanying notes thereto. Our most significant estimates and assumptions are related to
the valuation of acquisition-related assets and liabilities, capitalization of internal costs associated with software development,
fair value measurements, impairment assessments, loss contingencies, valuation allowance associated with deferred tax assets, stock based
compensation expenses, and useful lives of long-lived intangible assets. We base our estimates on historical experience and on various
other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results could differ from those estimates.
Reclassifications
Certain prior year amounts
have been reclassified to conform to the current year presentation.
F-
29
AKERNA CORP.
Notes to Consolidated Financial Statements
December 31, 2021
Foreign Currency
The functional currency of
the Company's non-U.S. operations is the local currency. Monetary assets and liabilities denominated in foreign currencies are translated
into U.S. dollars at exchange rates prevailing at the balance sheet dates. Non-monetary assets and liabilities are translated at the historical
rates in effect when the assets were acquired or obligations incurred. Revenue and expenses are translated into U.S. dollars using the
average rates of exchange prevailing during the period. Translation gains or losses are included as a component of accumulated other comprehensive
loss in stockholders' equity. Gains and losses resulting from foreign currency transactions are recognized as other income (expense).
Cash and Cash Equivalents
We consider liquid instruments
purchased with an original maturity of three months or less to be cash equivalents. There were no cash equivalents as of December 31,
2021, and 2020. We continually monitor our positions with, and the credit quality of, the financial institutions with which we invest.
As of the balance sheet date, and periodically throughout the year, we have maintained balances in various operating accounts in excess
of federally insured limits.
Restricted Cash
Restricted cash consists of
funds that are contractually or legally restricted as to usage or withdrawal and is presented separately from cash and cash equivalents
on our consolidated balance sheets. Our restricted cash serves as collateral for a letter of credit.
Accounts Receivable, Net
We maintain an allowance for
doubtful accounts equal to the estimated uncollectible amounts based on our historical collection experience and review of the current
status of trade accounts receivable. Receivables are written-off and charged against the recorded allowance when we have exhausted
collection efforts without success. The allowance for doubtful accounts was $
0.3
million and $
0.2
million as of December 31, 2021, and
2020, respectively.
The allowance for doubtful
accounts consists of the following activity:
Year Ended
December 31,
Six Months
Ended
December 31,
2021
2020
Allowance for doubtful accounts, balance at beginning of period
$
153,500
$
208,422
Bad debt expense
556,890
72,832
Write-off uncollectable accounts
(
393,306
)
(
127,754
)
Allowance for doubtful accounts, balance at end of period
$
317,084
$
153,500
Concentrations of Credit Risk
We grant credit in the normal
course of business to customers in the United States. We periodically perform credit analysis and monitor the financial condition of our
customers to reduce credit risk.
During the year ended December
31, 2021, the six months ended December 31, 2020 and the year ended June 30, 2020,
one
government client accounted for
11
%,
14
% and
25
% of total revenues, respectively. As of December 31, 2020,
two
government clients accounted for a total
of
36
% of net accounts receivable.
F-
30
AKERNA CORP.
Notes to Consolidated Financial Statements
December 31, 2021
Property and Equipment
Property and equipment are
recorded at cost. Expenditures for major additions and improvements are capitalized. Depreciation and amortization is provided over the
estimated useful lives of the related assets using the straight-line method.
The estimated useful lives for significant property
and equipment categories are generally as follows:
Furniture and computer equipment
3
to
7
years
Leasehold improvements
Lesser of remaining lease term or useful life
Repairs and maintenance costs are expensed as incurred.
Warrant Liabilities
Company's Private Warrants
are not indexed to the Company's common stock in the manner contemplated by ASC Section 815-40. As a result, these warrants are
precluded from equity classification and are recorded as derivative liabilities. At the end of each reporting period, changes in fair
value during the period are recognized within the condensed consolidated statements of operations and comprehensive loss. We will continue
to adjust the warrant liability for changes in the fair value until the earlier of a) the exercise or expiration of the warrants or b)
the redemption of the warrants, at which time the warrants will be reclassified to additional paid-in capital.
Investment
We hold an equity security
in Zoltrain, Inc. (Zoltrain) for which the fair value is not readily determinable. Accordingly, we measure this investment at cost minus
impairment, plus or minus changes resulting from observable price changes. When indicators of impairment exist, we estimate the fair value
and record an impairment charge if the carrying value of the investment exceeds its estimated fair value. Any impairment charges are recorded
in other (expense) income, net, in our consolidated statements of operations. Prior to the quarter ended September 30, 2021, we had determined
we could exert significant influence over Zoltrain's operations through voting rights and representation on the board of directors and
we accounted for our investment in Zoltrain using the equity method of accounting, recording our share in the investee's earnings
and losses in the consolidated statement of operations.
Intangible Assets Acquired through Business Combinations
Intangible assets are amortized
over their estimated useful lives. We evaluate the estimated remaining useful life of our intangible assets when events or changes in
circumstances indicate an adjustment to the remaining amortization may be needed. We similarly evaluate the recoverability of these assets
upon events or changes in circumstances indicate a potential impairment. Recoverability of these assets is measured by comparing the carrying
amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the
test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value.
We recorded an impairment of $
2.7
million during the six months ended December 31, 2020 related to the intangible assets acquired in the
Solo transaction. There were no impairments of intangible assets during the years ended December 31, 2021 or June 30, 2020.
See Note 6 – Goodwill and Intangible Assets, Net for further discussion on the impairment.
Goodwill Impairment Assessment
Goodwill represents the excess
purchase consideration of an acquired business over the fair value of the net tangible and identifiable intangible assets. Goodwill is
evaluated for impairment annually on October 31, and whenever events or changes in circumstances indicate the carrying value of goodwill
may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in
customer demand or business climate or a significant decrease in expected cash flows. An impairment loss is recognized to the extent that
the carrying amount exceeds the reporting unit's fair value, not to exceed the carrying amount of goodwill. The Company has the
option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that
the fair value of a reporting unit is less than its carrying amount and determine whether further action is needed. If, after assessing
the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit
is less than its carrying amount, then performing the quantitative impairment test is unnecessary. Due to a continued decline in market
conditions and declines in the operating results of our non-enterprise reporting unit, we recognized an impairment to goodwil
l
of $
14.4
million
during the year ended December 31, 2021 and we recorded an impairment
to goodwill of $
4.2
million during the six months ended December 31, 2020. There were no impairments of goodwill during the year ended
June 30, 2020. See Note 6 – Goodwill and Intangible Assets, Net for further discussion on the impairment.
F-
31
AKERNA CORP.
Notes to Consolidated Financial Statements
December 31, 2021
Software Development Costs
Costs incurred during the
application development stage of a newly developed application and costs we incur to enhance our existing platforms that meet certain
criteria are subject to capitalization and subsequent amortization. Capitalized software development costs were approximately $
5.9
million
during the year ended December 31, 2021, $
2.1
million during the six months ended December 31, 2020, and $
3.1
million during
the year ended June 30, 2020. Product development costs are primarily comprised of personnel costs such as payroll and benefits,
vendor costs, and other costs directly attributable to the project. We capitalize costs only during the development phase. Any costs in
connection to planning, design, and maintenance subsequent to release are expensed as incurred. We amortize software development costs
over the expected useful life of the specific application, generally 2-5 years. We evaluate capitalized software development costs for
impairment when there is an indication that the unamortized cost may not be recoverable.
Fair Value of Financial Instruments
GAAP defines fair value as
the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. Under this guidance, we are required to classify certain assets and liabilities based on the fair value hierarchy,
which groups fair value-measured assets and liabilities based upon the following levels of inputs:
●
Level 1 – Unadjusted quoted
prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
●
Level 2 – Quoted prices
in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the
asset or liability;
●
Level 3 – Prices or valuation
techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by
little or no market activity).
The fair value of financial
instruments is the amount at which the instrument could be exchanged in a current transaction between willing parties. The carrying values
of financial instruments such as accounts receivable, accounts payable and accrued liabilities approximate fair value based on their short
maturities. Please refer to Note 13- Fair Value Measurements for additional information regarding the fair value of financial instruments
that we measure at fair value, including senior secured convertible notes and contingent consideration.
Fair Value Option
The fair value option provides
an election that allows a company to irrevocably elect to record certain financial assets and liabilities at fair value on an instrument-by-instrument
basis at initial recognition. We have elected to apply the fair value option to certain convertible notes due to the complexity of the
various conversion and settlement options available to both the Note Holders and Akerna.
The convertible notes accounted
for under the fair value option election are each a debt host financial instrument containing embedded features that would otherwise be
required to be bifurcated from the debt-host and recognized as separate derivative liabilities subject to initial and subsequent
periodic estimated fair value measurements in accordance with GAAP. Notwithstanding, when the fair value option election is applied to
financial liabilities, bifurcation of an embedded derivative is not required, and the financial liability is initially measured at
its issue-date estimated fair value and then subsequently remeasured at estimated fair value on a recurring basis as of each reporting
period date.
The portion of the change
in fair value attributed to a change in the instrument-specific credit risk is recognized as a component of other comprehensive income
and the remaining amount of the fair value adjustment is recognized as other income (expense) in our consolidated statement of operations.
The estimated fair value adjustment is presented in a respective single line item within other income (expense) in the accompanying
consolidated statement of operations because the change in fair value of the convertible notes was not attributable to instrument-specific
credit risk.
Revenue Recognition
See Note 3 for further 
discussion of our revenue recognition policies.
F-
32
AKERNA CORP.
Notes to Consolidated Financial Statements
December 31, 2021
Cost of Revenue
Cost of revenue
consists primarily of costs related to providing subscription and other services to our customers, including employee compensation and
related expenses for data center operations, customer support and professional services personnel, payments to outside technology
service providers, security services, and other tools.
Product Development
Product development expenses consist primarily of employee-related costs for the design and development
of the Company's platform, contractor costs to supplement staff levels, third-party web services, consulting services, and allocated overhead.
Product development expenses, other than software development costs qualifying for capitalization, are expensed as incurred.
Sales and Marketing Expenses
Sales and marketing expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, commissions,
travel, and stock-based compensation. Other costs included in this expense are marketing and promotional events, online marketing, product
marketing, information technology costs, and facility costs.
General and Administrative Expenses
General and administrative
expenses consist primarily of personnel and related costs for our executive, finance, legal, human resources, and administrative personnel,
including salaries, benefits, bonuses, and stock-based compensation; legal, accounting, and other professional service fees; other corporate
expenses; information technology costs; restructuring charges such as lease termination costs; and facility costs.
Legal and Other Contingencies
From time to time, the Company
may be a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims,
labor and employment claims, breach of contract claims and other asserted and unasserted claims. The Company investigates these claims
as they arise and accrues estimates for resolution of legal and other contingencies when losses are probable and estimable.
Stock-Based Compensation
We measured stock-based compensation based
on the fair value of the share-based awards on the date of grant and recognize the related costs on a straight-line basis over the requisite
service period, which is generally the vesting period.
Income Taxes
Income taxes are accounted
for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future
tax consequences of temporary differences between the carrying amounts and the tax basis of other assets and liabilities. We provide for
income taxes at the current and future enacted tax rates and laws applicable in each taxing jurisdiction. We use a two-step approach for
recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income
tax positions. We recognize interest and penalties related to income tax matters in selling, general and administrative expenses in the
consolidated statement of operations.
We recognize deferred tax assets
to the extent that its assets are more likely than not to be realized. In making such a determination, we consider all available positive
and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning
strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in
excess of its net recorded amount, we will make an adjustment to the deferred tax asset valuation allowance, which would reduce the
provision for income taxes. As of December 31, 2021, management has applied a valuation allowance to deferred tax assets when
it is determined that the benefit from the deferred tax asset will not be able to be utilized in a future period.
F-
33
AKERNA CORP.
Notes to Consolidated Financial Statements
December 31, 2021
Segments
Our chief operating decision
maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance
and information for different revenue streams is not evaluated separately. As such, the Company has one operating segment, and
the decision-making group is the senior executive management team. In the following table, we disclose our long-lived assets by geographical
location (in thousands):
As of December 31,
2021
2020
Long-lived assets:
United States
$
32,356
$
9,994
Canada
5,229
5,074
Total
$
37,585
$
15,068
Subsequent Events
The Company performs a review
of events subsequent to the balance sheet date through the date the consolidated financial statements were issued. If we determine there
are events requiring recognition or disclosure in the consolidated financial statements., we disclose the subsequent event.
Recently Issued Accounting Pronouncements
ASU 2016-02
The Financial Accounting Standards
Board, or the FASB, has issued new guidance related to the accounting for leases. The new standard establishes a right-of-use model that
requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months.
Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement
of operations. We have adopted this new standard on January 1, 2022 and due to the immaterial impact of applying this standard to our
limited assets subject to operating leases, there was no impact to our results of operations.
ASU 2016-13
The FASB has issued guidance
to introduce a new model for recognizing credit losses on financial instruments based on estimated current expected credit losses, or
CECL. Under the new standard, an entity is required to estimate CECL on trade receivables at inception, based on historical information,
current conditions, and reasonable and supportable forecasts. Following our change in fiscal year-end effective December 31, 2020, the
new guidance is effective for us beginning on January 1, 2023. We are evaluating the impact of adoption of the new standard on our consolidated
financial statements.
ASU 2018-15
The FASB has issued guidance
to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing
guidance for determining when the arrangement includes a software license. ASU 2018-15 aligns the requirements for capitalizing implementation
costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred
to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance (i)
provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs
to expense, (ii) requires an entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service
contract over the term of the hosting arrangement and (iii) clarifies the presentation requirements for reporting such costs in the entity's
consolidated financial statements. We have adopted this standard effective December 15, 2021, and there is currently no impact to our
consolidated financial statements as a result of this guidance.
F-
34
AKERNA CORP.
Notes to Consolidated Financial Statements
December 31, 2021
ASU 2019-12
In December 2019, the FASB issued ASU No. 2019-12,
Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"), which aims to reduce complexity in
accounting standards by improving certain areas of U.S. Generally Accepted Accounting Principles ("U.S. GAAP") without compromising
information provided to users of financial statements. ASU 2019-12 is effective for public entities for fiscal years beginning after December
15, 2020, and interim periods within those fiscal years. For all other entities, the standard is effective for fiscal years beginning
after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company
has adopted ASU 2019-12 effective December 15, 2021 and the adoption of this guidance did not have a significant effect on our consolidated
financial statements.
ASU 2020-01
The FASB has issued guidance
clarifying the interactions between various standards governing investments in equity securities. The new guidance addresses accounting
for the transition into and out of the equity method and measurement of certain purchased options and forward contracts to acquire investments.
The standard is effective for us for annual and interim periods beginning on January 1, 2022, with early adoption permitted. Adoption
of the standard requires changes to be made prospectively. We do not anticipate a significant impact to our consolidated financial statements
as a result of this new guidance.
ASU 2020-06
In August 2020, the FASB
issued ASU 2020-06, Debt - Debt with Conversion and Other Options and Derivative and Hedging - Contracts in Entity's Own Equity,
which simplifies the accounting for convertible instruments. This guidance eliminates certain models that require separate accounting
for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminates certain of the conditions
for equity classification for contracts in an entity's own equity. The guidance also requires entities to use the if-converted method
for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments
that may be settled in cash or shares, except for certain liability-classified share-based payment awards. This guidance is required to
be adopted by us in the first quarter of 2023 and must be applied using either a modified or full retrospective approach. We are currently
evaluating the impact this guidance will have on our consolidated financial statements.
ASU 2021-04
On May 3, 2021, FASB issued
ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock
Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Issuer's Accounting
for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This new standard provides clarification
and reduces diversity in an issuer's accounting for modifications or exchanges of freestanding equity-classified written call options
(such as warrants) that remain equity classified after modification or exchange. This standard is effective for fiscal years beginning
after December 15, 2021, including interim periods within those fiscal years. Issuers should apply the new standard prospectively to modifications
or exchanges occurring after the effective date of the new standard. We are currently evaluating the impact this guidance will have on
our consolidated financial statements..
ASU 2021-08
In October 2021, the FASB issued
ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,
which amends the accounting related to contract assets and liabilities acquired in business combinations. Under current GAAP, an entity
generally recognizes assets and liabilities acquired in a business combination, including contract assets and contract liabilities arising
from revenue contracts with customers, at fair value on the acquisition date. ASU 2021-08 requires that entities recognize and measure
contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contracts with
Customers. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal
years, and should be applied prospectively to businesses combinations occurring on or after the effective date of the amendment. We are
currently evaluating the impact this guidance will have on our consolidated financial statements.
F-
35
AKERNA CORP.
Notes to Consolidated Financial Statements
December 31, 2021
Note 3 - Revenue
Financial Statement Impact of Adopting ASC 606, "Revenue
from Contracts with Customers"
On July 1, 2020, we adopted
ASC 606 using the modified retrospective transition method and applied this method to all contracts that were not complete as of the date
of adoption. The reported results as of December 31, 2021 and December 31, 2020, and for the year ended December 31, 2021 and the
six months ended December 31, 2020 in the accompanying consolidated financial statements are presented under ASC 606, while the year
ended June 30, 2020 has not been adjusted and is reported in accordance with historical accounting guidance in effect for that period.
The most significant impacts
of this standard relate to the timing of revenue recognition of fixed fees under our contracts, as well as the accounting for costs to
obtain contracts. Under ASC 606, revenue recognition for subscription and implementation fees begins on the launch date and is recognized
over time through the term of the contract. We then recognized the remaining balance of the fixed fees ratably over the remaining term
of the contract. Additionally, under ASC 606, we now defer recognition of expense for sales commissions ("contract costs").
These contract costs are amortized to expense over the expected period of benefit. Before the adoption of ASC 606, we expensed these contract
costs as incurred.
The adoption of ASC 606 under
the modified retrospective transition method resulted in a net adjustment reducing the accumulated deficit by $
0.2
million at July
1, 2020 and an increase to capitalized commissions, which  are included in prepaid expenses and other current assets on the 
accompanying balance sheet. The adjustment consisted of $
0.2
million related to the deferral of contract costs that were
historically expensed as incurred
Revenue Recognition Policies for the year ended December 31,
2021 and the six months ended December 31, 2020
In accordance with ASC 606,
revenue is recognized when a customer obtains the benefit of promised services, in an amount that reflects the consideration the Company
expects to be entitled to receive in exchange for those services. In determining the amount of revenue to be recognized, the Company performs
the following steps: (i) identification of the contract with a customer; (ii) identification of the promised services in the contract
and determination of whether the promised services are performance obligations, including whether they are distinct in the context of
the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations based
on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.
Software Revenue.
Our
software revenue is generated from subscriptions and services related to the use of our commercial software platforms, MJ Platform®,
Ample, Trellis, Viridian, 365 Cannabis, and our government regulatory platform, Leaf Data Systems, and the sale of business
intelligence, data analytics and other software related services. Software contracts are annual or multi-year contracts paid monthly in
advance of service and typically cancellable upon 30 days' notice after the end of the contract period. Leaf Data Systems
contracts are generally multi-year contracts payable annually or quarterly in advance of service. Commercial software and Leaf Data Systems
contracts generally may only be terminated early for breach of contract as defined in the respective agreements. Amounts that have been
invoiced are initially recorded as deferred revenue or contract liabilities. Subscription revenue is recognized on a straight-line basis
over the service term of the arrangement beginning on the date that our solution is made available to the customer and ending at the expiration
of the subscription term. We typically invoice customers at the beginning of the term, in multi-year, annual, quarterly, or monthly
installments. When a collection of fees occurs in advance of service delivery, revenue recognition is deferred until such services commence.
Revenue for implementation fees is recognized ratably over the expected term of the contract, including expected renewals.
We
include service level commitments to customers warranting certain levels of uptime reliability and performance and permitting those customers
to receive credits if those levels are not met. In addition, customer contracts often include: specific obligations that require us to
maintain the availability of the customer's data through the service and that customer content is secured against unauthorized access
or loss, and indemnity provisions whereby we indemnify customers from third-party claims asserted against them that result from our failure
to maintain the availability of their content or securing the same from unauthorized access or loss. To date, we have not incurred any
material costs as a result of such commitments. Any such credits or payments made to customers under these arrangements are recorded as
a reduction of revenue.
Consulting
Revenue.
Consulting services revenue is generated by providing solutions for operators in the pre-application of licensures and
pre-operational phases of development and consists of contracts with fixed terms and fee structures based upon the volume and activity
or fixed-price contracts for consulting and strategic services. These services include application and business plan preparation
as they seek licenses to be granted. Consulting projects completed during the pre-application phase generally solidify us as the software
vendor of choice for subsequent operational phases once the operator is granted the license. As a result, our consulting revenue is driven
as new emerging states pass legislation, and as our client-operators gain licenses. Accordingly, we expect our consulting services to
continue to grow as more states emerge with legalization reform. Consulting services revenue  When these services are not combined
with subscription revenues as a single unit of account, these revenues are recognized as services are rendered and accepted by the customer.
F-
36
AKERNA CORP.
Notes to Consolidated Financial
Statements
December 31, 2021
Other
Revenue.
Our other revenue is derived primarily from point-of-sale hardware and other non-recurring revenue. We sell solo*TAG
™
s
and solo*CODE
™
s to customers by the roll of printed labels or as a digital
code that allows customers to print directly their packing. When customers active a solo*TAG
™
or
solo*CODE
™
, we receive an activation fee, which is recognized upon activation
by the customer. From time to time, we may purchase equipment for resale to customers. Such equipment is generally drop-shipped to
our customers. We recognize revenue as these products are delivered.
Cost
of Revenue.
Cost of revenue consists primarily of costs related to providing subscription and other services to our customers,
including employee compensation and related expenses for data center operations, customer support and professional services personnel,
payments to outside technology service providers, security services, and other tools.
Unbilled
Receivables.
Unbilled receivables are booked when services are delivered to our customers but not yet invoiced. Once invoiced, the
unbilled receivables are reclassified to accounts receivable.
Revenue Recognition Policies for the year
ended June 30, 2020
We derive our revenues primarily
from the following sources: software revenues, which are primarily comprised of subscription fees from government and commercial customers
accessing our enterprise cloud computing services and from customers paying for additional support beyond the standard support that is
included in the basic subscription fees; and consulting services provided to operators interested in integrating our platform into their
respective operations, such services include: assessing compliance requirements, monitoring systems and readiness; assisting with the
application process; and evaluating the operator's inspection readiness and business plan.
We commence revenue recognition
when there is persuasive evidence of an arrangement, the service has been or is being provided to the customer, the collection of the
fees is reasonably assured, and the amount of fees to be paid by the customer is fixed or determinable.
Deferred Revenue
Deferred revenue consists of
payments received in advance of revenue recognition from subscription services. The deferred revenue balance is influenced by several
factors, including seasonality, the compounding effects of renewals, contract duration, and invoice frequency. Deferred revenue that
will be recognized during the succeeding twelve-month period is recorded as deferred revenue, which is a current liability on the
accompanying consolidated balance sheets.
Disaggregation of Revenue
The Company derives the majority
of its revenue from subscription fees paid for access to and usage of its SaaS solutions for a specified period of time, typically one to
three years. In addition to subscription fees, contracts with customers may include implementation fees for launch assistance and training.
Fixed subscription and implementation fees are billed in advance of the subscription term and are due in accordance with contract terms,
which generally provide for payment within 30 days. The Company's contracts typically have a one to three year term. The
Company's contractual arrangements include performance, termination and cancellation provisions, but do not provide for refunds. Customers
do not have the contractual right to take possession of the Company's software at any time.
Sales taxes collected from customers and remitted
to government authorities are excluded from revenue.
F-
37
AKERNA CORP.
Notes to Consolidated Financial Statements
December 31, 2021
The following table summarizes revenue disaggregation
by product for the following periods (in thousands):
Year Ended
December 31,
2021
Six Months
Ended
December 31,
2020
Year Ended
June 30,
2020 (1)
Government
$
3,258
$
1,939
$
4,906
Non-government
17,427
5,886
7,667
$
20,685
$
7,825
$
12,573
(1)
As noted above, prior periods have not been adjusted for the
adoption of ASC 606 and are presented in accordance with
historical accounting
guidance in effect for those periods.
Year Ended
December 31,
2021
Six Months
Ended
December 31,
2020
Year Ended
June 30,
2020
United States
$
15,800
$
5,212
$
12,573
Canada
4,885
2,613
—
$
20,685
$
7,825
$
12,573
Contracts with Multiple Performance Obligations
Customers may elect to purchase
a subscription to multiple modules, multiple modules with multiple service levels, or, for certain of the Company's solutions. We evaluate
such contracts to determine whether the services to be provided are distinct and accordingly should be accounted for as separate performance
obligations. If we determine that a contract has multiple performance obligations, the transaction price, which is the total price of
the contract, is allocated to each performance obligation based on a relative standalone selling price method. We estimate standalone
selling price based on observable prices in past transactions for which the product offering subject to the performance obligation has
been sold separately. As the performance obligations are satisfied, revenue is recognized as discussed above in the product descriptions.
F-
38
AKERNA CORP.
Notes to Consolidated Financial Statements
December 31, 2021
Transaction Price Allocated to Future Performance
Obligations
ASC
606
provides certain practical expedients that limit the required disclosure of the aggregate
amount of transaction price that is allocated to performance obligations that have not yet been satisfied. As many of the contracts the
Company has entered into with customers are for a
twelve
-month subscription term, a
significant portion of performance obligations that have not yet been satisfied as of December 31, 2021 are part of a contract that
has an original expected duration of
one
year or less. For contracts with an original expected
duration of greater than
one
year, for which the practical expedient does not apply, the
aggregate transaction price allocated to the unsatisfied performance obligations was $
16.6
million as
of December 31, 2021, of which $
11.1
million is expected
to be recognized
as revenue over the next twelve months.
Deferred Revenue
Deferred revenue represents
the unearned portion of subscription and implementation fees. Deferred revenue is recorded when cash payments are received in advance
of performance. Deferred amounts are generally recognized within one year. Deferred revenue is included in the accompanying consolidated
balance sheets under Total current liabilities, net of any long-term portion that is included in Other long-term liabilities. The following
table summarizes deferred revenue activity for the year ended December 31, 2021 (in thousands):
As of
January 1,
2021
Net
additions
Revenue
recognized
As of
December 31,
2021
Deferred revenue
$
844
12,657
9,375
$
4,126
Of the $
20.7
million of
revenue recognized during the year ended December 31, 2021, $
0.7
million was included in deferred revenue as of December
31, 2020.
Costs to Obtain Contracts
In accordance with ASC 606,
we capitalize sales commissions that are directly related to obtaining customer contracts and that would not have been incurred if the
contract had not been obtained. These costs are included in the accompanying consolidated balance sheets and are classified as Prepaid
expenses and other current assets. Deferred contract costs are amortized to sales and marketing expense over the expected period of benefit,
which we have determined to be one year based on the estimated customer relationship period. The following table summarizes
deferred contract cost activity for the year ended December 31, 2021 (in thousand):
As of
January 1,
2021
Additions
Amortized
costs (1)
As of
December 31,
2021
Deferred contract costs
$
228
512
(
479
)
$
261
(1)
Includes contract costs amortized to sales and marketing expense
during the period.
F-
39
AKERNA CORP.
Notes to Consolidated
Financial Statements
December 31, 2021
Note 4 - Acquisitions
2021 Acquisitions
Viridian Sciences
On April 1, 2021, we completed
the acquisition of Viridian, a cannabis business management software provider that is built on SAP Business One. We acquired Viridian
in exchange for
1.0
million shares of our common stock valued at approximately $
6.0
million. In addition to the stock
consideration, the agreement provides for contingent consideration of up to $
1.0
million, payable in additional common stock, if
Viridian meets certain revenue criteria. The contingent consideration will be recorded as the estimated fair value on the acquisition
date and adjusted to estimated fair value in each subsequent reporting period until settlement.
Preliminary
Fair Value
Shares issued
$
6,186
Contingent consideration
2
Total preliminary fair value of consideration transferred
$
6,188
The following table summarizes
the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Preliminary
Fair Value
Accounts receivable
556
Prepaid expenses and other current assets
148
Capitalized software
423
Acquired technology
470
Customer relationships
820
Acquired trade name
20
Goodwill
5,408
Accounts payable and accrued expenses
(
350
)
Deferred tax liabilities
(
307
)
Deferred revenue
(
1,000
)
Net assets acquired
$
6,188
The excess of purchase consideration
over the fair value of assets acquired and liabilities assumed was recorded as goodwill, which is primarily attributed to the assembled
workforce and expanded market opportunities, for which there is no basis for U.S. income tax purposes. The fair values assigned to identifiable
assets acquired and liabilities assumed are based on management's estimates and assumptions. We expect to finalize the valuation
as soon as practicable, but no later than one year from the acquisition date.
The amounts of Viridian's
revenue and net income included in our consolidated statement of operations from the acquisition date of April 1, 2021, to December 31,
2021 were $
2.4
million and $
0.3
million, respectively.
F-
40
AKERNA CORP.
Notes to Consolidated Financial Statements
December 31, 2021
365 Cannabis
On
October 1, 2021, we acquired all the issued and outstanding shares of 365 Cannabis. Under the terms of the Agreement, the aggregate consideration
for the 365 Cannabis shares consists of (1) $5,000,000 in cash, (2) $12,000,000 in stock, which was settled by issuing 3.6 million shares
of our common stock, and (3) contingent value rights to be issued pursuant to a rights indenture entitling the holders thereof to receive,
subject to certain adjustments as set forth in the Agreement, an aggregate of up to $8,000,000 in stock, in the event that NAV achieves
certain revenue targets as specified in the Agreement.
These rights are accounted for as contingent consideration and are currently recorded
at preliminary fair value which will be updated upon finalization of purchase accounting.
Preliminary
Fair Value
Shares issued
$
12,000
Cash
5,542
Contingent consideration
6,300
Total preliminary fair value of consideration transferred
$
23,842
The
following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Preliminary
Fair Value
Cash
527
Accounts receivable
486
Prepaid expenses and other current asset
261
Fixed Assets
93
Non-compete agreement
80
Acquired technology
1,040
Customer relationships
13,810
Acquired trade name
270
Goodwill
14,043
Accounts payable and accrued expenses
(
826
)
Deferred tax liabilities
(
2,642
)
Deferred revenue
(
3,300
)
Net assets acquired
$
23,842
The
excess of purchase consideration over the fair value of assets acquired and liabilities assumed was recorded as goodwill, which is primarily
attributed to the assembled workforce and expanded market opportunities, for which there is no basis for U.S. income tax purposes. The
fair values assigned to identifiable assets acquired and liabilities assumed are based on management's estimates and assumptions.
We expect to finalize the valuation as soon as practicable, but no later than one year from the acquisition date.
The
amounts of 365 Cannabis' revenue and net loss included in our consolidated statement of operations from the acquisition date of October
1, 2021, to December 31, 2021 were $
2.4
million and $
0.4
million, respectively.
F-
41
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
2020
Acquisitions
Trellis
Solutions, Inc.
On
April 8, 2020, we acquired Trellis, a cannabis cultivation management and compliance software company in an all-stock transaction. Our
estimated acquisition date fair value of the consideration transferred for Trellis was as follows (in thousands):
Common shares issued
$
2,531
Contingent consideration
998
Total estimated fair value
    of consideration
$
3,529
We
incurred $
0.1
million of transaction costs directly related to the acquisition that is reflected in general and administrative expenses
in our consolidated statement of operations during the year ended June 30, 2020.
We
issued 349,650 shares of our common stock valued at
$7.24
per share, the
closing price of a share of our common stock on the date of acquisition in exchange for 100% of the outstanding stock of Trellis. We
have also agreed to pay additional consideration calculated as annualized revenue derived from previously identified customers for the
month of September 2020 multiplied by five.
The contingent consideration is payable in shares based on the 20-day volume-weighted average
price, or VWAP. At June 30, 2020, we estimated the fair value of the contingent consideration to be $
0
and recorded a gain of $
1.0
million
on the change in the fair value of contingent consideration included in general and administrative expenses in the consolidated statement
of operations during the year ended June 30, 2020.
The
following table summarizes our estimated fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Cash
$
21
Accounts receivable, net
91
Other assets
6
Acquired technology
210
Acquired trade name
80
Customer relationships
220
Goodwill
3,216
Accounts payable and accrued
    expenses
(
284
)
Deferred
    revenue
(
31
)
Net
    assets acquired
$
3,529
The
excess of purchase consideration over the fair value of net tangible and intangible assets acquired was recorded as goodwill, which is
primarily attributed to the assembled workforce and expanded market opportunities, for which there is no basis for U.S. income tax purposes.
During the six months ended December 31, 2020, we recorded net adjustments to assets and liabilities acquired of $
14.3
thousand. The
amounts of Trellis's revenue and net loss included in our consolidated statement of operations from the acquisition date of April
10, 2020 to June 30, 2020 were $
216.0
thousand and $
17.0
thousand, respectively.
solo
sciences, inc.
On
January 15, 2020, we closed on a stock purchase agreement with substantially all of the shareholders of Solo pursuant to which we acquired
all right, title, and interest in
80.4
% of the issued and outstanding capital stock of Solo, calculated on a fully diluted basis. A
s
a result of our initial investment, Solo became a controlled subsidiary and we commenced consolidation of Solo on January 15, 2020.
The estimated acquisition date fair value of the consideration transferred for Solo was $
17.9
million. During the year ended June
30, 2020, we completed the preliminary valuation of the contingent consideration and recorded a measurement period adjustment to reflect
this liability on our balance sheet. The estimated fair value of consideration recorded consisted of the following (in thousands):
Common shares issued
$
17,550
Contingent consideration
389
Total
    estimated fair value of consideration
$
17,939
F-
42
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
We
incurred $
0.3
million of transaction costs directly related to the acquisition, which is reflected in general and administrative expenses
in our consolidated statement of operations during the year ended June 30, 2020.
We
exchanged 1,950,000 shares of our common stock, valued at $9.00 per share, the closing price of a share of our common stock on the
date of acquisition. In addition to the stock consideration, we agreed to pay contingent consideration in the form of fees payable
to the legacy Solo shareholders equal to the lesser of (i) $0.01 per solo*TAG™ and solo*CODE™ sold or (ii) 7% of net revenue.
The fees were to be paid annually until the earlier of: (1) our shares trading above $12 per share for any consecutive 20 trading days
in a 30-day period; (b) upon our no longer owning a majority stake in Solo; or (c) upon expiration of the patents related to solo*TAG™
and solo*CODE™, which is December 1, 2029.
This fee represents contingent consideration and was recorded at fair value as of the
date of acquisition. Contingent consideration is adjusted to fair value each period with changes in fair value being recognized in earnings
at each reporting period.
We
also acquired an option to acquire the noncontrolling interests in Solo during the 12 months following the close for either cash or shares.
Beginning with the expiration of our option, the noncontrolling interests in Solo have a 3-month option to acquire between
40
% and
55
%
of Solo back from us for cash. On July 31, 2020, we entered into an amendment to the stock purchase agreement to exercise our option
to acquire the noncontrolling interests in Solo, for
800,000
shares of our common stock, this transaction will be recorded as an
equity transaction, with no effect to the value of the assets acquired or liabilities assumed. In connection with the amendment, the
selling shareholders agreed to cancel the contingent consideration in the future and waived a right to any amount that would have been
earned prior to the amendment. We recorded a gain on settlement of the contingent consideration liability during the six months ended
December 31, 2020 in general and administrative expenses in our consolidated statement of operations.
During
the year ended June 30, 2020, we obtained additional information regarding the valuation of the assets acquired and liabilities
assumed. We have recorded a measurement period adjustment to allocate the acquisition price to intangible assets, goodwill, accrued liabilities,
and the fair value of noncontrolling interests. The following table summarizes the estimated fair values of assets acquired and
liabilities assumed as of the date of acquisition (in thousands):
Cash
$
101
Prepaid expenses and other
    assets
22
Furniture, fixtures, and
    equipment
2
Acquired technology
7,160
Acquired trade name
340
Goodwill
17,025
Accounts payable and accrued
    liabilities
(
1,158
)
Fair
    value of noncontrolling interests
(
5,553
)
Net
    assets acquired
$
17,939
The
excess of purchase consideration over the fair value of net tangible and intangible assets acquired was recorded as goodwill, which is
primarily attributed to expanded market opportunities, for which there is no basis for U.S. income tax purposes. The amounts of
Solo's revenue and net loss included in our consolidated statement of operations from the acquisition date of January 15, 2020
to June 30, 2020 were $
23.0
thousand and $
1.5
million, respectively.
During
the six months ended December 31, 2020, the Company recorded an impairment of $
2.7
million related to Solo's developed technology.
See Note 6 – Goodwill and Intangible Assets, Net for further discussion of the intangible asset impairment.
F-
43
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
Ample
Organics
On
July 7, 2020, we completed the acquisition of Ample Organics ("Ample"), Ample provides a seed-to-sale platform to clients
in Canada, which offers tracking, reporting, and compliance tools to cannabis cultivators, processors, sellers, and clinics.
We
acquired 100% of the stock of Ample Organics for 3.3 million exchangeable shares of one of our wholly-owned subsidiaries. The exchangeable
shares may be exchanged, at the option of the holder, for shares of Akerna common stock on a one-for-one basis, therefore the exchangeable
shares issued were valued at $7.65 per share, the closing price of an equivalent share of Akerna common stock, $30.7 million was the
aggregate value of the exchangeable shares. In addition to the stock consideration, we paid $5.5 million in cash, which was used to settle
all of Ample's then outstanding debt. In addition to the stock and cash consideration, the agreement provides for contingent consideration
of up to CAD$10,000,000, payable in exchangeable shares, payable if Ample's Recurring Revenue recognized during the 12 months after the
acquisition date is CAD$9,000,000 or more. The contingent consideration amount is reduced by an amount equal to the product of CAD$6.67
multiplied by the difference between CAD$9,000,000 and the amount of Recurring Revenue realized during the 12 months following the acquisition.
The
contingent consideration will be recorded as the estimated fair value on the acquisition date and adjusted to estimated fair value in
each subsequent reporting period until settlement.
Preliminary
Fair Value
Exchangeable shares
    issued
$
25,203
Cash
5,724
Contingent
    consideration
604
Total
    estimated fair value of consideration transferred
$
31,531
We
incurred $
2.9
million of total transaction costs directly related to the acquisition of Ample that is reflected in general and administrative
expenses in our consolidated statements of operations, of which $
1.1
million and $
1.8
million was recognized during the six months ended
December 31, 2020 and the year ended June 30, 2020, respectively.
The
following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Preliminary
Fair Value
Cash
$
445
Accounts receivable
917
Prepaid expenses and other
    current assets
595
Acquired technology
850
Customer relationships
2,660
Acquired trade name
285
Goodwill
25,806
Furniture, fixtures and
    equipment
1,327
Accounts payable and accrued
    expenses
(
805
)
Deferred
    revenue
(
549
)
Net
    assets acquired
$
31,531
The
excess of purchase consideration over the preliminary fair value of assets acquired and liabilities assumed was recorded as goodwill,
which is primarily attributed to the assembled workforce and expanded market opportunities, for which there is no basis for U.S. income
tax purposes.
F-
44
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
During
the six months ended December 31, 2020, the Company recorded an impairment to goodwill for $
4.2
million related to Ample. See Note 6
– Goodwill and Intangible Assets, Net for further discussion of the goodwill impairment.
The
amounts of Ample's revenue and net income included in our consolidated statement of operations from the acquisition date of July
7, 2020, to December 31, 2020 were $
2.6
million and $
0.1
million, respectively.
Pro
Forma Financial Information
The
following unaudited pro forma consolidated operating results give effect to the Viridian and 365 Cannabis acquisitions as if they had
been completed as of January 1, 2020 (in thousands):
Year
                                            Ended
December
                                            31,
2021
Revenue
$
28,847
Net loss
$
(
31,423
)
The
following unaudited pro forma consolidated operating results give effect to the Viridian and 365 Cannabis acquisitions, as if they had
been completed as of January 1, 2020, and the Trellis, Solo and Ample acquisitions, as if they had been completed as of July 1, 2019
(in thousands):
Six
    Months
Ended
December 31,
Year
                                            Ended
June
                                            30,
2020
2020
Revenue
$
14,026
$
27,523
Net loss
$
(
17,650
)
$
(
20,250
)
The
pro forma financial information for all periods presented above has been calculated after adjusting the results of Solo, Trellis, Ample,
Viridian, and 365 Cannabis to reflect the business combination accounting effects resulting from this acquisition, including the amortization
expense from acquired intangible assets as though the acquisition occurred as of the beginning of the periods indicated above. The pro
forma financial information is for informational purposes only and is not indicative of the results of operations that would have been
achieved if the acquisition had taken place at the beginning of the years indicated above.
Special
Voting Preferred Stock and Exchangeable Shares
In
connection with the Ample acquisition, we entered into agreements with our wholly-owned subsidiary and the Ample shareholder representative
that resulted in the issuance of a single share of our special voting preferred stock, for the purpose of ensuring that each Exchangeable
Share is substantially the economic and voting equivalent of a share of Akerna common stock, and, following the registration of
the Akerna shares issuable upon exchange of the Exchangeable Shares under the Securities Act of 1933, ensuring that each Exchangeable
Share is exchangeable on a one-for-one basis for a share of Akerna common stock, subject to certain limitations. As a
result of these agreements and the issuance of the special voting preferred stock, each holder of Exchangeable Shares effectively has
the ability to cast votes along with holders of Akerna common stock. Additionally, these agreements grant exchange rights to the
holders of exchangeable shares upon the event of our liquidation, dissolution or winding up.
The special
voting preferred stock has a par value of $
0.0001
per share and a preference in liquidation of $
1.00
. The special voting preferred
stock entitles the holder to an aggregate number of votes equal to the number of the exchangeable shares issued and outstanding from
time to time and which we do not own. The holder of the special voting preferred stock and the holders of shares of Akerna common
stock will both together as a single class on all matters submitted to a vote of our shareholders. At such time as the special voting
preferred stock has not votes attached to it, the share shall be automatically cancelled. The exchangeable shares do not have a par value.
On
September 1, 2020, several Ample shareholders exchanged a total of 627,225 exchangeable shares with a value of $4,798,271 for
the same number of shares of Akerna common stock.
The exchange was accounted for as an equity transaction and we did not recognize
a gain or loss on this transaction. As of December 31, 2021, there were a total of
309,286
Exchangeable Shares issued and outstanding.
F-
45
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
Note
5 - Balance Sheet Disclosures
Prepaid
expenses and other current assets consisted of the following:
As
    of December 31,
2021
2020
Software
    and technology
$
687,740
$
480,651
Professional
    services, dues and subscriptions
546,126
826,195
Insurance
264,097
243,222
Deferred
    contract costs
260,899
227,718
Unbilled
    receivable
506,984
612,446
Other
117,918
68,495
Total
    prepaid expenses and other current assets
$
2,383,764
$
2,458,727
Accounts
payable, accrued expenses and other current liabilities consisted of the following:
As
    of December 31,
2021
2020
Accounts
    payable
$
1,943,457
$
513,610
Professional
    fees
319,590
233,667
Sales
    taxes
360,361
216,367
Compensation
1,123,467
311,379
Contractors
1,288,730
538,618
Settlements
    and legal
681,045
831,232
Other
346,870
543,703
Total
    accounts payable, accrued expenses and other current liabilities
$
6,063,520
$
3,188,576
F-
46
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
Note
6 - Goodwill and Intangible Assets, Net
Goodwill
The
following table reflects the changes in the carrying amount of goodwill:
Balance as of June 30, 2020
$
20,254,309
Adjustments to Trellis' goodwill
(
14,300
)
Additions due to acquisition
    of Ample
25,806,518
Goodwill
    impairment
(
4,172,000
)
Balance as of December
    31, 2020
$
41,874,527
Additions due to acquisition
    of Viridian
5,408,884
Additions due to acquisition
    of 365 Cannabis
14,042,580
Goodwill
    impairment
(
14,383,310
)
Balance as of December
    31, 2021
$
46,942,681
Impairment
Based
on our qualitative assessment of goodwill, we determined it was necessary to perform a quantitative valuation of goodwill as of December
31, 2021. We determined there were two reporting units: the enterprise reporting unit which is comprised of the enterprise software
offerings and the non-enterprise reporting unit which is comprised of the non-enterprise software offerings. The valuation
of our goodwill was determined with the assistance of an independent valuation firm using the income approach (discounted cash flows
method) and the market approach (guideline public company method). Our significant assumptions in these analyses include, but are not
limited to, future cash flow projections, the weighted average cost of capital, the discount rate, the implied control premium, the terminal
growth rate, and the tax rate. The Company's estimates of future cash flows are based on current regulatory and economic climates,
recent operating results, and planned business strategies. These estimates could be negatively affected by changes in federal, state,
or local regulations or economic downturns. Future cash flow estimates are, by their nature, subjective and actual results may differ
materially from the Company's estimates. If the Company's ongoing estimates of future cash flows are not met, the Company
may have to record additional impairment charges in future periods. The Company also uses the Guideline Public Company Method, a form
of the market approach (utilizing Level 3 unobservable inputs), which is derived from metrics of publicly traded companies or historically
completed transactions of comparable businesses. The selection of comparable businesses is based on the markets in which the reporting
units operate giving consideration to risk profiles, size, geography, and diversity of products and services. As such, we believe the
current assumptions and estimates utilized are both reasonable and appropriate. During the six months ended December 31, 2020, primarily
as a result of delays in executing on strategic initiatives related to acquisitions completed in 2020, we recorded a $
4.2
million
impairment to goodwill.
Enterprise
Reporting Unit
For
the year ended December 31, 2021, no
impairment to goodwill was recorded for our enterprise
reporting unit as the fair value exceeded the carrying value as of December 31, 2021. To perform our analysis, we applied a
50
%
weighting to the market approach and
50
% weighted to the income approach.
Non-Enterprise
Reporting Unit
For
the year ended December 31, 2021, primarily due to a continued decline in market valuation and a flattening in the operating results
of our non-enterprise reporting unit compared to acquisition assumption, we recorded an impairment expense of $
14.4
million related to
our non-enterprise reporting unit. To perform our analysis, we applied a
25
% weighting to the income approach and a
75
% weighting
to the market approach.
Finite-lived
Intangible Assets, Net
We
performed a two step impairment test for the asset groups that had indicators of impairment in the current year under ASC 360 and
as a result of this analysis we did not identify any impairment. For the six months ended December 31, 2020, we determined that the carrying
value of Solo's developed technology and trade name exceeded it's fair value, resulting in an impairment of $
2.7
million.
F-
47
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
Intangible
assets as of December 31, 2021 consist of the following:
Weighted average remaining amortization period
(in years)
Gross carrying amount
Accumulated
amortization
Impairment
Net carrying
amount
Acquired developed technology
3.35
$
7,138,080
$
(
2,815,158
)
$
—
$
4,322,922
Acquired trade names
3.09
871,920
(
286,799
)
—
585,121
Customer relationships
10.18
17,510,000
(
878,250
)
—
16,631,750
Non-compete agreement
1.75
80,000
(
10,000
)
—
70,000
Total Intangible assets
$
25,600,000
$
(
3,990,207
)
$
—
$
21,609,793
Capitalized software - In-service
2.02
8,807,843
(
4,423,887
)
—
4,383,956
Capitalized software - Work in Progress
N/A
3,224,203
—
(
296,483
)
2,927,720
Total Capitalized Software
12,032,046
(
4,423,887
)
(
296,483
)
7,311,676
Total finite-lived intangible assets
$
37,632,046
$
(
8,414,094
)
$
(
296,483
)
$
28,921,469
Intangible
assets as of December 31, 2020 consist of the following:
Weighted average
remaining amortization
period
(in years)
Gross carrying amount
Accumulated
amortization
Impairment
Net carrying
amount
Acquired developed technology
3.77
$
8,220,000
$
(
1,434,155
)
$
(
2,591,920
)
$
4,193,925
Acquired trade names
5.12
705,000
(
97,676
)
(
123,080
)
484,244
Customer relationships
13.04
2,880,000
(
169,374
)
—
2,710,626
Total Intangible assets
$
11,805,000
$
(
1,701,205
)
$
(
2,715,000
)
$
7,388,795
Capitalized software - In-service
1.62
4,593,512
(
1,401,953
)
—
3,191,559
Capitalized software - Work in Progress
N/A
734,180
—
—
734,180
Total Capitalized Software
5,327,692
(
1,401,953
)
—
3,925,739
Total finite-lived intangible assets
$
17,132,692
$
(
3,103,158
)
$
(
2,715,000
)
$
11,314,534
We
record amortization expense associated with acquired developed technology, acquired trade names, and customer relationships. The amortization
expense of all finite-lived intangible assets, which includes capitalized software was $
5.6
million, $
1.8
million, and $
1.3
million for
the year ended December 31, 2021, six months ended December 31, 2020, and year ended June 30, 2020, respectively.  The amortization
expense for the year ended December 31, 2021 includes $
0.3
million of capitalized software write offs.
F-
48
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
As
of December 31, 2021, expected amortization expense relating to in-service capitalized software and purchased intangible assets for each
of the next five years and thereafter is as follows:
Acquired
    Intangible Assets
Capitalized
    Software- In-service
2022
$
3,445,741
$
2,722,663
2023
3,131,575
1,144,351
2024
2,801,991
275,884
2025
1,973,934
110,215
2026
1,851,434
59,112
Thereafter
8,405,118
71,731
Total
$
21,609,793
$
4,383,956
Note
7 - Fixed assets, net
Fixed assets
consisted of the following:
As
    of
December 31,
As
    of
December 31,
2021
2020
Furniture and
    computer equipment
$
235,042
$
131,300
Leasehold
    improvements
14,064
1,175,556
249,106
1,306,856
Less:
    accumulated depreciation
(
95,955
)
(
113,423
)
Fixed
    assets, net
$
153,151
$
1,193,433
Depreciation
expense related to our fixed assets for the year ended December 31, 2021, six months ended December 31, 2020, and year ended June 30,
2020 was $
127,731
, $
240,742
, and $
27,951
, respectively. During the year ended December 31, 2021, we terminated our office lease
in Toronto, Canada and wrote off $
1.2
million of fixed assets. During the six months ended December 31, 2020, we sold furniture
and computer equipment for $
25,561
with a cost of $
191,389
and
accumulated depreciation of $
106,555
resulting in a $
59,273
loss
in the consolidated statements of operations for the six months ended December 31, 2020 related to these disposals.
Note
8 - Investments
Investment
in and License Agreement with Zol Solutions, Inc.
On
October 7, 2019, we participated in an offering of preferred stock of Zol Solutions, Inc. ("ZolTrain") along with other investors
in which we purchased
203,000
shares of Series Seed Preferred Stock (the "ZolTrain Preferred") for a purchase price of $
250,000
,
which represents a noncontrolling interest in ZolTrain.
The
ZolTrain Preferred is convertible into shares of common stock of ZolTrain at a conversion rate of $
1.232
per share at the option of the
holder and contains certain anti-dilution protection in the event of certain future issuances of securities by ZolTrain. We are entitled
to vote the number of common shares in which the ZolTrain Preferred is convertible into at any meeting of the ZolTrain stockholders.
F-
49
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
The
ZolTrain Preferred also provides us with rights of first refusal with respect to newly issued securities of ZolTrain as well as issued
and outstanding securities of ZolTrain that are offered to third parties. In connection with the agreement, one of Akerna's executives
was appointed as one of three members of ZolTrain's board of directors. At that time, we had determined that ZolTrain is
a VIE for accounting purposes, given we could exercise significant influence, however we were not required to consolidate ZolTrain in
our consolidated financial statements because we are not ZolTrain's primary beneficiary. We had concluded that the ZolTrain Preferred
was in-substance common stock because the liquidation preference provided was not substantive, and the equity method of accounting is
applicable to in-substance common stock. As a result of our representation on the board of directors, we determined that we can exert
significant influence over the day to day operations of ZolTrain and therefore; we account for this investment using the equity
method of accounting, which required us to recognize our share of the ZolTrain operations in our results of operations. For
year ended December 31, 2021, we recognized equity in loss of investee of $
12,641
which represents our share
of ZolTrain's losses since our investment
During
the third quarter of 2021, following the loss of our seat on the Board, we concluded that we should no longer apply the equity method
of accounting for the investment in ZolTrain. We determined that we hold an equity security in ZolTrain for which the fair
value is not readily determinable. Accordingly, starting in the third quarter we elected to measure the investment at cost minus
impairment, plus or minus changes resulting from observable price changes. When indicators of impairment exist, we estimate the fair
value and record an impairment charge if the carrying value of the investment exceeds its estimated fair value. Any impairment charges
are recorded in other (expense) income, net, in our consolidated statements of operations. The carrying amount of our investment in ZolTrain was
$
226,101
as of December 31, 2021 and we did not recognize any impairment on the investment during the current year.
Subsequent
to our initial investment, we entered into a nonexclusive license/reseller agreement with ZolTrain, effective October 24, 2019, to provide
ZolTrain's online cannabis training platform as a co-branded integration option into our MJ Platform and Leaf Data Systems, which
was a related party transaction in the prior year. Under the term of the agreement we entered into, ZolTrain will share subscription-based
revenue generated from our customers with us. The amount of the share of the revenue for each of us and ZolTrain will depend on both
(a) the number of training modules accessed by a customer and (b) which party created the accessed content. In addition to the revenue
sharing arrangement, the license/reseller agreement provides us with the right to receive additional consideration from ZolTrain in the
form of an equity earnout if certain revenue milestones are achieved during 2020, 2021, and 2022. Our ability to recognize revenue from
the additional earnout consideration in the future will mainly depend on whether it becomes probable that such revenue milestones will
be achieved. For the year ended December 31, 2021, the six months ended December 31, 2021, and the year ended June 30, 2020, we recognized
$
25.9
thousand, $
0
, and $
0
of revenue from this agreement.
Note
9 - Long Term Debt
Long-term
debt consisted of the following at December 31, 2021:
Convertible
    notes (at fair value)
$
17,305,000
Less:
    current maturities
13,200,000
Total
    long-term debt, less current portion
$
4,105,000
Senior
Secured Convertible Notes - 2020
On
June 8, 2020, we entered into a Securities Purchase Agreement, or SPA, with two institutional investors (the "2020 Note Holders"),
to sell a new series of senior secured convertible notes (the "2020 Notes"), of Akerna in a private placement to the 2020 Note
Holders, in the aggregate principal amount of $
17.0
million having an aggregate original issue discount of
12
%, and ranking senior
to all outstanding and future indebtedness of Akerna. The 2020 Notes were sold on June 9, 2020, with an original issue discount
pursuant to which the Note Holders paid $
880
per each $
1,000
in principal amount of the 2020 Notes. The 2020 Notes do not bear interest
except upon the occurrence of an event of default, in which event the applicable rate will be
15.00
% per annum.
Pursuant
to the SPA and the 2020 Notes, we and certain of its subsidiaries will enter into a Security and Pledge Agreement (the "Security
Agreement") with the lead investor, in its capacity as collateral agent (in such capacity, the "Collateral Agent")
for all holders of the Notes. The Security Agreement creates a first priority security interest in all of the personal property of the
Company and certain of its subsidiaries of every kind and description, tangible or intangible, whether currently owned and existing or
created or acquired in the future (the "Collateral").
F-
50
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
Under
the Security Agreement we agree to certain conditions on its maintenance and use of the Collateral, including but not limited to the
location of equipment and inventory, the condition of equipment, the payment of taxes and prevention of liens or encumbrances, the maintenance
of insurance, the protection of intellectual property rights, and limitations on transfers and sales.
Upon
the occurrence of an "Event of Default" under the Security Agreement, the Collateral Agent will have certain rights under
the Security Agreement including taking control of the Collateral and, in certain circumstances, selling the Collateral to cover obligations
owed to the holders of the 2020 Notes pursuant to its terms. "Event of Default" under the Security Agreement means (i) any
defined event of default under any one or more of the transaction documents (including the 2020 Notes), in each instance, after giving
effect to any notice, grace, or cure periods provided for in the applicable document, (ii) the failure by us to pay any amounts when
due under the 2020 Notes or any other transaction document, or (iii) the breach of any representation, warranty or covenant by the Company
under the Security Agreement.
The
2020 Notes mature on June 1, 2023, are payable in installments beginning on October 1, 2020, and may not be prepaid. The 2020 Notes are
convertible at any time, at the election of the Holders and subject to certain limitations, into shares of common stock at a rate equal
to the amount of principal, interest, if any, and unpaid late charges, if any, divided by a conversion price of $
11.50
.
In
connection with the occurrence of an event of default, the Holders of the 2020 Notes will be entitled to convert all or any portion of
the 2020 Notes at an alternate conversion price equal to the lower of (i) the conversion price then in effect, or (ii)
80
% of the
lower of (x) the volume-weighted average price, or VWAP, of the common stock as of the trading day immediately preceding the applicable
date of determination, or (y) the quotient of (A) the sum of the VWAP of the common stock for each of the two trading days with the lowest
VWAP of the common stock during the ten (10) consecutive trading day period ending and including the trading day immediately prior to
the applicable date of determination, divided by (B) two, but not less than $
1.92
.
We
elected to use the fair value option to account for the 2020 Notes. The fair value of the 2020 Notes on issuance was recorded as
$
15.0
million. During the year ended June 30, 2020, the fair value of the 2020 Notes decreased by $
0.8
million. Of the adjustment, a
decrease of $
0.1
million resulted from instrument-specific credit risk and was recognized as other comprehensive income and accumulated
in equity and a decrease of $
0.7
million was recognized as current period other expense in our consolidated statement of operations.
During
the six months ended December 31, 2020, we made $
1.8
million in principal payments on the 2020 Notes, of which $
1.5
million was settled
in cash and the remaining $
0.3
million was settled in common stock. During the six months ended December 31, 2020, the fair value of
the 2020 Notes increased by $
1.0
million. Of the adjustment, an increase of $
0.1
million resulted from instrument-specific credit risk
and was recognized as other comprehensive income and accumulated in equity and an increase of $
0.9
million was recognized as current
period other expense in our consolidated statement of operations. As of December 31, 2020, the fair value of the 2020 Notes on our consolidated
balance sheet was $
13.4
million.
During
the year ended December 31, 2021, up until the date the 2020 Notes were paid in full and replaced by the 2021 Senior Convertible Notes,
we
made $
15.2
million in principal payments on our convertible notes, of which $
5.1
million was settled in cash and the remaining $
10.1
million
was settled in common stock. During the year ended December 31, 2021, the fair value of the Convertible Notes increased by $
2.0
million.
Of the adjustment, an increase of $
0.02
million resulted from instrument-specific credit
risk and was recognized as other comprehensive income and accumulated in equity and an increase of $
2.0
million was
recognized as current period other expense in our consolidated statement of operations. On October 5, 2021, we recognized a gain of $
0.2
million in connection with the payoff of the 2020 Notes.
Amendment
On
December 23, 2020, we entered into waivers with the Holders of the 2020 Notes, pursuant to which we and the Holders, separately and not
jointly, agreed to waive certain terms and conditions of the 2020 Notes as follows:
F-
51
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
The
Holders irrevocably waived the last sentence of Section 8(a) of the Notes requiring that all installment amounts payable under the 2020
Notes prior to April 1, 2021 be paid in cash pursuant to installment redemptions. We may now elect, in its sole discretion, to pay installment
amounts under the 2020 Notes prior to April 1, 2021, by issuing shares of common stock pursuant to installment conversions or by paying
cash pursuant to installment redemptions, in each case in accordance with the existing terms of the Convertible Notes.
We
irrevocably waived the prohibition on acceleration of installment amounts in Section 8(e) of the 2020 Notes solely in relation to the
Installment Amount for January 4, 2020, to permit the Holders to accelerate the January 4, 2021 installment amount, in whole or in part,
to one or more acceleration dates from December 24, 2020 through to and including January 4, 2021, as elected by each Holder.
We
and the Holders agreed that we may irrevocably waive the installment scheduled principal amount for any installment date by setting forth
in the installment notice for that installment date an installment amount greater than the installment scheduled principal amount due
and payable on the next installment date. Each Holder may then consent to all or a portion of such increased installment amount for such
installment date on the trading day immediately prior to such installment date. Any increased amount for an installment amount above
the installment scheduled principal amount for such installment date will reduce the principal amount under the 2020 Notes.
In
relation to the January 4, 2021 installment amount, the Company delivered installment notices to the Holders increasing the installment
amount for January 4, 2021, in the aggregate, by $
2,062,500
.
Senior
Secured Convertible Notes - 2021
On
October 5, 2021, we entered into a securities purchase agreement with the two institutional investors that held the Company's 2020 Notes
to sell senior secured notes in a private placement (the "Senior Convertible Notes"). The Senior Convertible Notes have an
aggregate principal amount of $
20.0
million, an aggregate original issue discount of
10
%, and rank senior to all our other outstanding
and future indebtedness. Approximately $
3.3
million of the proceeds from the Senior Convertible Notes were used to payoff the 2020 Notes,
which were then to be cancelled. The net proceeds from the issuance of the Senior Convertible Notes was approximately $
14.6
million,
following the original issue discount and deductions for expenses and paydown of the 2020 Notes. These net proceeds will be used to support
Akerna's ongoing growth initiatives and continued investment in current and future technology infrastructur
e.
The Senior Convertible Notes are convertible into shares of common stock of Akerna at a conversion price of $
4.05
per
share. The Senior Convertible Notes mature on October 5, 2024 and are to be repaid in monthly installments beginning on January 1, 2022.
The Senior Convertible Notes can be repaid in common shares or cash.
In
connection with the occurrence of an event of default, the Holders of the Senior Convertible Notes will be entitled to convert all or
any portion of the Senior Convertible Notes at an alternate conversion price equal to the lower of
(i)
the conversion price then in effect, or (ii) 80% of the lower of (x) the volume-weighted average price, or VWAP, of the common
stock as of the trading day immediately preceding the applicable date of determination, or (y) the quotient of (A) the sum of the VWAP
of the common stock for each of the
two
trading
days with the lowest VWAP of the common stock during the
ten
(
10
)
consecutive trading day period ending and including the trading day immediately prior to the applicable date of determination, divided
by (B)
two
, but not less than $
0.54.
F-
52
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
We
have elected to use the fair value option to account for the
Senior Convertible Notes
. The
fair value of the
Senior Convertible Notes
on issuance was recorded as $
18.0
million.
During the year ended December 31, 2021, the fair value of the
Senior Convertible Notes
decreased by
$
0.7
million. Of the adjustment, a decrease of $
0.03
million resulted from instrument-specific credit risk and was recognized
as other comprehensive income and accumulated in equity and a decrease of $
0.7
million was recognized as current period
other expense in our consolidated statement of operations. As of December 31, 2020, the fair value of the
Senior
Convertible Notes
on our consolidated balance sheet was $
17.3
million.
During
the year ended December 31, 2021, we made no principal payments on our Senior Convertible Notes.
Paycheck
Protection Program Loan
On
March 27, 2020, former President Trump signed the Coronavirus Aid, Relief and Economic Security (the "CARES Act"), which,
among other things, outlined the provisions of the Paycheck Protection Program (the "PPP"). On April 24, 2020, the Paycheck
Protection Program and Health Care Enhancement Act, was signed into law increasing funding provided by the CARES Act and on June 5, 2020,
the Paycheck Protection Program Flexibility Act extended the program until December 31, 2020. Under the terms of the CARES Act, PPP loan
recipients can apply for and be granted forgiveness for all, or a portion of loan granted under the program. Such forgiveness will be
determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any payments of mortgage interest,
rent, and utilities.
On
April 21, 2020,
the Company issued a promissory note to KeyBank National Association ("KeyBank") in the principal aggregate
amount of $2,204,600 (the "PPP Loan") pursuant to the Paycheck Protection Program under the CARES Act. The PPP Loan
had a two-year term bearing interest at a rate of 1% per annum with principal and interest payments of $92,818 to be paid
monthly on the 12th of the month beginning 7 months from the date of the PPP Loan. The PPP Loan provides for prepayment of 20% or
less of the unpaid principal balance at any time. If more than 20% is prepaid, then all accrued interest must also be paid.
In
August 2021, the Company submitted its application for
100
% loan forgiveness and on September 3, 2021, the loan was
100
% forgiven
by the Small Business Administration. As a result, the Company recorded a gain on the forgiveness of the loan in the amount of $
2,234,730
.
Maturities
of Debt
Maturities
of our debt as of December 31, 2021 are presented below.
Year ending December 31:
2022
$
13,200,000
2023
6,800,000
Aggregate
    maturities
20,000,000
Original
    issue discount on Convertible Notes
(
2,000,000
)
Unrealized
    change in fair value of Convertible Notes
(
695,000
)
Total debt outstanding
    as of December 31, 2021
$
17,305,000
Current
    portion
13,200,000
Noncurrent
    portion
4,105,000
F-
53
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
Note
10 - Stockholders' Equity
Common
and Preferred Stock
We
have one single class of common stock and
75,000,000
authorized shares of common stock, par value $
0.0001
per
share.
We
also have
5,000,000
authorized shares of preferred stock, $
0.0001
par value per share, of which none are issued and outstanding.
The holders of common stock are entitled to
one
vote per share on all matters submitted to a vote of stockholders of the Company. Subject
to the prior rights of all classes or series of stock at the time outstanding having prior rights as to dividends or other distributions,
all stockholders are entitled to share equally in dividends, if any, as may be declared from time to time by the Board of Directors out
of funds legally available. Subject to the prior rights of creditors of the Corporation and the holders of all classes or series of stock
at the time outstanding having prior rights as to distributions upon liquidation, dissolution, or winding up of the Corporation, in the
event of liquidation, the holders of Common Stock are entitled to share ratably in all assets remaining after payment of all liabilities.
The stockholders do not have cumulative, preemptive rights, or subscription rights.
On
October 30, 2020, we issued
5,000,000
shares, at a price of $
2.40
per share, of Akerna common stock in a public offering for
gross proceeds of $
12.0
million, offset by offering costs of approximately $
1.0
million for net proceeds $
11.0
million dollars.
Warrants
In
connection with MTech Acquisition Corp.'s ("MTech") initial public offering, MTech sold
5,750,000
units
at a purchase price of $
10.00
per unit, inclusive of
750,000
units sold to the underwriters on February 8, 2018, upon
the DD' election to fully exercise their over-allotment option. Each unit consisted of one share of MTech's common
stock and one warrant of MTech ("MTech Public Warrant"). Each Mtech Public Warrant entitled the holder to purchase one share
of MTech's common stock at an exercise price of $
11.50
. Upon the Mergers, the Public Warrants were converted to those
of Akerna at the exchange ratio of one-for-one.
A
summary of our common stock warrants is presented in the following table:
Shares
    Issuable
Under Warrants
Weighted-average
Exercise Price
Weighted
    Average
Remaining Life
Aggregate
    Intrinsic Value
Outstanding at June 30, 2020
5,813,804
$
11.50
3.97
$
—
Issued
—
—
—
—
Exercised
—
—
—
—
Expired/canceled
—
—
—
—
Outstanding at December 31, 2020
5,813,804
$
11.50
3.37
$
—
Issued
—
—
—
—
Exercised
—
—
—
—
Expired/canceled
—
—
—
—
Outstanding at December
    31, 2021
5,813,804
$
11.50
2.97
$
—
There
was no aggregate intrinsic value for the warrants outstanding as of December 31, 2021 and December 31, 2020.
F-
54
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
Note
11 - Stock-Based Compensation
Restricted
Shares and Restricted Stock Units
On
June 17, 2019, our stockholders considered and approved the 2019 Long Term Incentive Plan, or the Equity Incentive Plan, and
reserved
1,040,038
shares of common stock for issuance thereunder. The Equity Incentive Plan was previously approved, subject
to stockholder approval, by the board of directors of Akerna on January 23, 2019. The Equity Incentive Plan became effective
immediately upon the Closing of the Mergers. On June 26, 2020, the stockholders approved an amendment to the Equity Incentive Plan and
increased the shares authorized for issuance thereunder by
525,000
to
1,565,038
.
We
grant restricted stock units, or RSUs, that are subject to time-based vesting and require continuous employment, typically over a period
of
four
years from the grant date or the first day of the service period.
Prior
to the Mergers, MJF had Profit Interest Incentive Plan in place whereby it could grant Profits Interest Units, or PIUs, to employees
or consultants and other independent advisors of the Company. PIUs granted under the Profits Interest Plan would generally vest once
a year over
four
years commencing on the date granted or based on specified performance targets. MJF had the right, but not the obligation,
to repurchase vested PIUs from holders upon their termination of employment. Unvested PIUs were to be forfeited upon termination of employment.
If the holder was terminated for cause, as defined, all vested and unvested units would be forfeited. PIUs repurchased or canceled or
forfeited by the award recipient were available for reissuance. Upon completion of the Mergers, the non-vested PIUs were exchanged for
and became subject to restricted stock agreements, or Restricted Shares, with varying vesting terms that reflect the vesting conditions
applicable to the individual PIUs at the time of the merger.
We
determined the PIUs represented a profit-sharing compensation arrangement that had value only upon a defined liquidating event.
Accordingly, no value was accrued for the PIUs prior to the Mergers on June 17, 2019, which met the definition of a liquidating event.
As a result, we recorded a one-time charge of approximately $
3.4
million, which represented the charge associated with issuing fully
vested shares of common stock in exchange for the PIUs.
A
summary of our unvested Restricted Shares and RSUs activity is presented in the table below:
Restricted
    Shares
Restricted
    Stock Units
Total
Weighted
    Average Grant Date Fair Value
Unvested as of June 30, 2020
72,313
534,302
606,615
$
6.56
Granted
—
429,974
429,974
4.88
Vested
(
8,024
)
(
157,350
)
(
165,374
)
5.08
Forfeited
—
(
43,906
)
(
43,906
)
6.83
Unvested as of December 31, 2020
64,289
763,020
827,309
$
6.77
Granted
—
447,642
447,642
4.05
Vested
(
30,559
)
(
427,711
)
(
458,270
)
5.55
Forfeited
(
1,336
)
(
99,184
)
(
100,520
)
4.51
Unvested as of December 31, 2021
32,394
683,767
716,161
5.47
For
the year ended December 31, 2021, six months ended December 31, 2020, and year ended June 30, 2020 we recognized stock-based compensation
expense related to the ratable amortization of the unvested Restricted Shares and RSUs of $
2.0
million, $
2.0
million, and $
1.3
million,
respectively. Stock-based compensation expense is included in operating expenses and cost of sales on our consolidated statements of
operations consistent with the allocation of other compensation arrangements. During the year ended December 31, 2021, six months ended
December 31, 2020, and year ended June 30, 2020, we capitalized $
0.04
million, $
0.2
million and $
0.1
million, respectively, in stock-based
compensation costs as software development cost.
The $
3.7
million
of unrecognized costs as of December 31, 2021 related to Restricted Shares and RSUs will be ratably recognized over an estimated weighted
average remaining vesting period of
2.41
years.
F-
55
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
Note
12 - Loss Per Share
During
the year ended December 31, 2021, we used the two-class method to compute net loss per share because we issued securities other
than common stock that is economically equivalent to a common share in that the class of stock has the right to participate in dividends
should a dividend be declared payable to holders of Akerna common stock. These participating securities were the Exchangeable
Shares issued by our wholly owned subsidiary in exchange for interest in Ample. The two-class method requires earnings for the period
to be allocated between common stock and participating securities based on their respective rights to receive distributed and undistributed
earnings. Under the two-class method, for periods with net income, basic net income per common share is computed by dividing the
net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period.
Net income attributable to common stockholders is computed by subtracting from net income the portion of current period earnings
that the participating securities would have been entitled to receive pursuant to their dividend rights had all of the period's
earnings been distributed. No such adjustment to earnings is made during periods with a net loss, as the holders of the Exchangeable
Shares have no obligation to fund losses.
Diluted
net loss per common share is calculated under the two-class method by giving effect to all potentially dilutive common stock,
including warrants, restricted stock awards, restricted stock units, and shares of common stock issuable upon conversion of our Convertible
Notes. We analyzed the potential dilutive effect of any outstanding convertible securities under the "if-converted" method,
in which it is assumed that the outstanding Exchangeable Shares and Convertible Notes are converted to shares of common stock at the
beginning of the period or date of issuance, if later. We report the more dilutive of the approaches (two-class or "if-converted)
as the diluted net loss per share during the period. The dilutive effect of unvested restricted stock awards and restricted stock
units is reflected in diluted loss per share by application of the treasury stock method and is excluded when the effect would be anti-dilutive.
The
weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of potential
outstanding common shares that would have been anti-dilutive for the period. The table below details potentially outstanding shares on
a fully diluted basis that were not included in the calculation of diluted earnings per share:
December 31,
2021
December 31,
2020
Shares issuable upon exchange of Exchangeable Shares
309,286
2,667,349
Warrants
5,813,804
5,813,804
Restricted Stock Units
683,767
694,512
Restricted Stock Awards
32,394
64,289
Shares of common stock issuable in upon conversion of Convertible Notes
12,484,395
1,319,368
Total
19,323,646
10,559,322
Note
13 - Fair Value
Contingent
Consideration
Solo
In
connection with our acquisition of Solo, the Solo selling shareholders have the potential to earn the contingent consideration, which
is calculated as the lesser of (
i) $0.01 per solo*TAGTM and solo*CODETM sold or (ii) 7% of net revenue. The fees were to be paid annually
until the earlier of: (1) our shares trading above $12 per share for any consecutive 20 trading days in a 30-day period; (b) upon our
no longer owning a majority stake in Solo; or (c) upon expiration of the patents related to solo*TAGTM and solo*CODETM, which is December
1, 2029.
F-
56
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
We
record the fair value of the liability in the consolidated balance sheets under the caption "current contingent consideration"
and recognize changes to the liability against earnings or loss each reporting period until settlement. The fair value of the
contingent consideration on the date of the acquisition of Solo was $
389,000
. In connection with our exercise of the option
to acquire the remaining interest in Solo, the selling shareholders agreed to retrospectively and prospectively relieve the contingent
consideration obligation. Therefore, the settled value of the contingent consideration was $
0
. We have recorded a
gain of $
389,000
on settlement of the contingent consideration liability during the six months ended December 31, 2020 in general
and administrative expenses in our consolidated statement of operations.
Trellis
In
connection with our acquisition of Trellis, the Trellis selling shareholders have the potential to earn contingent consideration, which
is calculated as five times the annualized revenue of certain customers generated in September 2020. The fair value of the contingent
consideration on the date of acquisition of Trellis was $
998,000
. The carrying amount at the fair value of the liability for the contingent
consideration recorded on our consolidated balance sheet as of June 30, 2020 was $
0
. As such, we recorded a gain of $
998,000
due the change in the fair value of the contingent consideration during the year ended June 30, 2020 in general and administrative
expenses in our consolidated statement of operations.
Ample
In
addition to the stock and cash consideration, the agreement provides for contingent consideration of up to CAD$
10,000,000
, payable
in exchangeable shares, payable if Ample's Recurring Revenue recognized during the 12 months after the acquisition date
is CAD$
9,000,000
or more.
The contingent consideration amount is reduced by an amount equal to the product of CAD$6.67 multiplied
by the difference between CAD$9,000,000and the amount of Recurring Revenue realized during the twelve months following the acquisition.
We
record the fair value of the liability in the consolidated balance sheets as contingent consideration payable and recognize changes to
the liability against earnings or loss in general and administrative expenses in the consolidated statements of operations. The fair
value of the contingent consideration on the date of the acquisition of Ample was $
604,000
. The carrying amount at fair value of
the aggregate liability for the contingent consideration recorded on the consolidated balance sheet as of December 31, 2020, is
$
0
. We have recorded a gain of $
604,000
due the change in the fair value of the contingent consideration during the six months ended
December 31, 2020 in general and administrative expenses in our consolidated statement of operations.
Viridian
In
connection with our acquisition of Viridian, the Viridian selling shareholders have the potential to earn contingent consideration payable
in common stock if Viridian meets certain revenue criteria. The fair value of the contingent consideration on the date of acquisition
of Viridian was $
2,000
. The carrying amount at the fair value of the liability for the contingent consideration recorded on our
consolidated balance sheet as of December 31, 2021 was unchanged at $
2,000
.
F-
57
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
365
Cannabis
In
connection with our acquisition of 365 Cannabis, the 365 Cannabis selling shareholders have the potential to earn contingent consideration
payable in common stock if certain revenue criteria is met. The fair value of the contingent consideration on the date of acquisition
of 365 Cannabis was $
6,300,000
. The carrying amount at the fair value of the liability for the contingent consideration recorded
on our consolidated balance sheet as of December 31, 2021 was unchanged at $
6,300,000
.
We
valued the contingent consideration using a probability-weighted discounted cash flow model, which incorporates inputs that are not observable
in the market and thus represents a Level 3 measurement as defined in GAAP. The unobservable inputs utilized for measuring the fair value
of the contingent consideration reflect management's own assumptions about the assumptions that market participants would use in valuing
the contingent consideration as of the valuation date, as well as our knowledge of specific transactions that effect the calculation.
Fair
Value Option Election – Convertible Notes
We
issued Convertible Notes with a principal amount of $
17.0
million at a purchase price of $
15.0
million on June 9, 2020. We
elected to account for the Convertible Notes using the fair value option. Under the fair value option, the financial liability is initially
measured at its issue-date estimated fair value and subsequently remeasured at estimated fair value on a recurring basis at
each reporting period date. The remaining estimated fair value adjustment is presented as a single line item within other income (expense)
in our consolidated statement of operations under the caption, change in fair value of convertible notes.
For
the 2020 Notes, which are measured at fair value categorized within Level 3 of the fair value hierarchy, the following is a reconciliation
of the fair values from June 30, 2020 to October 5, 2021:
Beginning fair value balance on
    June 30, 2020
$
14,131,000
Payments
    on Convertible Notes
(
1,827,273
)
Change
    in fair value reported in the statements of operations
961,273
Change
    in fair value reported in other comprehensive income
133,000
Ending fair value balance - December 31, 2020
$
13,398,000
Payments on Convertible Notes
(
15,172,727
)
Change in fair value reported
    in the statements of operations
2,030,904
Change in fair value reported
    in other comprehensive income
(
70,000
)
Gain
    on extinguishment of debt reported on the statement of operations
(
186,177
)
Ending fair value balance
    - October 5, 2021
$
—
We
issued the Senior Secured Notes with a principal amount of $
20.0
million at a purchase price of $
18.0
million on October
5, 2021. We have elected to account for the Senior Secured Notes using the fair value option. Under the fair value option, the financial
liability is initially measured at its issue-date estimated fair value and subsequently remeasured at estimated fair value
on a recurring basis at each reporting period date. The change in estimated fair value resulting from changes in instrument specific
credit risk is recorded in other comprehensive income as a component of equity. The remaining estimated fair value adjustment is presented
as a single line item within other income (expense) in our consolidated statement of operations under the caption, change in fair value
of convertible notes.
For
the Senior Secured Notes, which are measured at fair value categorized within Level 3 of the fair value hierarchy, the following
is a reconciliation of the fair values from October 5, 2021 to December 31, 2021:
Beginning fair value balance on October 5, 2021
$
18,000,000
Payments on Convertible Notes
—
Change in fair value reported in the statements of operations
(
665,000
)
Change in fair value reported in other comprehensive income
(
30,000
)
Ending fair value balance - December 31, 2021
$
17,305,000
F-
58
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
The
estimated fair value of the Convertible Notes as of December 31, 2021, and December 31, 2020 was computed using a Monte Carlo
simulation, which incorporates significant inputs that are not observable in the market, and thus represents a Level 3 measurement as
defined by GAAP.  The unobservable inputs utilized for measuring the fair value of the Convertible Notes reflects our assumptions
about the assumptions that market participants would use in valuing the Convertible Notes as of the issuance date and subsequent reporting
period.
We
determined the fair value by using the following key inputs to the Monte Carlo Simulation Model:
Fair Value Assumptions - Convertible Notes
December 31,
2021
December 31,
2020
Face value principal payable
$
20,000,000
$
15,172,272
Original conversion price
$
4.05
$
11.5
Value of Common Stock
$
1.75
$
3.24
Expected term (years)
2.8
2.3
Volatility
75
%
77
%
Market yield (range)
37.1
%
27.1
to
27.2
%
Risk free rate
1.0
%
0.1
%
Issue date
October
5, 2021
June
9, 2020
Maturity date
October 5, 2024
June 1, 2023
Fair
Value Measurement – Warrants
In
connection with MTech Acquisition Corp.'s ("MTech") initial public offering, MTech sold
5,750,000
units at a purchase price
of $
10.00
per unit, inclusive of
750,000
units sold to the underwriters on February 8, 2018, upon the underwriters' election to
fully exercise their over-allotment option. Each unit consisted of one share of MTech's common stock and one warrant of MTech ("MTech
Public Warrant"). Each MTech Public Warrant entitled the holder to purchase one share of MTech's common stock at an exercise
price of $
11.50
. Concurrently with MTech's initial public offering, MTech sold
243,750
units at a purchase price of $
10.00
per
unit on a private offering basis. Each unit consisted of one share of MTech's common stock and one warrant of MTech ("MTech
Private Warrant"). Each MTech Private Warrant entitled the holder to purchase one share of MTech's common stock at an exercise
price of $
11.50
.
Upon
completion of the mergers between MTech and MJF on June 17, 2019, as contemplated by the Merger Agreement dated October 10, 2018, as
amended ("Mergers"), the MTech Public Warrants and the MTech Private Warrants were converted, respectively, at an exchange
ratio of one-for-one to a warrant to purchase one share of Akerna's common stock with identical terms and conditions as the MTech
Public Warrants ("Public Warrant") and the MTech Private Warrants ("Private Warrant", collectively with the Public
Warrants, "Warrants") In connection with the completion of the Mergers, we also issued
189,365
common stock purchase warrants
upon the cashless exercise of a unit purchase option, which warrants have identical terms to the Public Warrants and are included in
references to Public Warrants and Warrants herein.
For
the Private Warrants classified as derivative liabilities, which are measured at fair value categorized within Level 3 of the fair value
hierarchy, the following is a reconciliation of the fair values for the year ended December 31, 2021 and December 31, 2020:
Year
    Ended December 31,
2021
2020
Fair value balance at beginning
    of period
$
311,376
$
688,187
Change
    in fair value reported in the statements of operations
(
248,198
)
(
376,811
)
Fair value balance at end
    of period
$
63,178
$
311,376
We
utilized a binomial lattice model, which incorporates significant inputs, specifically the expected volatility, that are not observable
in the market, and thus represents a Level 3 measurement as defined in GAAP. The unobservable inputs utilized for measuring the fair
value of the Private Warrants reflect our estimates regarding the assumptions that market participants would use in valuing the Warrants
as of the end of the reporting periods.
F-
59
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
We
record the fair value of the Private Warrants in the consolidated balance sheets under the caption "derivative liability"
and recognize changes to the liability against earnings or loss each reporting period. Upon exercise of the Private Warrants,
holders will receive a delivery of Akerna shares on a net or gross share basis per the terms of the Private Warrants and any
exercise will reclassify the Private Warrants, at the time of exercise, to shareholder's equity to reflect the equity
transaction.  There are no periodic settlements prior to the holder exercising the Private Warrants. There were no
transfers in or out of Level 3 from other levels for the fair value hierarchy.
We
estimated the fair value by using the following key inputs:
Fair
    Value Assumptions - Private Warrants
December
    31,
2021
December
    31,
2020
Number of Private Warrants
225,635
225,635
Original conversion price
$
11.50
$
11.50
Value of Common Stock
$
1.75
$
3.24
Expected term (years)
2.46
3.46
Volatility
85.8
%
102.3
%
Risk free rate
0.8
%
0.2
%
Note
14 - Commitments and Contingencies
Operating
Leases
As
of December 31, 2021, we had one facility under a non-cancelable operating leases in Las Vegas. Rent expense for the year ended December
31, 2021, six months ended December 31, 2020 and the year ended June 30, 2020 was $
157,593
, $
552,861
, and $
299,629
respectively.
Future
minimum lease payments under these leases are as follows:
2022
$
252,525
2023
260,100
2024
110,480
Total
$
623,105
During
the third quarter of 2021, we reached an agreement to terminate our office lease in Toronto, Canada for a termination fee of approximately
$
980,000
, which is included within the General and Administrative expense line item on the condensed consolidated statement of operations
and was paid in full during the year ended December 31, 2021. In connection with the lease termination, we also wrote off certain assets,
primarily leasehold improvements, and the resulting loss of $
1,045,209
was also recorded in the General and Administrative expense line
item on the condensed consolidated statement of operations.
During
the four quarter of 2020, we reached an agreement to terminate our office lease in Denver, CO. The lease termination agreement included
the forfeiture of our $
41,250
security deposit and a termination fee of $
402,480
. The lease termination fee was settled in the first
quarter of 2021 by issuing
113,375
shares of common stock, calculated using a VWAP of $
3.55
/share.
Letter-of-Credit
As
of December 31, 2021 and December 31, 20
20, we had a standby letter-of-credit with a bank
in the amount of $
500,000
. The standby letter of credit is collateralized by $
500,000
of cash, which is classified as restricted cash on our consolidated balance sheets. The beneficiary
of the letter-of-credit is an insurance company.
F-
60
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
Litigation
On
December 4, 2020, TechMagic USA LLC filed suit against our wholly-owned subsidiary, Solo, in Massachusetts Superior Court, Department
Business Litigation, seeking recovery of up to approximately $
1.07
million for unpaid invoices pursuant to a Master Services Agreement
dated February 5, 2018 by and between TechMagic and Solo. The invoices set forth services that TechMagic USA LLC purports to have
provided to Solo regarding development of mobile software applications for MJF and Solo between March and November 2020 totaling approximately
$
787,000
. The suit seeks continued fees under the Master Services Agreement through the end of January 2021. Akerna provided a notice
of termination of the Master Services Agreement on November 23, 2020 and the parties dispute the effective date of the termination. Solo
disputes the validity of the invoices, in whole or in part, and intends to defend the suit vigorously. Mr. Ashesh Shah, formerly the
president of Solo and currently the holder of less than
5
% of our issued and outstanding shares of common stock is, to our knowledge,
the founder and one of the principal managers of TechMagic USA LLC. As of December 31, 2021 and December 31, 2020, we recognized a loss
contingency of $
0.5
million and $
0.6
million, respectively.
On
April 2, 2021, TreCom Systems Group, Inc. ("TreCom") filed suit against Akerna and our wholly-owned subsidiary, MJ Freeway,
LLC, in federal District Court for the Eastern District of Pennsylvania, seeking recovery of up to approximately $
2
million for
services allegedly provided pursuant to a Subcontractor Agreement between MJ Freeway and TreCom. MJ Freeway provided a notice of
termination of the operative Subcontractor Agreement on August 4, 2020. MJ Freeway disputes the validity of TreCom's invoices and
the enforceability of the alleged agreement that TreCom submitted to the court. Akerna filed counterclaims against TreCom for breach
of contract, a declaratory judgment, commercial disparagement, and defamation. TreCom failed to return Akerna's intellectual
property and issued numerous disparaging statements to one of Akerna's clients. TreCom subsequently filed
a motion to dismiss these counterclaims, which was denied by the court. Akerna intends to vigorously defend against TreCom's
claims, and pursue its own claims. As of December 31, 2021 and December 31, 2020, we recognized a loss contingency of $
0.2
million and
$
0
, respectively.
On
May 21, 2021, our wholly-owned subsidiary, Solo, filed suit against two of Solo's former directors, Ashesh Shah and Palle Pedersen.  Solo
seeks recovery for Mr. Shah's intentional interference with contractual relations, and the defendants' breaches of various
fiduciary duties owed to Solo.  Defendant Shah engaged in improper communications with Solo's customers with the intent
that those customers cease their contractual relations with Solo.  The defendants also entered into an improper contract with
a contractual counter party that the defendants had a conflict of interest with.  The defendants have not asserted any counterclaims,
and we therefore have not recognized a loss contingency.
From
time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. We
will accrue a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated.
When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range
is a better estimate than any other amount within the range, the minimum amount in the range is accrued. The accrual for a litigation
loss contingency might include, for example, estimates of potential damages, outside legal fees and other directly related costs expected
to be incurred. As of December 31, 2021, and through the date these consolidated financial statements were issued, there were no
other legal proceedings requiring recognition or disclosure in the consolidated financial statements.
Employee
Benefit Plan
We
have a 401(k) Plan (the "Plan") to provide retirement benefits for our employees. Employees may contribute up to a portion
of their annual compensation to the Plan, limited to a maximum annual amount as updated annually by the IRS. We do not offer a match
of employee contributions nor any discretionary contributions.
F-
61
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
Note
15 - Income Taxes
Since
June 17, 2019, we have been the sole owner of MJF, which is a disregarded entity for federal income taxes. Prior to June 17, 2019 MJF
was treated as a partnership for U.S income tax purposes. Accordingly, prior to the business combination, our taxable income and losses
were reported on the income tax returns of MJF's members. Therefore, no income tax is provided prior to June 17, 2019.
On
March 27, 2020 the Coronavirus Aid, Relief and Economic Security Act, or the CARES Act, was enacted in response to the COVID-19 pandemic.
It was determined the CARES Act did not materially impact our tax provision as of December 31, 2021 and December 31, 2020.
The
accounting for the business combinations of Viridian and 365 Cannabis reflected in the accompanying consolidated financial statements
is preliminary and is based upon estimates and assumptions that are subject to change within the measurement period (up to one year from
the acquisition date). The measurement period remains open pending the completion of valuation procedures related to the acquired assets
and assumed liabilities, intangible assets and income taxes.
In
April 2020, we were granted a loan, or the PPP Loan, from a lender in the aggregate amount of $
2.2
million pursuant to the Paycheck Protection
Program under the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, which we obtained debt forgiveness on during
the year ended December 31, 2021.
The
following table sets forth the expense or benefit for income taxes:
Year
    Ended
December 31,
Six
    Months
Ended
December 31,
Year
    Ended
June 30,
2021
2020
2020
Income tax
Current income taxes
U.S.
    federal
$
—
$
—
$
30,985
U.S.
    state
5,800
200
—
Foreign
6,270
—
Total
    current income taxes
$
12,070
$
200
$
30,985
Year
    Ended
December 31,
Six
    Months
Ended
December 31,
Year
    Ended
June 30,
2021
2020
2020
Deferred income tax
U.S.
    federal
$
(
2,274,295
)
$
—
$
—
U.S.
    state
—
—
—
Total deferred income tax
    benefit
$
(
2,274,295
)
$
—
$
—
The
following table sets forth reconciliations of the income tax expense at the statutory federal income tax rate to actual expense based
on income or loss before income taxes:
Year
    Ended
December 31,
Six
    Months
Ended
December 31,
June
    30,
2021
2020
2020
Income tax expense (benefit) attributable to:
Federal
$
(
6,692,267
)
$
(
3,560,998
)
$
(
3,255,706
)
State,
    net of federal benefit
(
672,148
)
(
553,871
)
(
862,690
)
Foreign
    tax rate differential
(
138,292
)
29,617
(
2,645
)
Permanent
    differences
2,428,631
1,263,151
312,525
Rate
    change
54,295
60,220
—
Changes
    in valuation allowance
3,361,603
2,762,081
3,884,440
Provision
    to return adjustment
273,489
—
(
45,134
)
Losses
    from flow-through entity not subject to tax
—
—
—
Deferred
    True-Ups
(
928,743
)
—
—
Other
    adjustments
51,207
—
195
Effective
    income tax expense (benefit)
$
(
2,262,225
)
$
200
$
30,985
F-
62
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
December
    31,
December
    31,
2021
2020
Noncurrent deferred tax assets:
Employee
    compensation
$
820,410
$
679,106
Debt
    issuance costs
138,778
343,612
Revenue
    recognition
105,735
—
Settlement
    accrual
146,604
182,896
Fixed
    assets
242,006
831,196
Federal
    and state net operating loss
10,673,908
6,337,897
Foreign
    net operating loss
4,904,857
2,586,671
Other
225,340
27,410
Total
    deferred tax assets
$
17,257,638
$
10,988,788
Noncurrent deferred tax liabilities:
Fixed
    assets
—
—
Intangibles
(
6,051,459
)
(
2,717,717
)
Deferred tax liabilities
$
(
6,051,459
)
$
(
2,717,717
)
Valuation
    allowance
(
11,881,470
)
(
8,271,071
)
Deferred
    taxes after valuation allowance
$
(
675,291
)
$
—
During
the year ended December 31, 2021, valuation allowances on deferred tax assets that are not anticipated to be realized increased by $
3.6
million of which $
0.2
million was recorded in purchase accounting and the remainder of $
3.4
million was recorded to deferred expense.
During the six months ended December 31, 2020, valuation allowances on deferred tax assets that are not anticipated to be realized increased
by $
5.5
million of which $
2.7
million was recorded in purchase accounting and the remainder of $
2.8
million was recorded to deferred
expense.
Our
deferred tax valuation allowances are primarily the result of uncertainties regarding the future realization of recorded tax benefits
on tax losses. The measurement of deferred tax assets is reduced by a valuation allowance if based upon available evidence, it is more
likely than not that the deferred tax assets will not be realized. We have evaluated the realizability of our deferred tax assets in
each jurisdiction by assessing the adequacy of expected taxable income, including the reversal of existing temporary differences, historical
and projected operating results, and the availability of prudent and feasible tax planning strategies. Based on this analysis, we have
determined that the valuation allowances recorded as of December 31, 2021 and December 31, 2020 are appropriate.
We
have deferred tax assets related to U.S. federal tax and state tax carryforwards for net operating losses in the amount of $
44.5
million. The majority of U.S. federal net operating loss carryforwards are carried forward indefinitely. Federal net operating losses
generated after 2017 have an indefinite carryforward and are only available to offset 80% taxable income beginning in 2021. U.S. state
net operating loss carryforwards expire at various dates of which the majority begin to expire in 2039.
We have deferred tax
assets related to foreign net operating loss carryforward, which begin to expire in 2034, in the amount of $18.5 million.
We
are not currently under examination for any of the major jurisdictions where we conduct business as of December 31, 2021, however, all
of our tax years remain subject to examination. Our management does not believe there are significant uncertain tax positions in 2021 and
as a result we do not expect any cash payments in the next 12 months, however, uncertain tax positions related to potential penalties
in the amounts of $
30,000
and $
50,000
have been recorded in connection with business combinations during the years ended December 31,
2021 and June 30, 2020, respectively. There is no interest related to uncertain tax positions in 2021 or 2020.
F-
63
AKERNA
CORP.
Notes
to Consolidated Financial Statements
December
31, 2021
Note
16 - Revisions of Previously Issued Financial Statements
On
June 17, 2019, we completed the Mergers with MTech. Prior to the Mergers, MTech was a special purpose acquisition company and had completed
an initial public offering in October 2018, which included the issuances of the MTech Private Warrants in a simultaneous private placement
transaction. The MTech Private Warrants were exchanged for our Private Warrants as part of the Mergers and our Private Warrants remain
outstanding as of December 31, 2021. We initially accounted for these outstanding Private Warrants as components of equity rather
than as derivative liabilities. In light of the Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special
Purpose Acquisition Companies ("SPACs") issued by the staff of the SEC on April 12, 2021 (the "SEC Staff Statement"),
the Company's management further evaluated our outstanding warrants under Accounting Standards Codification 815-40, Contracts in
Entity's Own Equity ("ASC 815-40"), which addresses equity versus liability treatment and classification of equity-linked
financial instruments, including warrants, and states that a warrant may be classified as a component of equity only if, among other
things, the warrant is indexed to the issuer's common stock.
Based
on management's evaluation and in consultation with the Audit Committee, we concluded that the Company's Private Warrants
are not indexed to the Company's common stock in the manner contemplated by ASC Section 815-40. As a result, these warrants
are precluded from equity classification and should be recorded as derivative liabilities remeasured to fair value at each reporting
period. We assessed the materiality of these errors on prior periods' consolidated financial statements and concluded that the
errors were not material to any prior annual or interim periods. However, we have revised the prior period financial information included
in these consolidated financial statements to reclassify the Private Warrants as derivative liabilities measured at their estimated
fair values at the end of each reporting period and recognized changes in the estimated fair value of the derivative instruments from
the prior period in the Company's operating results.
The
Company's change in accounting for the Private Warrants from components of equity to derivative liabilities has no impact on the Company's
current or previously reported cash position.
The
tables below disclose the effects on the consolidated financial statements included in this Annual Report on Form 10-K:
Year
    Ended June 30, 2020
As
    reported
Adjustment
As
    revised
Consolidated Statements of
    Operations
Change in fair
    value of derivative liability
—
1,962,034
1,962,034
Net loss attributable
    to Akerna shareholders
(
15,534,345
)
1,962,034
(
13,572,311
)
Net loss per share
(
1.31
)
—
(
1.14
)
Six Months Ended December 31, 2020
As reported
Adjustment
As revised
Condensed Consolidated Statements of Operations
Change in fair value of derivative liability
—
746,852
746,852
Net loss attributable to Akerna shareholders
(
16,957,334
)
746,852
(
16,210,482
)
Net loss per share
(
1.01
)
—
(
1.01
)
As
    of December 31, 2020
As
    reported
Adjustment
As
    revised
Consolidated Balance Sheet
Derivative
    liability
—
(
311,376
)
(
311,376
)
Total
    liabilities
(
19,635,076
)
(
311,376
)
(
19,946,452
)
Additional paid-in capital
95,090,833
(
1,004,450
)
94,086,433
Accumulated deficit
(
57,872,599
)
693,074
(
57,179,525
)
F-
64
The NAV People, Inc. & Subsidiary
CONSOLIDATED BALANCE SHEET
September 30,
2021
Assets
Current Assets
Cash
$
531,723
Accounts receivable, net of allowance of $435,430
961,140
Prepaid expenses and other current assets
266,826
Total
    Current Assets
1,759,689
Non-Current Assets
Property and equipment, net
92,437
Intangible assets, net
1,362,710
Deposits
11,361
Total Non-Current
    Assets
1,466,508
Total Assets
$
3,226,197
Liabilities and Stockholders' Deficit
Current Liabilities
Convertible note payable
$
1,520,000
Accounts Payable
384,697
Accrued Expenses
500,185
Deferred revenue
2,448,982
Total
    Current Liabilities
4,853,864
Long Term Liabilities
Stockholder notes payable
3,496,759
Notes payable
148,817
Total
    Long-Term Liabilities
3,645,576
Total Liabilities
8,499,440
Stockholders' Deficit
Common stock, $1 par value, 10,000 shares authorized, 5,000 shares
    issued and outstanding
5,000
Additional paid-in capital
2,000
Accumulated other comprehensive loss
(11,410
)
Accumulated deficit
(5,268,833
)
Total
    Stockholders' Deficit
(5,273,243
)
Total Liabilities and Stockholders'
    Deficit
$
3,226,197
See accompanying Notes to the Consolidated Financial
Statements
F-
65
The NAV People, Inc. & Subsidiary
CONSOLIDATED STATEMENT OF OPERATIONS & COMPREHENSIVE
INCOME
For the
Nine Months
Ended
September 30,
2021
Revenue
Recurring revenue
$
4,397,990
Services revenue
2,071,250
Other revenue
685,213
Total revenue
7,154,453
Cost of revenue
1,913,331
Gross profit
5,241,122
Operating Expenses
Operations and support
4,584,170
Sales and marketing
35,213
General and administrative
543,784
Bad debt expense
286,094
Depreciation and amortization
189,664
Acquisition Costs
172,550
Total Operating Expenses
5,811,475
Loss From Operations
(570,353
)
Other loss
(19,586
)
Gain on PPP loan forgiveness
954,984
Interest expense
(161,029
)
Total other Income
774,369
Net Income before provision for income taxes
204,016
Federal and State Income Tax
(5,250
)
Net Income
198,766
Foreign currency translation adjustment
(45
)
Comprehensive Income
$
198,721
See accompanying Notes to the Consolidated Financial
Statements
F-
66
The NAV People, Inc. & Subsidiary
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
Shares
Par
Additional
Paid-In
Capital
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Total
Stockholders'
Deficit
Balance as of January 1, 2021
5,000
$
5,000
$
2,000
$
(11,365
)
$
(5,467,599
)
$
(5,471,964
)
Net Income
-
-
-
-
198,766
198,766
Foreign currency translation adjustment
-
-
-
(45
)
-
(45
)
Balance as of September 30, 2021
5,000
$
5,000
$
2,000
$
(11,410
)
$
(5,268,833
)
$
(5,273,243
)
See accompanying Notes to
the Consolidated Financial Statements
F-
67
The NAV People, Inc. & Subsidiary
CONSOLIDATED STATEMENT OF CASH FLOWS
For the
Nine months
ended
September 30,
2021
Net Income
$
198,766
Adjustment to reconcile net income to net cash provided by operating activities
Gain on PPP loan forgiveness
(954,984
)
Bad debt
286,093
Depreciation and amortization
189,664
Change in assets and liabilities:
Accounts receivable
(190,370
)
Prepaid expenses and other current assets
(97,590
)
Accounts payable and accrued expenses
327,837
Deferred revenue
661,491
Net cash provided by operating activities
420,907
Cash flows from investing activities
Developed software additions
(304,607
)
Purchases of property and equipment
(14,241
)
Net cash used in investing activities
(318,848
)
Cash flows from financing activities
Proceeds from debt issuances
170,000
Payments of principal amounts of debt
(1,182
)
Net cash provided by financing activities
168,818
Effect of exchange rates on cash
(5,717
)
Net change in cash
265,160
Beginning Balance
266,563
Ending Balance
$
531,723
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest
$
137,151
See accompanying Notes to the Consolidated Financial
Statements
F-
68
The NAV People, Inc. & Subsidiary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 1 – Nature of the Business and
Summary of Significant Accounting Policies
Description of the Business
The NAV People, Inc. ("The
NAV People" or the "Company") provides software for highly regulated retailers in the legal cannabis space. Founded
in 2016 and headquartered in Las Vegas, Nevada, the NAV People services a client base comprised of U.S.-based multi-state operators and
single-state operators and Canadian LPs, in addition to global cannabis clients outside North America.  The NAV People have over
85 customers.
Basis of Presentation and Consolidation
The accompanying consolidated
financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP")
as found in the Accounting Standards Codification ("ASC") of the Financial Accounting Standards Board ("FASB")
for consolidated financial information.
The accompanying consolidated
financial statements include the accounts of The NAV People and its wholly-owned subsidiary, Dynamics 365 People Software and Services,
Ltd. All intercompany balances have been eliminated in consolidation.
Use of Estimates
The preparation of our consolidated
financial statements in conformity with GAAP requires management to make estimates and assumptions, which affect the reported amounts
in the financial statements and accompanying notes. Estimates are based on historical experience, where applicable, and other assumptions
which management believes are reasonable under circumstances. The Company has used estimates related to several financial statement amounts
including useful lives of property and equipment, and internal use software. These estimates are inherently subject to judgement and
actual results could differ from those estimates.
Concentrations of Credit Risk
Cash and cash equivalents
and accounts receivable are potentially subject to credit risk concentration. We have not experienced any material losses related to
these concentrations during the periods presented. Cash is deposited with financial institutions that the Company believes are of high
credit quality. These deposits are typically in excess of insured limits.
The Company derives a portion
of its revenue from several large customers, as well as a large number of individual small businesses. If the financial condition or
results of any one of the large customers deteriorates substantially, the Company's operating results could be adversely affected.
The Company does not require collateral and maintains an allowance for estimated credit losses on customer accounts when considered necessary.
There were two customers
which represented 15% of consolidated revenue for the nine months ended September 30, 2021. The Company has not experienced any losses
related to these concentrations during the period presented.
The Company relies on a third
party to provide payment processing services ("payment service provider") to collect amounts due from end-users. Payment service
providers are financial institutions or credit card companies that the Company believes are of high credit quality.
F-
69
The NAV People,
Inc. & Subsidiary
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
Certain Significant Risks and Uncertainties
In March 2020, the World
Health Organization declared the outbreak of COVID-19 a pandemic. COVID-19 has rapidly impacted market and economic conditions globally.
In an attempt to limit the spread of the virus, various governmental restrictions have been implemented, including business activities
and travel restrictions, and "shelter-at-home" orders, that have had an adverse impact on our business and operations by
reducing demand for transportation. In light of the evolving nature of COVID-19 and the uncertainty it has produced, it is not possible
to predict the COVID-19 pandemics cumulative and ultimate impact on our future consolidated business operations, results of operations,
financial position, liquidity, and cash flows. The extent of the impact of the pandemic on our business and financial results will depend
largely on future developments, including the duration of the spread of the outbreak within the United States, including whether there
will be further resurgences of COVID-19 in various regions, the distribution of the vaccines in various regions, the impact on capital,
and financial markets, governmental or regulatory orders that impact our business and whether the impacts may result in permanent changes
to our end-users' behavior, all of which are highly uncertain and cannot be predicted. Also, see Note 10, Commitments and Contingencies.
Cash and Cash Equivalents
The Company considers all
highly liquid investments with an original maturity from the date of purchase of three months or less to be cash equivalents. As of September
30, 2021, there were no cash equivalents. We continually monitor our positions with, and the credit quality of, the financial institutions
with which we invest.
Accounts Receivable and Allowance
for Doubtful Accounts
Accounts receivable are recorded
at the invoiced amount and do not bear interest. The Company reviews customer receivables and collections to evaluate and estimate a
reserve for doubtful accounts, including the periodic write off of uncollectible receivables. The Company determines the allowance based
on analysis of historical bad debts, customer concentrations, customer creditworthiness, and current economic trends.  The methodology
used to calculate the reserve for receivables is supported by the historical information and is applied appropriately to all receivable
balances.
Property and Equipment
Property and equipment are
stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line
method over their estimated useful lives of the assets See Note 3. When assets are retired or otherwise disposed of, the cost, accumulated
depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in the consolidated statement
of operations and comprehensive income in the period realized. Maintenance and repairs that do not enhance or extend the asset's
useful life are charged to operating expenses as incurred.
Intangible Assets
The Company capitalizes certain
costs, such as compensation costs incurred in developing internal-use software once planning has been completed, management has authorized
and committed project funding, and it is probable that the project will be completed, and the software will function as intended. Amortization
of such costs occurs on a straight-line basis over the estimated useful life of the related asset and begins once the asset is ready
for its intended use. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are
expensed as incurred.
F-
70
The NAV People, Inc.& Subsidiary
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
Evaluation of Long-Lived Assets
for Impairment
The Company evaluates its
held-and-used long-lived assets for indicators of possible impairment when events or changes in circumstances indicate the carrying amount
of an asset or asset group (collectively, the "asset group") may not be recoverable. The Company measures the recoverability
of the asset group by comparing the carrying amount of such asset groups to the future undiscounted cash flows it expects the asset group
to generate. If the Company considers the asset group to be impaired, the impairment to be recognized equals the amount by which the
carrying value of the asset group exceeds its fair value.  No such impairments have been identified as of September 30, 2021.
Deferred Revenue
Deferred revenue primarily
consists of billings or payments received in advance of revenue recognition and is recognized as the revenue recognition criteria are
met. All deferred revenue is expected to be recognized during the succeeding 12-month period and is recorded as a current liability.
Research and Development
Research and development costs are charged to
operations as incurred.
Foreign Currency Translation
The functional currency of the Company's
non-U.S. operations is the local currency. Monetary assets and liabilities denominated in foreign currencies are translated into U.S.
dollars at exchange rates prevailing at the balance sheet date. Revenue and expenses are translated into U.S. dollars using the average
rates of exchange prevailing during the period. Translation gains or losses are included as a component of accumulated other comprehensive
loss in stockholders' equity. Gains and losses resulting from foreign currency transactions are recognized in operating expenses.
Income Taxes
The Company accounts for
income taxes in accordance with the asset and liability approach method. Our income tax expense, deferred tax assets and liabilities,
and liabilities for unrecognized tax benefits reflect management's best estimate of current and future taxes to be paid. Significant
judgments and estimates are required in the determination of the consolidated income tax expense. We are subject to income taxes in the
United States and Canada.
Deferred income taxes arise
from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which
will result in taxable or deductible amounts in the future. In evaluating our ability to recover our deferred tax assets in the jurisdiction
from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities,
projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, we begin
with historical results adjusted for the results of discontinued operations and incorporate assumptions about the amount of future state,
federal, and foreign pretax operating income adjusted for items that do not have tax consequences. The assumptions about future taxable
income require the use of significant judgment and are consistent with the plans and estimates we are using to manage the underlying
businesses. As of September 30, 2021, we have significant federal and state income tax net operating loss ("NOL") carryforwards.
We believe that it is more likely than not that the benefit from federal and state NOL carryforwards will not be realized. In recognition
of this risk, we have provided a full valuation allowance on the deferred tax assets related to these NOL carryforwards.
F-
71
The NAV People, Inc.& Subsidiary
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
Recently
Issued Accounting Pronouncements Not Yet Adopted
In February 2016, the FASB
issued ASC Topic 842, Leases. This standard requires all entities that leased assets under leases with terms of more than 12 months to
capitalize the assets and related lease liabilities on the consolidated balance sheet. The new standard will become effective for us
beginning January 1, 2022; however, early adoption is permitted. While we continue to assess all potential impacts of this new standard,
we anticipate this standard will have a material impact on our consolidated financial position as we will be required to recognize right-of-use
assets and lease liabilities on our consolidated balance sheet. However, we do not expect the adoption to have a significant impact on
our consolidated results of operations or cash flows.
In June 2016, the FASB issued
ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" to
require the measurement of expected credit losses for financial assets held at the reporting date based on historical experience, current
conditions, and reasonable and supportable forecasts. The guidance also amends the impairment model for available for sale debt securities
and requires entities to determine whether all or a portion of the unrealized loss on such debt security is a credit loss. The standard
is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.
All other entities, ASU No. 2016-13 is effective for fiscal years beginning after Dec. 15, 2022. Early adoption is permitted. The Company
will adopt the new standard on January 1, 2022. The Company is currently evaluating the impact of this accounting standard update on
its consolidated financial statements. We are still evaluating the impact on our consolidated financial statements.
Note 2 – Revenue Recognition
The Company adopted ASC
606 under the modified retrospective transition method with an effective date of January 1, 2019 and applied this guidance to those contracts
which were not completed at the date of adoption. The standard requires entities to recognize revenue upon transfer of goods or services
to customers in amounts that reflect the consideration that the entities expect to receive in exchange for those goods or services.
We recognize revenue when
or as we satisfy our obligations. We derive our revenues from  recurring revenue (subscription sales, support, hosting, and enhancement),
services revenue (packages and projects), and other revenue (perpetual licenses and hardware).
The Company determines revenue
recognition under ASC 606 through the following steps:
●
Identification
                                            of the contract, or contracts, with a customer;
●
Identification
                                            of the performance obligations in the contract;
●
Determination
                                            of the transaction price;
●
Allocation
                                            of the transaction price to the performance obligations in the contract; and
●
Recognition
                                            of revenue when, or as, the Company satisfies a performance obligation.
F-
72
The NAV People, Inc.& Subsidiary
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
The Company has the following
revenue streams:
●
Recurring
                                            (subscription sales, support, hosting, enhancement)
●
Services
                                            revenue (projects and packages)
●
Other
                                            Revenue (perpetual licenses and hardware)
The Company offers its software
under a cloud-based delivery model, where it provides access to its software on a hosted basis as a service and customers do not have
the contractual right to take possession of the software. Revenue is recognized when control of the promised services is transferred
to the Company's customers at an amount that reflects the consideration the Company expects to be entitled to in exchange for those services.
The majority of customer contracts have performance obligations that the Company satisfies over time and revenue is recognized by consistently
applying a method of measuring progress toward satisfaction of that performance obligation.
The Company's
recurring revenue is comprised of subscription sales, support, hosting and enhancement revenue.  Revenue is recognized ratably over
the contract term based on the commencement date of the contract, which is the date our cloud-based software is made available to customers.
Revenue from the Company's
service for project and packages revenue are recorded as the services are performed. Once the contract is signed, invoices are generated
for professional services on a time and material basis, although the Company occasionally engage in fixed-price service engagements and
invoices for those based upon agreed milestone payments. Revenue is recognized as services are performed for time and material engagements
and on a proportional performance method as the services are performed for fixed-fee engagements. Training revenue is recognized as the
services are performed.
Perpetual software is recognized
when delivered, which is typically within a day of receipt of the order. Hardware is recognized when invoiced and usually ships within
a few days after receipt of order.
Any of the above agreements
would be a complete contract. Each party's rights regarding the services to be transferred, pricing, and payment terms are listed
in the contract. These factors indicate that the contract has commercial substance. Risk, timing, or the Company's future cash
flows are expected to change as a result of a contract. Risk includes non-performance risk, non-payment risk, and mis-usage risk. Payments
are generally due within 15-45, days upon receipt of an invoice.
The Company considered the
guidance of ASC 606-10-55-3A regarding the collection probability. At contract inception, the Company deems it is probable that the Company
will collect substantially all of the consideration to which it will be entitled to in exchange for the services that will be transferred
to the customer, based on historical experience with customers. The Company also periodically completes an assessment of collectability
from new customers. This assessment includes reviewing publicly available financial information and inquiring of customer's financial
creditability. Arrangements for which collection of fees is not deemed probable are recognized upon cash collection.
The Company considered the
terms of the contract to determine the transaction price. The transaction price is the amount of consideration to which the Company expects
to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract may include
fixed amounts, variable amounts, or both. The Company's contracts typically have either (1) annual; (2) monthly; (3) variable based
on completion of performance obligation.  Therefore, the Company's contracts have both fixed (e.g., stated annual, monthly,
etc. fee) and variable components (e.g., per hour, time and material).
F-
73
The NAV People, Inc.& Subsidiary
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
Deferred Commissions
The Company capitalizes sales
commission expenses and associated payroll taxes paid to internal sales personnel that are incremental to obtaining customer contracts.
These costs are deferred and then amortized over the expected period of benefit. Commissions for existing customer renewals are deferred
and amortized over twelve months. We have determined the period of benefit taking into consideration several factors including the expected
subscription term and expected renewals of our customer contracts, the duration of our relationships with our customers, and the life
of our technology. Amortization expense is included in sales and marketing in the accompanying consolidated statement of operations and
comprehensive income.
Variable consideration
At the end of the reporting
period, the Company knows the amount of time and material to invoice the customer in order to recognize revenue. Therefore, no estimation
of variable consideration is necessary.
Principal vs. Agent Considerations
Judgment is required in determining
whether we are the principal or agent in its transactions with the customers. We evaluate the presentation of revenue on a gross or net
basis based on whether we control the service provided to the end-user and are the principal (i.e. "gross"), or we arrange
for other parties to provide the service to the end-user and are an agent (i.e. "net").
The following tables present
our revenues disaggregated by offering. This level of disaggregation takes into consideration how the nature, amount, timing, and uncertainty
of revenue and cash flows are affected by economic factors.
There are several practical
expedients and exemptions allowed under Topic 606 that impact timing of revenue recognition and the Company's disclosures. Below
is a list of practical expedients the Company applied in the adoption and application of Topic 606:
Application Practical Expedients
○
The Company does not evaluate a
                                            contract for a significant financing component if payment is expected within one year or
                                            less from the transfer of the promised items to the customer.
○
The Company generally expenses sales
                                            commissions when incurred when the amortization period would have been one year or less.
                                            These costs are recorded within selling, general, and administrative in the Statement of
                                            Operations and Comprehensive Income.
○
The Company is permitted to recognize
                                            revenue at the amount to which it has the right to invoice for services performed if the
                                            Company's right to payment is for an amount that corresponds directly with the value
                                            provided to the customer.
F-
74
The NAV People, Inc.&
Subsidiary
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For contract modifications, the Company reflected
the aggregate effect of all modifications that occurred prior to the adoption date when identifying the satisfied and unsatisfied performance
obligations, determining the transaction price and allocating the transaction price to satisfied and unsatisfied performance obligations
for the modified contract at transition.
Note 3 – Property and Equipment
Depreciation and amortization is calculated using
the straight-line method over the estimated useful life of the assets. Estimated useful lives of major classes of depreciable assets
are as follows:
Property and Equipment
Estimated
Useful Life
Computers and Peripherals
3
Furniture and Fixtures
5
Leasehold Improvements
5
Property and equipment consist of the following
as of September 30, 2021:
Computers and Peripherals
$
132,490
Furniture and Fixtures
40,694
Leasehold Improvements
24,110
Total Depreciable Assets
$
197,294
Less: accumulated depreciation and amortization
104,857
Property and equipment, net
$
92,437
Depreciation expense amounted to $31,778 for the nine months ended
September 30, 2021.
F-
75
The NAV People, Inc.& Subsidiary
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
Note 4 – Intangible Assets
Intangible assets is comprised entirely of capitalized
software for which amortization is calculated using the straight-line method over a 5 year estimated useful life.
Intangible assets consist of the following at
September 30, 2021:
Software development costs
$
1,849,781
Less: accumulated amortization
(487,071
)
Total
$
1,362,710
Amortization expense amounted to $157,886 for
the nine months ended September 30, 2021.
Based on our net amortizable intangible asset
balance of $1,362,710 at September 30, 2021, we expect that amortization expense will be as follows for the next five years and thereafter:
2021
$
165,955
2022
366,947
2023
365,352
2024
316,225
2025
129,296
2026
18,935
Total
$
1,362,710
Note 5 – Debt
Debt consists of the following as of September
30, 2021:
Stockholder notes payable
$
3,496,759
Convertible note payable
1,520,000
SBA Disaster Loan
148,817
Total
$
5,165,576
Interest expense for the nine months ended September
30, 2021 was $161,029.
Stockholder notes payable
In June 2017, the Company
entered into a $2,000,000 note payable agreement with a stockholder. The note has a 0% stated interest rate, and the entire principal
balance is due upon maturity of June 13, 2022.
In June 2018, the Company
entered into a $1,326,759 note payable agreement with a second stockholder. The note has a 0% stated interest rate, and the entire principal
balance is due upon maturity of June 20, 2023.
Convertible note payable
In June 2017, the Company
entered into a convertible note payable agreement with a stockholder.
F-
76
The NAV People, Inc.& Subsidiary
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
Effective December 23, 2020,
this note was assigned to an affiliate of the stockholder. The note allows for up to $1,750,000 to be borrowed at 12% per annum. Interest
is paid monthly, and the entire principal balance is due upon maturity of June 13, 2022.
The note is convertible into
common stock of the Company at the option of the lender or upon a change in control event, as defined in the agreement.
The note agreement contains
certain financial covenants, and the Company was not in compliance as of September 30, 2021, and therefore the entire outstanding principal
balance of $1,520,000 is shown as current on the accompanying consolidated balance sheet.
Paycheck Protection Program ("PPP")
Loan
On April 29, 2020, the Company
received a loan in the amount of $954,984 under the Paycheck Protection Program administered by the United States Small Business Administration
(the "SBA"). According to the Coronavirus Aid, Relief, and Economic Security Act (the "Cares Act"), PPP loan
provides for forgiveness of up to the full principal amount and accrued interest if the funds are used for payroll costs, interest on
mortgages, rent, and utilities. However, at least 60% of the forgiven amount must have been used for payroll. The loan bears interest
at a rate of 1.00% per annum.
The entire loan (principal
and accrued interest) was forgiven on June 30, 2021 and the $954,984 was recorded as a gain on the statement of operations and comprehensive
income.
SBA Disaster Loan
In April 2020, the Company
received a $2,000,000 loan under the Disaster Loan Assistance Program administered by the SBA, which was repaid in full in May 2020.
 Then, in July 2020, the Company received a loan in the amount of $150,000 under the same program. The loan bears interest at a
rate of 3.75% per annum and is a 30 year loan.
The future principal payments
for the Company's debt are as follows:
Year ending December 31
2021
$
1,521,283
2022
2,173,037
2023
1,331,891
2024
5,132
2025
134,233
Total
$
5,165,576
F-
77
The NAV People, Inc.&
Subsidiary
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
Note 6 – Income Taxes
The Company's effective tax rates from
continuing operations for the nine months ended September 30, 2021 was 2.57%. Since the Company is in a full valuation allowance, the
small tax expense is related to state tax minimum payments.
Note 7 – Commitment and Contingencies
Operating Lease
The Company leases one office
facility under an operating lease arrangement which expires on April 30, 2024.  Rent expense related to the Company's operating
leases was $194,514 for the nine months ended September 30, 2021. Future minimum payments, by year and in the aggregate, under operating
leases at September 30, 2021, are as follows:
Future Minimum Payments
2021
$
61,743
2022
254,376
2023
262,008
2024
89,956
Total future minimum lease payments
$
668,083
Litigation
From time to time, the Company
may be involved in litigation relating to claims arising out of its operations in the normal course of business. The Company will accrue
a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. As of
September 30, 2021, and through the date these financial statements were available to be issued, there were no legal proceedings requiring
recognition or disclosure in the financial statements.
Contingencies
As of the date of this report,
there are no known contingent liabilities for the nine months ended September 30, 2021.
Note 8 – Subsequent Events
The Company has evaluated
all subsequent events through December 13, 2021, which is the date the financial statements were available to be issued.
On October 1, 2021, the Company
was acquired by Akerna Corp. (NASDAQ: KERN) for approximately $17 million, comprised of approximately $5 million in cash and $12 million
in common stock of Akerna Corp.
F-
78
INDEPENDENT AUDITORS'
REPORT
To the Board of Directors
and Stockholders of
The Nav People, Inc.
Report on the Financial Statements
We have audited the accompanying
financial statements of The Nav People, Inc. & Subsidiary (the "Company"), which comprise the consolidated
balance
sheet as of December 31, 2020, and the related consolidated
statements of operations and comprehensive loss, changes in stockholders'
deficit and cash flows for the year then ended, and the related notes to the financial statements.
Management's Responsibility for
the Financial Statements
Management is responsible
for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is
to express an opinion on these financial statements based on our audit. We conducted our audit 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 from material misstatement.
An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend
on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial
statements referred to above present fairly, in all material respects, the consolidated
financial position of The Nav People, Inc.
as of December 31, 2020, and the consolidated
results of its operations and its cash flows for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
/s/
  Marcum LLP
Costa
  Mesa, CA
December
  13, 2021
F-
79
The NAV
People, Inc. & Subsidiary
CONSOLIDATED BALANCE SHEET
December 31,
2020
Assets
Current Assets
Cash
$
266,563
Accounts receivable, net of allowance of $417,417
1,054,797
Prepaid expenses and other current assets
156,716
Total Current Assets
1,478,076
Non-current Assets
Property and equipment, net
96,774
Intangible asset, net
1,215,989
Deposits
23,507
Total Non-Current Assets
1,336,270
Total Assets
$
2,814,346
Liabilities and Stockholders' Deficit
Current Liabilities
Convertible note payable
$
1,520,000
Accounts payable
232,283
Accrued expenses
324,077
Deferred revenue
1,778,207
Total Current Liabilities
3,854,567
Long Term Liabilities
Stockholder notes payable
3,326,759
Notes payable
1,104,984
Total Long-Term Liabilities
4,431,743
Total Liabilities
8,286,310
Stockholders' Deficit
Common stock, $1 par value, 10,000 shares authorized, 5,000 shares issued and outstanding
5,000
Additional paid-in capital
2,000
Accumulated other comprehensive loss
(11,365
)
Accumulated deficit
(5,467,599
)
Total Stockholders' Deficit
(5,471,964
)
Total Liabilities and Stockholders' Deficit
$
2,814,346
See accompanying Notes to the Consolidated Financial
Statements
F-
80
The NAV
People, Inc. & Subsidiary
CONSOLIDATED STATEMENT OF OPERATIONS & COMPREHENSIVE
LOSS
For the Year Ended
December 31,
    2020
Revenue
Recurring revenue
$
4,875,121
Services revenue
2,233,415
Other revenue
426,293
Total Revenue
7,534,829
Cost of revenue
2,202,534
Gross Profit
5,332,295
Operating Expenses
Operations and support
5,374,077
Sales and marketing
46,954
General and administrative
784,785
Bad debt expense
424,089
Depreciation and amortization
301,064
Total Operating expenses
6,930,969
Loss From Operations
(1,598,674
)
Other expense
(467
)
Interest expense
(151,773
)
Total Other Expense
(152,240
)
Net Loss Before Provision for Income Taxes
(1,750,914
)
Provision for income taxes
(6,204
)
Net Loss
(1,757,118
)
Foreign currency translation adjustment
(12,222
)
Comprehensive Loss
$
(1,769,340
)
See accompanying Notes to the Consolidated Financial
Statements
F-
81
The NAV People, Inc.
& Subsidiary
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
Shares
Par
Additional
Paid-In Capital
Accumulated
Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
Stockholders'
Deficit
Balance as of January 1, 2020
5,000
$
5,000
$
$ 2,000
$
857
$
(3,710,481
)
$
(3,702,624
)
Net loss
-
-
-
-
(1,757,118
)
(1,757,118
)
Foreign currency translation adjustment
-
-
-
(12,222
)
-
(12,222
)
Balance as of December 31, 2020
5,000
$
5,000
$
$ 2,000
$
(11,365
)
$
(5,467,599
)
$
(5,471,964
)
See accompanying Notes to the Consolidated Financial
Statements
F-
82
The NAV People, Inc.
& Subsidiary
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year
December 31, 2020
Net loss
$
(1,757,118
)
Adjustment to reconcile net loss to net cash used in operating activities
Bad debt
424,089
Depreciation and amortization
301,064
Change in assets and liabilities:
Accounts receivable
(253,055
)
Prepaid expenses and other current assets
59,300
Accounts payable and accrued expenses
(138,009
)
Deferred revenue
108,343
Net cash used in operating activities
(1,255,386
)
Cash flows from investing activities
Developed software additions
(692,380
)
Purchases of property and equipment
(14,240
)
Net cash used in investing activities
(706,620
)
Cash flows from financing activities
Proceeds from debt issuances
3,874,984
Payments of principal amounts of debt
(2,000,000
)
Net cash provided by financing activities
1,874,984
Effect of exchange rates on cash
16,286
Net Change in cash
(70,736
)
Beginning Balance
337,299
Ending Balance
$
266,563
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest
$
151,773
Cash paid for income taxes
$
0
See accompanying Notes to the Consolidated Financial
Statements
F-
83
The NAV People, Inc.
& Subsidiary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 1 – Nature of the Business and Summary
of Significant Accounting Policies
Description of the Business
The NAV People, Inc. ("The
NAV People" or the "Company") provides software for highly regulated retailers in the legal cannabis space. Founded
in 2016 and headquartered in Las Vegas, Nevada, the NAV People services a client base comprised of U.S.-based multi-state operators and
single-state operators and Canadian LPs, in addition to global cannabis clients outside North America. The NAV People have over
85 customers.
Basis of Presentation and Consolidation
The accompanying consolidated
financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP")
as found in the Accounting Standards Codification ("ASC") of the Financial Accounting Standards Board ("FASB")
for consolidated financial information.
The accompanying consolidated
financial statements include the accounts of The NAV People and its wholly-owned subsidiary, Dynamics 365 People Software and Services,
Ltd. All intercompany balances have been eliminated in consolidation.
Use of Estimates
The preparation of our consolidated
financial statements in conformity with GAAP requires management to make estimates and assumptions, which affect the reported amounts
in the financial statements and accompanying notes. Estimates are based on historical experience, where applicable, and other assumptions
which management believes are reasonable under circumstances. The Company has used estimates related to several financial statement amounts
including useful lives of property and equipment, and internal use software. These estimates are inherently subject to judgement and actual
results could differ from those estimates.
Concentrations of Credit Risk
Cash and cash equivalents
and accounts receivable are potentially subject to credit risk concentration. We have not experienced any material losses related to these
concentrations during the periods presented. Cash is deposited with financial institutions that the Company believes are of high credit
quality. These deposits are typically in excess of insured limits.
The Company derives a portion
of its revenue from several large customers, as well as a large number of individual small businesses. If the financial condition or results
of any one of the large customers deteriorates substantially, the Company's operating results could be adversely affected. The Company
does not require collateral and maintains an allowance for estimated credit losses on customer accounts when considered necessary.
There was one customer which
represented 10% of consolidated revenue for the year ended December 31, 2020. The Company has not experienced any losses related to these
concentrations during the period presented.
F-
84
The NAV People,
Inc. & Subsidiary
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
The Company relies on a third
party to provide payment processing services ("payment service provider") to collect amounts due from end-users. Payment service
providers are financial institutions or credit card companies that the Company believes are of high credit quality.
Certain Significant Risks and Uncertainties
In March 2020, the World Health
Organization declared the outbreak of COVID-19 a pandemic. COVID-19 has rapidly impacted market and economic conditions globally. In an
attempt to limit the spread of the virus, various governmental restrictions have been implemented, including business activities and travel
restrictions, and "shelter-at-home" orders, that have had an adverse impact on our business and operations by reducing demand
for transportation. In light of the evolving nature of COVID-19 and the uncertainty it has produced, it is not possible to predict the
COVID-19 pandemics cumulative and ultimate impact on our future consolidated business operations, results of operations, financial position,
liquidity, and cash flows. The extent of the impact of the pandemic on our business and financial results will depend largely on future
developments, including the duration of the spread of the outbreak within the United States, including whether there will be further resurgences
of COVID-19 in various regions, the distribution of the vaccines in various regions, the impact on capital, and financial markets, governmental
or regulatory orders that impact our business and whether the impacts may result in permanent changes to our end-users' behavior,
all of which are highly uncertain and cannot be predicted. Also, see Note 10, Commitments and Contingencies.
Cash and Cash Equivalents
The Company considers all
highly liquid investments with an original maturity from the date of purchase of three months or less to be cash equivalents. As of December
31, 2020, cash and cash equivalents consist of cash deposited with banks. The recorded carrying amount of cash and cash equivalents approximates
their fair value. The Company places its cash equivalents with high credit-quality financial institutions.
Accounts Receivable and Allowance
for Doubtful Accounts
Accounts receivable are recorded
at the invoiced amount and do not bear interest. The Company reviews customer receivables and collections to evaluate and estimate a reserve
for doubtful accounts, including the periodic write off of uncollectible receivables. The Company determines the allowance based on analysis
of historical bad debts, customer concentrations, customer creditworthiness, and current economic trends. The methodology used to
calculate the reserve for receivables is supported by the historical information and is applied appropriately to all receivable balances.
Property and Equipment
Property and equipment are
stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line
method over their estimated useful lives of the assets (see Note 3). When assets are retired or otherwise disposed of, the cost, accumulated
depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in the consolidated statement
of operations and comprehensive loss in the period realized. Maintenance and repairs that do not enhance or extend the asset's useful
life are charged to operating expenses as incurred.
F-
85
The NAV People, Inc. &
Subsidiary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Intangible Assets
The Company capitalizes certain
costs, such as compensation costs incurred in developing internal-use software once planning has been completed, management has authorized
and committed project funding, and it is probable that the project will be completed and the software will function as intended. Amortization
of such costs occurs on a straight-line basis over the estimated useful life of the related asset and begins once the asset is ready for
its intended use. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed
as incurred.
Evaluation of Long-Lived Assets for
Impairment
The Company evaluates its
held-and-used long-lived assets for indicators of possible impairment when events or changes in circumstances indicate the carrying amount
of an asset or asset group (collectively, the "asset group") may not be recoverable. The Company measures the recoverability
of the asset group by comparing the carrying amount of such asset groups to the future undiscounted cash flows it expects the asset group
to generate. If the Company considers the asset group to be impaired, the impairment to be recognized equals the amount by which the carrying
value of the asset group exceeds its fair value. No such impairments have been identified as of December 31, 2020.
Deferred Revenue
Deferred revenue primarily
consists of billings or payments received in advance of revenue recognition and is recognized as the revenue recognition criteria are
met. All deferred revenue is expected to be recognized during the succeeding 12-month period and is recorded as a current liability.
Research and Development
Research and development costs are charged to
operations as incurred.
Foreign Currency Translation
The functional currency of the Company's
non-U.S. operations is the local currency. Monetary assets and liabilities denominated in foreign currencies are translated into U.S.
dollars at exchange rates prevailing at the balance sheet date. Revenue and expenses are translated into U.S. dollars using the average
rates of exchange prevailing during the period. Translation gains or losses are included as a component of accumulated other comprehensive
loss in stockholders' equity. Gains and losses resulting from foreign currency transactions are recognized in operating expenses.
Income Taxes
The Company accounts for income
taxes in accordance with the asset and liability approach method. Our income tax expense, deferred tax assets and liabilities, and liabilities
for unrecognized tax benefits reflect management's best estimate of current and future taxes to be paid. Significant judgments and
estimates are required in the determination of the consolidated income tax expense. We are subject to income taxes in the United States
and Canada.
F-
86
The NAV People, Inc. &
Subsidiary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Deferred income taxes arise
from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which
will result in taxable or deductible amounts in the future. In evaluating our ability to recover our deferred tax assets in the jurisdiction
from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities,
projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, we begin
with historical results adjusted for the results of discontinued operations and incorporate assumptions about the amount of future state,
federal, and foreign pretax operating income adjusted for items that do not have tax consequences. The assumptions about future taxable
income require the use of significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses.
As of December 31, 2020, we have significant federal, state and foreign income tax net operating loss ("NOL") carryforwards.
We believe that it is more likely than not that the benefit from federal and state NOL carryforwards will not be realized. In recognition
of this risk, we have provided a full valuation allowance on the deferred tax assets related to these NOL carryforwards.
Recently
Issued Accounting Pronouncements Not Yet Adopted
In February 2016, the FASB
issued ASC Topic 842, Leases. This standard requires all entities that leased assets under leases with terms of more than 12 months to
capitalize the assets and related lease liabilities on the consolidated balance sheet. The new standard will become effective for us beginning
January 1, 2022; however, early adoption is permitted. While we continue to assess all potential impacts of this new standard, we anticipate
this standard will have a material impact on our consolidated financial position as we will be required to recognize right-of-use assets
and lease liabilities on our consolidated balance sheet. However, we do not expect the adoption to have a significant impact on our consolidated
results of operations or cash flows.
In June 2016, the FASB issued
ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" to
require the measurement of expected credit losses for financial assets held at the reporting date based on historical experience, current
conditions, and reasonable and supportable forecasts. The guidance also amends the impairment model for available for sale debt securities
and requires entities to determine whether all or a portion of the unrealized loss on such debt security is a credit loss. The standard
is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.
All other entities, ASU No. 2016-13 is effective for fiscal years beginning after Dec. 15, 2022. Early adoption is permitted. The Company
will adopt the new standard on January 1, 2022. The Company is currently evaluating the impact of this accounting standard update on its
consolidated financial statements. We are still evaluating the impact on our consolidated financial statements.
Note 2 – Revenue Recognition
The Company adopted ASC 606
under the modified retrospective transition method with an effective date of January 1, 2019 and applied this guidance to those contracts
which were not completed at the date of adoption. The standard requires entities to recognize revenue upon transfer of goods or services
to customers in amounts that reflect the consideration that the entities expect to receive in exchange for those goods or services.
We recognize revenue when
or as we satisfy our obligations. We derive our revenues from recurring revenue (subscriptions sales, support, hosting, and enhancement),
services revenue (packages and projects), and other revenue (perpetual licenses and hardware).
F-
87
The NAV People, Inc. &
Subsidiary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The Company determines revenue
recognition under ASC 606 through the following steps:
●
Identification
                                            of the contract, or contracts, with a customer;
●
Identification
                                            of the performance obligations in the contract;
●
Determination
                                            of the transaction price;
●
Allocation
                                            of the transaction price to the performance obligations in the contract; and
●
Recognition
                                            of revenue when, or as, the Company satisfies a performance obligation.
The Company has the following
revenue streams:
●
Recurring
                                            (subscription sales, support, hosting, enhancement)
●
Services
                                            revenue (projects and packages)
●
Other
                                            Revenue (perpetual licenses and hardware)
The Company offers its software
under a cloud-based delivery model, where it provides access to its software on a hosted basis as a service and customers do not have
the contractual right to take possession of the software. Revenue is recognized when control of the promised services is transferred to
the Company's customers at an amount that reflects the consideration the Company expects to be entitled to in exchange for those services.
The majority of customer contracts have performance obligations that the Company satisfies over time and revenue is recognized by consistently
applying a method of measuring progress toward satisfaction of that performance obligation.
The Company's
recurring revenue is comprised of subscription sales, support, hosting and enhancement revenue. Revenue is recognized ratably over
the contract term based on the commencement date of the contract, which is the date our cloud-based software is made available to customers.
Revenue from the Company's
service for project and packages revenue are recorded as the services are performed. Once the contract is signed, invoices are generated
for professional services on a time and material basis, although the Company occasionally engages in fixed-price service engagements and
invoices for those based upon agreed milestone payments. Revenue is recognized as services are performed for time and material engagements
and on a proportional performance method as the services are performed for fixed-fee engagements. Training revenue is recognized as the
services are performed.
Perpetual software is recognized
when delivered, which is typically within a day of receipt of the order. Hardware is recognized when invoiced and usually ships within
a few days after receipt of order.
Any of the above agreements
would be a complete contract. Each party's rights regarding the services to be transferred, pricing, and payment terms are listed
in the contract. These factors indicate that the contract has commercial substance. Risk, timing, or the Company's future cash flows
are expected to change as a result of a contract. Risk includes non-performance risk, non-payment risk, and mis-usage risk. Payments are
generally due within 15-45, days upon receipt of an invoice.
The Company considered the
guidance of ASC 606-10-55-3A regarding the collection probability. At contract inception, the Company deems it is probable that the Company
will collect substantially all of the consideration to which it will be entitled to in exchange for the services that will be transferred
to the customer, based on historical experience with customers. The Company also periodically completes an assessment of collectability
from new customers. This assessment includes reviewing publicly available financial information and inquiring of customer's financial
creditability. Arrangements for which collection of fees is not deemed probable are recognized upon cash collection.
F-
88
The NAV People, Inc. &
Subsidiary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The Company considered the
terms of the contract to determine the transaction price. The transaction price is the amount of consideration to which the Company expects
to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract may include
fixed amounts, variable amounts, or both. The Company's contracts typically have either (1) annual; (2) monthly; (3) variable based
on completion of performance obligation. Therefore, the Company's contracts have both fixed (e.g., stated annual, monthly,
etc. fee) and variable components (e.g., per hour, time and material).
Deferred Commissions
The Company capitalizes sales
commission expenses and associated payroll taxes paid to internal sales personnel that are incremental to obtaining customer contracts.
These costs are deferred and then amortized over the expected period of benefit. Commissions for existing customer renewals are deferred
and amortized over twelve months. We have determined the period of benefit taking into consideration several factors including the expected
subscription term and expected renewals of our customer contracts, the duration of our relationships with our customers, and the life
of our technology. Amortization expense is included in sales and marketing in the accompanying consolidated statement of operations and
comprehensive loss.
Variable consideration
At the end of the reporting
period, the Company knows the amount of time and material to invoice the customer in order to recognize revenue. Therefore, no estimation
of variable consideration is necessary.
Principal vs. Agent Considerations
Judgment is required in determining
whether we are the principal or agent in its transactions with the customers. We evaluate the presentation of revenue on a gross or net
basis based on whether we control the service provided to the end-user and are the principal (i.e. "gross"), or we arrange
for other parties to provide the service to the end-user and are an agent (i.e. "net").
The following tables present
our revenues disaggregated by offering. This level of disaggregation takes into consideration how the nature, amount, timing, and uncertainty
of revenue and cash flows are affected by economic factors. Revenue is presented in the following tables for the year ended December 31,
2020, respectively:
There are several practical
expedients and exemptions allowed under Topic 606 that impact timing of revenue recognition and the Company's disclosures. Below
is a list of practical expedients the Company applied in the adoption and application of Topic 606:
Application Practical Expedients
o
The Company does not evaluate a contract for a significant financing component if payment is expected
within one year or less from the transfer of the promised items to the customer.
o
The Company generally expenses sales commissions when incurred when the amortization period would have
been one year or less. These costs are recorded within selling, general, and administrative in the Statement of Operations.
o
The Company is permitted to recognize revenue at the amount to which it has the right to invoice for services
performed if the Company's right to payment is for an amount that corresponds directly with the value provided to the customer.
F-
89
The NAV People, Inc. &
Subsidiary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For contract modifications, the Company
reflected the aggregate effect of all modifications that occurred prior to the adoption date when identifying the satisfied and
unsatisfied performance obligations, determining the transaction price and allocating the transaction price to satisfied and
unsatisfied performance obligations for the modified contract at transition.
Note 3 – Property and Equipment
Depreciation and amortization is calculated using
the straight-line method over the estimated useful life of the assets. Estimated useful lives of major classes of depreciable assets are
as follows:
Property and Equipment
Estimated Useful Life
Computers and Peripherals
3
Furniture and Fixtures
5
Leasehold Improvements
5
Property and equipment consist of the following at December 31, 2020:
Computers and Peripherals
$
108,166
Furniture and Fixtures
40,695
Leasehold Improvements
24,110
Total Depreciable Assets
172,971
Less: accumulated depreciation and amortization
(76,197
)
Property and equipment, net
$
96,774
Depreciation expense amounted to $47,724 for the year ended December
31, 2020.
Note 4 – Intangible Assets
Intangible assets is comprised entirely of capitalized software for
which amortization is calculated using the straight-line method over a 5 year estimated useful life.
Intangible assets consist of the following at December 31, 2020:
Software development costs
$
1,541,411
Less: accumulated amortization
(325,422
)
Total
$
1,215,989
Amortization expense amounted to $253,340 for the year ended December
31, 2020.
F-
90
The NAV People, Inc. &
Subsidiary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Based on our net amortizable intangible asset
balance of $1,215,989 at December 31, 2020, we expect that amortization expense will be as follows for the next five years and thereafter:
Year ending December 31
2021
$
275,171
2022
305,030
2023
305,030
2024
262,999
2025
67,759
Total
$
1,215,989
Note 5 – Debt
Debt consists of the following as of December 31,
2020:
Stockholder notes payable
$
3,326,759
Convertible notes payable
1,520,000
PPP Loan
954,984
SBA Disaster Loan
150,000
Total
$
5,951,743
Interest expense for the year ended December 31,
2020 was $151,773.
Stockholder notes payable
In June 2017, the Company
entered into a $2,000,000 note payable agreement with a stockholder. The note has a 0% stated interest rate, and the entire principal
balance is due upon maturity of June 13, 2022.
In June 2018, the Company
entered into a $1,326,759 note payable agreement with a second stockholder. The note has a 0% stated interest rate, and the entire principal
balance is due upon maturity of June 20, 2023.
Convertible note payable
In June 2017, the Company
entered into a convertible note payable agreement with a stockholder.
Effective December 23, 2020,
this note was assigned to an affiliate of the stockholder. The note allows for up to $1,750,000 to be borrowed at 12% per annum. Interest
is paid monthly, and the entire principal balance is due upon maturity of June 13, 2022.
The note is convertible into
common stock of the Company at the option of the lender or upon a change in control event, as defined in the agreement.
The note agreement contains
certain financial covenants and the Company was not in compliance as of December 31, 2020, and therefore the entire outstanding principal
balance of $1,520,000 is shown as current on the accompanying consolidated balance sheet.
F-
91
The NAV People, Inc. &
Subsidiary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Paycheck Protection Program ("PPP")
Loan
On April 29, 2020, the Company
received a loan in the amount of $954,984 under the Paycheck Protection Program administered by the SBA. According to the Coronavirus
Aid, Relief, and Economic Security Act (the "Cares Act"), PPP loan provides for forgiveness of up to the full principal amount
and accrued interest if the funds are used for payroll costs, interest on mortgages, rent, and utilities. However, at least 60% of the
forgiven amount must have been used for payroll. The loan bears interest at a rate of 1.00% per annum.
The entire loan (principal
and accrued interest) was forgiven on June 30, 2021.
SBA Disaster Loan
In April 2020, the Company
received a $2,000,000 loan under the Disaster Loan Assistance Program administered by the United States Small Business Administration
(the "SBA"), which was repaid in full in May 2020. Then, in July 2020, the Company received a loan in the amount of
$150,000 under the same program. The loan bears interest at a rate of 3.75% per annum and is a 30 year loan.
The future principal payments for the Company's
debt are as follows:
Year ending December 31
2021
$
1,522,586
2022
2,960,156
2023
1,331,931
2024
5,172
2025
131,898
Total
$
5,951,743
F-
92
The NAV People, Inc. &
Subsidiary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 6 – Income Taxes
For financial reporting purposes, net loss before
provision for income taxes, includes the following components:
Domestic
$
(1,516,485
)
Foreign
(234,429
)
Net loss before provision for income taxes
$
(1,750,914
)
The provision for income taxes consists of the
following:
Current:
Federal
$
-
State
6,204
Foreign
-
Total Current
$
6,204
Deferred:
Federal
$
-
State
-
Foreign
-
Total Deferred
$
-
Provision for income taxes
$
6,204
F-
93
The NAV People, Inc. &
Subsidiary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Income tax provision differs from the amount computed
by applying the statutory as follows:
Net loss before income taxes
$
(1,750,914
)
Statutory rate:
21.00
%
Income Tax Expense at Statutory Rate
(367,692
)
State Tax Expense
6,204
Foreign Tax Differential
(36,512
)
Nondeductible Perm
41,022
PTBI Reported in PY Tax Return
87,576
Uncertain Tax Position
155,428
Change in Valuation Allowance
127,168
Other
(6,990
)
Total
$
6,204
Below is a summary of the Company's deferred
tax assets and liabilities:
Deferred
Tax Assets and Liabilities
The
deferred assets and liabilities consist of the following:
Deferred Revenue
$
163,383
Bad Debt Reserve
53,975
Accrued Vacation
296
NOL & Charitable Contribution CF
807,111
Gross Deferred Tax Assets
$
1,024,765
Valuation Allowance
$
(947,363
)
Property & Equipment
(15,651
)
Intangibles
(61,751
)
Deferred Tax Liabilities
$
(77,402
)
Total Deferred Asset / Liability
$
-
F-
94
The NAV People, Inc. &
Subsidiary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At December 31, 2020 the Company
has $3,650,863 federal net operating loss carryforwards, of which $667,770 has a carryforward period of 20 years and the remainder carry
forward indefinitely. The federal NOLs begin to expire in 2037. We have not reflected any benefit of such net operating loss carryforwards
in the accompanying consolidated financial statements. We have established a full valuation against the related deferred tax assets due
to the uncertainty surrounding the realization of such assets. The utilization of the Company's NOLs may be subject to annual Internal
Revenue Code Section 382 limitations. The Company has not yet completed a 382 study as of December 31, 2020
The Company has $2,191,851
of state net operating loss carryforwards with carryforward periods ranging from 15 to 20 years, with state statute period of 4 years.
The state NOLs begin to expire in 2032. The Company has a foreign net operating loss carryforward of $608,604 with carryforward period
of 20 years, with statute period of 4 years. The foreign NOLs begin to expire in 2037. We have not reflected any benefit of such
net operating loss carryforwards in the accompanying consolidated financial statements. We have established a full valuation against the
related deferred tax assets due to the uncertainty surrounding the realization of such assets.
In assessing the realizability
of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will
not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the
periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities,
projected future taxable income, and projects for future taxable income over periods in which the deferred tax assets are deductible.
Management believes it is more likely than not that the Company will realize the benefits of these deductible differences. The change
in valuation allowance during the year ended December 31, 2020, was an increase of $127,168.
Management believes that there
is an uncertain tax position for the cumulative exclusion of deferred revenue and as such, has recognized this uncertain tax position
against federal and state NOLs. There are no interest and penalties related to uncertain tax positions in 2020. The statute of limitation
is 3 years for federal tax and years ending 3/31/18, 3/31/19 and 3/31/20 are open to examination. The statute of limitation is 4 years
for state tax and the years ending 3/31/17, 3/31/18, 3/31/19 and 3/31/20 are open to examination. The Company currently is not under examination
by any tax authority.
In response to the COVID-19
pandemic, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law on March 27, 2020. The CARES
Act, among other things, includes tax provisions relating to refundable payroll tax credits, deferment of employer's social security payments,
net operating loss utilization and carryback periods and modifications to the net interest deduction limitations. The CARES Act did not
have a material impact on the Company's income tax provision for 2020. The Company will continue to evaluate the impact of the CARES
Act on its financial position, results of operations, and cash flows.
On December 27, 2020, the
President of the United States signed the Consolidated Appropriations Act, 2021 ("Consolidated Appropriations Act") into law.
The Consolidated Appropriations Act is intended to enhance and expand certain provisions of the CARES Act, allows for the deductions of
expenses related to the Payroll Protection Program funds received by companies, and provides an update to meals and entertainment expensing
for 2021. The Consolidated Appropriations Act did not have a material impact to the Company's income tax provision for the year
ended December 31, 2020.
F-
95
The NAV People, Inc. &
Subsidiary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 7 – Commitment and Contingencies
Operating Lease
The Company leases one office
facility under an operating lease arrangement which expires on April 30, 2024. Rent expense related to the Company's operating
leases was $211,343 for the year ended December 31, 2020. Future minimum payments, by year and in the aggregate, under operating leases
at December 31, 2020, are as follows:
Year ending December 31
Future Minimum
Payments
2021
$
246,978
2022
254,376
2023
262,008
2024
89,956
Total future minimum lease payments
$
853,318
Litigation
From time to time, the Company
may be involved in litigation relating to claims arising out of its operations in the normal course of business. The Company will accrue
a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. As of
December 31, 2020, and through the date these financial statements were available to be issued, there were no legal proceedings requiring
recognition or disclosure in the financial statements.
Contingencies
As of the date of this report,
there are no known contingent liabilities for the year ended December 31, 2020.
Note 8 – Subsequent Events
The Company has evaluated
all subsequent events through December 13, 2021, which is the date the financial statements were available to be issued.
On October 1, 2021, the Company
was acquired by Akerna Corp. (NASDAQ: KERN) for approximately $17 million, comprised of approximately $5 million in cash and $12 million
in common stock of Akerna Corp.
F-
96
AKERNA CORP.
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL
INFORMATION
The following unaudited pro forma condensed combined
balance sheet as of September 30, 2021 and the unaudited pro forma condensed combined statements of operations for the twelve months ended
December 31, 2020 and nine months ended September 30, 2021, are based on the historical financial statements of Akerna Corp. ("Akerna",
"we", "our") and The NAV People, Inc. and Subsidiary ("NAV") after giving effect to the acquisition
of NAV (the "Acquisition") and after applying the assumptions and adjustments described in the accompanying notes to the unaudited
pro forma condensed combined financial statements.
The unaudited pro forma condensed combined statements
of operations for the twelve months ended December 31, 2020 and nine months ended September 30, 2021 give effect to the Acquisition as
if it had occurred on January 1, 2020,
the first day of the first year presented
.
The unaudited pro forma condensed combined balance
sheet as of September 30, 2021, gives effect to the Acquisition as if it had occurred on September 30, 2021.
The Acquisition of NAV has been accounted for
pursuant to Financial Accounting Standards Board Accounting Standards Codification 805, Business Combinations. The total consideration
transferred, as described in Note 1 to these unaudited pro forma condensed combined financial statements, is allocated to the net tangible
assets and intangible assets of NAV acquired in connection with the Acquisition, based on their estimated fair values as of the date of
the Acquisition, and the excess is allocated to goodwill. We have made a preliminary allocation of the estimated purchase price to the
tangible and intangible assets acquired and liabilities assumed. The acquisition accounting is dependent upon certain valuations and other
studies that have yet to progress to a stage where there is sufficient information for a definitive measurement.  We have made
significant assumptions and estimates in determining the preliminary estimated purchase price and the preliminary allocation of the estimated
purchase price in the unaudited pro forma condensed combined financial statements. These preliminary estimates and assumptions are subject
to change during the estimated purchase price allocation period (generally one year from the acquisition date) as we finalize the valuations
of the net intangible assets. The final valuations of identifiable intangible assets, fixed assets and deferred revenue and associated
tax effects may change significantly from our preliminary estimates. Differences between these preliminary estimates and the final acquisition
accounting could have a material impact on the accompanying unaudited pro forma condensed combined financial statements and the combined
company's future results of operations and financial position. Accordingly, the pro forma adjustments are preliminary and have been
made solely for the purpose of providing unaudited pro forma condensed combined financial statements.
The historical consolidated financial information
has been adjusted in the unaudited pro forma condensed consolidated financial statements to give effect to pro forma events that are (1) directly
attributable to the Acquisition; (2) factually supportable; and (3) with respect to the unaudited pro forma condensed consolidated
statements of operations, expected to have a continuing impact on the combined results.
The unaudited
pro forma condensed consolidated financial statements have been prepared by management for illustrative purposes only and are not necessarily
indicative of the consolidated results of operations or financial position of Akerna that would have been reported had the Acquisition
been completed as of the dates presented and should not be taken as representative of the future consolidated results of operations or
financial position of Akerna. The unaudited pro forma financial statements do not reflect any operating efficiencies and cost savings
that Akerna may achieve, or any additional expenses that it may incur, with respect to the combined companies.
F-
97
The unaudited pro forma condensed combined financial
statements, including the notes thereto should be read in conjunction with:
●
The
                                            accompanying notes to the unaudited pro forma condensed combined financial statements;
●
The
                                            audited consolidated financial statements, the accompanying notes and "Management's
                                            Discussion and Analysis of Financial Condition and Results of Operations" included
                                            in Akerna Corp.'s Transition Report on Form 10-KT for the period ended December 31,
                                            2020 which was filed with the Securities and Exchange Commission ("SEC") on March
                                            31, 2021 (the "Akerna 2020 10-K");
●
The
                                            unaudited condensed consolidated financial statements, the accompanying notes and "Management's
                                            Discussion and Analysis of Financial Condition and Results of Operations" included
                                            in our Form 10-Q for the three and nine months ended September 30, 2021 which was filed with
                                            the SEC on November 12, 2021;
●
The
                                            unaudited condensed consolidated financial statements, the accompanying notes and "Management's
                                            Discussion and Analysis of Financial Condition and Results of Operations" included
                                            in our Form 10-Q for the three and six months ended June 30, 2021 which was filed with the
                                            SEC on August 12, 2021;
●
The
                                            unaudited condensed consolidated financial statements, the accompanying notes and "Management's
                                            Discussion and Analysis of Financial Condition and Results of Operations" included
                                            in our Form 10-Q for the three months ended March 31, 2021 which was filed with the SEC on
                                            May 21, 2021;
●
NAV's
                                            audited financial statements as of and for the year ended December 31, 2020, included elsewhere
                                            in this Current Report on Form 8-K/A;
●
NAV's
                                            unaudited c
ondensed consolidated
                                            interim financial statements as of and for the nine months ended September 30, 2021, included
                                            elsewhere in this Current Report on Form 8-K/A;
F-
98
UNAUDITED PRO FORMA CONDENSED COMBINED
BALANCE SHEET
AS OF SEPTEMBER 30, 2021
Akerna
Corp.
The NAV
People,
Inc. &
Subsidiary
(Note 1)
Pro forma
adjustments
Note 3
Pro forma
combined
ASSETS
CURRENT ASSETS:
Cash
$
9,608,788
$
531,723
$
(5,606,017
)
A
$
4,534,494
Restricted cash
508,261
–
–
508,261
Accounts receivable, net
1,647,619
961,140
–
2,608,759
Prepaid expenses and other current assets
2,194,221
266,826
–
2,461,047
Total current assets
13,958,889
1,759,689
(5,606,107
)
10,112,561
Fixed assets, net
52,322
92,437
–
144,759
Investments, net
226,101
–
–
226,101
Capitalized software, net
6,167,413
–
–
6,167,413
Intangible assets, net
7,311,541
1,362,710
4,244,507
C
12,918,758
Goodwill
46,790,018
–
21,037,766
B
67,827,784
Deposits
–
11,361
–
11,361
TOTAL ASSETS
$
74,506,284
$
3,226,197
$
19,676,256
$
97,408,737
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable, accrued expenses and other accrued liabilities
$
5,185,519
$
944,806
A, E, G
$
6,130,325
Accounts payable
–
384,697
(384,697
)
E
–
Accrued expenses
–
500,185
(500,185
)
E
–
Convertible note payable
–
1,520,000
(1,520,000
)
A
–
Deferred revenue
908,256
2,448,982
(431,411
)
F
2,925,827
Derivative liability
160,201
–
–
160,201
Total current liabilities
6,253 ,976
4,853,864
(1,891,487
)
9,216,353
Long-term debt, less current portion
3,834,001
–
–
3,834,001
Stockholder notes payable
–
3,496,759
(3,496,759
)
A
–
Notes payable
–
148,817
(148,817
)
A
–
TOTAL LIABILITIES
10,087,977
8,499,440
(5,537,063
)
13,050,354
STOCKHOLDERS' EQUITY:
Special voting preferred stock
2,952,495
–
–
2,952,495
Common stock
2,717
5,000
(4,643
)
A, D
3,074
Additional paid-in capital
132,803,659
2,000
20,020,463
A, D
152,826,122
Accumulated other comprehensive loss
(44,639
)
(11,410
)
(11,410
)
D
(67,459
)
Accumulated deficit
(71,295,925
)
(5,268,833
)
5,208,909
D, G
(71,355,849
)
TOTAL STOCKHOLDERS' EQUITY
64,418,307
(5,273,243
)
25,213,319
84,358,383
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
74,506,284
$
3,226,197
$
19,676,256
$
97,408,737
See accompanying Notes
to Unaudited Pro Forma Condensed Combined Financial Information
F-
99
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2020
Akerna
Corp.
(Note 1)
The
NAV
People,
Inc. &
Subsidiary
(Note 1)
Pro forma
adjustments
Note 4
Pro forma
combined
Revenue
Software
$
11,963,028
$
7,108,536
A
$
19,071,564
Consulting
1,739,683
–
1,739,683
Other
196,257
426,293
–
622,550
Recurring revenue
–
4,875,121
(4,875,121
)
A
–
Services revenue
–
2,233,415
(2,233,415
)
A
–
Total net revenue
13,898,968
7,534,829
–
21,433,797
Cost of revenue
6,355,825
2,202,534
–
8,558,359
Gross Profit
7,543,143
5,332,295
–
12,875,438
Operating expenses:
Product development
5,129,814
–
–
5,129,814
Sales and marketing
8,085,897
46,954
–
8,132,851
General and administrative
11,018,356
784,785
5,798,166
A
17,601,307
Operations and support
–
5,374,077
(5,374,077
)
A
–
Bad debt expense
–
424,089
(424,089
)
A
–
Depreciation and amortization
3,223,844
301,064
542,799
B
4,067,707
Impairment of long-lived assets
6,887,000
–
–
6,887,000
Total operating expenses
34,344,911
6,930,969
542,799
41,818,679
Loss from operations
(26,801,768
)
(1,598,674
)
(542,799
)
(28,943,241
)
Other income (expense):
–
–
Interest income (expense)
(161,646
)
(151,773
)
151,773
C
(161,646
)
Change in fair value of convertible notes
(195,273
)
–
–
(195,273
)
Change in fair value of derivative liability
376,811
–
–
376,811
Other income (expense), net
(59,397
)
(467
)
–
(59,864
)
Net loss before income taxes and equity in losses of investee
(26,841,273
)
(1,750,914
)
(391,026
)
(28,983,213
)
Income tax expense
(31,185
)
(6,204
)
–
(37,389
)
Equity in losses of investee
(16,335
)
–
–
(16,335
)
Net income (loss)
$
(26,888,793
)
$
(1,757,118
)
$
(391,026
)
$
(29,036,937
)
Earnings per share
Basic
$
(1.87
)
$
(1.61
)
Diluted
$
(1.87
)
$
(1.61
)
Shares used in computing earnings per share
Basic
14,409,780
3,571,429
17,981,209
Diluted
14,409,780
3,571,429
17,981,209
See accompanying
Notes to Unaudited Pro Forma Condensed Combined Financial Information
F-
100
UNAUDITED PRO FORMA CONDENSED COMBINED
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021
Akerna
Corp.
The NAV
People,
Inc. &
Subsidiary
Pro forma
adjustments
Note 5
Pro forma
combined
Revenues
Software
$
12,809,841
–
$
6,469,240
A
$
19,279,081
Consulting
1,135,033
–
–
1,135,033
Other
111,540
685,213
–
796,753
Recurring revenue
–
4,397,990
(4,397,990
)
A
–
Services revenue
–
2,071,250
(2,071,250
)
A
–
Total revenues
14,056,414
7,154,453
–
21,210,867
Cost of revenue
5,339,929
1,913,331
–
7,253,260
Gross Profit
8,716,485
5,241,122
–
13,957,607
Operating expenses:
Product development
4,517,836
–
4,517,836
Sales and marketing
5,564,519
35,213
–
5,599,732
General and administrative
8,306,417
543,784
4,691,077
D, A
13,541,278
Operations and support
–
4,584,170
(4,584,170
)
A
–
Bad debt expense
–
286,094
(286,094
)
A
–
Acquisition costs
–
172,550
(172,550
)
A
–
Depreciation and amortization
3,605,435
189,664
439,218
B
4,234,317
Total operating expenses
21,994,207
5,811,475
87,481
27,893,163
Loss from operations
(13,277,722
)
(570,353
)
(87,481
)
(13,935,556
)
Other (expense) income:
Interest (expense) income, net
(1,175,789
)
(161,029
)
161,029
C
(1,175,789
)
Change in fair value of convertible notes
(2,030,904
)
–
–
(2,030,904
)
Change in fair value of derivative liability
151,175
–
–
151,175
Gain on forgiveness of PPP Loan
2,234,730
954,984
–
3,189,714
Other (expense) income, net
243
(19,585
)
–
(19,342
)
Total other (expense) income
(820,545
)
774,370
161,029
114,854
Net loss before income taxes and equity in losses of investee
(14,098,267
)
204,017
73,548
(13,820,702
)
Income tax expense
(10,570
)
(5,251
)
–
(15,821
)
Equity in losses of investee
(7,564
)
–
–
(7,564
)
Net loss before income taxes and equity in losses of investee
$
(14,116,401
)
$
198,766
$
73,548
$
(13,844,087
)
Earnings per share
Basic
$
(0.58
)
$
(0.50
)
Diluted
$
(0.58
)
$
(0.50
)
Shares used in computing earnings per share
Basic
24,312,510
3,571,429
27,883,939
Diluted
24,312,510
3,571,429
27,883,939
See accompanying
Notes to Unaudited Pro Forma Condensed Combined Financial Information
F-
101
Note 1: Basis of Pro Forma Presentation
Accounting
Periods Presented
The unaudited pro forma condensed combined balance
sheet as of September 30, 2021, is presented as if the NAV acquisition had occurred on September 30, 2021. Certain pro forma adjustments
to record differences between historical book values and preliminary values as of the date of the pro forma condensed combined financial
statements are based on the assumption that the Acquisition occurred on September 30, 2021. The actual adjustments to be recorded in Akerna's
financial statements will be as of the acquisition date and the option exercise date.
The unaudited pro forma
c
ondensed
combined statements of operations of Akerna and NAV for the twelve months ended December 31, 2020 and the nine months ended on September
30, 2021, are presented as if the Acquisition had taken place on January 1, 2020. As disclosed in the Akerna 2020 10-K, we changed our
fiscal year from June 30 to December 31. In the Akerna 2020 10-K we presented the Consolidated statements of operations for the fiscal
year ended June 30, 2020 and the transition period for the six months ended December 31, 2020. For the pro forma condensed combined statements
of operations we have elected to present Akerna results for the year ended December 31, 2020 which consists of the combined transition
period for the six months ended December 31, 2020 plus the six months period from January 1, 2020 to June 30, 2020 consistent with rules
13a-10 and 15d-10 of the Exchange Act.
These unaudited pro forma condensed combined financial
information, including the preliminary purchase price allocation, are presented for illustrative purposes only and do not necessarily
reflect the operating results or financial position that would have occurred if the Acquisition had been consummated on the dates indicated,
nor is it necessarily indicative of the results of operations or financial condition that may be expected for any future period or date.
Accordingly, such information should not be relied upon as an indicator of future performance, financial condition or liquidity.
Preliminary Purchase Consideration
On October 1, 2021, we entered into an arrangement
agreement (the "Agreement") to acquire all of the issued and outstanding shares of NAV. Under the terms of the Agreement,
the aggregate consideration for the NAV shares consists of (1) $5,000,000 in cash, (2) $12,000,000 in stock and (3) contingent value rights
to be issued pursuant to a rights indenture entitling the holders thereof to receive, subject to certain adjustments as set forth in the
Agreement, an aggregate of up to $8,000,000 in stock, in the event that NAV achieves certain revenue targets as specified in the Agreement.
These rights are accounted for as contingent consideration and are currently recorded at preliminary fair value which will be updated
upon finalization of purchase accounting.
Cash
$
5,606,017
Common shares
12,000,000
Contingent consideration
8,000,000
Total purchase consideration
$
25,606,017
Preliminary Purchase Consideration Allocation
The following
represents the preliminary allocation of the fair value of the purchase consideration to the acquired assets and assumed liabilities based
on NAV's balance sheet as of September 30, 2021 and is for illustrative purposes only.
Cash
$
531,723
Accounts receivable
961,140
Prepaid expenses and other current assets
266,826
Fixed assets, net
92,437
Deposits
11,361
Intangible assets:
Customer relationships
3,509,861
Acquired technology
2,011,750
Trade Name
85,606
Goodwill
21,037,766
Deferred revenue
(2,017,571
)
Accounts payable and accrued expenses
(884,882
)
Total purchase consideration
$
25,606,017
Goodwill of approximately $21.0 million represents
the excess of the purchase consideration over the fair value of the net tangible and intangible assets acquired. Goodwill is primarily
attributable to expected post-acquisition synergies from integrating NAV's industry-leading ERP platform into Akerna's supply
chain solutions.
None of the goodwill recorded as part of the NAV acquisition is expected to
be deductible for U.S. federal income tax purposes.
Akerna has
considered the existing intangible assets of NAV prior to the Acquisition and while we anticipate there will be deferred tax assets arising
from the purchase price, we expect these would have a full valuation allowance given historical losses.
F-
102
The following table sets forth the components
of identifiable intangible assets acquired and their preliminary estimated useful lives as of the date of Acquisition:
Intangible assets:
Preliminary
Fair
Value
Estimated
Useful
Life
(in years)
Customer relationships
$
3,509,861
10
Acquired technology
2,011,750
5
Trade name
85,606
2
Total
$
5,607,217
Following
the end of Akerna's fiscal year ended June 30, 2020, Akerna transitioned to a December 31 fiscal year-end date. The following table
presents a reconciliation to Akerna's historical unaudited financial data for the twelve months ended December 31, 2020 which was
derived by adding the audited six-month transition period ended December 31, 2020 to Akerna's three-month period ended March 31,
2020 and three-month period ended June 30, 2020.
Historical
Akerna
Corp.
three
months
ended
3/31/2020
(unaudited)
Akerna
Corp.
three
months
ended
6/30/2020
(unaudited)
Akerna
Corp.
six months
ended
12/31/2020
(audited)
Akerna
Corp.
twelve
months
ended
12/31/2020
(unaudited)
Net revenue:
Software
$
2,346,309
$
2,849,734
$
6,766,985
$
11,963,028
Consulting
692,584
131,000
916,099
1,739,683
Other
31,652
22,905
141,700
196,257
Total net revenue
3,070,545
3,003,639
7,824,784
13,898,968
Cost of revenue
1,396,219
1,818,565
3,141,041
6,355,825
Gross profit
1,674,326
1,185,074
4,683,743
7,543,143
Operating expenses:
Product development
874,787
1,088,939
3,166,088
5,129,814
Sales and marketing
2,040,751
2,117,118
3,928,028
8,085,897
General and administrative
3,457,262
3,126,027
4,435,067
11,018,356
Depreciation and amortization
180,229
1,036,378
2,007,237
3,223,844
Impairment of long-lived assets
–
–
6,887,000
6,887,000
Total operating expenses
6,553,029
7,368,462
20,423,420
34,344,911
Loss from operations
(4,878,703
)
(6,183,388
)
(15,739,677
)
(26,801,768
)
Interest income (expense), net
33,522
(2,084
)
(193,084
)
(161,646
)
Change in fair value of convertible notes
–
766,000
(961,273
)
(195,273
)
Change in fair value of derivative liability
236,917
(606,958
)
746,852
376,811
Other expense
(124
)
–
(59,273
)
(59,397
)
Loss before provision for income taxes
(4,608,388
)
(6,026,430
)
(16,206,455
)
(26,841,273
)
Provision for income taxes
–
(30,985
)
(200
)
(31,185
)
Equity in losses of investee
–
(3,692
)
(12,643
)
(16,335
)
Net loss
(4,608,388
)
(6,061,107
)
(16,219,298
)
(26,888,793
)
F-
103
Note 2: Conforming Accounting Policies and Reclassification Adjustments
Based on a preliminary review of the accounting policies of Akerna
and NAV, Akerna is not aware of any differences that would have a material impact on the combined company unaudited pro forma condensed
combined financial information. Following completion of the Acquisition, or as more information becomes available, Akerna will perform
a full and detailed review of the NAV accounting policies and financial statements. As a result of the review, accounting policy differences
may be identified and these differences, when identified, could have a material impact on the combined company unaudited pro forma
condensed combined financial information. Certain items included in the NAV historical combined financial information have been reclassified
to conform the NAV financial statement presentation to Akerna's financial statement presentation.
Note 3: Adjustments to Unaudited
Pro Forma Condensed Combined Balance Sheet as of September 30, 2021
The pro forma adjustments included in the unaudited
pro forma condensed combined balance sheet for the Acquisition of NAV are as follows:
A.
To record the purchase consideration of $5,606,017 in cash which was used to pay NAV debtors in the amount
of $988,874, NAV obligations in the amount of $890,000, and NAV shareholders in the amount of $2,103,425 and funded from cash and
$12.0 million in common stock issued, which was used to pay down debtors in the amount of $4,299,280 and NAV shareholders in the amount
of $7,700,721.
B.
To record estimated preliminary goodwill of $21,037,766.
C.
To adjust the historical NAV intangible assets to fair value in connection with the Acquisition.
D.
To eliminate NAV's historical equity, accumulated deficit, paid in capital and accumulated other
comprehensive loss.
E.
To record reclassifications to conform NAV financial statements with Akerna's historical financial
statement presentation.
F.
To record the estimated preliminary fair value of deferred revenue.
G.
To record transaction cost paid after the close of the Acquisition
Note
4: Adjustments to Unaudited Pro Forma Condensed Combined Statements of Operations for the twelve months ended December 31, 2020
The pro forma adjustments included in the unaudited
pro forma condensed combined statement of operations for the Acquisition of NAV are as follows:
A.
To record reclassifications to conform NAV financial statements with Akerna's historical financial
statement presentation.
B.
To reflect $769,139 amortization expense of preliminarily estimated purchased intangible assets and to eliminate the historical amortization
expense of $253,340.
C.
To eliminate interest expense related to the historical debt of NAV.
The pro forma combined basic and diluted net loss per share are based
on the number of 17,981,209 shares common stock used in computing basic and diluted net loss per share for the acquisition of Solo, respectively.
Dilutive potential common shares are included only if they have a dilutive effect on earnings per share.
F-
104
Note 5: Adjustments to Unaudited Pro Forma
Condensed Combined Statements of Operations for the nine months ended September 30, 2021
The pro forma adjustments included in the unaudited
pro forma condensed combined statement of operations for the acquisition of NAV are as follows:
A.
To record reclassifications to conform NAV financial statements with Akerna's historical financial
statement presentation.
B.
To reflect $597,104 amortization expense of preliminarily estimated purchased intangible assets and to eliminate the historical amortization
expense of $157,886.
C.
To eliminate interest expense related to the historical debt of NAV.
D.
To eliminate transaction related expenses of $179,187 from the historical financial statements of Akerna and
$172,550 from the historical financial statements of NAV.
The pro forma combined basic and diluted net loss per share are based
on the number of 27,883,939 shares common stock used in computing basic and diluted net loss per share for the acquisition of Solo, respectively.
Dilutive potential common shares are included only if they have a dilutive effect on earnings per share.
F-
105
AKERNA CORP.
Up to ______________ Units, Each Unit Consisting
of One Share of Common Stock and One Warrant to Purchase One Share of Common Stock
Up to _________________ Pre-funded Units, Each
Pre-funded Unit Consisting of One Pre-funded Warrant to Purchase One Share of Common Stock and One Warrant to Purchase One Share of Common
Stock
Shares of Common Stock Underlying the Warrants
Shares of Common Stock Underlying the Pre-Funded
Warrants
PROSPECTUS
A.G.P.
, 2022
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 13- OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The following table indicates the expenses to
be incurred in connection with the Offering described in this registration statement, other than underwriting discounts and commissions,
all of which will be paid by us. All amounts are estimates, except for the Securities and Exchange Commission registration fee.
Amount
Securities and Exchange Commission Registration Fee
$
1,900
FINRA Filing Fee
$
**
Legal Fees and Expenses
$
140,000
*
Accounting Fees and Expenses
$
50,000
*
Printing and Engraving Expenses
$
20,000
*
Miscellaneous Expenses
$
15,000
*
Total
$
226,900
*
*
Estimated.
**
To be provided by amendment.
ITEM 14- INDEMNIFICATION OF DIRECTORS AND
OFFICERS
Under Section 145 of the DGCL, a corporation
may indemnify its directors, officers, employees and agents and its former directors, officers, employees and agents and those who serve,
at the corporation's request, in such capacities with another enterprise, against expenses (including attorney's fees), as
well as judgments, fines and settlements, actually and reasonably incurred in connection with the defense of any action, suit or proceeding
(other than an action by or in the right of the corporation) in which they or any of them were or are made parties or are threatened
to be made parties by reason of their serving or having served in such capacity. The DGCL provides, however, that such person must have
acted in good faith and in a manner he or she reasonably believed to be in (or not opposed to) the best interests of the corporation
and, in the case of a criminal action, such person must have had no reasonable cause to believe his or her conduct was unlawful. In addition,
the DGCL does not permit indemnification in an action or suit by or in the right of the corporation, where such person has been adjudged
liable to the corporation for negligence or misconduct in the performance of his/her duty to the corporation, unless, and only to the
extent that, a court determines that such person fairly and reasonably is entitled to indemnity for costs the court deems proper in light
of liability adjudication. Indemnity is mandatory to the extent a claim, issue or matter has been successfully defended.
Section 102(b)(7) of the DGCL permits a corporation
to include in its certificate of incorporation a provision eliminating or limiting the personal liability of a director to the corporation
or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that such provision shall not eliminate
or limit the liability of a director (i) for any breach of the director's duty of loyalty to the corporation or its stockholders,
(ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) under
Section 174 of the DGCL (relating to unlawful payment of dividends and unlawful stock purchase or redemption) or (iv) for any transaction
from which the director derived an improper personal benefit.
Article VI of the Amended and Restated By-Laws
of Akerna contains provisions which are designed to provide mandatory indemnification of directors and officers of Akerna to the full
extent permitted by law, as now in effect or later amended. The Amended and Restated By-Laws further provide for reimbursement and advances
of payment of expenses actually and reasonably incurred by a current or former director or officer of Akerna under the circumstances
contained therein.
II-
1
ITEM 15- RECENT SALES OF UNREGISTERED SECURITIES
Set forth below is information regarding shares
of capital stock issued by us within the past three years which were not registered under the Securities Act.
On January 15, 2020, Akerna closed on a stock
purchase agreement previously entered into with substantially all of the shareholders of Solo Sciences, Inc., a Delaware corporation
("Solo"), pursuant to which Akerna acquired all right, title and interest in 80.40% of the issued and outstanding capital
stock of Solo (calculated on a fully diluted basis), free and clear of all liens. The initial consideration amount under the agreement
was 1,950,000 shares of the common stock of Akerna, less 570,000 shares of the common stock of Akerna to be held in escrow as follows:
(a) 375,000 are to be held and sold to cover costs of the Solo shareholders under a related intellectual property purchase agreement,
to be completed within 12 months of the closing date, with any remaining shares to be released to the Solo shareholders; and (b) 195,000
shares to be held to cover any indemnity payment to certain Akerna parties under the indemnity provisions in the Agreement. This initial
consideration may be subject to an adjustment for final working capital acquired no later than 120 days following the closing date. The
Akerna shares were issued in exchange for the shares of Solo held by the Solo shareholders pursuant to the exemption from the registration
requirements of the Securities Act provided by Rule 506(b) of Regulation D thereunder, such exemption being available based on the representations
of the Solo shareholders.
On April 8, 2020, Akerna entered into a stock
exchange agreement, pursuant to which it issued shares of common stock of Akerna with an aggregate contractual value of $2,000,000 (the
"Akerna Shares") at $5.72 per share, subject to certain adjustments not later than 90 days post-closing. The acquisition
closed on April 10, 2020, the acquisition date fair value of the shares of stock issued was $2,531,466, or $7.24 per share, the closing
price on the date of acquisition. The Akerna Shares were issued in exchange for the shares of Trellis Solutions, Inc., an Ontario corporation
held by the sellers under the stock exchange agreement. The Akerna shares of common stock were issued pursuant to the exemption from
the registration requirements of the Securities Act provided by Section 4(a)(2) thereof, based on the representations and warranties
of the sellers.
On June 9, 2020, Akerna issued senior secured
convertible notes to holders in an aggregate original principal amount of $17,000,000 having an aggregate original issue discount of
12%, and ranking senior to all of our outstanding and future indebtedness, in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D under the Securities Act, based in part on the representations
of the holders..
On July 7, 2020, Akerna Canada Ample Exchange
Inc., a corporation incorporated under the
Business Corporations Act
(Ontario) and wholly-owned subsidiary of Akerna
issued 3,294,574 Exchangeable Shares to Ample shareholders. The issuance of the Exchangeable Shares and the Special Voting Share on the
closing in connection with the consummation of the plan of arrangement was not registered under the Securities Act and such securities
were issued in reliance upon the exemption from registration pursuant to Section 3(a)(10) of the Securities Act.
On July 31, 2020, Akerna issued 800,000 shares
of common stock of Akerna to acquire the remaining 19.6% of Solo. The Akerna shares were issued in exchange for the shares of Solo held
by the Solo shareholders pursuant to the exemption from the registration requirements of the Securities Act provided by Rule 506(b) of
Regulation D thereunder, such exemption being available based on the representations of the Solo shareholders.
II-
2
From December 29, 2020 through January 8, 2021,
Akerna issued 974,540 shares of common stock of Akerna to the holders of Akerna's convertible notes upon conversion of installment
amounts due under the terms of the notes. The shares were issued upon conversion of the installment amounts under the notes to the holders
of the notes pursuant to the exemption from the registration requirements of the Securities Act provided by Section 3(a)(9) thereof.
On January 7, 2021, Akerna issued 101,705 shares
of common stock to a private party in settlement of a lease agreement. The shares were issued to the private party in settlement of claims
and payments due under the lease agreement pursuant to the exemption from the registration requirements of the Securities Act provided
by Rule 506(b) of Regulation D thereunder, such exemption being available based on the representations of the private party.
From February 11, 2021 through March 10, 2021,
Akerna issued 1,113,969 shares of common stock of Akerna to the holders of Akerna's convertible notes upon conversion of installment
amounts due under the terms of the notes. The shares were issued upon conversion of the installment amounts under the notes to the holders
of the notes pursuant to the exemption from the registration requirements of the Securities Act provided by Section 3(a)(9) thereof.
On April 1, 2021, Akerna completed its acquisition
of 100% of the issued and outstanding capital stock of Viridian Sciences Inc. ("Viridian") from Navigator Acquisition Corp.,
a Delaware corporation ("Navigator"), pursuant to which Akerna issued 1,000,000 shares of common stock of Akerna to Navigator
the acquisition of Viridian. The shares of common stock were issued to Navigator pursuant to the exemption from the registration requirements
of the Securities Act provided by Rule 506(b) of Regulation D under the Securities Act and/or Section 4(a)(2) thereof based, in part,
on the representations and warranties made by Navigator to Akerna.
On October 1, 2021, Akerna closed on a stock purchase
agreement with the shareholders of The NAV People Inc., a Delaware corporation d/b/a "365 Cannabis" ("365 Cannabis"),
pursuant to which Akerna acquired all right, title and interest in 100% of the issued and outstanding capital stock of 365 Cannabis (calculated
on a fully diluted basis), free and clear of all liens. As part of the consideration for the acquisition, Akerna issued 3,571,429 shares
of common stock, representing an aggregate value of approximately $12 million. 357,143 shares of the stock consideration will be held
in escrow for a period of, and will be released from escrow after a period of, 12 months, subject to certain indemnity claims under the
stock purchase agreement. The shares of common stock are also subject to a lock-up agreement between Akerna and the 365 Cannabis shareholders
and will be released from lock-up as follows: (a) 50% of the stock consideration six months from the date of the closing, (b) 25% of the
stock consideration nine months from the date of closing and (c) the remaining 25% of the stock consideration one year from the date of
the closing. The shares of common stock were issued in exchange for the shares of 365 Cannabis held by the 365 Cannabis shareholders pursuant
to the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof and Rule 506(b) of Regulation
D thereunder, such exemption being available based on the representations of the 365 Cannabis shareholders.
On October 5, 2021, Akerna entered into a securities
purchase agreement with the two institutional investors to sell a new series of senior secured convertible notes of the Company in a private
placement, with an aggregate principal amount of $20,000,000 having an aggregate original issue discount of 10%, and ranking senior to
all outstanding and future indebtedness of the Company. Pursuant to the securities purchase agreement, the convertible notes in an aggregate
original principal amount of $20,000,000 were issued to the institutional investors in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D as promulgated by the Commission under the Securities
Act, based in part on the representations of the institutional investors in the securities purchase agreement.
II-
3
On January 25, 2022, the Company's
board of directors approved the issuance of 30,000 shares of our common stock to service providers in relation to providing investor
relations services to the Company. The shares were approved for issuance in consideration for the services to be provided by such
service providers. The shares have not been issued as of the date of this prospectus. The shares are to be issued pursuant to
Section 4(a)(2) of the Securities Act on the basis of the representations and warranties of the service providers in their service
contracts.
From February
1, 2022 through April 1, 2022, the Company issued 3,948,372 shares of common stock of the Company to the holders of the Company's
convertible notes upon conversion of installment amounts due under the terms of the notes. The shares were issued upon conversion of the
installment amounts under the notes to the holders of the notes pursuant to the exemption from the registration requirements of the Securities
Act provided by Section 3(a)(9) thereof.
From April 2, 2022 through to the date of
this prospectus, we issued 751,686 shares of our common stock to the holders of Akerna's convertible notes upon
conversion of installment amounts due under the terms of the notes. The shares were issued upon conversion of the installment
amounts under the notes to the holders of the notes pursuant to the exemption from the registration requirements of the Securities
Act provided by Section 3(a)(9) thereof.
ITEM 16- EXHIBITS
(a) Exhibits.
See the Exhibit Index.
(b) Financial Statement Schedules.
None.
(c) Reports, Opinions and Appraisals.
None.
ITEM 17- UNDERTAKINGS
(a) The undersigned Registrant
hereby undertakes:
(1) To file, during any period
in which offers or sales of securities are being made, a post-effective amendment to this registration statement to:
(i)
Include any prospectus
    required by Section 10(a)(3) of the Securities Act;
(ii)
Reflect in the prospectus
    any facts or events which, individually or together, represent a fundamental change in the information in the registration statement;
    and notwithstanding the forgoing, 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 prospectuses filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes
    in the volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the "Calculation
    of Registration Fee" table in the effective registration statement; and
II-
4
(iii)
Include any additional
    or changed material information on the plan of distribution not previously disclosed in the registration statement or any material
    change to such information in the registration statement.
(2) That, for the purpose
of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide
offering thereof.
(3) To remove from registration
by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(4) That, for determining
liability of the undersigned Registrant under the Securities Act 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 (§230.424 of
    this chapter);
(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 may be permitted to directors, officers and controlling persons of the registrant pursuant
to the provisions described herein, 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 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:
(1) For purposes of determining
any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement
in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h)
under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.
(2) For the purpose of determining
any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to
be the initial bona fide offering thereof.
II-
5
SIGNATURES
In accordance with the requirements of the Securities
Act of 1933, as amended, the registrant certifies that it has reasonable grounds to believe that it meets all the requirements of filing
on Form S-1 and authorized registration statement to be signed on its behalf by the undersigned, in the city of Denver, Colorado on June
15, 2022.
AKERNA CORP.
By:
/s/
    Jessica Billingsley
Name: Jessica Billingsley
Title: Chief Executive
    Officer
KNOW ALL PERSIONS BY THESE PRESENTS, that each
person whose signature appears below constitutes and appoints Jessica Billingsley his or her true and lawful attorney-in-fact, with full
power of substitution and resubstitution for him or her and in his or her name, place and stead, in any and all capacities to sign any
and all amendments including post-effective amendments to this registration statement, and to file the same, with all exhibits thereto,
and other documents in connection therewith, with the SEC, hereby ratifying and confirming all that said attorney-in-fact or his or her
substitute, each acting alone, may lawfully do or cause to be done by virtue thereof.
Pursuant to the requirements of the Securities
Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.
Signature
Title
Date
/s/
    Jessica Billingsley
Chief Executive Officer
    and Director
June 15, 2022
Jessica Billingsley
(Principal Executive
    Officer)
/s/
    Larry Dean Ditto, Jr.
Interim Chief Financial
    Officer
June 15, 2022
Larry Dean Ditto, Jr.
(Principal Financial
    and Accounting Officer)
/s/
    Scott Sozio
Director
June 15, 2022
Scott Sozio
/s/
    Matthew R. Kane
Director
June 15, 2022
Matthew Kane
/s/
    Tahira Rehmatullah
Director
June 15, 2022
Tahira Rehmatullah
/s/
    Barry Fishman
Director
June 15, 2022
Barry Fishman
II-
6
EXHIBIT INDEX
Exhibit
Number
Description
1.1**
Form of Underwriting Agreement
2.1+
Agreement and Plan of Merger, dated as of October 10, 2018, by and among MTech Acquisition Corp., Akerna Corp., Purchaser Merger Sub Inc., Company Merger Sub LLC, MTech Sponsor LLC in the capacity as the Purchaser Representative thereunder, MJ Freeway LLC and Harold Handelsman in the capacity as the Seller Representative thereunder (incorporated by reference to Exhibit 2.1 to the registrant's Registration Statement on Form S-4 (File No. 333-228220))
2.2
First Amendment to Agreement and Plan of Merger, effective as of April 17, 2019, by and among MTech Acquisition Corp., Akerna Corp., MTech Purchaser Merger Sub Inc., MTech Company Merger Sub LLC, MTech Sponsor LLC,, in the capacity as the Purchaser Representative under the Merger Agreement, MJ Freeway LLC, and Jessica Billingsley, in the capacity as the Seller Representative under the Merger Agreement (incorporated by reference to Exhibit 2.2 to the registrant's Registration Statement on Form S-4/A (File No. 333-228220))
2.3
Arrangement Agreement dated December 18, 2019 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on December 18, 2019)
2.4
Amendment to Arrangement Agreement dated February 28, 2020 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on March 3, 2020)
2.5
Amendment No. 2 to Arrangement Agreement dated May 26, 2020 (incorporated by reference to Exhibit 2.3 to the Current Report on Form 8-K filed by the registrant on July 8, 2020)
2.6
Amendment No. 3 to Arrangement Agreement dated June 1, 2020 (incorporated by reference to Exhibit 2.4 to the Current Report on Form 8-K filed by the registrant on July 8, 2020)
3.1
Amended and Restated Certificate of Incorporation of Akerna Corp. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by the registrant on June 21, 2019)
3.2
Amended and Restated Bylaws of Akerna Corp. (incorporated by reference to Exhibit 3.1 to the Form 10-KT filed by the registrant on March 31, 2021)
3.3
Certificate of Designation for the Special Voting Share (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by the registrant on July 8, 2020)
4.1
Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the registrant's Registration Statement on Form S-4 (File No. 333-228220))
4.2
Specimen Warrant Certificate (incorporated by reference to Exhibit 4.2 to the registrant's Registration Statement on Form S-4 (File No. 333-228220))
4.3
Form of Warrant Agreement (incorporated by reference to Exhibit 4.3 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
4.4
Stock Purchase Agreement, dated September 13, 2021, relating to the 365 Cannabis acquisition (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on September 21, 2021)
4.5
Securities Purchase Agreement, dated October 5, 2021 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on October 5, 2021)
II-
7
4.6
Form of Secured Convertible Notes (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by the registrant on October 5, 2021)
4.7
Form of Security Agreement (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed by the registrant on October 5, 2021)
4.8
Form of Guaranty Agreement (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed by the registrant on October 5, 2021)
4.9**
Form of warrant underlying
    unit offered hereby
4.10*
*
Form of pre-funded warrant
    underlying pre-funded unit offered hereby
4.11*
*
Form of underwriter's
    warrant
5.1**
Opinion of Dorsey &
    Whitney LLP
9.1
Voting and Exchange Trust Agreement (incorporated by reference to Exhibit 9.1 to the Current Report on Form 8-K filed by the registrant on July 8, 2020)
10.1
Registration Rights Agreement, dated January 29, 2018, by and among MTech Acquisition Corp., MTech Sponsor LLC, and MTech Sponsor LLC (incorporated by reference to Exhibit 10.1 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
10.2
First Amendment to Registration Rights Agreement, dated June 17, 2019, by and among MTech Acquisition Corp., Akerna Corp. and MTech Sponsor LLC (incorporated by reference to Exhibit 10.2 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
10.3
Stock Escrow Agreement, dated January 29, 2018, by and among MTech Acquisition Corp., MTech Sponsor LLC, and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 10.3 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
10.4
Amendment to Stock Escrow Agreement, dated June 17, 2019, by and among MTech Acquisition Corp., Akerna Corp., MTech Sponsor LLC, and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 10.4 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
10.5
Non-Competition and Non-Solicitation Agreement dated June 17, 2019, by and among Jessica Billingsley, Akerna Corp., MJ Freeway and MTech Sponsor LLC (incorporated by reference to Exhibit 10.5 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
10.6
Non-Competition and Non-Solicitation Agreement dated June 17, 2019, by and among Amy Poinsett, Akerna Corp., MJ Freeway and MTech Sponsor LLC (incorporated by reference to Exhibit 10.6 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
10.7
Form of Indemnification Agreement of Officers and Directors (incorporated by reference to Exhibit 10.7 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
10.8
Form of Subscription Agreement, by and among MTech Acquisition Corp., Akerna Corp., and each purchaser signatory thereto (incorporated by reference to Exhibit 10.8 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
II-
8
10.9
Form of Agreement to Transfer Sponsor Shares, by and among MTech Acquisition Corp., Akerna Corp., each transferee signatory thereto, and Continental Stock Transfer &Trust Company (incorporated by reference to Exhibit 10.9 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
10.10^
Employment Agreement, dated June 17, 2019, by and between Jessica Billingsley and Akerna Corp. (incorporated by reference to Exhibit 10.10 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
10.11^
MTech Acquisition Holdings Inc. 2019 Long Term Incentive Plan (incorporated by reference to Exhibit 10.5 to the registrant's Registration Statement on Form S-4 (File No. 333-228220))
10.12^
Form of Option Grant Certificate (incorporated by reference to Exhibit 10.12 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
10.13^
Form of Restricted Stock Unit Award (incorporated by reference to Exhibit 10.13 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
10.14^
Form of Stock Award (incorporated by reference to Exhibit 10.14 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
10.15^
Form of Restricted Stock Award (incorporated by reference to Exhibit 10.15 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
10.16^
Form of Appreciation Rights Award (incorporated by reference to Exhibit 10.16 on Current Report on Form 8-K filed by the registrant on June 21, 2019)
10.17
Form of Lock-Up Agreement, by and among MTech Acquisition Holdings, Inc., MTech Sponsor LLC, and each holder signatory thereto (incorporated by reference to Exhibit 10.3 to the registrant's Registration Statement on Form S-4 (File No. 333-228220))
10.18
Office Service Agreement, dated September 30, 2019, effective February 1, 2020 (incorporated by reference to Exhibit 10.1 to the registrant's Quarterly Report on Form 10-Q for the three months ended September 30, 2019
10.19
Stock Purchase Agreement, dated November 25, 2018 (incorporated by reference to Exhibit 10.1 to the registrant's Current Report on Form 8-K filed on November 26, 2019)
10.20^
Letter Agreement effective September 23, 2019 between the registrant and Nina Simosko (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on October 1, 2019)
10.21^
Letter Agreement effective September 26, 2019 between MJ Freeway, LLC and Ray Thompson (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by the registrant on October 1, 2019)
10.22
Covenant Agreement effective September 23, 2019 between Akerna Corp and Nina Simosko (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed by the registrant on October 1, 2019)
10.23
Covenant Agreement between Akerna Corp. and Ray Thompson (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed by the registrant on October 1, 2019)
10.24^
Letter Agreement dated December 17, 2019 between Akerna Corp. and John Fowle (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on December 23, 2019)
10.25
Covenant Agreement dated December 17, 2019 between Akerna Corp. and John Fowle (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by the registrant on December 23, 2019)
II-
9
10.26
Exchangeable Share Support Agreement (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on July 8, 2020)
10.27
Escrow Agreement (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by the registrant on July 8, 2020)
10.28
Rights Indenture (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed by the registrant on July 8, 2020)
10.29
Agreement and Plan of Reorganization with Navigator Acquisition Corp. dated March 10, 2021 (incorporated by reference to Exhibit 10.1 to the Form 10-Q filed by the registrant on May 21, 2021)
10.30
At-the-Market Distribution
    Agreement dated July 23, 2021 (incorporated by reference to Exhibit 10.1 to the Form 8-K filed by the registrant on July 23, 2021)
10.31
Form of Lock-Up Agreement
    (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by the registrant on October 4, 2021)
10.32
Registration Rights Agreement
with Sellers of 365 Cannabis (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed by the registrant on
October 4, 2021)
10.33
Form of Registration Rights Agreement (incorporated
by reference to Exhibit 10.5 to the Current Report on Form 8-K filed by the registrant on October 5, 2021)
10.34
Form of Voting Agreement
    (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K filed by the registrant on October 5, 2021)
10.30
Consulting Agreement, between Akerna Corp. and Larry Dean Ditto, Jr., dated April 21, 2022 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the registrant on May 16, 2022)
21.1
Subsidiaries of Akerna Corp. (incorporated by reference to Exhibit 21.1 to the Registration Statement on Form S-1 filed by the registrant on July 9, 2020)
23.1*
Consents of Marcum LLP
23.2*
*
Consent of Dorsey &
    Whitney LLP (included as Exhibit 5.1)
24.1*
Power of Attorney (included on signature page)
101.INS*
Inline XBRL Instance Document
101.SCH*
Inline XBRL Taxonomy Extension Schema Document.
101.CAL*
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*
Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*
Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
107
*
Calculation of Filing Fee Table
*
Filed
herewith.
**
To be filed by amendment.
+
The
exhibits and schedules to this Exhibit have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The registrant hereby agrees to
furnish a copy of any omitted schedules to the Commission upon request.
^
Management
compensation contract or arrangement.
II-10