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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>As
filed with the U.S. Securities and Exchange Commission on June 26, 2019</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Registration Number&nbsp;333-________</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>UNITED
STATES</B><BR>
<B>SECURITIES AND EXCHANGE COMMISSION</B><BR>
<B>Washington, D.C. 20549</B></FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="img_001.jpg" ALT=""></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>THE
OLB GROUP, INC </B><BR>
(Exact Name of Registrant as Specified in its Charter)</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 32%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="width: 2%; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 32%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>7389</B></FONT></TD>
    <TD STYLE="width: 2%; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 32%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>13-4188568</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(State
or other jurisdiction of</FONT><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">incorporation or organization)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Primary Standard
    Industrial<BR>
    Classification Code Number)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(I.R.S. Employer<BR>
    Identification No.)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>200
Park Avenue, Suite 1700</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>New
York, NY 10166</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(212)
278-0900</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Address,
Including Zip Code, and Telephone Number, Including Area Code, of Registrant&rsquo;s Principal Executive Offices)</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>200
Park Avenue, Suite 1700</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>New
York, NY 10166</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(212)
278-0900</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Name,
Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent for Service)</FONT></P>

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; width: 49%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Barry
        I. Grossman, Esq.</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>David
        Selengut, Esq.</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Ellenoff
        Grossman&nbsp;&amp; Schole&nbsp;LLP</B><BR>
        <B>1345 Avenue of the Americas</B><BR>
        <B>New York, NY 10105</B><BR>
        <B>Phone: (212)&nbsp;370-1300</B><BR>
        <B>Fax: (212)&nbsp;370-7889</B></FONT></P></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Mitchell Nussbaum,
    Esq.&nbsp;</B><BR>
    <B>Norwood P. Beveridge, Jr., Esq.&nbsp;</B><BR>
    <B>Lili Taheri, Esq.&nbsp;</B><BR>
    <B>Loeb &amp; Loeb LLP&nbsp;</B><BR>
    <B>345 Park Avenue&nbsp;</B><BR>
    <B>New York, NY 10154&nbsp;</B><BR>
    <B>Phone: (212) 407-4000&nbsp;</B><BR>
    <B>Fax: (212) 407-4990</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>Approximate date
of commencement of proposed sale to the public: </B>As soon as practicable after the effective date hereof.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If any of the securities
being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule&nbsp;415 under the Securities
Act of 1933, check the following box.&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT>&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If this Form is filed
to register additional securities for an offering pursuant to Rule&nbsp;462(b) under the Securities Act, please check the following
box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT>&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If this Form is a
post-effective amendment filed pursuant to Rule&nbsp;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.&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT>&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If this Form is a
post-effective amendment filed pursuant to Rule&nbsp;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.&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo;
&ldquo;smaller reporting company&rdquo; and &ldquo;emerging growth company&rdquo; in Rule 12b-2 of the Exchange Act.</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 22%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large&nbsp;accelerated&nbsp;filer&nbsp;&#9744;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; width: 22%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated&nbsp;filer&nbsp;&#9744;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; width: 23%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accelerated&nbsp;filer&nbsp;<FONT STYLE="font-family: Wingdings">&thorn;</FONT></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; width: 30%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller&nbsp;reporting&nbsp;company&nbsp;<FONT STYLE="font-family: Wingdings">&thorn;</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging growth company&nbsp;<FONT STYLE="font-family: Wingdings">&thorn;</FONT></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided to Section 7(a)(2)(B) of the Securities Act. &#9744;</FONT></P>

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

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

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

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

<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">Title of Each Class of Securities to be Registered</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Proposed Maximum</B><BR> <B>Aggregate offering<BR>
Price<SUP>(1)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Amount of</B><BR> <B>Registration Fee <SUP>(1)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-indent: -10pt; padding-left: 10pt">Common stock, $0.0001 par value</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">15,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,818</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 4%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Estimated
solely for the purpose of calculating the registration fee pursuant to Rule 457(a) under the Securities Act of 1933, as amended.
Includes shares of our common stock that the underwriters have the option to purchase. &nbsp;Pursuant to Rule 416 under the Securities
Act of 1933, as amended (or the Securities Act), the securities being registered hereunder include such indeterminate number of
additional shares of common stock as may be issued after the date hereof as a result of stock splits, stock dividends or similar
transactions.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="white-space: nowrap; width: 32%; text-align: left; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Red"><B>PRELIMINARY
    PROSPECTUS</B></FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="color: Red">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap; width: 32%; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Red"><B>SUBJECT
    TO COMPLETION</B></FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="color: Red">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap; width: 32%; text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Red"><B>DATED
    JUNE 26, 2019</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="img_002.jpg" ALT=""></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><B>THE
OLB GROUP, INC.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
is a public offering of shares of common stock of The OLB Group, Inc. We are offering [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
] shares of our common stock in this offering at an assumed offering price of $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]. Our common stock is currently quoted on the
Pink Open Market (f/k/a OTC Pink) published by OTC Markets Group, Inc. (&ldquo;OTC Pink&rdquo;) under the symbol &ldquo;OLBG.&rdquo;
On [&nbsp;&nbsp;&nbsp;&nbsp; ], 2019, the last reported sale price of our common stock on the OTC Pink was $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
].</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have applied to have our common stock listed on The NASDAQ Capital Market under the symbol &ldquo;OLB.&rdquo; After giving effect
to this offering, our Chief Executive Officer, Ronny Yakov, will control&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]% of the voting
power of our outstanding common stock. Because Mr. Yakov controls, and will continue to control following completion of this offering,
a majority of our outstanding voting power, we are, and will continue to be, a &ldquo;controlled company&rdquo; under the corporate
governance rules for NASDAQ-listed companies. Therefore, we are not required to have a majority of our board of directors be independent,
nor are we required to have a compensation committee or an independent nominating function.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are an &ldquo;emerging growth company&rdquo; under the federal securities laws and have elected to comply with certain reduced
public company reporting requirements.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Investing
in our common stock is speculative and involves a high degree of risk. See &ldquo;Risk Factors&rdquo; beginning on page 4. 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></FONT></P>

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

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


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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 4%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Underwriting discounts and commissions do not
    include a non-accountable&nbsp;expense allowance equal to 1.0% of the public offering price payable to the underwriters.
    We refer you to &ldquo;Underwriting&rdquo; beginning on page 66 for additional information regarding underwriters&rsquo;
    compensation.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have granted a 45 -day option to the representative of the underwriters to purchase up to an additional [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
] shares of common stock solely to cover over-allotments, if any.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
underwriters expect to deliver the shares to purchasers on or about [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], 2019.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>ThinkEquity</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>a
division of Fordham Financial Management, Inc.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
date of this prospectus is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2019</FONT></P>

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

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

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

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

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

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Page</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 91%; font: 10pt Times New Roman, Times, Serif"><A HREF="#a_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prospectus Summary</FONT></A></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 8%; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk Factors</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cautionary Note Regarding Forward-Looking Statements</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">35</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use of Proceeds</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">36</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dividend Policy</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">37</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Capitalization</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">38</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_007"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dilution</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">39</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_008"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_009"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Business</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">43</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_010"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">54</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_011"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Executive Compensation</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif">58</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_012"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Principal Stockholders</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">60</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_013"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain Relationships and Related Party Transactions</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">61</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_014"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description of Capital Stock</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">62</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_015"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares Eligible For Future Sale</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">65</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_016"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Underwriting</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif">66</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_017"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Experts</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">73</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_018"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Legal Matters</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">73</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_019"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Where You Can Find More Information</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">73</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_020"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Index to Financial Statements</FONT></A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-1</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>You
should rely only on the information contained in this prospectus. We have not authorized any other person to provide you with
information different from or in addition to that contained in this prospectus. If anyone provides you with different or inconsistent
information, you should not rely on it. We are not making an offer to sell these securities in any jurisdiction where an offer
or sale is not permitted. You should assume that the information appearing in this prospectus is accurate only as of the date
on the front cover of this prospectus. Our business, financial condition, results of operations and prospects may have changed
since that date.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>This prospectus
includes estimates, statistics and other industry data that we obtained from industry publications, research, surveys and studies
conducted by third parties and publicly available information. Such data involves a number of assumptions and limitations and
contains projections and estimates of the future performance of the industries in which we operate that are subject to a high
degree of uncertainty. This prospectus also includes data based on our own internal estimates. We caution you not to give undue
weight to such projections, assumptions and estimates.</B>&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>We use our registered
trademarks and trade names in this prospectus. This prospectus also includes trademarks, trade names and service marks that are
the property of other organizations. Solely for convenience, trademarks and trade names referred to in this prospectus do not
always appear with the &reg; and &trade; symbols, but those references are not intended to indicate that we will not assert, to
the fullest extent under applicable law, our rights, or that the applicable owner will not assert its rights, to these trademarks
and trade names. We do not intend our use or display of other companies&rsquo; trade names or trademarks to imply a relationship
with, or endorsement or sponsorship of us by, any other companies.</B></P>

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

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

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<DIV STYLE="padding: 5; border: Black 1.5pt solid; width: 98%">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_001"></A>PROSPECTUS
SUMMARY</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>This
summary highlights certain information appearing elsewhere in this prospectus. Because it is only a summary, it does not contain
all of the information that you should consider before investing in shares of our common stock and it is qualified in its entirety
by, and should be read in conjunction with, the more detailed information appearing elsewhere in this prospectus. Before you decide
to invest in our common stock, you should read the entire prospectus carefully, including &ldquo;Risk Factors&rdquo; beginning
on page 4 and the financial statements and related notes included in this prospectus.</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Prior
to the closing of this offering, we will effect a reverse stock split of the outstanding shares of our common stock at a ratio
of 1-for-[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] shares. The reverse stock split was approved by our Board of Directors and by our majority
stockholder on June 21, 2018. The share amount and per share information in this prospectus do not reflect the implementation
of the reverse stock split.</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Unless
the context indicates otherwise, as used in this prospectus, the terms &ldquo;OLB,&rdquo; &ldquo;we,&rdquo; &ldquo;us,&rdquo;
&ldquo;our,&rdquo; &ldquo;our company&rdquo; and &ldquo;our business&rdquo; refer, to The OLB Group, Inc., including its subsidiaries
named herein.</I></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are FinTech company and payment facilitator (&ldquo;PayFac&rdquo;) that focuses on a suite of products in the merchant services
and payment facilitator verticals and provides integrated business solutions to merchants throughout the United States. We seek
to accomplish this by providing merchants with a wide range of products and services through our various online platforms, including
financial and transaction processing services and support for crowdfunding and other capital raising initiatives. We supplement
our online platforms with certain hardware solutions that are integrated with our online platforms. In 2018, we were ranked 62<SUP>nd
</SUP>among merchant acquirers in the United States ranked by Visa/Mastercard volume. Our business functions primarily through
three wholly-owned subsidiaries, eVance, Inc., a Delaware corporation (&ldquo;eVance&rdquo;), OmniSoft.io, Inc., a Delaware corporation
(&ldquo;OmniSoft&rdquo;), and CrowdPay.Us, Inc., a New York corporation (&ldquo;CrowdPay&rdquo;).</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 20%; text-align: justify; font: 10pt Times New Roman, Times, Serif"><IMG SRC="img_003.jpg" ALT=""></TD>
    <TD STYLE="width: 80%; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">eVance
    is an independent sales organization (an &ldquo;ISO&rdquo;) that signs up new merchants on behalf of acquiring banks and processors
    that provides financial and transaction processing solutions to merchants throughout the United States. eVance differentiates
    itself from other ISOs by focusing on both obtaining and maintaining new merchant contracts for its own account (including,
    but not limited to, merchants that utilize the OmniSoft platform) and also obtaining and maintaining merchant contracts obtained
    by third-party ISOs (for which we negotiate a shared fee arrangement) and utilizing our own software and technology to provide
    merchants and other ISOs differentiating products and software. &nbsp;In particular, we (i) own our own payments gateway,
    (ii) have proprietary omni-commerce software platform, (iii) have in-house underwriting and customer service, (iv) have in-house
    sub-ISO management system which offers sub-ISOs and agents tools for online boarding, account management, residual reports
    among other tools, (v) utilize a PayFac model and (vi) offer a suite of products in the financial markets (through CrowdPay).
    Leveraging our relationship with three of the top five merchant processors in the United States (representing a majority of
    the merchant processing market) and with the use of our proprietary software. eVance provides competitive payment processing
    solutions to merchants which enable merchants to process credit and debit card-based internet payments for sales of their
    products at competitive prices (whether such sales occur online or at a &ldquo;brick and mortar&rdquo; location). Our payment
    gateway (which we call &ldquo;SecurePay&rdquo;) also enables merchants to reduce the cost of transacting with their customers
    by removing the need for a third-party payment gateway solution. eVance operates as both a wholesale ISO and a retail ISO
    depending on the risk profile of the merchant and the applicable merchant processor and acquiring bank. As a wholesale ISO,
    eVance underwrites the processing transactions for merchants, establishing a direct relationship with the merchant and generating
    individual merchant processing contracts in exchange for future residual payments. As a retail ISO, eVance primarily gathers
    the documents and information that our partners (acquiring banks and acquiring processors) need to underwrite merchants&rsquo;
    transactions and as a result receives only residual income as commission for merchants it places with our partners. For more
    information regarding the electronic payment industry, see &ldquo;Business&ndash;Description of our eVance Business&ndash;Our
    Industry.&rdquo;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><IMG SRC="img_004.jpg" ALT=""></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">OmniSoft operates
    a cloud-based business management platform that provides turnkey solutions for merchants to enable them to build and manage
    their retail businesses, whether online or at a &ldquo;brick and mortar&rdquo; location. The OmniSoft platform, which can
    be accessed by merchants through any mobile and computing device, allows merchants to, among other features, manage and track
    inventory, track sales and process customer transactions and can provide interactive data analysis concerning sales of products
    and need for additional inventory. Merchants generally utilize the platform by uploading to the platform information about
    their inventory (description of units, number of units, price per unit, and related information). Once such information has
    been uploaded, merchants, either with their own device or with hardware that we sell directly to them, are able to utilize
    the platform to monitor inventory and process and track sales of their products (including coordinating shipping of their
    products with third party logistics companies). We manage and maintain the OmniSoft platform through a variety of domain names
    or a merchant can integrate our platform with their own domain name. Using the OmniSoft platform, merchants can &ldquo;check-out&rdquo;
    their customers at their &ldquo;brick and mortar&rdquo; stores or can sell products to customers online, in both cases accepting
    payment via a simple credit card or debit card transaction (either swiping the credit card or entering the credit card number),
    a cash payment, or by use of a QR code or loyalty and reward points, and then print or email receipts to the customer. For
    more information regarding our OmniSoft platform, see &ldquo;Business&ndash;Description of our OmniSoft Business.&rdquo;</FONT></TD></TR>
</TABLE>
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<DIV STYLE="padding: 5; border: Black 1.5pt solid; width: 98%">
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 20%; text-align: justify; font: 10pt Times New Roman, Times, Serif"><IMG SRC="img_005.jpg" ALT=""></TD>
    <TD STYLE="width: 80%; text-align: justify; font: 10pt Times New Roman, Times, Serif">CrowdPay.us&trade; operates a white
label capital raising platform that targets small and midsized businesses seeking to raise capital and by registered broker-dealers
seeking to host capital raising campaigns for such businesses by integrating the platform onto such company&rsquo;s or broker-dealer&rsquo;s
website.&nbsp;&nbsp;Our CrowdPay platform is tailored for companies seeking to raise money through a crowdfunding offering of
between $1 million and $50 million pursuant to Regulation CF under Title III of the Jumpstart Our Business Startups (the &ldquo;JOBS
Act&rdquo;), offerings pursuant to Rule 506(b) and Rule 506(c) under Regulation D of the Securities Act of 1933, as amended (the
&ldquo;Securities Act&rdquo;), and offerings pursuant to Regulation A+ of the Securities Act.&nbsp;&nbsp;Our platform, which can
be used for multiple offerings at once, provides companies and broker-dealers with an easy-to-use, turnkey solution to support
company offerings, allowing companies and broker-dealers to easily present online to potential investors relevant marketing and
offering materials and by aiding in the accreditation and background check processes to ensure investors meets the applicable
requirements under the rules and regulations of the Securities Exchange Commission (the &ldquo;SEC&rdquo;). CrowdPay charges a
fee to each company and broker-dealer for the use of its platform under a fee structure that is agreed to between CrowdPay and
the Company and/or broker-dealer prior to the initiation of the offering. CrowdPay also generates revenues by providing ancillary
services to the companies and broker-dealers utilizing our platform, including running background checks and providing anti-money
laundering and know-your-customer compliance. CrowdPay is not a registered funding portal or a registered broker-dealer.</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Substantially all
of our revenue has been generated from our eVance business (see our financial statements and related notes included in this prospectus
and Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations for more information), but we
expect to begin generating revenue from our OmniSoft and CrowdPay business by the end of 2019. We expect to build out our OmniSoft
software business and to rely more on our PayFac model to transition away from our reliance on our eVance business but there is
no guarantee that we will be able to do so. See the section entitled &ldquo;Risk Factors&rdquo; in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Risks
Associated with our Business</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
business and ability to execute our business strategy are subject to a number of risks of which you should be aware before you
decide to buy our common stock. In particular, you should consider the following risks, which are discussed more fully in the
section entitled &ldquo;Risk Factors&rdquo; in this prospectus:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our acquisition
    of eVance and share exchange with OmniSoft and CrowdPay has collectively formed a new business platform that needs to be integrated,
    which may create certain risks and may adversely affect our business, financial condition or results of operations;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 6pt Times New Roman, Times, Serif">
    <TD STYLE="font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our failure to pay
    our outstanding indebtedness will result in a substantial loss of our assets;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 6pt Times New Roman, Times, Serif">
    <TD STYLE="font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We operate in a
    regulatory environment that is evolving and uncertain and any changes to regulations could have a material impact on our business
    and financial condition;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 6pt Times New Roman, Times, Serif">
    <TD STYLE="font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We rely on a combination
    of confidentiality clauses, assignment agreements and license agreements with employees and third parties, trade secrets,
    copyrights and trademarks to protect our intellectual property and competitive advantage, all of which offer only limited
    protection meaning that we may be unable to maintain and protect our intellectual property rights and proprietary information
    or prevent third-parties from making unauthorized use of our technology; and</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 6pt Times New Roman, Times, Serif">
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font: 6pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our growth may not
    be sustainable and depends on our ability to attract new merchants, retain existing merchants and increase sales to both new
    and existing merchants.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
giving effect to this offering, our Chief Executive Officer, Ronny Yakov, will control&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]%
of the voting power of our outstanding common stock. As a result, Mr. Yakov will have the ability to control the outcome of matters
submitted to our stockholders for approval, including the election of our directors, as well as the overall management and direction
of our company. Because Mr. Yakov controls, and will continue to control following completion of this offering, a majority of
our outstanding voting power, we are, and will continue to be, a &ldquo;controlled company&rdquo; under the corporate governance
rules for NASDAQ-listed companies. Therefore, we are not required to have a majority of our board of directors be independent,
nor are we required to have a compensation committee or an independent nominating function.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
expect our company will continue to qualify as a controlled company until such time as Mr. Yakov controls less than 50% of our
outstanding common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
were incorporated in the State of Delaware on November 18, 2004 for the purpose of merging with OLB.com, Inc., a New York corporation
incorporated in 1993 (&ldquo;OLB.com&rdquo;). The merger was done for the purpose of changing our state of incorporation from
New York to Delaware. In April 2018, we completed an acquisition of substantially all of the assets of Excel Corporation (&ldquo;Excel&rdquo;)
and its subsidiaries Payprotec Oregon, LLC, Excel Business Solutions, Inc. and eVance Processing, Inc. (such assets are the foundation
of our eVance business). In connection with such acquisition, in May 2018, we entered into share exchange agreements with CrowdPay
and OmniSoft, affiliate companies owned by Mr. Yakov and John Herzog, an affiliate of our company, pursuant to which each of CrowdPay
and OmniSoft became wholly owned subsidiaries of our company. Our Company&rsquo;s headquarters is located at 200 Park Avenue,
Suite 1700, New York, NY 10166. Our telephone number is (212) 278-0900.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>
</DIV>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>
<DIV STYLE="padding: 5; border: Black 1.5pt solid; width: 98%">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Implications
of Being an Emerging Growth Company</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
qualify as an &ldquo;emerging growth company&rdquo; as defined under the Securities Act. As a result, we are permitted to, and
intend to, rely on exemptions from certain disclosure requirements that are otherwise applicable to public companies. These provisions
include, but are not limited to:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; width: 34px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">not being required
    to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended (or the Sarbanes-Oxley
    Act);</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reduced disclosure
    obligations regarding executive compensation in our periodic reports, proxy statements and registration statements; and</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">exemptions from
    the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute
    payments not previously approved.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting
standards. This provision allows an emerging growth company to delay the adoption of some accounting standards until those standards
would otherwise apply to private companies. We have elected to avail ourselves of this extended transition period. We will remain
an emerging growth company until the earliest to occur of: (i) our reporting $1.07 billion or more in annual gross revenues; (ii)
the end of fiscal year 2024; (iii) our issuance, in a three year period, of more than $1 billion in non-convertible debt; and
(iv) the end of the fiscal year in which the market value of our common stock held by non-affiliates exceeded $700 million on
the last business day of our second fiscal quarter.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 31%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common stock offered by us</FONT></TD>
    <TD STYLE="width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 68%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common stock outstanding before this offering (1)</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common stock to be outstanding after this offering (1)</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares (or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares if the underwriters exercise their over-allotment option in full).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Over-allotment option</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have granted the underwriters a 45-day option to purchase up to an additional&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] shares of our common stock at the public offering price to cover over-allotments, if any (the &ldquo;overallotment option&rdquo;)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use of proceeds</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><P STYLE="margin: 0pt 0">We intend to use the net proceeds of this offering primarily to repay, at the discretion of our Board
of Directors, outstanding indebtedness up to [20%] of the proceeds in this offering, invest in or acquire companies or technologies
that are synergistic with or complimentary to our business, to expand and market our current products and for working capital and
other general corporate purposes. If our Board of Directors elects not to repay outstanding indebtedness with the proceeds of this
offering, such proceeds will be used for working capital and other general corporate purposes.</P> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reverse Stock Split</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prior to the closing of this offering, we will effect a reverse stock split of the outstanding shares of our common stock at a ratio of 1-for-[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] shares. The reverse stock split was approved by our Board of Directors and by our majority stockholder on June 21, 2018. The share amount and per share information in this prospectus do not reflect the implementation of the reverse stock split.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Concentration of ownership</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon completion of this offering, our executive officers and directors will beneficially own, in the aggregate, approximately&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]&nbsp;% of the outstanding shares of our common stock.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Proposed NASDAQ Capital Market symbol</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">OLB</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk Factors</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Investing in our common stock is highly speculative and involves a high degree of risk</B>. See &ldquo;Risk Factors&rdquo; beginning on page&nbsp;4 and the other information in this prospectus for a discussion of the factors you should consider carefully before you decide to invest in our common stock.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
information in this prospectus assumes the underwriters do not exercise their over-allotment option, and excludes the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,355,168 shares
    of common stock issuable upon exercise of outstanding options to purchase common stock with a weighted average exercise
    price of $0.0001 per share;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,200,000 shares
    of common stock issuable upon exercise of outstanding common stock purchase warrants with a weighted average exercise price
    of $0.25 per share; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
    shares of our common stock (which is equal to [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] % of our issued and outstanding common stock
    immediately after the consummation this offering) reserved for future issuance under our 2019 Equity Incentive Plan, which
    will become effective as of the closing of this offering.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>
</DIV>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Any
investment in our securities is highly speculative and involves a high degree of risk. You should carefully consider the risks
described below, which we believe represent certain of the material risks to our business, together with the information contained
elsewhere in this prospectus, before you make a decision to invest in our shares of common stock. 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.</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Risks
Related to Our Company</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Our acquisition
of assets of Excel and its subsidiaries Payprotec Oregon, LLC, Excel Business Solutions, Inc. and eVance Processing, Inc. and
share exchange with OmniSoft and CrowdPay has collectively formed a new business platform that needs to be integrated, which may
create certain risks and may adversely affect our business, financial condition or results of operations.</I></B>&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 9, 2018, we acquired substantially all of the assets of Excel and its subsidiaries Payprotec Oregon, LLC, Excel Business
Solutions, Inc. and eVance Processing, Inc. through a foreclosure sale conducted under the Uniform Commercial Code of the State
of New York (&ldquo;Asset Acquisition&rdquo;). Since closing the Asset Acquisition, we have been in the process of integrating
our operations with the acquired assets.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
May 9, 2018, we entered into separate share exchange agreements with the shareholders of OmniSoft and CrowdPay, affiliate companies
of our company&rsquo;s majority stockholder. Pursuant to the share exchange agreement with OmniSoft, the shareholders of OmniSoft
transferred to us all of the issued and outstanding shares of OmniSoft common stock in exchange for an aggregate of 55,000,000
shares of our common stock. Pursuant to the share exchange agreement with CrowdPay, the shareholders of CrowdPay transferred to
us all of the issued and outstanding shares of CrowdPay common stock in exchange for an aggregate of 87,500,000 shares of our
common stock. The share exchange transactions closed on May 9, 2018, on which date OmniSoft and CrowdPay became wholly owned subsidiaries
of the Company (the &ldquo;Share Exchange&rdquo;).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since
the consummation of the Asset Acquisition and the Share Exchange, we have a limited history upon which an evaluation of our performance
and future prospects can be made. Our current and proposed operations are subject to all the business risks associated with new
enterprises. These include likely fluctuations in operating results as we manage our growth and react to competitors and developments
in the markets in which we compete. As we can be considered an early stage company and have not yet generated any profits, there
is no assurance that we will be profitable in the near term or generate sufficient revenues to meet our capital requirements.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a result, we may experience interruptions of, or loss of momentum in, the activities of one or more of our combined businesses
and the possible loss of key personnel. The diversion of our management&rsquo;s attention and any delays or difficulties encountered
in connection with the integration of Excel could adversely affect our business, financial condition or results of operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
failure to raise sufficient funds may result in a default under our loan agreement with GACP and result in a substantial loss
of our assets.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In order to finance
the Asset Acquisition, we entered into a Loan and Security Agreement (as amended by Amendment No. 1 to Loan and Security Agreement
dated July 30, 2018 and Amendment No. 3 to Loan and Security Agreement dated February 5, 2019, the &ldquo;Credit Agreement&rdquo;),
dated as of April 9, 2018, by and among our subsidiaries Securus365, Inc., eVance Capital, Inc., and eVance Inc., (the &ldquo;Purchasers&rdquo;)
and GACP Finance Co., LLC, a Delaware limited liability company (&ldquo;GACP&rdquo;), as administrative agent and collateral agent
(&ldquo;Agent&rdquo;), and as the initial sole lender thereunder. Under the Credit Agreement, GACP provided a term loan of $12,500,000
(the &ldquo;Term Loan&rdquo;) to us, which obligations are guaranteed by our Company.&nbsp;&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Term Loan matures
in full on April 9, 2021, the third anniversary of the closing of the Asset Acquisition. The Term Loan can be prepaid without
penalty in part with ten (10) days&rsquo; prior written notice to the Agent, and in full with thirty (30) days&rsquo; prior written
notice. The Term Loan is subject to an interest rate of 9.0% per annum, payable monthly in arrears. OmniSoft and CrowdPay were
also each liable as a loan party under the Term Loan. To date, we have made principal payments of $1,000,000 in July 2018 and
$2,000,000 in November 2018 pursuant to the terms of the Credit Agreement (though the payments were made with the proceeds of
a subordinated promissory note in the principal amount of $3,000,000 with a maturity date of September 30, 2020 (to be extended
to September 30, 2022 simultaneous to the completion of this offering), issued to a significant stockholder of our company, which
bears interest at a rate of 12% per annum and is subordinated to the Term Loan).&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
obligations of the loan parties under the Credit Agreement are secured by all of their respective assets and the loan parties
pledged all of their assets as collateral for their obligations under the Credit Agreement. Additionally, our ownership interests
in OmniSoft, CrowdPay and the Purchasers are pledged in favor of GACP pursuant to the Term Loan.</FONT></P>


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If,
by the time our principal payments become due in 2021, we are unable to obtain sufficient financing to meet our payment obligations
under the Term Loan, we will be in default under the Credit Agreement. If not cured or waived, such default under the Credit Agreement
could enable GACP to declare all outstanding amounts under the Term Loan, together with accrued and unpaid interest and fees,
to be due and payable. In addition, GACP could also elect to foreclose on our assets securing the Term Loan. In such event, we
may not be able to refinance or repay all of its indebtedness or have sufficient liquidity to meet operating and capital expenditure
requirements. Any such acceleration of the Term Loan could cause us to lose a substantial portion of our assets and will substantially
adversely affect our ability to continue our operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
are subject to significant restrictive debt covenants, which limit our operating flexibility.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are subject to restrictive debt covenants which impose significant restrictions on the manner we and our subsidiaries operate,
including (but not limited to) restrictions on the ability to:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">create certain liens;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">incur debt and/or
    guarantees;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">enter into transactions
    other than on arm&rsquo;s-length basis;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">pay dividends or
    make certain distributions or payments;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">sell certain kinds
    of assets;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">enter into any sale
    and leaseback transactions;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">make certain investments
    or other types of restricted payments;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">substantially change
    the nature of our business; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">effect mergers,
    consolidations or sale of assets.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, our Credit Agreement also requires us to comply with a consolidated fixed charge coverage ratio and to maintain minimum
revenue for the trailing twelve month period. We have not complied with these obligations at certain times since the Credit Agreement
was entered into and were obligated to obtain certain waivers and modifications of these provisions to avoid an acceleration event
under the Credit Agreement. Our ongoing ability to comply with these covenants may be affected by events beyond our control and
these covenants could limit our ability to finance our future operations and our ability to pursue acquisitions and other business
activities.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
substantial and continuing losses, and significant operating expenses incurred in the past few years may cause us to be unable
to pursue all of our operational objectives if sufficient financing and/or additional cash from revenues is not realized. </I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have limited cash
resources, recurring cash used in operations and operating losses history. As of March 31, 2019, we had a working capital deficiency
of $783,788, and a net loss of $406,945 for the three months ended March 31, 2019. Our cash flow used in operating activities
for the period through March 31, 2019 was $113,741, while $45,000 was provided by financing from a related party. Further, while
the auditor report for December 31, 2018 did not include a substantial doubt regarding our ability to continue as a going concern,
this doubt was not included due in large part to a related party and significant stockholder commitment to provide us with additional
financial support that may be needed to satisfy the Company&rsquo;s debt or other obligations through April 2020. This same affiliate
and major stockholder also provided the funding the Company used to make recent debt repayments to certain of the Company&rsquo;s
creditors.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
may not be able to attract financing as needed, or if available, on reasonable terms as required and therefore may not be able
to accomplish our business goals or repay certain of our debts. Further, the terms of any such financing may be dilutive to existing
stockholders or otherwise on terms not favorable to us or existing stockholders. If we are unable to secure financing, as circumstances
require, or do not succeed in meeting our sales objectives, we may be required to change, significantly reduce our operations
or ultimately may not be able to continue our operations. As a result of our historical net losses and cash flow deficits, and
net capital deficiency, these conditions raise substantial doubt as to our ability to continue as a going concern.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>We
may be subject to liabilities arising prior to the Asset Acquisition under certain &ldquo;successor liability&rdquo; theories.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
acquired our business by means of a foreclosure of the relevant secured lender&rsquo;s security interest in the assets in the
Asset Acquisition through an auction under Article 9 of the Uniform Commercial Code. Although the general rule in the context
of transactions such as the Asset Acquisition is that a purchaser of assets does not assume the seller&rsquo;s liabilities, various
courts have established exceptions to this general rule, including where the purchaser is a &lsquo;mere continuation&rsquo; of the seller
and there is a &lsquo;continuity of enterprise.&rsquo; This is a highly fact specific inquiry, and there can be no assurance that
any interested creditor, the United States (through the Internal Revenue Service) or state or local taxing agencies will not seek
to hold us responsible for any existing liabilities at the time of the Asset Acquisition under one or more of these successor
liability theories, for which we have no indemnification protection under the agreements relating to the Asset Acquisition.</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>In connection
with our preparation of our financial statements, we identified material weaknesses in our internal control over financial reporting.
Any failure to maintain effective internal control over financial reporting could harm us.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our management is responsible
for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting
is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements in accordance with U.S. generally accepted accounting principles (&ldquo;GAAP&rdquo;). During the preparation of our
financial statements for both 2017 and 2018, we identified material weaknesses in our internal control over financial reporting.
Under standards established by the Public Company Accounting Oversight Board (&ldquo;PCAOB&rdquo;), a deficiency in internal control
over financial reporting exists when the design or operation of a control does not allow management or personnel, in the normal
course of performing their assigned functions, to prevent or detect misstatements on a timely basis. The PCAOB defines a material
weakness as a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable
possibility that a material misstatement of annual or interim financial statements will not be prevented, or detected and corrected,
on a timely basis.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are aware of the
following material weaknesses in internal control that could adversely affect the Company&rsquo;s ability to record, process, summarize
and report financial data:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 48px"></TD><TD STYLE="width: 34px">&#9679;</TD><TD STYLE="text-align: justify">Due to our size and limited resources, we currently do not employ the appropriate accounting personnel
to ensure (a) we maintain proper segregation of duties, (b) that all transactions are entered timely and accurately, and (c) we
properly account for complex or unusual transactions;</TD></TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 48px"></TD><TD STYLE="width: 34px">&#9679;</TD><TD STYLE="text-align: justify">Due to our size and scope of operations, we currently do not have an independent audit committee
in place; and</TD></TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 48px"></TD><TD STYLE="width: 34px">&#9679;</TD><TD STYLE="text-align: justify">Due to our size and limited resources, we have not properly documented a complete assessment of
the effectiveness of the design and operation of our internal control over financial reporting.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">See &ldquo;Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations&rdquo; for more information.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our independent registered
public accounting firm is not required to, and did not, perform an evaluation of our internal control over financial reporting
as of December&nbsp;31, 2018, in accordance with the provisions of Section 404 of the Sarbanes-Oxley&nbsp;Act. Accordingly, we
cannot assure you that we have identified all, or that we will not in the future have additional, material weaknesses.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we are unable to
assert that our internal control over financial reporting is effective, or when required in the future, if our independent registered
public accounting firm is unable to express an unqualified opinion as to the effectiveness of our internal control over financial
reporting, investors may lose confidence in the accuracy and completeness of our financial reports, the market price of our common
stock could be adversely affected and we could become subject to litigation or investigations by the stock exchange on which our
securities are listed, the SEC or other regulatory authorities, which could require additional financial and management resources.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
operate in a complex regulatory environment, and failure to comply with applicable laws and regulations could adversely affect
our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
operations are subject to a broad range of complex and evolving laws and regulations. As a result, we must perform our services
in compliance with the legal and regulatory requirements of multiple jurisdictions. Some of these laws and regulations may be
difficult to ascertain or interpret and may change from time to time. Violation of such laws and regulations could subject us
to fines and penalties, damage our reputation, constitute a breach of our client agreements, impair our ability to obtain and
renew required licenses, and decrease our profitability or competitiveness. If any of these effects were to occur, our operating
results and financial condition could be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
may not be able to integrate new technologies and provide new services in a cost-efficient manner.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
online ecommerce industry is subject to rapid and significant changes in technology, frequent new service introductions and evolving
industry standards. We cannot predict the effect of these changes on our competitive position, our profitability or the industry
generally. Technological developments may reduce the competitiveness of our networks and our software solutions and require additional
capital expenditures or the procurement of additional products that could be expensive and time consuming. In addition, new products
and services arising out of technological developments may reduce the attractiveness of our services. If we fail to adapt successfully
to technological advances or fail to obtain access to new technologies, we could lose customers and be limited in our ability
to attract new customers and/or sell new services to our existing customers. In addition, delivery of new services in a cost-efficient
manner depends upon many factors, and we may not generate anticipated revenue from such services.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Disruptions
in our networks and infrastructure may result in customer dissatisfaction, customer loss or both, which could materially and adversely
affect our reputation and business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
systems are an integral part of our customers&rsquo; business operations. It is critical for our customers, that our systems provide
a continued and uninterrupted performance. Customers may be dissatisfied by any system failure that interrupts our ability to
provide services to them. Sustained or repeated system failures would reduce the attractiveness of our services significantly
and could result in decreased demand for our services.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
face the following risks to our networks, infrastructure and software applications:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our territory can
    have significant weather events which physically damage access lines;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">power surges and
    outages, computer viruses or hacking, earthquakes, terrorism attacks, vandalism and software or hardware defects which are
    beyond our control; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unusual spikes in
    demand or capacity limitations in our or our suppliers&rsquo; networks.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Disruptions
may cause interruptions in service or reduced capacity for customers, either of which could cause us to lose customers and/or
incur expenses, and thereby adversely affect our business, revenue and cash flow.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
positioning in the marketplace as a smaller provider places a significant strain on our resources, and if not managed effectively,
could result in operational inefficiencies and other difficulties.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
positioning in the marketplace may place a significant strain on our management, operational and financial resources, and increase
demand on our systems and controls. To manage this position effectively, we must continue to implement and improve our operational
and financial systems and controls, invest in development &amp; engineering, critical systems and network infrastructure to maintain
or improve our service quality levels, purchase and utilize other systems and solutions, and train and manage our employee base.
As we proceed with our development, operational difficulties could arise from additional demand placed on customer provisioning
and support, billing and management information systems, product delivery and fulfillment, sales and marketing and administrative
resources.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
instance, we may encounter delays or cost overruns or suffer other adverse consequences in implementing new systems when required.
In addition, our operating and financial control systems and infrastructure could be inadequate to ensure timely and accurate
financial reporting.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
must attract and retain skilled personnel. If we are unable to hire and retain technical, technical sales and operational employees,
our business could be harmed.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
ability to manage our reorganization and growth will be particularly dependent on our ability to develop and retain an effective
sales force and qualified technical and managerial personnel. We need software development specialists with in-depth knowledge
of a blend of IT and telecommunications or with a blend of security and telecom. We intend to hire additional necessary employees,
including software engineers, communication engineers, project managers, sales consultants, employees and operational employees,
on a permanent basis. The competition for qualified technical sales, technical, and managerial personnel in the communications
and software industry is intense in the markets where we operate, and we may not be able to hire and retain sufficient qualified
personnel. In addition, we may not be able to maintain the quality of our operations, control our costs, maintain compliance with
all applicable regulations, and expand our internal management, technical, information and accounting systems in order to support
our desired growth, which could have an adverse impact on our operations. Volatility in the stock market and other factors could
diminish our use, and the value, of our equity awards as incentives to employees, putting us at a competitive disadvantage or
forcing us to use more cash compensation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
are dependent on the continued services and performance of our senior management and other key employees, the loss of any of whom
could adversely affect our business, operating results and financial condition.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
future performance depends on the continued services and contributions of our senior management, including our Chief Executive
Officer, Ronny Yakov and other key employees to execute on our business plan and to identify and pursue new opportunities and
product innovations. The loss of services of senior management or other key employees could significantly delay or prevent the
achievement of our strategic objectives. In addition, some of the members of our current senior management team have only been
working together for a short period of time, which could adversely impact our ability to achieve our goals. From time to time,
there may be changes in our senior management team resulting from the hiring or departure of executives, which could disrupt our
business. We do not maintain key person life insurance policies on any of our employees other than a policy providing limited
coverage on the life of our Chief Executive Officer. The loss of the services of one or more of our senior management or other
key employees for any reason could adversely affect our business, financial condition and operating results and require significant
amounts of time, training and resources to find suitable replacements and integrate them within our business, and could affect
our corporate culture.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
Chief Financial Officer is employed on a part-time basis.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Given
the current size of the Company and our operations, we have hired our Chief Financial Officer, Rachel Boulds, on a part-time basis.
In addition to her role as Chief Financial Officer, Ms. Boulds is also operating her sole accounting practice and providing outsourced
chief financial officer services for two other companies. While we believe that Ms. Boulds currently devotes adequate time to
the Company to perform the role and duties of our Chief Financial Officer, we cannot guarantee that she will continue to do so
in the future. Additionally, while we do not believe that Ms. Boulds currently faces any conflicts of interest, including conflicts
in allocating time to the Company, Ms. Boulds may face conflicts of interest in the future. If Ms. Boulds cannot devote adequate
time to the Company to fulfill her role and duties as Chief Financial Officer or if any conflicts of interest arise, it could
have a material adverse impact on our Company.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
success depends on our continued investment in research and development, the level and effectiveness of which could reduce our
profitability.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to continue to make investments in research and development and product development in seeking to sustain and improve our
competitive position and meet our customers&rsquo; needs. These investments currently include streamlining our suite of software
functionalities, including modularization and improving scalability of our integrated solutions. To maintain our competitive position,
we may need to increase our research and development investment, which could reduce our profitability and cash flows. In addition,
we cannot assure you that we will achieve a return on these investments, nor can we assure you that these investments will improve
our competitive position or meet our customers&rsquo; needs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Risks
Related to Our Business</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CROWDPAY.US,
INC.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
operate in a regulatory environment that is evolving and uncertain.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
regulatory framework for online capital formation or crowdfunding is very new. The regulations that govern the companies and broker-dealers
that utilize our platform and the investors that find investment opportunities on our platform have been in existence for a very
few years. Further, there are constant discussions among legislators and regulators with respect to changing this regulatory environment.
New laws and regulations could be adopted in the United States and abroad. Further, existing laws and regulations may be interpreted
in ways that would impact our platform, including our ability to communicate and work with investors, broker-dealers and the companies
that use our platforms&rsquo; services. For instance over the past year, there have been several attempts to modify the current
regulatory regime. Some of those suggested reforms could make it easier for anyone to sell securities (without using our platform),
or could increase our regulatory burden, including requiring us to register as a broker-dealer or funding portal before we choose
to do so. Any such changes would have a negative impact on our business.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>In
the event we are required or decide to register as a broker-dealer or funding portal, our current business model could be affected.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our current structure, we believe we are not required to register as a broker-dealer or funding portal under federal and state
laws. Further, none of our officers or our chairman has previous experience in securities markets or regulations or has passed
any related examinations or holds any accreditations. We comply with the rules surrounding funding portals and restrict our activities
and services so as to not be deemed a broker-dealer under state and federal regulations. However, if we were deemed by a relevant
authority to be acting as a broker-dealer or a funding portal, we could be subject to a variety of penalties, including fines
and rescission offers. Further, we may decide for business reasons or we may be required to register as a broker-dealer or a funding
portal, which would increase our costs, especially our compliance costs. If we are required but decide not to register as a broker-dealer
or act in association with a broker-dealer in our transactions or to register as a funding portal, we may not be able to continue
to operate under our current business model.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><B><I>We
may be liable for misstatements made by issuers on our platform.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Under
the Securities Act and the Securities and Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;), issuers making offerings
through our platform may be liable for including untrue statements of material facts or for omitting information that could make
the statements made misleading. This liability may also extend in Regulation Crowdfunding offerings to funding portals. Even though
we are not a registered funding portal, there can be no assurance that if we were sued we would prevail. Further, even if we do
succeed, lawsuits are time consuming and expensive, and being a party to such actions may cause us reputational harm that would
negatively impact our business.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
compliance is focused on U.S. laws and we have not analyzed foreign laws regarding the participation of non-U.S. residents.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Some
of the investment opportunities posted on our platform are open to non-U.S. residents. We have not researched all the applicable
foreign laws and regulations, and therefore we have not set up our structure to be compliant with all those laws. It is possible
that we may be deemed in violation of those laws, which could result in fines or penalties as well as reputational harm. This
may limit our ability in the future to assist companies in accessing money from those investors, and compliance with those laws
and regulation may limit our business operations and plans for future expansion.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
types of offerings that we expect to be posted on our platform are relatively new in an industry that is still quickly evolving</I></B><I>.</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
principal types of offerings that are posted on our platform are pursuant to Regulation A and Regulation Crowdfunding which have
only been in effect in their current form since 2015 and 2016, respectively. Our ability to penetrate the market to host these
types of offerings remains uncertain as potential issuer companies may choose to use different platforms or providers (including,
in the case of Regulation A, using their own online platform), or determine alternative methods of financing. Investors may decide
to invest their money elsewhere. Further, our potential market may not be as large, or our industry may not grow as rapidly, as
anticipated. With a smaller market than expected, we may have fewer customers. Success will likely be a factor of investing in
the development and implementation of marketing campaigns, subsequent adoption by issuer companies as well as investors, and favorable
changes in the regulatory environment.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>CrowdPay
and its providers are vulnerable to hackers and cyber-attacks.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
an internet-based business, we may be vulnerable to hackers who may access the data of the investors and the issuer companies
that utilize our platform. Further, any significant disruption in service on our platform or in our computer systems could reduce
the attractiveness of the platform and result in a loss of investors and companies interested in using our platform. Further,
we rely on a third-party technology provider to provide some of our back-up technology as well as act as our escrow agent. Any
disruptions of services or cyber-attacks either on our technology provider or on our company could harm our reputation and materially
negatively impact our financial condition and business.&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>CrowdPay
currently relies on one escrow agent and technology service provider.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
currently rely on Microsoft Azure to serve as our technology provider and all escrow accounts are held at MVB Bank, Inc. Any change
in these relationships will require us to find another technology service provider, escrow agent and escrow bank. This may cause
us delays as well as additional costs in transitioning our technology.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
are dependent on general economic conditions.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
business model is dependent on investors investing in the companies presented on our platform. Investment dollars are disposable
income. Our business model is thus dependent on national and international economic conditions. Adverse national and international
economic conditions may reduce the future availability of investment dollars, which would negatively impact revenues generated
by CrowdPay and possibly our ability to continue operations at CrowdPay. It is not possible to accurately predict the potential
adverse impacts on us, if any, of current economic conditions on its financial condition, operating results and cash flow.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
face significant market competition.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
facilitate online capital formation. Though this is a new market, we compete against a variety of entrants in the market as well
likely new entrants into the market. Some of these follow a regulatory model that is different from ours and might provide them
competitive advantages. New entrants could include those that may already have a foothold in the securities industry, including
some established broker-dealers. Further, online capital formation is not the only way to address helping start-ups raise capital,
and we have to compete with a number of other approaches, including traditional venture capital investments, loans and other traditional
methods of raising funds and companies conducting crowdfunding raises on their own websites. Additionally, some competitors and
future competitors may be better capitalized than us, which would give them a significant advantage in marketing and operations.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
revenues and profits are subject to fluctuations.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">It
is difficult to accurately forecast our revenues and operating results, and these could fluctuate in the future due to a number
of factors. These factors may include adverse changes in: number of investors and amount of investors&rsquo; dollars that utilize
our platform to make investments, the success of world securities markets, general economic conditions, our ability to market
our platform to companies and investors, headcount and other operating costs, and general industry and regulatory conditions and
requirements. Our operating results may fluctuate from year to year due to the factors listed above and others not listed. At
times, these fluctuations may be significant and could impact our ability to operate our business.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
are substantially dependent on our eVance business for revenue. If we are unable to maintain our eVance business for any reason
(including the various reasons described in the risk factors herein) or for no reason it will have a material adverse effect on
our company.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Substantially all
of our revenue has been generated from our eVance business (see our financial statements and related notes included in this prospectus
for more information), but we expect to begin generating revenue from our OmniSoft and CrowdPay business by the end of 2019. While
we expect to build out our OmniSoft software business over the next 12 to 18 months and to rely more heavily on our PayFac model
to generate revenue and to transition away from our reliance on our eVance business, there is no guarantee that we will be able
to do so. Accordingly, if we are unable to maintain our eVance business it will have a material adverse effect on our company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
ability to anticipate and respond to changing industry trends and the needs and preferences of our merchants and consumers may
adversely affect our competitiveness or the demand for our products and services.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
financial services and payments technology industries are subject to rapid technological advancements, resulting in new products
and services, including mobile payment applications and customized integrated software payment solutions, and an evolving competitive
landscape, as well as changing industry standards and merchant and consumer needs and preferences. We expect that new services
and technologies applicable to the financial services and payment technology industries will continue to emerge. These changes
may limit the competitiveness of and demand for our services. Also, our merchants and consumers continue to adopt new technology
for business and personal uses. We must anticipate and respond to these changes in order to remain competitive within our relative
markets. In addition, failure to develop value-added services that meet the needs and preferences of our merchants could adversely
affect our ability to compete effectively in our industry. Furthermore, merchants&rsquo; or consumers&rsquo; potential negative
reaction to our products and services can spread quickly through social media and damage our reputation before we have the opportunity
to respond. If we are unable to anticipate or respond to technological or industry standard changes on a timely basis, our ability
to remain competitive could be adversely affected.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Substantial
and increasingly intense competition worldwide in the financial services and payment technology industries may adversely affect
our overall business and operations.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
financial services and payment technology industries are highly competitive, and our payment services and solutions compete against
all forms of financial services and payment systems, including cash and checks, and electronic, mobile, ecommerce and integrated
payment platforms. If we are unable to differentiate ourselves from our competitors and drive value for our merchants, we may
not be able to compete effectively. Our competitors may introduce their own value-added or other innovative services or solutions
more effectively than we do, which could adversely impact our current competitive position and prospects for growth. They also
may be able to offer and provide services that we do not offer. In addition, in certain of our markets in which we operate, we
process &ldquo;on-us&rdquo; transactions whereby we receive fees as a merchant acquirer and for processing services for the issuing
bank. As competition in these markets grows, the number of transactions in which we receive fees for both of these roles may decrease,
which could reduce our revenue and margins in these jurisdictions. We also compete against new entrants that have developed alternative
payment systems, ecommerce payment systems, payment systems for mobile devices and customized integrated software payment solutions.
Failure to compete effectively against any of these competitive threats could adversely affect our business, financial condition
or results of operations. In addition, some of our competitors are larger and have greater financial resources than us, enabling
them to maintain a wider range of product offerings, mount extensive promotional campaigns and be more aggressive in offering
products and services at lower rates, which may adversely affect our business, financial condition or results of operations.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Potential
changes in the competitive landscape, including disintermediation from other participants in the payments chain, could harm our
business.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
expect that the competitive landscape will continue to change, including:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">rapid and significant
    changes in technology, resulting in new and innovative payment methods and programs, that could place us at a competitive
    disadvantage and reduce the use of our products and services;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">competitors, merchants,
    governments and other industry participants may develop products and services that compete with or replace our value-added
    products and services, including products and services that enable card networks and banks to transact with consumers directly;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">participants in
    the financial services and payment technology industries may merge, create joint ventures, or form other business combinations
    that may strengthen their existing business services or create new payment services that compete with our services; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">new services and
    technologies that we develop may be impacted by industry-wide solutions and standards, including chip technology, tokenization,
    Blockchain and other safety and security technologies.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Failure
to compete effectively against any of these or other competitive threats could adversely affect our business, financial condition
or results of operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Global
economic, political and other conditions may adversely affect trends in consumer, business and government spending, which may
adversely impact the demand for our services and our revenue and profitability.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
financial services and payment technology industries in which we operate depend heavily upon the overall level of consumer, business
and government spending. A sustained deterioration in general economic conditions (including distress in financial markets, turmoil
in specific economies around the world and additional government intervention), particularly in North America or Europe, or increases
in interest rates in key countries in which we operate, may adversely affect our financial performance by reducing the number
or average purchase amount of transactions we process. A reduction in the amount of consumer spending could result in a decrease
of our revenue and profits.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adverse
economic trends may accelerate the timing, or increase the impact of, risks to our financial performance. These trends could include:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">declining economies,
    foreign currency fluctuations and the pace of economic recovery can change consumer spending behaviors, such as cross-border
    travel patterns, on which the majority of our revenue is dependent;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">low levels of consumer
    and business confidence typically associated with recessionary environments, and those markets experiencing relatively high
    unemployment, may result in decreased spending by cardholders;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">budgetary concerns
    in the United States and other countries around the world could affect the United States and other specific sovereign credit
    ratings, impact consumer confidence and spending, and increase the risks of operating in those countries;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">emerging market
    economies tend to be more volatile than the more established markets we serve in North America and Europe, and adverse economic
    trends may be more pronounced in those emerging markets where we conduct business;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">financial institutions
    may restrict credit lines to cardholders or limit the issuance of new cards to mitigate cardholder credit concerns;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">uncertainty and
    volatility in the performance of our merchants&rsquo; businesses may make estimates of our revenues and financial performance
    less predictable;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">cardholders may
    decrease spending for value-added services we market and sell; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">government intervention,
    including the effect of laws, regulations and government investments in our merchants, may have potential negative effects
    on our business and our relationships with our merchants or otherwise alter their strategic direction away from our products
    and services.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
are subject to U.S. governmental regulation and other legal obligations, particularly related to privacy, data protection and
information security, and consumer protection laws across different markets where we conduct our business. Our actual or perceived
failure to comply with such obligations could harm our business.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the United States, we are subject to various consumer protection laws (including laws on disputed transactions) and related regulations.
If we are found to have breached any consumer protection laws or regulations in any such market, we may be subject to enforcement
actions that require us to change our business practices in a manner which may negatively impact revenue, as well as litigation,
fines, penalties and adverse publicity that could cause our customers to lose trust in us, which could have an adverse effect
on our reputation and business in a manner that harms our financial position.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
collect personally identifiable information and other data from our consumers and merchants. Laws and regulations in several countries
restrict certain collection, processing, storage, use, disclosure and security of personal information, require notice to individuals
of privacy practices, and provide individuals with certain rights to prevent use and disclosure of protected information.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Future
restrictions on the collection, use, sharing or disclosure of personally identifiable information or additional requirements and
liability for security and data integrity could require us to modify our solutions and features, possibly in a material manner,
and could limit our ability to develop new services and features. If our privacy or data security measures fail to comply with
applicable current or future laws and regulations, we may be subject to litigation, regulatory investigations, enforcement notices
requiring us to change the way we use personal data or our marketing practices, fines or other liabilities, as well as negative
publicity and a potential loss of business.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
inability to protect our systems and data from continually evolving cybersecurity risks or other technological risks could affect
our reputation among our merchants and consumers and may expose us to liability.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
conducting our business, we process, transmit and store sensitive business information and personal information about our merchants,
consumers, sales and financial institution partners, vendors, and other parties. This information may include account access credentials,
credit and debit card numbers, bank account numbers, social security numbers, driver&rsquo;s license numbers, names and addresses
and other types of sensitive business or personal information. Some of this information is also processed and stored by our merchants,
sales and financial institution partners, third-party service providers to whom we outsource certain functions and other agents,
which we refer to collectively as our associated third parties. We have certain responsibilities to card networks and their member
financial institutions for any failure, including the failure of our associated third parties, to protect this information.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are a regular target of malicious third-party attempts to identify and exploit system vulnerabilities, and/or penetrate or bypass
our security measures, in order to gain unauthorized access to our networks and systems or those of our associated third parties.
Such access could lead to the compromise of sensitive, business, personal or confidential information. As a result, we proactively
employ multiple methods at different layers of our systems to defend our systems against intrusion and attack and to protect the
data we collect. However, we cannot be certain that these measures will be successful and will be sufficient to counter all current
and emerging technology threats that are designed to breach our systems in order to gain access to confidential information.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
computer systems and our associated third parties&rsquo; computer systems have been, and could be in the future, subject to breach,
and our data protection measures may not prevent unauthorized access. The techniques used to obtain unauthorized access, disable
or degrade service, or sabotage systems change frequently and are often difficult to detect. Threats to our systems and our associated
third parties&rsquo; systems can derive from human error, fraud or malice on the part of employees or third parties, or may result
from accidental technological failure. Computer viruses and other malware can be distributed and could infiltrate our systems
or those of our associated third parties. In addition, denial of service or other attacks could be launched against us for a variety
of purposes, including to interfere with our services or create a diversion for other malicious activities. Our defensive measures
may not prevent downtime, unauthorized access or use of sensitive data. While we maintain cyber errors and omissions insurance
coverage that may cover certain aspects of cyber risks, our insurance coverage may be insufficient to cover all losses. Further,
while we select our associated third parties carefully, we do not control their actions. Any problems experienced by these third
parties, including those resulting from breakdowns or other disruptions in the services provided by such parties or cyber-attacks
and security breaches, could adversely affect our ability to service our merchant customers or otherwise conduct our business.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
could also be subject to liability for claims relating to misuse of personal information, such as unauthorized marketing purposes
and violation of data privacy laws. We cannot provide assurance that the contractual requirements related to security and privacy
that we impose on our service providers who have access to customer and consumer data will be followed or will be adequate to
prevent the unauthorized use or disclosure of data. In addition, we have agreed in certain agreements to take certain protective
measures to ensure the confidentiality of merchant and consumer data. The costs of systems and procedures associated with such
protective measures may increase and could adversely affect our ability to compete effectively. Any failure to adequately enforce
or provide these protective measures could result in liability, protracted and costly litigation, governmental and card network
intervention and fines and, with respect to misuse of personal information of our merchants and consumers, lost revenue and reputational
harm.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
type of security breach, attack or misuse of data described above or otherwise, whether experienced by us or an associated third
party, could harm our reputation and deter existing and prospective merchants from using our services or from making electronic
payments generally, increase our operating expenses in order to contain and remediate the incident, expose us to unbudgeted or
uninsured liability, disrupt our operations (including potential service interruptions), distract our management, increase our
risk of regulatory scrutiny, result in the imposition of penalties and fines under state, federal and foreign laws or by card
networks and adversely affect our continued card network registration and financial institution sponsorship. If we were to be
removed from networks&rsquo; lists of PCI DSS compliant service providers, our existing merchants, sales and financial institution
partners or other third parties may cease using or referring our services. Also, prospective merchants, sales partners, financial
institution partners or other third parties may choose to terminate their relationship with us, or delay or choose not to consider
us for their processing needs. In addition, card networks could refuse to allow us to process through their networks.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
may experience failures in our processing systems due to software defects, computer viruses and development delays, which could
damage customer relations and expose us to liability.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
core business depends heavily on the reliability of our processing systems. A system outage or other failure could adversely affect
our business, financial condition or results of operations, including by damaging our reputation or exposing us to third-party
liability. Card network rules and certain governmental regulations allow for possible penalties if our systems do not meet certain
operating standards. To successfully operate our business, we must be able to protect our processing and other systems from interruption,
including from events that may be beyond our control. Events that could cause system interruptions include fire, natural disaster,
unauthorized entry, power loss, telecommunications failure, computer viruses, terrorist acts and war. Although we have taken steps
to protect against data loss and system failures, there is still risk that we may lose critical data or experience system failures.
To help protect against these events, we perform a significant portion of disaster recovery operations ourselves, as well as utilize
select third parties for certain operations, particularly outside of the United States. To the extent we outsource any disaster
recovery functions, we are at risk of the vendor&rsquo;s unresponsiveness or other failures in the event of breakdowns in our
systems. In addition, our property and business interruption insurance may not be adequate to compensate us for all losses or
failures that may occur.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
products and services are based on sophisticated software and computing systems that are constantly evolving. We often encounter
delays and cost overruns in developing changes implemented to our systems. In addition, the underlying software may contain undetected
errors, viruses or defects. Defects in our software products and errors or delays in our processing of electronic transactions
could result in additional development costs, diversion of technical and other resources from our other development efforts, loss
of credibility with current or potential merchants, harm to our reputation or exposure to liability claims. In addition, we rely
on technologies supplied to us by third parties that may also contain undetected errors, viruses or defects that could adversely
affect our business, financial condition or results of operations. Although we attempt to limit our potential liability for warranty
claims through disclaimers in our software documentation and limitation of liability provisions in our licenses and other agreements
with our merchants and partners, we cannot assure that these measures will be successful in limiting our liability. Additionally,
we and our merchants and partners are subject to card network rules. If we do not comply with card network requirements or standards,
we may be subject fines or sanctions, including suspension or termination of our registrations and licenses necessary to conduct
business.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Degradation
of the quality of the products and services we offer, including support services, could adversely impact our ability to attract
and retain merchants and partners.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
merchants and partners expect a consistent level of quality in the provision of our products and services. The support services
we provide are a key element of the value proposition to our merchants and partners. If the reliability or functionality of our
products and services is compromised or the quality of those products or services is otherwise degraded, or if we fail to continue
to provide a high level of support, we could lose existing merchants and partners and find it harder to attract new merchants
and partners. If we are unable to scale our support functions to address the growth of our merchant and partner network, the quality
of our support may decrease, which could adversely affect our ability to attract and retain merchants and partners.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Acquisitions
create certain risks and may adversely affect our business, financial condition or results of operations.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may make acquisitions of businesses or assets in the future. The acquisition and integration of businesses or assets involve a
number of risks. These risks include valuation (determining a fair price for the business or assets), integration (managing the
process of integrating the acquired business&rsquo; people, products, technology and other assets to extract the value and synergies
projected to be realized in connection with the acquisition), regulation (obtaining regulatory or other government approvals that
may be necessary to complete the acquisition) and due diligence (including identifying risks to the prospects of the business,
including undisclosed or unknown liabilities or restrictions to be assumed in the acquisition).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
process of integrating operations could cause an interruption of, or loss of momentum in, the activities of one or more of our
combined businesses and the possible loss of key personnel. The diversion of management&rsquo;s attention and any delays or difficulties
encountered in connection with acquisitions and their integration could adversely affect our business, financial condition or
results of operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Continued
consolidation in the banking industry could adversely affect our growth.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
banking industry remains subject to consolidation regardless of overall economic conditions. In addition, in times of economic
distress, various regulators in the markets we serve have acquired and in the future may acquire financial institutions, including
banks with which we partner. If a current financial institution referral partner of ours is acquired by another bank, the acquiring
bank may seek to terminate our agreement and impose its own merchant services program on the acquired bank. If a financial institution
referral partner acquires another bank, our financial institution referral partner may take the opportunity to conduct a competitive
bidding process to determine whether to maintain our merchant acquiring services or switch to another provider. In either situation,
we may be unable to retain the relationship post-acquisition, or may have to offer financial concessions to do so, which could
adversely affect our results of operations or growth. If a current financial institution referral partner of ours is acquired
by a regulator, the regulator may seek to alter the terms or terminate our existing agreement with the acquired financial institution.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Increased
customer, referral partner or sales partner attrition could cause our financial results to decline.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
experience attrition in merchant credit and debit card processing volume resulting from several factors, including business closures,
transfers of merchants&rsquo; accounts to our competitors, unsuccessful contract renewal negotiations and account closures that
we initiate for various reasons, such as heightened credit risks or contract breaches by merchants. In addition, if an existing
sales partner switches to another payment processor, terminates our services, internalizes payment processing functions that we
perform, merges with or is acquired by one of our competitors, or shuts down or becomes insolvent, we may no longer receive new
customer referrals from the sales partner, and we risk losing existing merchants that were originally enrolled by the sales partner.
We cannot predict the level of attrition in the future and it could increase. Our referral partners are a significant source of
new business. Higher than expected attrition could adversely affect our business, financial condition or results of operations.
In addition, in certain of the markets in which we conduct business, a substantial portion of our revenue is derived from long-term
contracts. If we are unable to renew our referral partner and our merchant contracts on favorable terms, or at all, our business,
financial condition or results of operations could be adversely affected.</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
incur chargeback liability when our merchants refuse to or cannot reimburse chargebacks resolved in favor of their customers.
Any increase in chargebacks not paid by our merchants may adversely affect our business, financial condition or results of operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the event a dispute between a cardholder and a merchant is not resolved in favor of the merchant, the transaction is normally
charged back to the merchant and the purchase price is credited or otherwise refunded to the cardholder. If we are unable to collect
such amounts from the merchant&rsquo;s account or reserve account (if applicable), or if the merchant refuses or is unable, due
to closure, bankruptcy or other reasons, to reimburse us for a chargeback, we are responsible for the amount of the refund paid
to the cardholder. The risk of chargebacks is typically greater with those merchants that promise future delivery of goods and
services rather than delivering goods or rendering services at the time of payment, as well as &ldquo;card not present&rdquo;
transactions in which consumers do not physically present cards to merchants in connection with the purchase of goods and services,
such as ecommerce, telephonic and mobile transactions. We may experience significant losses from chargebacks in the future. Any
increase in chargebacks not paid by our merchants could have a material adverse effect on our business, financial condition or
results of operations. We have policies and procedures to monitor and manage merchant-related credit risks and often mitigate
such risks by requiring collateral (such as cash reserves) and monitoring transaction activity. Notwithstanding our policies and
procedures for managing credit risk, it is possible that a default on such obligations by one or more of our merchants could adversely
affect our business, financial condition or results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Failure
to maintain or collect reimbursements from our financial institution referral partners could adversely affect our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain
of our long-term referral arrangements with our financial institution partners permit our bank partners to offer their merchant
customers lower rates for processing services than we typically provide to the general market. If a bank partner elects to offer
these lower rates, under our contract the partner is required to reimburse us for the full amount of the discount provided to
its merchant customers. Notwithstanding such contractual commitments, there can be no assurance that these contractual provisions
will fully protect us from potential losses should a bank partner default on its obligations to reimburse us or seek to discontinue
such reimbursement obligations in the future. If we are unable to collect the full amount of any such reimbursements for any reason,
we may incur losses. In addition, any discount provided by our financial institution partner may cause merchants in these markets
to demand lower rates for our services in the future, which could further reduce our margins or cause us to lose merchants, either
of which could adversely affect our business, financial condition or results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Fraud
by merchants or others could adversely affect our business, financial condition or results of operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may be liable for certain fraudulent transactions and credits initiated by merchants or others. Examples of merchant fraud include
merchants or other parties knowingly using a stolen or counterfeit credit or debit card, card number, or other credentials to
record a false sales or credit transaction, processing an invalid card or intentionally failing to deliver the merchandise or
services sold in an otherwise valid transaction. Criminals are using increasingly sophisticated methods to engage in illegal activities
such as counterfeiting and fraud. Failure to effectively manage risk and prevent fraud could increase our chargeback liability
or cause us to incur other liabilities. It is possible that incidents of fraud could increase in the future. Increases in chargebacks
or other liabilities could adversely affect our business, financial condition or results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Because
we rely on third-party vendors to provide products and services, we could be adversely impacted if they fail to fulfill their
obligations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
depend on third-party vendors and partners to provide us with certain products and services, including components of our computer
systems, software, data centers and telecommunications networks, to conduct our business. For example, we rely on third parties
for services such as organizing and accumulating certain daily transaction data on a merchant-by-merchant and card issuer-by-card
issuer basis and forwarding the accumulated data to the relevant card network. We also rely on third parties for specific software
and hardware used in providing our products and services. Some of these organizations and service providers are our competitors
or provide similar services and technology to our competitors, and we do not have long-term or exclusive contracts with them.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
systems and operations or those of our third-party vendors and partners could be exposed to damage or interruption from, among
other things, fire, natural disaster, power loss, telecommunications failure, unauthorized entry, computer viruses, denial-of-service
attacks, acts of terrorism, human error, vandalism or sabotage, financial insolvency, bankruptcy and similar events. In addition,
we may be unable to renew our existing contracts with our most significant vendors and partners or our vendors and partners may
stop providing or otherwise supporting the products and services we obtain from them, and we may not be able to obtain these or
similar products or services on the same or similar terms as our existing arrangements, if at all. The failure of our vendors
and partners to perform their obligations and provide the products and services we obtain from them in a timely manner for any
reason could adversely affect our operations and profitability due to, among other consequences:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">loss of revenues;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">loss of merchants
    and partners;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">loss of merchant
    and cardholder data;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">fines imposed by
    card networks;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">harm to our business
    or reputation resulting from negative publicity;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">exposure to fraud
    losses or other liabilities;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">additional operating
    and development costs; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">diversion of management,
    technical and other resources.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
risk management policies and procedures may not be fully effective in mitigating our risk exposure in all market environments
or against all types of risk.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
operate in a rapidly changing industry. Accordingly, our risk management policies and procedures may not be fully effective to
identify, monitor and manage all risks our business encounters. If our policies and procedures are not fully effective or we are
not successful in identifying and mitigating all risks to which we are or may be exposed, we may suffer uninsured liability, harm
to our reputation or be subject to litigation or regulatory actions that could adversely affect our business, financial condition
or results of operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>A
significant number of our merchants are small- and medium-sized businesses and small affiliates of large companies, which can
be more difficult and costly to retain than larger enterprises and may increase the impact of economic fluctuations on us.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
market and sell our products and services to, among others, small and midsized businesses (&ldquo;SMBs&rdquo;) and small affiliates
of large companies. To continue to grow our revenue, we must add merchants, sell additional services to existing merchants and
encourage existing merchants to continue doing business with us. However, retaining SMBs can be more difficult than retaining
large enterprises as SMB merchants:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">often have higher
    rates of business failures and more limited resources;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">are typically less
    sophisticated in their ability to make technology-related decisions based on factors other than price;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">may have decisions
    related to the choice of payment processor dictated by their affiliated parent entity; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">are more able to
    change their payment processors than larger organizations dependent on our services.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SMBs
are typically more susceptible to the adverse effects of economic fluctuations. Adverse changes in the economic environment or
business failures of our SMB merchants may have a greater impact on us than on our competitors who do not focus on SMBs to the
extent that we do. As a result, we may need to attract and retain new merchants at an accelerated rate or decrease our expenses
to reduce negative impacts on our business, financial condition and results of operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
business depends on a strong and trusted brand, and damage to our reputation, or the reputation of our partners, could adversely
affect our business, financial condition or results of operations.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
market our products and services under our brand or the brand of our partners, or both, and we must protect and grow the value
of our brand to continue to be successful in the future. If an incident were to occur that damages our reputation, or the reputation
of our partners, in any of our major markets, the value of our brand could be adversely affected and our business could be damaged.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
ability to recruit, retain and develop qualified personnel is critical to our success and growth.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
of our businesses function at the intersection of rapidly changing technological, social, economic and regulatory environments
that require a wide range of expertise and intellectual capital. For us to successfully compete and grow, we must recruit, retain
and develop personnel who can provide the necessary expertise across a broad spectrum of intellectual capital needs. In addition,
we must develop, maintain and, as necessary, implement appropriate succession plans to assure we have the necessary human resources
capable of maintaining continuity in our business. The market for qualified personnel is competitive and we may not succeed in
recruiting additional personnel or may fail to effectively replace current personnel who depart with qualified or effective successors.
Our effort to retain and develop personnel may also result in significant additional expenses, which could adversely affect our
profitability. We cannot assure that key personnel, including our executive officers, will continue to be employed or that we
will be able to attract and retain qualified personnel in the future. Failure to recruit, retain or develop qualified personnel
could adversely affect our business, financial condition or results of operations.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>There
may be a decline in the use of cards as a payment mechanism for consumers or adverse developments with respect to the card industry
in general.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
consumers do not continue to use credit or debit cards as a payment mechanism for their transactions or if there is a change in
the mix of payments between cash, credit cards and debit cards our business could be adversely affected. Consumer credit risk
may make it more difficult or expensive for consumers to gain access to credit facilities such as credit cards. Regulatory changes
may result in financial institutions seeking to charge their customers additional fees for use of credit or debit cards. Such
fees may result in decreased use of credit or debit cards by cardholders. We believe future growth in the use of credit and debit
cards and other electronic payments will be driven by the cost, ease-of-use and quality of services offered to consumers and businesses.
In order to consistently increase and maintain our profitability, consumers and businesses must continue to use electronic payment
methods that we process, including credit and debit cards.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Increases
in card network fees and other changes to fee arrangements may result in the loss of merchants or a reduction in our earnings.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
time to time, card networks, including Visa and MasterCard, increase the fees that they charge processors. We could attempt to
pass these increases along to our merchants, but this strategy might result in the loss of merchants to our competitors who do
not pass along the increases. If competitive practices prevent us from passing along the higher fees to our merchants in the future,
we may have to absorb all or a portion of such increases, which may increase our operating costs and reduce our earnings.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, in certain of our markets, card issuers pay merchant acquirers such as us fees based on debit card usage in an effort
to encourage debit card use. If these card issuers discontinue this practice, our revenue and margins in these jurisdictions could
be adversely affected.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If
we fail to comply with the applicable requirements of card networks, they could seek to fine us, suspend us or terminate our registrations.
If our merchants or sales partners incur fines or penalties that we cannot collect from them, we may have to bear the cost of
such fines or penalties.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
order to provide our transaction processing services, several of our subsidiaries are registered with Visa and MasterCard and
other card networks as members or service providers for member institutions. Visa, MasterCard, and other card networks, set the
rules and standards with which we must comply. The termination of our member registration or our status as a certified service
provider, or any changes in network rules or standards, including interpretation and implementation of the rules or standards,
that increase the cost of doing business or limit our ability to provide transaction processing services to or through our merchants
or partners, could adversely affect our business, financial condition or results of operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
such, we and our merchants are subject to card network rules that could subject us or our merchants to a variety of fines or penalties
that may be levied by card networks for certain acts or omissions by us. The rules of card networks are set by their boards, which
may be influenced by card issuers, and some of those issuers are our competitors with respect to these processing services. Many
banks directly or indirectly sell processing services to merchants in direct competition with us. These banks could attempt, by
virtue of their influence on the networks, to alter the networks&rsquo; rules or policies to the detriment of non-members including
certain of our businesses. The termination of our registrations or our status as a service provider or a merchant processor, or
any changes in network rules or standards, including interpretation and implementation of the rules or standards, that increase
the cost of doing business or limit our ability to provide transaction processing services to our merchants, could adversely affect
our business, financial condition or results of operations. If a merchant or sales partner fails to comply with the applicable
requirements of card networks, it could be subject to a variety of fines or penalties that may be levied by card networks. If
we cannot collect the amounts from the applicable merchant or sales partner, we may have to bear the cost of the fines or penalties,
resulting in lower earnings for us. The termination of our registration, or any changes in card network rules that would impair
our registration, could require us to stop providing payment processing services relating to the affected card network, which
would adversely affect our ability to conduct our business.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>OMNISOFT.IO,
INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 15pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
growth may not be sustainable and depends on our ability to attract new merchants, retain existing merchants and increase sales
to both new and existing merchants.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
principally generate revenues through the sale of subscriptions to our platform and the sale of additional solutions to our merchants.
Our subscription plans typically have a one-month term, although a small percentage of our merchants have annual or multi-year
subscription terms. Our merchants have no obligation to renew their subscriptions after their subscription term expires. As a
result, even though the number of merchants using our platform has grown rapidly in recent years, there can be no assurance that
we will be able to retain these merchants. We have historically experienced merchant turnover as a result of many of our merchants
being small- and medium-sized businesses, or SMBs, that are more susceptible than larger businesses to general economic conditions
and other risks affecting their businesses. Many of these SMBs are in the entrepreneurial stage of their development and there
is no guarantee that their businesses will succeed. Our costs associated with subscription renewals are substantially lower than
costs associated with generating revenue from new merchants or costs associated with generating sales of additional solutions
to existing merchants. Therefore, if we are unable to retain merchants or if we are unable to increase revenues from existing
merchants, even if such losses are offset by an increase in new merchants or an increase in other revenues, our operating results
could be adversely impacted.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may also fail to attract new merchants, retain existing merchants or increase sales to both new and existing merchants as a result
of a number of other factors, including: reductions in our current or potential merchants&rsquo; spending levels; competitive
factors affecting the software as a service, or SaaS, business software applications market, including the introduction of competing
platforms, discount pricing and other strategies that may be implemented by our competitors; our ability to execute on our growth
strategy and operating plans; a decline in our merchants&rsquo; level of satisfaction with our platform and merchants&rsquo; usage
of our platform; the difficulty and cost to switch to a competitor may not be significant for many of our merchants; changes in
our relationships with third parties, including our partners, app developers, theme designers, referral sources and payment processors;
the timeliness and success of new products and services we may offer in the future; the frequency and severity of any system outages;
technological change; and our focus on long-term value over short-term results, meaning that we may make strategic decisions that
may not maximize our short-term revenue or profitability if we believe that the decisions are consistent with our mission and
will improve our financial performance over the long-term.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
we anticipate that our growth rate will decline over time to the extent that the number of merchants using our platform increases
and we achieve higher market penetration rates. To the extent our growth rate slows, our business performance will become increasingly
dependent on our ability to retain existing merchants and increase sales to existing merchants.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If
we fail to improve and enhance the functionality, performance, reliability, design, security and scalability of our platform in
a manner that responds to our merchants&rsquo; evolving needs, our business may be adversely affected.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
markets in which we compete are characterized by constant change and innovation and we expect them to continue to evolve rapidly.
Our success has been based on our ability to identify and anticipate the needs of our merchants and design a platform that provides
them with the tools they need to operate their businesses. Our ability to attract new merchants, retain existing merchants and
increase sales to both new and existing merchants will depend in large part on our ability to continue to improve and enhance
the functionality, performance, reliability, design, security and scalability of our platform.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may experience difficulties with software development that could delay or prevent the development, introduction or implementation
of new solutions and enhancements. Software development involves a significant amount of time for our research and development
team, as it can take our developers months to update, code and test new and upgraded solutions and integrate them into our platform.
We must also continually update, test and enhance our software platform. For example, our design team spends a significant amount
of time and resources incorporating various design enhancements, such as customized colors, fonts, content and other features,
into our platform. The continual improvement and enhancement of our platform requires significant investment and we may not have
the resources to make such investment. Our improvements and enhancements may not result in our ability to recoup our investments
in a timely manner, or at all. To the extent we are not able to improve and enhance the functionality, performance, reliability,
design, security and scalability of our platform in a manner that responds to our merchants&rsquo; evolving needs, our business,
operating results and financial condition will be adversely affected.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
store personally identifiable information of our merchants and their customers. If the security of this information is compromised
or otherwise subjected to unauthorized access, our reputation may be harmed and we may be exposed to liability.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
store personally identifiable information, credit card information and other confidential information of our merchants and their
customers. The third-party apps sold on our platform may also store personally identifiable information, credit card information
and other confidential information of our merchants and their customers. We do not regularly monitor or review the content that
our merchants upload and store and, therefore, do not control the substance of the content on our servers, which may include personal
information. We may experience successful attempts by third parties to obtain unauthorized access to the personally identifiable
information of our merchants and their customers. This information could also be otherwise exposed through human error, malfeasance
or otherwise. The unauthorized access or compromise of this personally identifiable information could have a material adverse
effect on our business, financial condition and results of operations. Even if such a data breach were to affect one or more of
our competitors, the resulting consumer concern could negatively affect our merchants and our business.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are also subject to federal, state, provincial and foreign laws regarding privacy and protection of data. Some jurisdictions have
enacted laws requiring companies to notify individuals of data security breaches involving certain types of personal data and
our agreements with certain merchants require us to notify them in the event of a security incident. We post on our website our
privacy policy and terms of service, which describe our practices concerning the use, transmission and disclosure of merchant
data and data relating to their customers. In addition, the interpretation of data protection laws in the United States, and elsewhere,
and their application to the internet, is unclear and in a state of flux. There is a risk that these laws may be interpreted and
applied in conflicting ways from jurisdiction to jurisdiction, and in a manner that is not consistent with our current data protection
practices. Changes to such data protection laws may impose more stringent requirements for compliance and impose significant penalties
for non-compliance. Any such new laws or regulations, or changing interpretations of existing laws and regulations, may cause
us to incur significant costs and expend significant effort to ensure compliance. Because our services are accessible worldwide,
certain foreign jurisdictions may claim that we are required to comply with their laws, including in jurisdictions where we have
no local entity, employees or infrastructure.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
failure to comply with federal, state, provincial and foreign laws regarding privacy and protection of data could lead to significant
fines and penalties imposed by regulators, as well as claims by our merchants or their customers. These proceedings or violations
could force us to spend money in defense or settlement of these proceedings, result in the imposition of monetary liability, diversion
of management&rsquo;s time and attention, increase our costs of doing business, and materially adversely affect our reputation
and the demand for our solutions. In addition, if our security measures fail to protect credit card information adequately, we
could be liable to both our merchants and their customers for their losses, as well as our payments processing partners under
our agreements with them. As a result, we could be subject to fines and higher transaction fees, we could face regulatory action,
and our merchants could end their relationships with us. There can be no assurance that the limitations of liability in our contracts
would be enforceable or adequate or would otherwise protect us from any such liabilities or damages with respect to any particular
claim. We also cannot be sure that our existing insurance coverage and coverage for errors and omissions will continue to be available
on acceptable terms or will be available in sufficient amounts to cover one or more large claims, or that our insurers will not
deny coverage as to any future claim. The successful assertion of one or more large claims against us that exceeds our available
insurance coverage, or changes in our insurance policies, including premium increases or the imposition of large deductible or
co-insurance requirements, could have an adverse effect on our business, financial condition and results of operations.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If
our software contains serious errors or defects, we may lose revenue and market acceptance and may incur costs to defend or settle
claims with our merchants.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Software
such as ours often contains errors, defects, security vulnerabilities or software bugs that are difficult to detect and correct,
particularly when first introduced or when new versions or enhancements are&nbsp;released. Despite internal testing, our platform
may contain serious errors or defects, security vulnerabilities or software bugs that we may be unable to successfully correct
in a timely manner or at all, which could result in lost revenue, significant expenditures of capital, a delay or loss in market
acceptance and damage to our reputation and brand, any of which could have an adverse effect on our business, financial condition
and results of operations. Furthermore, our platform is a multi-tenant cloud based system that allows us to deploy new versions
and enhancements to all of our merchants simultaneously. To the extent we deploy new versions or enhancements that contain errors,
defects, security vulnerabilities or software bugs to all of our merchants simultaneously, the consequences would be more severe
than if such versions or enhancements were only deployed to a smaller number of our merchants.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since
our merchants use our services for processes that are critical to their businesses, errors, defects, security vulnerabilities,
service interruptions or software bugs in our platform could result in losses to our merchants. Our merchants may seek significant
compensation from us for any losses they suffer or cease conducting business with us altogether. Further, a merchant could share
information about bad experiences on social media, which could result in damage to our reputation and loss of future sales. There
can be no assurance that provisions typically included in our agreements with our merchants that attempt to limit our exposure
to claims would be enforceable or adequate or would otherwise protect us from liabilities or damages with respect to any particular
claim. Even if not successful, a claim brought against us by any of our merchants would likely be time-consuming and costly to
defend and could seriously damage our reputation and brand, making it harder for us to sell our solutions.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
may be unable to achieve or maintain data transmission capacity.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
merchants often draw significant numbers of consumers to their shops over short periods of time, including from events such as
new product releases, holiday shopping seasons and flash sales, which significantly increases the traffic on our servers and the
volume of transactions processed on our platform. Our servers may be unable to achieve or maintain data transmission capacity
high enough to handle increased traffic or process orders in a timely manner. Our failure to achieve or maintain high data transmission
capacity could significantly reduce demand for our solutions. In the future, we may be required&nbsp;to allocate resources, including
spending substantial amounts of money, to build, purchase or lease additional data centers and equipment and upgrade our technology
and network infrastructure in order to handle the increased load. Our ability to deliver our solutions also depends on the development
and maintenance of internet infrastructure by third-parties, including the maintenance of reliable networks with the necessary
speed, data capacity and bandwidth. If one of these third-parties suffers from capacity constraints, our business may be adversely
affected. In addition, because we and our merchants generate a disproportionate amount of revenue in the fourth quarter, any disruption
in our merchants&rsquo; ability to process and fulfill customer orders in the fourth quarter could have a disproportionately negative
effect on our operating results.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
growth depends in part on the success of our strategic relationships with third parties.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
anticipate that the growth of our business will continue to depend on third-party relationships, including relationships with
our app developers, theme designers, referral sources, resellers, payment processors and other partners. In addition to growing
our third-party partner ecosystem, we intend to pursue additional relationships with other third-parties, such as technology and
content providers and implementation consultants. Identifying, negotiating and documenting relationships with third parties requires
significant time and resources as does integrating third-party content and technology. Some of the third parties that sell our
services have the direct contractual relationships with the merchants, and therefore we risk the loss of such merchants if the
third parties fail to perform their obligations. Our agreements with providers of cloud hosting, technology, content and consulting
services are typically non-exclusive and do not prohibit such service providers from working with our competitors or from offering
competing services. These third-party providers may choose to terminate their relationship with us or to make material changes
to their businesses, products or services. Our competitors may be effective in providing incentives to third parties to favor
their products or services or to prevent or reduce subscriptions to our platform. In addition, these providers may not perform
as expected under our agreements or under their agreements with our merchants, and we or our merchants may in the future have
disagreements or disputes with such providers. If we lose access to products or services from a particular supplier, or experience
a significant disruption in the supply of products or services from a current supplier, especially a single-source supplier, it
could have an adverse effect on our business and operating results.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If
we fail to maintain a consistently high level of customer service, our brand, business and financial results may be harmed.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe our focus on customer service and support is critical to onboarding new merchants and retaining our existing merchants
and growing our business. As a result, we have invested heavily in the quality and training of our support team along with the
tools they use to provide this service. If we are unable to maintain a consistently high level of customer service, we may lose
existing merchants. In addition, our ability to attract new merchants is highly dependent on our reputation and on positive recommendations
from our existing merchants. Any failure to maintain a consistently high level of customer service, or a market perception that
we do not maintain high-quality customer service, could adversely affect our reputation and the number of positive merchant referrals
that we receive.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
use a limited number of data centers to deliver our services. Any disruption of service at these facilities could harm our business.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
currently manage our services and serve all of our merchants from two third-party data center facilities. While we own the hardware
on which our platform runs and deploy this hardware to the data center facilities, we do not control the operation of these facilities.
We have experienced, and may in the future experience, failures at the third-party data centers where our hardware is deployed
from time to time. Data centers are vulnerable to damage or interruption from human error, intentional bad acts, earthquakes,
hurricanes, floods, fires, war, terrorist attacks, power losses, hardware failures, systems failures, telecommunications failures
and similar events. Any of these events could result in lengthy interruptions in our services. Changes in law or regulations applicable
to data centers in various jurisdictions could also cause a disruption in service. Interruptions in our services would reduce
our revenue, subject us to potential liability and adversely affect our ability to retain our merchants or attract new merchants.
The performance, reliability and availability of our platform is critical to our reputation and our ability to attract and retain
merchants. Merchants could share information about bad experiences on social media, which could result in damage to our reputation
and loss of future sales. The property and business interruption insurance coverage we carry may not be adequate to compensate
us fully for losses that may occur.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Mobile
devices are increasingly being used to conduct commerce, and if our solutions do not operate as effectively when accessed through
these devices, our merchants and their customers may not be satisfied with our services, which could harm our business.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are dependent on the interoperability of our platform with third-party mobile devices and mobile operating systems as well as
web browsers that we do not control. Any changes in such devices, systems or web browsers that degrade the functionality of our
platform or give preferential treatment to competitive services could adversely affect usage of our platform. Effective mobile
functionality is integral to our long-term development and growth strategy. In the event that our merchants and their customers
have difficulty accessing and using our platform on mobile devices, our business and operating results could be adversely affected.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
business and prospects would be harmed if changes to technologies used in our platform or new versions or upgrades of operating
systems and internet browsers adversely impact the process by which merchants and consumers interface with our platform.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe the simple and straightforward interface for our platform has helped us to expand and offer our solutions to merchants
with limited technical expertise. In the future, providers of internet browsers could introduce new features that would make it
difficult for merchants to use our platform. In addition, internet browsers for desktop or mobile devices could introduce new
features, change existing browser specifications such that they would be incompatible with our platform, or prevent consumers
from accessing our merchants&rsquo; shops. Any changes to technologies used in our platform, to existing features that we rely
on, or to operating systems or internet browsers that make it difficult for merchants to access our platform or consumers to access
our merchants&rsquo; shops, may make it more difficult for us to maintain or increase our revenues and could adversely impact
our business and prospects.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
impact of worldwide economic conditions, including the resulting effect on spending by SMBs, may adversely affect our business,
operating results and financial condition.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
majority of the merchants that use our platform are SMBs and many of our merchants are in the entrepreneurial stage of their development.
Our performance is subject to worldwide economic conditions and their impact on levels of spending by SMBs and their customers.
SMBs and entrepreneurs may be disproportionately affected by economic downturns. SMBs and entrepreneurs frequently have limited
budgets and may choose to allocate their spending to items other than our platform, especially in times of economic uncertainty
or recessions.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Economic
downturns may also adversely impact retail sales, which could result in merchants who use our platform going out of business or
deciding to stop using our services in order to conserve cash. Weakening economic conditions may also adversely affect third-parties
with whom we have entered into relationships and upon which we depend in order to grow our business. Uncertain and adverse economic
conditions may also lead to increased refunds and chargebacks, any of which could adversely affect our business.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
may be subject to claims by third-parties of intellectual property infringement.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
software industry is characterized by the existence of a large number of patents and frequent claims and related litigation regarding
patents and other intellectual property rights. Third parties have in the past asserted, and may in the future assert, that our
platform, solutions, technology, methods or practices infringe, misappropriate or otherwise violate their intellectual property
or other proprietary rights. Such claims may be made by our competitors seeking to obtain a competitive advantage or by other
parties. Additionally, in recent years, non-practicing entities have begun purchasing intellectual property assets for the purpose
of making claims of infringement and attempting to extract settlements from companies like ours. The risk of claims may increase
as the number of solutions that we offer and competitors in our market increases and overlaps occur. In addition, to the extent
that we gain greater visibility and market exposure, we face a higher risk of being the subject of intellectual property infringement
claims.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
such claims, regardless of merit, that result in litigation could result in substantial expenses, divert the attention of management,
cause significant delays in introducing new or enhanced services or technology, materially disrupt the conduct of our business
and have a material and adverse effect on our brand, business, financial condition and results of operations. Although we do not
believe that our proprietary technology, processes and methods have been patented by any third party, it is possible that patents
have been issued to third parties that cover all or a portion of our business. As a consequence of any patent or other intellectual
property claims, we could be required to pay substantial damages, develop non-infringing technology, enter into royalty-bearing
licensing agreements, stop selling or marketing some or all of our solutions or re-brand our solutions. We may also be obligated
to indemnify our merchants or partners or pay substantial settlement costs, including royalty payments, in connection with any
such claim or litigation and to obtain licenses, modify applications or refund fees, which could be costly. If it appears necessary,
we may seek to secure license rights to intellectual property that we are alleged to infringe at a significant cost, potentially
even if we believe such claims to be without merit. If required licenses cannot be obtained, or if existing licenses are not renewed,
litigation could result. Litigation is inherently uncertain and can cause us to expend significant money, time and attention to
it, even if we are ultimately successful. Any adverse decision could result in a loss of our proprietary rights, subject us to
significant liabilities, require us to seek licenses for alternative technologies from third-parties, prevent us from offering
all or a portion of our solutions and otherwise negatively affect our business and operating results.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
may be unable to obtain, maintain and protect our intellectual property rights and proprietary information or prevent third-parties
from making unauthorized use of our technology.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
trade secrets, trademarks, trade dress, domain names, copyrights, trade secrets and other intellectual property rights are important
to our business. We rely on a combination of confidentiality clauses, assignment agreements and license agreements with employees
and third parties, trade secrets, copyrights and trademarks to protect our intellectual property and competitive advantage, all
of which offer only limited protection. The steps we take to protect our intellectual property require significant resources and
may be inadequate. We will not be able to protect our intellectual property if we are unable to enforce our rights or if we do
not detect unauthorized use of our intellectual property. We may be required to use significant resources to monitor and protect
these rights. Despite our precautions, it may be possible for unauthorized third parties to copy our platform and use information
that we regard as proprietary to create services that compete with ours. Some license provisions protecting against unauthorized
use, copying, transfer and disclosure of our proprietary information may be unenforceable under the laws of certain jurisdictions
and foreign countries. Further, we hold no issued patents and thus would not be entitled to exclude or prevent our competitors
from using our proprietary technology, methods and processes to the extent independently developed by our competitors.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
enter into confidentiality and invention assignment agreements with our employees and consultants and enter into confidentiality
agreements with the parties with whom we have strategic relationships and business alliances. No assurance can be given that these
agreements will be effective in controlling access to our proprietary information and trade secrets. The confidentiality agreements
on which we rely to protect certain technologies may be breached, may not be adequate to protect our confidential information,
trade secrets and proprietary technologies and may not provide an adequate remedy in the event of unauthorized use or disclosure
of our confidential information, trade secrets or proprietary technology. Further, these agreements do not prevent our competitors
or others from independently developing software that is substantially equivalent or superior to our software. In addition, others
may independently discover our trade secrets and confidential information, and in such cases, we likely would not be able to assert
any trade secret rights against such parties. Additionally, we may from time to time be subject to opposition or similar proceedings
with respect to applications for registrations of our intellectual property, including our trademarks. While we aim to acquire
adequate protection of our brand through trademark registrations in key markets, occasionally third parties may have already registered
or otherwise acquired rights to identical or similar marks for services that also address our market. We rely on our brand and
trademarks to identify our platform and to differentiate our platform and services from those of our competitors, and if we are
unable to adequately protect our trademarks third parties may use our brand names or trademarks similar to ours in a manner that
may cause confusion in the market, which could decrease the value of our brand and adversely affect our business and competitive
advantages.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Policing
unauthorized use of our intellectual property and misappropriation of our technology and trade secrets is difficult and we may
not always be aware of such unauthorized use or misappropriation. Despite our efforts to protect our intellectual property rights,
unauthorized third-parties may attempt to use, copy or otherwise obtain and market or distribute our intellectual property rights
or technology or otherwise develop services with the same or similar functionality as our platform. If our competitors infringe,
misappropriate or otherwise misuse our intellectual property rights and we are not adequately protected, or if our competitors
are able to develop a platform with the same or similar functionality as ours without infringing our intellectual property, our
competitive advantage and results of operations could be harmed. Litigation brought to protect and enforce our intellectual property
rights could be costly, time consuming and distracting to management and could result in the impairment or loss of portions of
our intellectual property. As a result, we may be aware of infringement by our competitors but may choose not to bring litigation
to enforce our intellectual property rights due to the cost, time and distraction of bringing such litigation. Furthermore, if
we do decide to bring litigation, our efforts to enforce our intellectual property rights may be met with defenses, counterclaims
and countersuits challenging or opposing our right to use and otherwise exploit particular intellectual property, services and
technology or the enforceability of our intellectual property rights. Our inability to protect our proprietary technology against
unauthorized copying or use, as well as any costly litigation or diversion of our management&rsquo;s attention and resources,
could delay further&nbsp;sales or the implementation of our solutions, impair the functionality of our platform, prevent or delay
introductions of new or enhanced solutions, result in our substituting inferior or more costly technologies into our platform
or injure our reputation. Furthermore, many of our current and potential competitors have the ability to dedicate substantially
greater resources to developing and protecting their technology or intellectual property rights than we do.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
use of &ldquo;open source&rdquo; software could negatively affect our ability to sell our solutions and subject us to possible
litigation.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
solutions incorporate and are dependent to a significant extent on the use and development of &ldquo;open source&rdquo; software
and we intend to continue our use and development of open source software in the future. Such open source software is generally
licensed by its authors or other third-parties under open source licenses and is typically freely accessible, usable and modifiable.
Pursuant to such open source licenses, we may be subject to certain conditions, including requirements that we offer our proprietary
software that incorporates the open source software for no cost, that we make available source code for modifications or derivative
works we create based upon, incorporating or using the open source software and that we license such modifications or derivative
works under the terms of the particular open source license. If an author or other third party that uses or distributes such open
source software were to allege that we had not complied with the conditions of one or more of these licenses, we could be required
to incur significant legal expenses defending against such allegations and could be subject to significant damages,&nbsp;enjoined
from the sale of our solutions that contained or are dependent upon the open source software and required to comply with the foregoing
conditions, which could disrupt the distribution and sale of some of our solutions. Litigation could be costly for us to defend,
have a negative effect on our operating results and financial condition or require us to devote additional research and development
resources to change our platform. The terms of many open source licenses to which we are subject have not been interpreted by
U.S. or foreign courts. As there is little or no legal precedent governing the interpretation of many of the terms of certain
of these licenses, the potential impact of these terms on our business is uncertain and may result in unanticipated obligations
regarding our solutions and technologies. It is our view that we do not distribute our software, since no installation of our
software is necessary and our platform is accessible solely through the &ldquo;cloud.&rdquo; Nevertheless, this position could
be challenged. Any requirement to disclose our proprietary source code, termination of open source license rights or payments
of damages for breach of contract could be harmful to our business, results of operations or financial condition, and could help
our competitors develop products and services that are similar to or better than ours.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to risks related to license requirements, usage of open source software can lead to greater risks than the use of third-party
commercial software, as open source licensors generally do not provide warranties, controls on the origin or development of the
software, or remedies against the licensors. Many of the risks associated with usage of open source software cannot be eliminated
and could adversely affect our business.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although
we believe that we have complied with our obligations under the various applicable licenses for open source software, it is possible
that we may not be aware of all instances where open source software has been incorporated into our proprietary software or used
in connection with our solutions or our corresponding obligations under open source licenses. We do not have robust open source
software usage policies or monitoring procedures in place. We rely on multiple software programmers to design our proprietary
software and we cannot be certain that our programmers have not incorporated open source software into our proprietary software
that we intend to maintain as confidential or that they will not do so in the future. To the extent that we are required to disclose
the source code of certain of our proprietary software developments to third-parties, including our competitors, in order to comply
with applicable open source license terms, such disclosure could harm our intellectual property position, competitive advantage,
results of operations and financial condition. In addition, to the extent that we have failed to comply with our obligations under
particular licenses for open source software, we may lose the right to continue to use and exploit such open source software in
connection with our operations and solutions, which could disrupt and adversely affect our business.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
rely on search engines and social networking sites to attract a meaningful portion of our merchants. If we are not able to generate
traffic to our website through search engines and social networking sites, our ability to attract new merchants may be impaired.
In addition, if our merchants are not able to generate traffic to their shops through search engines and social networking sites,
their ability to attract consumers may be impaired.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Many
of our merchants locate our website through internet search engines, such as Google, and advertisements on social networking sites,
such as Facebook. The prominence of our website in response to internet searches is a critical factor in attracting potential
merchants to our platform. If we are listed less prominently or fail to appear in search results for any reason, visits to our
website could decline significantly, and we may not be able to replace this traffic.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Similarly,
many consumers locate our merchants&rsquo; shops through internet search engines and advertisements on social networking sites.
If our merchants&rsquo; shops are listed less prominently or fail to appear in search results for any reason, visits to our merchants&rsquo;
shops could decline significantly. As a result, our merchants&rsquo; businesses may suffer, which would affect the ability of
such merchants to pay for our solutions.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Search
engines revise their algorithms from time to time in an attempt to optimize their search results. If search engines modify their
algorithms, our website and our merchants&rsquo; shops may appear less prominently or not at all in search results, which could
result in reduced traffic to our website and to our merchants&rsquo; shops.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
if the price of marketing our solutions over search engines or social networking sites increases, we may incur additional marketing
expenses or may be required to allocate a larger portion of our marketing spend to search engine marketing and our business and
operating results could be adversely affected. Furthermore, competitors may in the future bid on the search terms that we use
to drive traffic to our website. Such actions could increase our marketing costs and result in decreased traffic to our website.
In addition, search engines or social networking sites may change their advertising policies from time to time. If any change
to these policies delays or prevents us from advertising through these channels, it could result in reduced traffic to our website
and sales of our solutions. As well, new search engines or social networking sites may develop, particularly in specific jurisdictions
that reduce traffic on existing search engines and social networking sites. And if we are not able to achieve awareness through
advertising or otherwise, we may not achieve significant traffic to our website through these new platforms. If we are unable
to continue to successfully promote and maintain our websites, or if we incur excessive expenses to do so, our business and operating
results could be adversely affected.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Activities
of merchants or the content of their shops could damage our brand, subject us to liability and harm our business and financial
results.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
terms of service prohibit our merchants from using our platform to engage in illegal activities and our terms of service permit
us to take down a merchant&rsquo;s shop if we become aware of such illegal use. Merchants may nonetheless engage in prohibited
or illegal activities or upload store content in violation of applicable laws, which could subject us to liability. Furthermore,
our brand may be negatively impacted by the actions of merchants that are deemed to be hostile, offensive, inappropriate or illegal.
We do not proactively monitor or review the appropriateness of the content of our merchants&rsquo; shops and we do not have control
over merchant activities. The safeguards we have in place may not be sufficient for us to avoid liability or avoid harm to our
brand, especially if such hostile, offensive, inappropriate or illegal use is high profile, which could adversely affect our business
and financial results.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If
third-party apps and themes change such that we do not or cannot maintain the compatibility of our platform with these apps and
themes, or if we fail to provide third-party apps and themes that our merchants desire to add to their shops, demand for our platform
could decline.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
success of our platform depends, in part, on our ability to integrate third-party apps, themes and other offerings into our third-party
ecosystem. Third-party developers may change the features of their offerings or alter the terms governing the use of their offerings
in a manner that is adverse to us. If we are unable to maintain technical interoperation, our merchants may not be able to effectively
integrate our platform with other systems and services they use. We may also be unable to maintain our relationships with certain
third-party vendors if we are unable to integrate our platform with their offerings. Further, third-party developers may refuse
to partner with us or limit or restrict our access to their offerings. Such changes could functionally limit or terminate our
ability to use these third-party offerings with our platform, which could negatively impact our solution offerings and harm our
business. If we fail to integrate our platform with new third-party offerings that our merchants need for their shops, or to adapt
to the data transfer requirements of such third-party offerings, we may not be able to offer the functionality that our merchants
and their customers expect, which would negatively impact our offerings and, as a result, harm our business.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
rely on computer hardware, purchased or leased, and software licensed from and services rendered by third parties in order to
provide our solutions and run our business, sometimes by a single-source supplier.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
rely on computer hardware, purchased or leased, and software licensed from and services rendered by third-parties in order to
provide our solutions and run our business, sometimes by a single-source supplier. Third-party hardware, software and services
may not continue to be available on commercially reasonable terms, or at all. Any loss of the right to use or any failures of
third-party hardware, software or services could result in delays in our ability to provide our solutions or run our business
until equivalent hardware, software or services are developed by us or, if available, identified, obtained and integrated, which
could be costly and time-consuming and may not result in an equivalent solution, any of which could cause an adverse effect on
our business and operating results. Further, merchants could assert claims against us in connection with such service disruption
or cease conducting business with us altogether. Even if not successful, a claim brought against us by any of our merchants would
likely be time-consuming and costly to defend and could seriously damage our reputation and brand, making it harder for us to
sell our solutions.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
may not be able to compete successfully against current and future competitors.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
face competition in various aspects of our business and we expect such competition to intensify in the future, as existing and
new competitors introduce new services or enhance existing services. We have competitors with longer operating histories, larger
customer bases, greater brand recognition, greater experience and more extensive commercial relationships in certain jurisdictions,
and greater financial, technical, marketing and other resources than we do. As a result, our potential competitors may be able
to develop products and services better received by merchants or may be able to respond more quickly and effectively than we can
to new or changing opportunities, technologies, regulations or merchant requirements. In addition, some of our larger competitors
may be able to leverage a larger installed customer base and distribution network to adopt more aggressive pricing policies and
offer more attractive sales terms, which could cause us to lose potential sales or to sell our solutions at lower prices.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Competition
may intensify as our competitors enter into business combinations or alliances or raise additional capital, or as established
companies in other market segments or geographic markets expand into our market segments or geographic markets. For instance,
certain competitors could use strong or dominant positions in one or more markets to gain a competitive advantage against us in
areas where we operate including: by integrating competing platforms or features into products they control such as search engines,
web browsers, mobile device operating systems or social networks; by making acquisitions; or by making access to our platform
more difficult. Further, current and future competitors could choose to offer a&nbsp;different pricing model or to undercut prices
in an effort to increase their market share. We also expect new entrants to offer competitive services. If we cannot compete successfully
against current and future competitors, our business, results of operations and financial condition could be negatively impacted.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
plan to make future acquisitions and investments, which could divert management&rsquo;s attention, result in operating difficulties
and dilution to our stockholders and otherwise disrupt our operations and adversely affect our business, operating results or
financial position.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
time to time, we evaluate potential strategic acquisition or investment opportunities. Any transactions that we enter into could
be material to our financial condition and results of operations. The process of acquiring and integrating another company or
technology could create unforeseen operating difficulties and expenditures. Acquisitions and investments involve a number of risks,
such as:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">diversion of management
    time and focus from operating our business;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">use of resources
    that are needed in other areas of our business;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in the case of an
    acquisition, implementation or remediation of controls, procedures and policies of the acquired company;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in the case of an
    acquisition, difficulty integrating the accounting systems and operations of the acquired company, including potential risks
    to our corporate culture;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in the case of an
    acquisition, coordination of product, engineering and selling and marketing functions, including difficulties and additional
    expenses associated with supporting legacy services and products and hosting infrastructure of the acquired company and difficulty
    converting the customers of the acquired company onto our platform and contract terms, including disparities in the revenues,
    licensing, support or professional services model of the acquired company;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in the case of an
    acquisition, retention and integration of employees from the acquired company;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">unforeseen costs
    or liabilities;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">adverse effects
    to our existing business relationships with partners and merchants as a result of the acquisition or investment;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the possibility
    of adverse tax consequences; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">litigation or other
    claims arising in connection with the acquired company or investment.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, we may
agree to grant to a lender under a credit facility warrants. Furthermore, a significant portion of the purchase price of companies
we acquire may be allocated to acquired goodwill and other intangible assets, which must be assessed for impairment at least annually.
In the future, if our acquisitions do not yield expected returns, we may be required to take charges to our operating results
based on this impairment assessment process, which could adversely affect our results of operations.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Acquisitions
and investments may also result in dilutive issuances of equity securities, which could adversely affect our share price, or result
in the incurrence of debt with restrictive covenants that limit our future uses of capital in pursuit of business opportunities.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may not be able to identify acquisition or investment opportunities that meet our strategic objectives, or to the extent such
opportunities are identified, we may not be able to negotiate terms with respect to the acquisition or investment that are acceptable
to us. At this time we have made no commitments or agreements with respect to any such transaction.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>New
tax laws could be enacted or existing laws could be applied to us or our merchants, which could increase the costs of our solutions
and adversely impact our business.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
application of federal, state, provincial, local and foreign tax laws to solutions provided over the internet is evolving. New
income, sales, use or other tax laws, statutes, rules, regulations or ordinances could be enacted at any time, possibly with retroactive
effect, and could be applied solely or disproportionately to solutions provided over the internet. These enactments could adversely
affect our sales activity due to the inherent cost increase the taxes would represent, and could ultimately result in a negative
impact on our results of operations and cash flows.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>State
tax authorities may seek to assess state and local business taxes and sales and use taxes. If we are required to collect sales
and use taxes in additional jurisdictions, we might be subject to tax liability for past sales.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
is a risk that U.S. states could assert that we are liable for U.S. state and local business activity taxes, which are levied
upon income or gross receipts, or for the collection of U.S. local sales and use taxes. This risk exists regardless of whether
we are subject to U.S. federal income tax. States are becoming increasingly active in asserting nexus for business activity tax
purposes and imposing sales and use taxes on products and services provided over the internet. We may be subject to U.S. state
and local business activity taxes if a state tax authority asserts that our activities or the activities of our non-U.S. subsidiaries
are sufficient to establish nexus. We could also be liable for the collection of U.S. state and local sales and use taxes if a
state tax authority asserts that distribution of our solutions over the internet is subject to sales and use taxes. Each state
has different rules and regulations governing sales and use taxes, and these rules and regulations are subject to varying interpretations
that change over time. We review these rules and regulations periodically and, when we believe we are subject to sales and use
taxes in a particular state, voluntarily engage state tax authorities in order to determine how to comply with their rules and
regulations. If a state tax authority asserts that distribution of our solutions is subject to such sales and use taxes, the additional
cost may decrease the likelihood that such merchants would purchase our solutions or continue to renew their subscriptions.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
successful assertion by one or more states requiring us to collect sales or other taxes on subscription service revenue could
result in substantial tax liabilities for past transactions and otherwise harm our business. We cannot assure you that we will
not be subject to sales and use taxes or related penalties for past sales in states where we currently believe no such taxes are
required. New obligations to collect or pay taxes of any kind could increase our cost of doing business.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
are dependent upon consumers&rsquo; and merchants&rsquo; willingness to use the internet for commerce.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
success depends upon the general public&rsquo;s continued willingness to use the internet as a means to pay for purchases, communicate,
access social media, research and conduct commercial transactions, including through mobile devices. If consumers or merchants
become unwilling or less willing to use the internet for commerce for any reason, including lack of access to high-speed communications
equipment, congestion of traffic on the internet, internet outages or delays, disruptions or other damage to merchants&rsquo;
and consumers&rsquo; computers, increases in the cost of accessing the internet and security and privacy risks or the perception
of such risks, our business could be adversely affected.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
may face challenges in expanding into new geographic regions.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
future success will depend in part upon our ability to expand into new geographic regions, and we will face risks entering markets
in which we have limited or no experience and in which we do not have any brand recognition. Expanding into new geographic regions
where the main language is not English will require substantial expenditures and take considerable time and attention, and we
may not be successful enough in these new markets to recoup our investments in a timely manner, or at all. Our efforts to expand
into new geographic regions may not be successful, which could limit our ability to grow our business.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Risks
Related to Laws and Regulations</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Failure
to comply with the U.S. Foreign Corrupt Practices Act, or the FCPA, anti-money laundering, economic and trade sanctions regulations,
and similar laws could subject us to penalties and other adverse consequences.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
currently operate our business in the U.S. and Canada. We are subject to anti-corruption laws and regulations, including the FCPA,
and other laws that prohibit the making or offering of improper payments to foreign government officials and political figures,
including anti-bribery provisions enforced by the Department of Justice and accounting provisions enforced by the SEC. These laws
prohibit improper payments or offers of payments to foreign governments and their officials and political parties by the U.S.
and other business entities for the purpose of obtaining or retaining business. We have implemented policies, procedures, systems,
and controls designed to identify and address potentially impermissible transactions under such laws and regulations; however,
there can be no assurance that all of our employees, consultants and agents, including those that may be based in or from countries
where practices that violate U.S. or other laws may be customary, will not take actions in violation of our policies, for which
we may be ultimately responsible.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, we are subject to anti-money laundering laws and regulations, including the Bank Secrecy Act, as amended by the USA
PATRIOT Act of 2001, or the BSA. Among other things, the BSA requires money services businesses (such as money transmitters and
providers of prepaid access) to develop and implement risk-based anti-money laundering programs, report large cash transactions
and suspicious activity, and maintain transaction records.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are also subject to certain economic and trade sanctions programs that are administered by the Department of Treasury&rsquo;s
Office of Foreign Assets Control, or OFAC, which prohibit or restrict transactions to or from or dealings with specified countries,
their governments, and in certain circumstances, their nationals, and with individuals and entities that are specially-designated
nationals of those countries, narcotics traffickers, and terrorists or terrorist organizations. Other group entities may be subject
to additional foreign or local sanctions requirements in other relevant jurisdictions.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Similar
anti-money laundering and counter terrorist financing and proceeds of crime laws apply to movements of currency and payments through
electronic transactions and to dealings with persons specified in lists maintained by the country equivalents to OFAC lists in
several other countries and require specific data retention obligations to be observed by intermediaries in the payment process.
Our businesses in those jurisdictions are subject to those data retention obligations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Failure
to comply with any of these laws and regulations or changes in this regulatory environment, including changing interpretations
and the implementation of new or varying regulatory requirements by the government, may result in significant financial penalties,
reputational harm or change the manner in which we currently conduct some aspects of our business, which could adversely affect
our business, financial condition or results of operations.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Failure
to enforce and defend our intellectual property rights may diminish our competitive advantages or interfere with our ability to
market and promote our products and services.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
trademarks, trade names, trade secrets, know-how, proprietary technology and other intellectual property are important to our
future success. We have a pending trademark application for &ldquo;CrowdPay.us Crowdfunding &amp; Compliance Platform&rdquo;.
We believe our trademarks and trade names are widely recognized and associated with quality and reliable service. While it is
our policy to protect and defend vigorously our rights to our intellectual property, we cannot predict whether steps taken by
us to protect our intellectual property will be adequate to prevent infringement, misappropriation or other violation of our rights.
We also cannot guarantee that others will not independently develop technology with the same or similar functions to any proprietary
technology we rely on to conduct our business and differentiate ourselves from our competitors. Furthermore, we may face claims
of infringement of third-party intellectual property that could interfere with our ability to market and promote our brands. Any
litigation to enforce our intellectual property rights or defend ourselves against claims of infringement of third-party intellectual
property rights could be costly, divert attention of management and may not ultimately be resolved in our favor. Moreover, if
we are unable to successfully defend against claims that we have infringed the intellectual property rights of others, we may
be prevented from using certain intellectual property and may be liable for damages, which in turn could materially adversely
affect our business, financial condition or results of operations. In addition, the laws of certain non-U.S. countries where we
do business or may do business in the future may not recognize intellectual property rights or protect them to the same extent
as do the laws of the United States.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>New
or revised tax regulations or their interpretations, or becoming subject to additional foreign or U.S. federal, state or local
taxes that cannot be passed through to our merchants or partners, could reduce our net income.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are subject to tax laws in each jurisdiction where we do business. Changes in tax laws or their interpretations could decrease
the amount of revenues we receive, the value of any tax loss carry-forwards and tax credits recorded on our balance sheet and
the amount of our cash flow, and adversely affect our business, financial condition or results of operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 22, 2017, President Trump signed into law H.R. 1, originally known as &ldquo;The Tax Cuts and Jobs Act,&rdquo; which
significantly revised the Internal Revenue Code of 1986, as amended. The new legislation has significantly changed the U.S. federal
income taxation of U.S. corporations, including by reducing the U.S. corporate income tax rate, limiting interest deductions,
permitting immediate expensing of certain capital expenditures, adopting elements of a territorial tax system, imposing a one-time
transition tax, or repatriation tax, on all undistributed earnings and profits of certain U.S.-owned foreign corporations, revising
the rules governing net operating losses and the rules governing foreign tax credits, and introducing new anti-base erosion provisions.
Many of these changes are effective immediately, without any transition periods or grandfathering for existing transactions. The
legislation is unclear in many respects and could be subject to potential amendments and technical corrections, as well as interpretations
and implementing regulations by the Internal Revenue Service, or the IRS, any of which could lessen or increase certain adverse
impacts of the legislation. In addition, it is unclear how these U.S. federal income tax changes will affect state and local taxation,
which often uses federal taxable income as a starting point for computing state and local tax liabilities.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
some of the changes made by the tax legislation may adversely affect us in one or more reporting periods and prospectively, other
changes may be beneficial on a going forward basis. We continue to work with our tax advisors to determine the full impact that
the recent tax legislation as a whole will have on us.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
companies in the electronic payments industry, including us, may become subject to incremental taxation in various tax jurisdictions.
Taxing jurisdictions have not yet adopted uniform positions on this topic. If we are required to pay additional taxes and are
unable to pass the tax expense through to our merchants, our costs would increase and our net income would be reduced.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Failure
to comply with, or changes in, laws, regulations and enforcement activities may adversely affect the products, services and markets
in which we operate.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
and our merchants are subject to laws and regulations that affect the electronic payments industry in the many countries in which
our services are used. In particular, our merchants are subject to numerous laws and regulations applicable to banks, financial
institutions, and card issuers in the United States and abroad, and, consequently, we are at times affected by these foreign,
federal, state, and local laws and regulations. The U.S. government has increased its scrutiny of a number of credit card practices,
from which some of our merchants derive significant revenue. Regulation of the payments industry, including regulations applicable
to us and our merchants, has increased significantly in recent years. Failure to comply with laws and regulations applicable to
our business may result in the suspension or revocation of licenses or registrations, the limitation, suspension or termination
of services or the imposition of consent orders or civil and criminal penalties, including fines which could adversely affect
our business, financial condition or results of operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are also subject to U.S. financial services regulations, a myriad of consumer protection laws, including economic sanctions, laws
and regulations, anticorruption laws, escheat regulations and privacy and information security regulations. Changes to legal rules
and regulations, or interpretation or enforcement of them, could have a negative financial effect on us. Any lack of legal certainty
exposes our operations to increased risks, including increased difficulty in enforcing our agreements in those jurisdictions and
increased risks of adverse actions by local government authorities, such as expropriations. In addition, certain of our alliance
partners are subject to regulation by federal and state authority and, as a result, could pass through some of those compliance
obligations to us, which could adversely affect our business, financial condition or results of operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
particular, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the &ldquo;Dodd-Frank Act&rdquo;), recently
significantly changed the U.S. financial regulatory system. Among other things, Title X of the Dodd-Frank Act established a new,
independent regulatory agency known as the Consumer Financial Protection Bureau, or CFPB, to regulate consumer financial products
and services (including some offered by our merchants). The CFPB rules, examinations and enforcement actions may require us to
adjust our activities and may increase our compliance costs.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Separately,
under the Dodd-Frank Act, debit interchange transaction fees that a card issuer receives and are established by a payment card
network for an electronic debit transaction are now regulated by the Board of Governors of the Federal Reserve System, or the
Federal Reserve, and must be &ldquo;reasonable and proportional&rdquo; to the cost incurred by the card issuer in authorizing,
clearing, and settling the transaction. Effective October&nbsp;1, 2011, the Federal Reserve capped debit interchange rates for
card issuers operating in the United States with assets of $10&nbsp;billion or more at the sum of $0.21 per transaction and an&nbsp;<I>ad
valorem</I>&nbsp;component of 5 basis points to reflect a portion of the card issuer&rsquo;s fraud losses plus, for qualifying
card issuers, an additional $0.01 per transaction in debit interchange for fraud prevention costs. Regulations such as these could
result in the need for us to make capital investments to modify our services to facilitate our existing merchants&rsquo; and potential
merchants&rsquo; compliance and reduce the fees we are able to charge our merchants. These regulations also could result in greater
pricing transparency and increased price-based competition leading to lower margins and higher rates of merchant attrition. Furthermore,
the requirements of the regulations and the timing of their effective dates could result in changes in our merchants&rsquo; business
practices, which could change the demand for our services and alter the type or volume of transactions that we process on behalf
of our merchants.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Risks
Related to Our Capital Stock and this Offering</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
are controlled by Ronny Yakov, our Chief Executive Officer, whose interests may differ from the interests of our other stockholders.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
Yakov beneficially owns and possesses majority voting power of the fully diluted shares of our common stock. Through his control
of the voting power of our common stock, Mr. Yakov controls the election of our directors and all other matters requiring the
approval of our stockholders. By virtue of Mr. Yakov&rsquo;s voting control, we are a &ldquo;controlled company,&rdquo; as defined
in The NASDAQ Stock Market LLC listing rules, and are not subject to NASDAQ requirements that would otherwise require us to have
a majority of independent directors, a nominating committee composed solely of independent directors or a compensation committee
composed solely of independent directors. Accordingly, our stockholders will not be afforded the same protections generally as
stockholders of other NASDAQ-listed companies with respect to corporate governance for so long as we rely on these exemptions
from the corporate governance requirements.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
Yakov effectively has control over all matters submitted to our stockholders for approval, including the election or removal of
directors, changes to our certificate of incorporation, a sale or merger of our company and other transactions requiring stockholder
approval under Delaware law. Mr. Yakov&rsquo;s controlling interest may have the effect of making it more difficult for a third
party to acquire, or discouraging a third party from seeking to acquire, the Company.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
management has broad discretion as to the use of the net proceeds from this offering.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We intend to use the
net proceeds from this offering to repay, at the discretion of our Board of Directors, outstanding indebtedness up to [20%] of
the net proceeds in this offering, invest in or acquire companies or technologies that are synergistic with or complimentary to
our business, to expand and market our current products and for working capital and general corporate purposes, however we cannot
specify with certainty the particular uses of the net proceeds we will receive from this offering. Our management will have broad
discretion in the application of the net proceeds, including for any of the purposes described in &ldquo;Use of Proceeds.&rdquo;
Accordingly, you will have to rely upon the judgment of our management with respect to the use of the proceeds. Our management
may spend a portion or all of the net proceeds from this offering in ways that holders of our common stock may not desire or that
may not yield a significant return or any return at all. The failure by our management to apply these funds effectively could
harm our business. Pending their use, we may also invest the net proceeds from this offering in a manner that does not produce
income or that loses value.</P>



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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>There
is a very limited existing market for our common stock and we do not know if a more liquid market will develop to provide you
with adequate liquidity.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prior
to this offering, there has been a very limited public market for our common stock. We cannot assure you that an active trading
market for our common stock will develop following this offering, or if it does develop, that will be maintained. You may not
be able to sell your securities quickly or at the market price if trading in our securities is not active. The public offering
price for the common stock will be determined by negotiations between us and the representatives of the underwriters and may not
be indicative of prices that will prevail in the trading market. We anticipate that our shares of common stock will be approved
for listing on the NASDAQ Capital Market in connection with this offering, however, we cannot ensure that an active public market
for our common stock will develop after this offering, or that if it does develop, it will be sustained. In the absence of a public
trading market:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">you may not be able
    to liquidate your investment in our common stock;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">you may not be able
    to resell your shares at or above the public offering price;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the market price
    of our common stock may experience more price volatility; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">there may be less
    efficiency in carrying out your purchase and sale orders.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
market price of our common stock may be highly volatile, and you could lose all or part of your investment.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
trading price of our common stock is likely to be volatile. This volatility may prevent you from being able to sell your shares
at or above the price you paid for your shares. Our stock price could be subject to wide fluctuations in response to a variety
of factors, which include:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether we achieve
    our anticipated corporate objectives;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">actual or anticipated
    fluctuations in our quarterly or annual operating results;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in financial
    or operational estimates or projections;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">termination of the
    lock-up agreement or other restrictions on the ability of our stockholders and other security holders to sell shares after
    this offering;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in the economic
    performance or market valuations of companies similar to ours; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">general economic
    or political conditions in the United States or elsewhere.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, the stock market in general, and the stock of companies that are competitive to us in particular, have experienced extreme
price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of these companies.
Broad market and industry factors may negatively affect the market price of our common stock, regardless of our actual operating
performance.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
NASDAQ Capital Market may not list our securities, which could limit investors&rsquo; ability to make transactions in our securities
and subject us to additional trading restrictions.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
anticipate that our shares of common stock will be listed on The NASDAQ Capital Market (or NASDAQ) upon consummation of this offering.
Although, after giving effect to this offering, we expect to meet, on a pro forma basis, NASDAQ&rsquo;s minimum initial listing
standards, which generally mandate that we meet certain requirements relating to stockholders&rsquo; equity, market capitalization,
aggregate market value of publicly held shares and distribution requirements, we cannot assure you that we will be able to meet
those initial listing requirements. If NASDAQ does not list our securities for trading on its exchange, we could face significant
material adverse consequences, including:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a limited availability
    of market quotations for our securities;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reduced liquidity
    with respect to our securities;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a determination
    that our shares of common stock are &ldquo;penny stock&rdquo; which will require brokers trading in our shares of common stock
    to adhere to more stringent rules, possibly resulting in a reduced level of trading activity in the secondary trading market
    for our shares of common stock;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a limited amount
    of news and analyst coverage for our company; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a decreased ability
    to issue additional securities or obtain additional financing in the future.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating
the sale of certain securities, which are referred to as &ldquo;covered securities.&rdquo; Assuming our securities will be listed
on NASDAQ, our securities will be covered securities. Although the states are preempted from regulating the sale of our securities,
the federal statute does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding
of fraudulent activity, then the states can regulate or bar the sale of covered securities in a particular case. Furthermore,
if we were no longer listed on NASDAQ, our securities would not be covered securities and we would be subject to regulation in
each state in which we offer our securities.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
failure to meet the continued listing requirements of The NASDAQ Capital Market could result in a de-listing of our securities.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
after listing we fail to satisfy the continued listing requirements of NASDAQ, such as the corporate governance requirements or
the minimum closing bid price requirement, NASDAQ may take steps to de-list our securities. Such a de-listing would likely have
a negative effect on the price of our common stock and would impair your ability to sell or purchase our common stock when you
wish to do so. In the event of a de-listing, we would take actions to restore our compliance with NASDAQ&rsquo;s listing requirements,
but we can provide no assurance that any such action taken by us would allow our common stock to become listed again, stabilize
the market price or improve the liquidity of our securities, prevent our common stock from dropping below the NASDAQ minimum bid
price requirement or prevent future non-compliance with NASDAQ&rsquo;s listing requirements.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If,
after listing on The NASDAQ Capital Market, we are delisted and our shares become subject to the penny stock rules, it would become
more difficult to trade our shares.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are
generally equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges
or authorized for quotation on certain automated quotation systems, provided that current price and volume information with respect
to transactions in such securities is provided by the exchange or system. If we do not obtain or retain a listing on NASDAQ and
if the price of our common stock is less than $5.00, our common stock will be deemed a penny stock. The penny stock rules require
a broker-dealer, before a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure
document containing specified information. In addition, the penny stock rules require that before effecting any transaction in
a penny stock not otherwise exempt from those rules, a broker-dealer must make a special written determination that the penny
stock is a suitable investment for the purchaser and receive (i) the purchaser&rsquo;s written acknowledgment of the receipt of
a risk disclosure statement; (ii) a written agreement to transactions involving penny stocks; and (iii) a signed and dated copy
of a written suitability statement. These disclosure requirements may have the effect of reducing the trading activity in the
secondary market for our common stock, and therefore stockholders may have difficulty selling their shares.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>As
a &ldquo;thinly-traded&rdquo; stock, large sales can place downward pressure on our stock price.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
stock experiences periods when it could be considered &ldquo;thinly traded&rdquo;. Financing transactions resulting in a large
number of newly issued shares that become readily tradable, or other events that cause current stockholders to sell shares, could
place further downward pressure on the trading price of our stock. In addition, the lack of a robust resale market may require
a stockholder who desires to sell a large number of shares to sell the shares in increments over time to mitigate any adverse
impact of the sales on the market price of our stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
could issue additional common stock, which might dilute the book value of our capital stock.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company may issue all or a part of its authorized but unissued shares of common stock. Any such stock issuance could be made at
a price that reflects a discount or a premium to the then-current trading price of our common stock. In addition, in order to
raise future capital, we may need to issue securities that are convertible into or exchangeable for a significant amount of our
common stock. These issuances, if any, would dilute your percentage ownership interest in the Company, thereby having the effect
of reducing your influence on matters on which stockholders vote. You may incur additional dilution if holders of stock options,
whether currently outstanding or subsequently granted, exercise their options, or if warrant holders exercise their warrants to
purchase shares of our common stock. As a result, any such issuances or exercises would dilute your interest in the Company and
the per share book value of the common stock that you owned, either of which could negatively affect the trading price of our
common stock and the value of your investment.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Shares
eligible for future sale may adversely affect the market for our common stock.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As of June 26, 2019 there
are 1,200,000 warrants to purchase shares of our common stock outstanding and options to purchase 8,355,168 shares of our common
stock outstanding. The warrants are exercisable at an exercise price of $0.25 per share and are entitled to piggy-back registration
rights generally obligating us to include the shares underlying the warrants in any registration statements we file with the SEC.
We are seeking waivers of such rights in connection with this offering. The stock options have a weighted average exercise price
of $0.0001 per share. If and when these securities are exercised into shares of our common stock, the number of our shares of
common stock outstanding will increase. Such increase in our outstanding shares, and any sales of such shares, could have a material
adverse effect on the market for our common stock and the market price of our common stock.</P>



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



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, from time to time, certain of our stockholders may be eligible to sell all or some of their shares of common stock by
means of ordinary brokerage transactions in the open market pursuant to Rule 144, promulgated under the Securities Act, subject
to certain limitations. In general, pursuant to Rule 144, after satisfying a six month holding period: (i) affiliated stockholders
(or stockholders whose shares are aggregated) may, under certain circumstances, sell within any three month period a number of
securities which does not exceed the greater of 1% of the then outstanding shares of common stock or the average weekly trading
volume of the class during the four calendar weeks prior to such sale and (ii) non-affiliated stockholders may sell without such
limitations, provided that we are current in our public reporting obligations. Rule 144 also permits the sale of securities by
non-affiliates that have satisfied a one year holding period without any limitation or restriction. Any substantial sale of our
common stock pursuant to Rule 144 or pursuant to any resale prospectus may have a material adverse effect on the market price
of our securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Because
certain principal stockholders own a large percentage of our voting stock, other stockholders&rsquo; voting power may be limited.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 26, 2019,
Ronny Yakov, our chief executive officer, owned or controlled approximately 64.3% of our outstanding common stock. Accordingly,
Mr. Yakov has the ability to have a substantial influence on matters submitted to our stockholders for approval, including the
election and removal of directors and the approval of any merger, consolidation or sale of all or substantially all of our assets.
As a result, our other stockholders may have little or no influence over matters submitted for stockholder approval. In addition,
the ownership of Mr. Yakov could preclude any unsolicited acquisition of us, and consequently, adversely affect the price of our
common stock. These stockholders may make decisions that are adverse to your interests.&nbsp;</P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>In
making your investment decision, you should understand that we and the underwriters have not authorized any other party to provide
you with information concerning us or this offering.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">You
should carefully evaluate all of the information in this prospectus before investing in our company. We may receive media coverage
regarding our company, including coverage that is not directly attributable to statements made by our officers, that incorrectly
reports on statements made by our officers or employees, or that is misleading as a result of omitting information provided by
us, our officers or employees. We and the underwriters have not authorized any other party to provide you with information concerning
us or this offering, and you should not rely on this information in making an investment decision.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>You
will experience immediate and substantial dilution as a result of this offering and may experience additional dilution in the
future.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">You
will incur immediate and substantial dilution as a result of this offering. After giving effect to the sale by us of [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
shares of common stock offered in this offering at an assumed public offering price of $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
per share, and after deducting underwriter discounts and commissions and estimated offering expenses payable by us, investors
in this offering can expect an immediate dilution of $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] per share, or [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]%
at the assumed public offering price. In addition, in the past, we issued warrants to acquire shares of common stock. Additionally,
to the extent that these warrants, or options we will grant to our officers, directors and employees, are ultimately exercised,
you will sustain future dilution. We may also acquire or license other technologies or finance strategic alliances by issuing
equity, which may result in additional dilution to our stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>As
an &ldquo;emerging growth company&rdquo; under applicable law, we will be subject to lessened disclosure requirements, which could
leave our stockholders without information or rights available to stockholders of more mature companies.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
as long as we remain an &ldquo;emerging growth company&rdquo;, we have elected to take advantage of certain exemptions from various
reporting requirements that are applicable to other public companies that are not &ldquo;emerging growth companies&rdquo; including,
but not limited to:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">not being required
    to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">taking advantage
    of an extension of time to comply with new or revised financial accounting standards;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reduced disclosure
    obligations regarding executive compensation in our periodic reports and proxy statements; and</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">exemptions from
    the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute
    payments not previously approved.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
expect to take advantage of these reporting exemptions until we are no longer an &ldquo;emerging growth company.&rdquo; Because
of these lessened regulatory requirements, our stockholders would be left without information or rights available to stockholders
of more mature companies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Because
we have elected to use the extended transition period for complying with new or revised accounting standards for an &ldquo;emerging
growth company&rdquo; our financial statements may not be comparable to companies that comply with public company effective dates.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have elected to use the extended transition period for complying with new or revised accounting standards for an emerging growth
company. This election allows us 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 a result of this election, our financial
statements may not be comparable to companies that comply with public company effective dates, and thus investors may have difficulty
evaluating or comparing our business, performance or prospects in comparison to other public companies, which may have a negative
impact on the value and liquidity of our common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Anti-takeover
provisions in our charter documents and Delaware law could discourage, delay or prevent a change in control of our company and
may affect the trading price of our common stock.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
anti-takeover provisions of the Delaware General Corporation Law may discourage, delay or prevent a change in control by prohibiting
us from engaging in a business combination with an interested stockholder for a period of three years after the person becomes
an interested stockholder, even if a change in control would be beneficial to our existing stockholders. In addition, our certificate
of incorporation, as amended (which we refer to as the certificate of incorporation), and bylaws, as amended (which we refer to
as the bylaws), may discourage, delay or prevent a change in our management or control over us that stockholders may consider
favorable. Our certificate of incorporation and bylaws:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">provide that vacancies
    on our board of directors, including newly created directorships, may be filled only by a majority vote of directors then
    in office;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">provide that special
    meetings of stockholders may be called by a majority vote of our board of directors or at least 25% of shares held by our
    stockholders;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">not provide stockholders
    with the ability to cumulate their votes; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">provide that a majority
    of our stockholders (over 50%) and a vote by the majority of our board may amend our bylaws.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Failure
to establish and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material
adverse effect on our business and stock price.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are not currently required to comply with the rules of the SEC implementing Section 404 of the Sarbanes-Oxley Act and therefore
are not required to make a formal assessment of the effectiveness of our internal control over financial reporting for that purpose.
Upon becoming a publicly traded company, we will be required to comply with the SEC&rsquo;s rules implementing Sections 302 and
404 of the Sarbanes-Oxley Act, which will require management to certify financial and other information in our quarterly and annual
reports and provide an annual management report on the effectiveness of controls over financial reporting. Though we will be required
to disclose changes made in our internal controls and procedures on a quarterly basis, we will not be required to make our first
annual assessment of our internal control over financial reporting pursuant to Section 404 until the year following our first
annual report required to be filed with the SEC. Our independent registered public accounting firm will not be required to attest
to the effectiveness of our internal control over financial reporting until the later of the year following our first annual report
required to be filed with the SEC or the date we are no longer an emerging growth company and are an accelerated or large accelerated
filer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
comply with the requirements of being a public company, we may need to undertake various actions, such as implementing new internal
controls and procedures and hiring additional accounting or internal audit staff. In addition, we may identify material weaknesses
in our internal control over financial reporting that we may not be able to remediate in time to meet the applicable deadline
imposed upon us for compliance with the requirements of Section 404.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
carried out an evaluation, under the supervision and with the participation of our management, including our principal executive
officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange
Act Rules 13a-15(e) and 15d-15(e)).&nbsp;&nbsp;Based upon that evaluation, our principal executive officer and principal financial
officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were ineffective
to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended, is
recorded, processed, summarized and reported within the required time periods specified in the Commission&rsquo;s rules and forms
and is accumulated and communicated to our management, including our principal executive officer and principal financial officer,
as appropriate to allow timely decisions regarding required disclosure.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
principal executive officer and principal financial officer, do not expect that our disclosure controls and procedures or our
internal controls will prevent all error or fraud.&nbsp;&nbsp;A control system, no matter how well conceived and operated, can
provide only reasonable, not absolute, assurance that the objectives of the control system are met.&nbsp;&nbsp;Further, the design
of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered
relative to their costs.&nbsp;&nbsp;Due to the inherent limitations in all control systems, no evaluation of controls can provide
absolute assurance that all control issues and instances of fraud, if any, have been detected.&nbsp;During the fourth quarter
of the year ended December&nbsp;31, 2018, we carried out an evaluation, under the supervision and with the participation of our
principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure
controls and procedures.&nbsp;Based on that evaluation and due to the identified material weaknesses discussed below, our principal
executive officer and principal financial officer concluded that our disclosure controls and procedures were ineffective.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
address the material weaknesses, we performed additional analysis and other post-closing procedures in an effort to ensure our
financial statements included in this Registration Statement of which this Prospectus forms a part, have been prepared in accordance
with generally accepted accounting principles.&nbsp;&nbsp;Accordingly, management believes that the financial statements included
herein fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we are unable to comply with the requirements of Section 404 in a timely manner or to assert that our internal control over financial
reporting is effective, or if our independent registered public accounting firm is unable to express an opinion as to the effectiveness
of our internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our financial
reports and the market price of our common stock could be negatively affected, and we could become subject to investigations by
NASDAQ, the SEC or other regulatory authorities, which could require additional financial and management resources.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
do not expect to pay dividends for the foreseeable future.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
do not expect to pay dividends on our common stock offered in this transaction for the foreseeable future. Accordingly, any potential
investor who anticipates the need for current dividends should not purchase our securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 6pt"><B>&nbsp;</B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_003"></A>CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS&nbsp;</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
prospectus contains &ldquo;forward-looking statements&rdquo; within the meaning of the federal securities laws, and that involve
significant risks and uncertainties. Words such as &ldquo;may,&rdquo; &ldquo;should,&rdquo; &ldquo;could,&rdquo; &ldquo;would,&rdquo;
&ldquo;predicts,&rdquo; &ldquo;potential,&rdquo; &ldquo;continue,&rdquo; &ldquo;expects,&rdquo; &ldquo;anticipates,&rdquo; &ldquo;future,&rdquo;
&ldquo;intends,&rdquo; &ldquo;plans,&rdquo; &ldquo;believes,&rdquo; &ldquo;estimates,&rdquo; and similar expressions, as well
as statements in future tense, identify forward-looking statements. Forward-looking statements should not be read as a guarantee
of future performance or results and may not be accurate indications of when such performance or results will be achieved. Forward-looking
statements are based on information we have when those statements are made or management&rsquo;s good faith belief as of that
time with respect to future events, and are subject to significant risks and uncertainties that could cause actual performance
or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that
could cause such differences include, but are not limited to:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our acquisition
    of eVance and share exchange with OmniSoft and CrowdPay has collectively formed a new business platform that needs to be integrated,
    which may create certain risks and may adversely affect our business, financial condition or results of operations;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our failure to pay
    our outstanding indebtedness will result in a substantial loss of our assets;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We operate in a
    regulatory environment that is evolving and uncertain and any changes to regulations could have a material impact on our business
    and financial condition;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We rely on a combination
    of confidentiality clauses, assignment agreements and license agreements with employees and third parties, trade secrets,
    copyrights and trademarks to protect our intellectual property and competitive advantage, all of which offer only limited
    protection meaning that we may be unable to maintain and protect our intellectual property rights and proprietary information
    or prevent third-parties from making unauthorized use of our technology; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our growth may not
    be sustainable and depends on our ability to attract new merchants, retain existing merchants and increase sales to both new
    and existing merchants.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
foregoing does not represent an exhaustive list of matters that may be covered by the forward-looking statements contained herein
or risk factors that we are faced with. Forward-looking statements necessarily involve risks and uncertainties, and our actual
results could differ materially from those anticipated in the forward-looking statements due to a number of factors, including
those set forth above under &ldquo;Risk Factors&rdquo; and elsewhere in this prospectus. The factors set forth above under &ldquo;Risk
Factors&rdquo; and other cautionary statements made in this prospectus should be read and understood as being applicable to all
related forward-looking statements wherever they appear in this prospectus. The forward-looking statements contained in this prospectus
represent our judgment as of the date of this prospectus. We caution readers not to place undue reliance on such statements. Except
as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason, even if new information
becomes available or other events occur in the future. All subsequent written and oral forward-looking statements attributable
to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained above and
throughout this prospectus.</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_004"></A>USE
OF PROCEEDS</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
estimate that the net proceeds from the sale of the shares of common stock we are offering will be approximately $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]&nbsp;million
based on an assumed offering price of $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] per share. If the underwriters fully exercise
the overallotment option, the net proceeds of the shares we sell will be approximately $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]&nbsp;million.
&ldquo;Net proceeds&rdquo; is what we expect to receive after deducting the underwriting discount and commission and estimated
offering expenses payable by us.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
$1.00 increase (decrease) in the assumed offering price of $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] would increase (decrease)
the net proceeds to us from this offering by approximately $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ], after deducting estimated
underwriting discount and commission and estimated offering expenses payable by us, assuming that the number of shares offered
by us, as set forth on the cover page of this prospectus, remains the same. Each increase of 100,000 shares in the number of shares
offered by us at the assumed public offering price would increase the net proceeds to us in this offering by approximately $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]&nbsp;million.
Similarly, each decrease of 100,000 shares in the number of shares offered by us at the assumed public offering price would decrease
the net proceeds to us from this offering by approximately $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]&nbsp;million. A change
in the offering price or the number of shares by these amounts could have a material effect on our uses of the proceeds from this
offering, and it may impact the amount of time prior to which we will need to seek additional capital.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We intend to use the
net proceeds of this offering primarily to repay, at the discretion of our Board of Directors, a portion of our currently outstanding
long-term indebtedness in an amount in the aggregate of up to 20% of the net proceeds that we receive in this offering (specifically,
the Term Loan which matures in full on April 9, 2021, bears interest at a rate of 9% per annum and the proceeds of which were
used to finance the Asset Acquisition), invest in or acquire companies or technologies that are synergistic with or complimentary
to our business, expand and market our current products and for working capital and other general corporate purposes (including
payment of outstanding accounts payable).&nbsp;If our Board of Directors elects not to repay outstanding indebtedness with the
proceeds of this offering, such proceeds will be used for working capital and other general corporate purposes.</P>



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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
anticipate an approximate allocation of the use of net proceeds as follows:</FONT></P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Use of Net Proceeds</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">$ (in<BR> millions)*</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; text-indent: -9pt; padding-left: 9pt">Repay, at the discretion of our Board of Directors, a portion of the Company&rsquo;s long-term debt</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">20</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Acquisition of new companies or technologies</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Expand and market our current products</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">General corporate purposes and working capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-indent: -9pt; padding-left: 9pt">Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 4%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Assuming the over-allotment option is not exercised.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
we expect to use the net proceeds for the purposes described above, the amounts and timing of our actual expenditures will depend
upon numerous factors, including [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;]. The expected net proceeds from the sale of
the shares offered hereby, if added to our current cash and cash equivalents is anticipated to be sufficient to fund our operations
through [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]. In the event that our plans change, our assumptions change or prove to be
inaccurate, or the net proceeds of this offering are less than as set forth herein or otherwise prove to be insufficient, it may
be necessary or advisable to reallocate proceeds or curtail expansion activities, or we may be required to seek additional financing
or curtail our operations. As a result of the foregoing, our success will be affected by our discretion and judgment with respect
to the application and allocation of the net proceeds of this offering.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pending
their use, we plan to invest the net proceeds from this offering in short- and intermediate-term, interest-bearing obligations,
investment-grade instruments, certificates of deposit or direct or guaranteed obligations of the U.S. government.</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_005"></A>DIVIDEND
POLICY</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have never declared or paid any cash dividends on our equity interests and we do not anticipate paying any cash dividends in the
foreseeable future. The payment of dividends, if any, in the future is prohibited by the Credit Agreement. If this prohibition
is lifted or at such time as we are no longer a party to the Credit Agreement, the payment of dividends, if any, in the future
will be within the discretion of our board of directors and will depend on our earnings, capital requirements and financial condition
and other relevant facts. We currently intend to retain all future earnings, if any, to finance the development and growth of
our business.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_006"></A>CAPITALIZATION</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Prior
to the closing of this offering, we will effect a reverse stock split of the outstanding shares of our common stock at a ratio
of 1-for-[ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] shares. The reverse stock split was approved by our Board of Directors and by
our majority stockholder on June 21, 2018. The share amount and per share information in this prospectus do not reflect the implementation
of the reverse stock split.</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth our capitalization as of March 31, 2019:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on an actual basis;
    and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on a pro forma basis
    to give effect to the sale of shares of our common stock in this offering, assuming a public offering price of $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
    per share, after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us,
    and the application of the net proceeds thereof as described under &ldquo;Use of Proceeds.&rdquo; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">You
should read the information in this table together with our financial statements and accompanying notes and &ldquo;Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations&rdquo; appearing elsewhere in this prospectus.</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid">As of March 31, <BR>
2019</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Actual</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Pro Forma</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: justify; padding-left: 10pt">Debt</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">13,834,177</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Stockholders&rsquo; Deficit:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued and outstanding, actual; no shares issued and outstanding, pro forma</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Common stock, $0.0001 par value; 200,000,000 shares authorized, 162,350,364 shares issued and outstanding, actual; [&nbsp;&nbsp;&nbsp;] shares issued and outstanding, pro forma</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,237</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 10pt">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,836,454</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt; padding-left: 10pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(17,915,412</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Total Stockholders&rsquo; Deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,062,721</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 4pt">Total Capitalization</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><P STYLE="margin: 0pt 0">11,771,456</P>


</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"></TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
information in this prospectus assumes the underwriters do not exercise their over-allotment option, and excludes the following:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,355,168 shares
    of common stock issuable upon exercise of outstanding options to purchase common stock with a weighted average exercise
    price of $0.0001 per share;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,200,000 shares
    of common stock issuable upon exercise of outstanding common stock purchase warrants with a weighted average exercise price
    of $0.25 per share; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
    shares of our common stock (which is equal to [&nbsp;&nbsp;&nbsp; ] % of our issued and outstanding common stock immediately
    after the consummation this offering) reserved for future issuance under our 2019 Equity Incentive Plan, which will become
    effective as of the closing of this offering.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_007"></A>DILUTION</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Prior
to the closing of this offering, we will effect a reverse stock split of the outstanding shares of our common stock at a ratio
of 1-for-[</I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>] shares. The reverse stock split was approved by our Board of Directors and by
our majority stockholder on June 21, 2018. The share amount and per share information in this prospectus do not reflect the implementation
of the reverse stock split.</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
you purchase shares of our common stock in this offering, your interest will be diluted immediately to the extent of the difference
between the assumed public offering price of $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] per share and the as adjusted net tangible book
value per share of our common stock immediately upon the consummation of this offering.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
tangible book value dilution per share to new investors represents the difference between the amount per share paid by purchasers
in this offering and the as adjusted net tangible book value per share of common stock immediately after completion of this offering.
After giving effect to our sale of [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] shares of common stock in this offering
at an assumed public offering price of $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] per share, and after deducting underwriters&rsquo;
commissions and estimated offering expenses, our as adjusted net tangible book value as of March 31, 2019 would have been $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]&nbsp;million,
or $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] per share. This represents an immediate increase in net tangible book value of
$[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] per share to existing stockholders and an immediate
dilution in net tangible book value of $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] per share to
purchasers of shares in this offering, as illustrated in the following table:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 78%; padding-left: 10pt; text-align: justify; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Assumed
    public offering price per share</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 8%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 8%; text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&nbsp;&nbsp;&nbsp;
    ]</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-left: 10pt; text-align: justify; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
    tangible book value per share as of March 31, 2019</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&nbsp;&nbsp;&nbsp;
    ]</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-left: 10pt; text-align: justify; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Increase
    in net tangible book value per share attributable to new investors</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&nbsp;&nbsp;&nbsp;
    ]</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-left: 10pt; text-align: justify; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adjusted
    net tangible book value per share as of March 31, 2019, after giving effect to this offering</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&nbsp;&nbsp;&nbsp;
    ]</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-left: 10pt; text-align: justify; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dilution
    per share to new investors in this offering</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&nbsp;&nbsp;&nbsp;
    ]</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
above discussion and tables do not include the following:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,355,168 shares
    of common stock issuable upon exercise of outstanding options to purchase common stock with a weighted average exercise
    price of $0.0001 per share;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,200,000 shares
    of common stock issuable upon exercise of outstanding common stock purchase warrants with a weighted average exercise price
    of $0.25 per share; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
    shares of our common stock (which is equal to [&nbsp;&nbsp; ] % of our issued and outstanding common stock immediately after
    the consummation this offering) reserved for future issuance under our 2019 Equity Incentive Plan, which will become effective
    as of the closing of this offering.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_008"></A>MANAGEMENT&rsquo;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>The
following discussion and analysis of our consolidated financial condition and results of operations for the three months ended
March 31, 2019 and 2018, and the years ended December 31, 2018 and 2017, along with a discussion of the results of our predecessor
entity for the period from January 1, 2018 to April 8, 2018 and for the year ended December 31, 2017 should be read in conjunction
with the &ldquo;Summary Historical Consolidated Financial and Operating Data&rdquo; and the consolidated financial statements
and notes related thereto included elsewhere in this prospectus. For purposes of this section, we have also included a discussion
of certain results from operations on a combined basis, by comparing our consolidated results for the three months ended March
31, 2019 to the combined results of our three months ended March 31, 2018 with the predecessor&rsquo;s results for the three months
ended March 31, 2018, and also comparing our consolidated results for the year ended December 31, 2018 combined with the predecessor&rsquo;s
results for the period from January 1, 2018 to April 8, 2018 to the predecessor&rsquo;s results from operations for the year ended
December 31, 2017.</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Prior
to the closing of this offering, we will effect a reverse stock split of the outstanding shares of our common stock at a ratio
of 1-for-[ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] shares. The reverse stock split was approved by our Board of Directors and by our majority
stockholder on June 21, 2018. The share amount and per share information in this prospectus do not reflect the implementation
of the reverse stock split.</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Forward-looking
statements in this prospectus reflect the good-faith judgment of our management and the statements are based on facts and factors
as we currently know them.&nbsp;Forward-looking statements are subject to risks and uncertainties and actual results and outcomes
may differ materially from the results and outcomes discussed in the forward-looking statements.&nbsp;&nbsp;Factors that could
cause or contribute to such differences in results and outcomes include, but are not limited to, those discussed below and in
&ldquo;Risk Factors&rdquo; as well as those discussed elsewhere in this prospectus.&nbsp;Readers are urged not to place undue
reliance on these forward-looking statements which speak only as of the date of this prospectus.&nbsp;We undertake no obligation
to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date
of this prospectus.</I></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are FinTech company and PayFac that focuses on a suite of products in the merchant services and payment facilitator verticals
that is focused on providing integrated business solutions to merchants throughout the United States. We seek to accomplish this
by providing merchants with a wide range of products and services through our various online platforms, including financial and
transaction processing services and support for crowdfunding and other capital raising initiatives. We supplement our online platforms
with certain hardware solutions that are integrated with our online platforms. Our business functions primarily through three
wholly-owned subsidiaries, eVance, OmniSoft, and CrowdPay.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
merchants are currently processing over $82,000,000 in gross transactions monthly and average 1,400,000 transaction a month. These
transactions come from a variety of sources including direct accounts and ISO channels. The accounts consist of businesses across
the United States with no concentration of industries or merchants.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are finalizing the integration of all the applications for OmniSoft and the ShopFast Omnicommerce solution with the eVance mobile
payment gateway, SecurePay.com. The Company&rsquo;s proprietary gateway, SecurePay.com<SUP>TM</SUP>, is used by approximately
3,000 merchants processing over 32,000 transactions and approximately $9,000,000 of monthly gross transactions. We also expect
to launch new merchant and ISO boarding system that will be able to board merchants instantly online by the end of June 2019.
This will provide the merchant with an automated approval and ISOs will have the ability to see all their merchants and their
residuals as they load to the system.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
back office risk and compliance system, Ingres, is connected to a list of risk and mitigation vendors and tools that instantly
give us an in-depth understanding of new merchant applications. This allows our internal dashboard to provide Artificial intelligence
information on the merchant. We use this information to try to mitigate merchant risk and thus our liability risk for the transaction.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
available merchant information processed through our systems gives us the ability to make intelligent decisions about what services
we can provide to specific merchants. Services such as small business loans and instant cash advances are available upon our approval,
although none have been issued to date.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
plan to focus on prime verticals such as small banks that don&rsquo;t have merchant services in-house. This allows us to be the
merchant services provider for the bank and their merchants. Additionally, as a PayFac, we are able to instantly underwrite merchants
and take the credit risk from end to end.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are adding additional services to our payment gateway to provide services such as ACH and cloud based billings.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CrowdPay
plans to increase the platform services for crowd funding by offering its white labeled solutions to issuers and investment banking
firms.</FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Three
Months Ended March 31, 2019 Compared to the Three Months Ended March 31, 2018</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the three months ended March 31, 2019 we had total revenue of $2,590,894, a majority of which is earned from transaction and processing
fees related to electronic payments. During the same period, costs related to payment processing fees totaled $1,718,098, or 66.3%
of revenue.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the predecessor&rsquo;s three months ended March 31, 2018, total revenues were $3,174,539, a majority of which is earned primarily
from transaction and processing fees related to electronic payments. During the same period, cost of revenue related to payment
processing combined for $1,748,141 or 55.0% of revenue.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue
has decreased from the prior year due to the lack of a sales team and customer retention program in place to replace lost merchants
and gain new ones. Our goal is to build out our sales team in 2019 and expand our offering or products and services.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Selling,
general and administrative (&ldquo;SG&amp;A&rdquo;) expenses were $976,331 for the three months ended March 31, 2019. This includes
$434,793 for salaries and wage expense, $40,869 for outside commissions and $273,022 for other general and administrative costs
(&ldquo;G&amp;A&rdquo;) which includes $66,262 of non-cash stock compensation expense related to the grant of options to our officers.
We also recognized amortization expense of $227,647.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the three months ended March 31, 2018, the SG&amp;A expenses were $203,539. This includes $156,250 for salaries and wage expense,
$4,097 cost of revenue and $43,012 for G&amp;A.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the three months ended March 31, 2018, the predecessor&rsquo;s SG&amp;A expenses were $1,340,904. This includes $374,345 for salaries
and wage expense, $508,296 for outside commissions and $367,524 for G&amp;A. We also recognized amortization expense of 90,739.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
decrease in SG&amp;A expense of $568,112 for the three months ended March 31, 2019 compared to the combined three months ended
March 31, 2018 is largely due to the decrease in outside commissions.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the three months ended March 31, 2019 we incurred $303,954 of interest expense, compared to $832,564 for the predecessor&rsquo;s
three months ended March 31, 2018. The decrease in interest expense of $528,610 is due to the restructuring of the GACP loan.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
net loss for the three months ended March 31, 2019 was $406,945 compared to the combined $872,792 for the three months ended March
31, 2018.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>For
the Year Ended December 31, 2018 compared to the Year Ended December 31, 2017</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the year ended December 31, 2018, a majority of our total revenues were earned from transaction and processing fees related to
electronic payments totaling $9,019,876. During the same period, costs related to payment processing fees totaled $5,992,619,
or 66.4% of revenue. For the period from January 1, 2018 through April 8, 2018, total revenues were $3,174,539, along with payment
processing fees of $1,748,141. The combined results for the full year 2018 revenue were $12,194,415 and processing fees of $7,740,760,
which are 63.5% of revenue.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
year ended December 31, 2017, the predecessor revenues were earned primarily from transaction and processing fees related to electronic
payments totaling $14,907,709. During the same period, cost of revenue related to payment processing combined for $9,395,994 or
63.0% of revenue.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue
has decreased from the prior year due to the lack of a sales team and customer retention program in place to replace lost merchants
and gain new ones. Our goal is to build out our sales team in 2019 and expand our offering or products and services.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">SG&amp;A expenses
were $2,836,206 for the year ended December 31, 2018. This includes $1,401,192 for salaries and wage expense, $181,510 for outside
commissions and $1,253,504 for other general and administrative costs. We also incurred $182,213 of non-cash stock compensation
expense related to the grant of options to our officers. For the period from January 1, 2018 through April 8, 2018, SG&amp;A expenses
were $1,250,165. This includes $374,345 for salaries and wage expense, $508,296 for outside commissions and $367,524 for other
general and administrative costs.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the year ended December 31, 2017, the predecessor&rsquo;s SG&amp;A expenses were $7,087,670.
This includes $2,782,079 for salaries and wage expense, $336,290 for outside commissions and $3,969,301 for other G&amp;A. Some
of the larger components of G&amp;A costs included legal and other professional fees of $2,095,231 and rent expense of $184,336.
The predecessor also incurred $7,914,269 of non-cash expense for the impairment of goodwill.</P>

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

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

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

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


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
combined decrease in SG&amp;A expense of $3,001,299 from the year ended December 31, 2017 to 2018 is largely due to the decrease
in salaries and wages, legal and other professional fees and outside commissions.</FONT></P>

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

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

<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the year ended December 31, 2018 we incurred $883,316 of interest expense, a $16,039 gain on forgiveness of debt and $6,799 of
interest income. For the period from January 1, 2018 through April 8, 2018, the predecessor incurred $832,564 of interest expense,
a $908 of other income. Total interest expense for the full year combined for $1,715,880. For the year ended December 31, 2017
we incurred $3,836,495 of interest expense and other expense of $131,846. The decrease in interest expense of $2,120,615 from
the year ended December 31, 2017 to the full year ended December 31, 2018, is due to the restructuring of the GACP loan.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
net loss for the year ended December 31, 2018, was $1,393,544. For the period from January 1, 2018 through April 8, 2018, our
net loss was $746,162, for a combined net loss of $2,139,706 for the full 2018 year compared to a net loss of $662,297 for the
year ended December 31, 2017. The net loss for the predecessor for the year ended December 31, 2017 was $13,821,521.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Liquidity
and Capital Resources</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the three months ended March 31, 2019 we used $113,741 of cash in operating activities, which included reconciliation of $236,517
for amortization and depreciation expense, $66,262 for stock based compensation, an increase to accounts receivable of $71,030
and an increase to related party accruals of $79,992. We had proceeds from financing activities of $45,000 from a loan from our
CEO.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the three months ended March 31, 2018 we used $28,201 as a result of operating activities and received $30,000 from financing
activities from related party loans.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the predecessor three months ended March 31, 2018 we used $382,106 in operating activities which included reconciliation of $109,225
for amortization and depreciation expense, a decrease to accounts receivable of $99,190 and a decrease to accounts payable of
$219,888. And we received $176,088 from investing activities.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
March 31, 2019, the Company had&nbsp;cash of $42,845&nbsp;and a working capital deficit of $783,788. For the three months
ended March 31, 2019, the Company&rsquo;s net loss and cash used in operating activities was $406,945 and $113,741,
respectively.&nbsp;<FONT STYLE="background-color: white">T</FONT>he Company expects to fund future liquidity and capital
requirements through cash flow generated from its operating activities resulting from increases in its merchants and revenues
generated. Additionally, included in the working capital deficit as of March 31, 2019 was accrued payroll, a note payable and
other expenses due to the Company&rsquo;s Chief Executive Officer, Mr. Ronny Yakov, in the amount of $657,229, which he has
agreed to defer receiving payment until the Company has sufficient working capital. As a result of the recent amendments to
its long-term and related party long-term debt arrangements, coupled with its operations acquired in the business combination
and commitment from a related party and significant stockholder that he will provide any additional financial support, if
needed, to satisfy the Company&rsquo;s debt or other obligations through November 2020, the Company has alleviated its
previously reported substantial doubt regarding its ability to continue as a going concern.&nbsp; The Company&rsquo;s future
capital requirements could depend on many factors, including the need to expand its services, competing technological
and market developments, and the need to enter into collaborations with other companies or acquire other companies or
technologies to enhance or complement the Company&rsquo;s product and service offerings. If the Company is unable to secure
additional capital, it may be required to curtail its future plans and take additional measures to reduce costs in order to
conserve cash.&nbsp;</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Refer
to Note 2 of our financial statements contained elsewhere in this prospectus for a summary of our critical accounting policies
and recently adopting and issued accounting standards.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_009"></A>BUSINESS</B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are FinTech company and payment facilitator that focuses on a suite of products in the merchant services and payment facilitator
verticals that is focused on providing integrated business solutions to merchants throughout the United States. We seek to accomplish
this by providing merchants with a wide range of products and services through our various online platforms, including financial
and transaction processing services and support for crowdfunding and other capital raising initiatives. We supplement our online
platforms with certain hardware solutions that are integrated with our online platforms. In 2018, we were ranked 62<SUP>nd</SUP>
among merchant acquirers in the United States ranked by Visa/Mastercard volume. Our business functions primarily through three
wholly-owned subsidiaries, eVance, OmniSoft, and CrowdPay.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
were incorporated in the State of Delaware on November 18, 2004 for the purpose of merging with OLB.com. The merger was done for
the purpose of changing our state of incorporation from New York to Delaware. In April 2018, we completed an acquisition of substantially
all of the assets of Excel and its subsidiaries Payprotec Oregon, LLC, Excel Business Solutions, Inc. and eVance Processing, Inc.
(such assets are the foundation of our eVance business). In connection with such acquisition, in May 2018, we entered into share
exchange agreements with CrowdPay and OmniSoft, affiliate companies of our company&rsquo;s majority stockholder, pursuant to which
each of CrowdPay and OmniSoft became solely owned subsidiaries of our Company. Our Company&rsquo;s headquarters is located at
200 Park Avenue, Suite 1700, New York, NY 10166. Our telephone number is (212) 278-0900.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="img_006.jpg" ALT="">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
payment facilitator (or &ldquo;PayFac&rdquo;) is a company that is sponsored by a bank or other financial institution and creates
a sub-merchant account in order to provide payment processing services to merchant clients. As a payment facilitator, we are able
to offer merchant services on a sub-merchant platform which allows us to on-board sub-merchants under our unique merchant ID account
(an &ldquo;MID&rdquo;). Said differently, PayFacs operate in the same way as an ISO in terms of payment process but the on-boarding
and accounting for merchants are different. With an ISO, merchants are identified with individual MID and the settlement to the
merchant is handled by the settlement/acquiring bank. A PayFac has its own MID with a settlement bank and each of the merchants
on-boarded by the PayFac are given sub-MID&rsquo;s under the PayFac&rsquo;s MID. This allows the PayFac to board a merchant very
quickly and also enables the PayFac to accept responsible for settling the payment of funds to the merchant which increases the
PayFac&rsquo;s fees. We operate under a TSYS/ProPay (the processor in the ecosystem) and the sponsoring bank that approved us
was Wells Fargo.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Description
of our eVance Business</B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">eVance
is an independent sales organization that signs up new merchants on behalf of acquiring banks and processors (an &ldquo;ISO&rdquo;)
that provides financial and transaction processing solutions to merchants throughout the United States. eVance differentiates
itself from other ISOs by focusing on both obtaining and maintaining new merchant contracts for its own account (including, but
not limited to, merchants that utilize the OmniSoft platform) and also obtaining and maintaining merchant contracts obtained by
third-party ISOs (for which we negotiate a shared fee arrangement) and utilizing our own software and technology to provide merchants
and other ISO&rsquo;s differentiating products and software. In particular, we (i) own our own payments gateway, (ii) have proprietary
omni-commerce software platform, (iii) have in-house underwriting and customer service, (iv) have in-house sub-ISO management
system which offers sub-ISO&rsquo;s and agents tools for online boarding, account management, residual reports among other tools,
(v) utilize a PayFac model and (vi) offer a suite of products in the financial markets (through CrowdPay). Leveraging our relationship
with three of the top five merchant processors in the United States (representing a majority of the merchant processing market)
and with use of our proprietary software, eVance provides competitive payment processing solutions to merchants which enable merchants
to process credit and debit card-based internet payments for sales of their products at competitive prices (whether such sales
occur online or at a &ldquo;brick and mortar&rdquo; location). Our payment gateway (which we call &ldquo;SecurePay&rdquo;) also
enables merchants to reduce the cost of transacting with their customers by removing the need for a third-party payment gateway
solution.</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
ISO Operations</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
described in more detail in the section entitled &ldquo;Our Industry&rdquo; below, an ISO is an organization that signs up new
merchants on behalf of acquiring banks and processors. As an ISO, we identify merchants that are interested in our financial and
transaction processing solutions and generate individual merchant processing contracts for such merchants. We operate as both
a wholesale ISO and a retail ISO depending on the risk profile of the merchant and the applicable merchant processor and acquiring
bank. As a wholesale ISO, we underwrite the processing transactions for merchants, establishing a direct relationship with the
merchant and generating individual merchant processing contracts in exchange for future residual payments. As a retail ISO, we
primarily gather the documents and information that our partners (acquiring banks and acquiring processors) need to underwrite
merchants&rsquo; transactions and as a result receive only residual income as commission for merchants we place with our partners.
When we onboard a new merchant, such merchant is identified with an individual merchant ID account (an &ldquo;MID&rdquo;) and
the settlement to the merchant is handled by the acquiring bank.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
Industry</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
payment processing industry allows merchants to process credit, debit and gift and loyalty card payments along with providing
other payment processing and related information services. The electronic payments industry continues to benefit from the migration
from cash and checks to credit and debit cards and other electronic payments, as well as intrinsic, aggregate growth in the Gross
Domestic Product (&ldquo;GDP&rdquo;) in the markets we serve. This migration is being driven by consumer convenience and engagement,
the increased use by consumers of online shopping, card issuer rewards, e-commerce, regulations and innovative payment and commerce
solutions being introduced in these markets. In addition, broader merchant acceptance in industries that did not historically
accept electronic payments helps to drive this migration. Merchants are taking advantage of new hardware options, such as mobile
phone dongles and tablet solutions, to integrate payment processing solutions into general business applications, which reduce
the cost and complexities of doing business and serving consumers. The payment processing industry is served by a variety of providers
including:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Card issuers
    </I>&ndash;<I>&nbsp;</I>Financial institutions that issue payment account products, such as credit and debit cards, to consumers
    backed by a credit line or a demand deposit account, such as a checking account and pay merchants on behalf of cardholders.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Acquiring banks
    </I>&ndash; Financial institutions that accept payments from the card issuer on behalf of a merchant (any organization that
    accepts card-based payments in exchange for the goods and services they provide) such that the merchant does not need to have
    an account with the card issuer in order to accept a payment from a customer.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Credit card associations
    </I>&ndash; Credit card brand companies (for example, Visa and MasterCard) that issue cards to consumers and set rules and
    route transactions among participants in their networks (card issuers and acquiring banks, for example).</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Merchant acquirers
    </I>&ndash; Providers that enable merchants to accept, process and settle electronic payments. There are various types of
    merchant acquirers as described below. We operate as a type of merchant acquirer. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Third-party providers
    &ndash;</I> Other service, software and hardware companies that provide products and services designed to improve the payments
    experience for issuers, merchants, merchant acquirers and consumers, including mobile payment enablers, terminal manufacturers,
    payment gateway providers, independent software vendors, integrated point of sale systems, dealers and risk management service
    providers.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
typical card transaction requires close coordination among the various industry participants described above that provide the
services and infrastructure required to enable such transactions. As a merchant acquirer, our role in this ecosystem is to act
as a conduit between acquiring banks and credit card associations, on the one hand, and merchants, on the other hand, to enable
merchants to accept, process and settle payments from customers. There are various types of merchant acquirers:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Non-bank merchant
    acquirers &ndash;</I> These independent providers offer merchant acquiring solutions using their own proprietary and third-party
    platforms, and are capable of facilitating all elements of the payment transaction cycle, including the acceptance (i.e.,
    authorization or rejection), processing and settling of merchant transactions.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Banks </I>&ndash;
    Historically, banks have been the merchant acquirers, as they marketed merchant acquiring services in combination with other
    commercial banking products to their customers. In the United States, however, most banks divested these services to non-bank
    merchant acquirers. While some banks elected to retain in-house merchant acquiring capabilities, the vast majority of U.S.
    banks chose to form joint ventures or referral relationships with independent merchant acquirers.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>IPOS providers
    &ndash; </I>These companies offer software and hardware solutions that enable merchants to manage various aspects of their
    business, including payment acceptance through separate relationships between the IPOS providers and merchant acquirers.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>ISOs &ndash;
    I</I>SOs typically specialize in managing a sales force that targets merchants in a specific market segment or geographic
    region. ISOs typically outsource most merchant acquiring back-office functions, including the processing and settling of transactions,
    to non-bank merchant acquirers. ISOs are contracted by a credit card member bank to procure new merchant relationships. ISOs
    also process online credit card processing transactions for small businesses for a fee or percentage of sales. Being a wholesale
    ISO, eVance assumes underwriting liability which increases its responsibility to monitor and manage merchants, thereby increasing
    its value to banks as well as the fees which it charges for each transaction.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
typical card transaction requires a complex process involving various participants in a series of electronic messages, decisions
and flow of funds as seen below:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="img_007.jpg" ALT="">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
typical card transaction begins when a cardholder presents a card for payment at a merchant location and the cardholder swipes
the card&rsquo;s magnetic strip through, or in the case of an EMV chip inserts the card into, a point of sale (or &ldquo;POS&rdquo;)
terminal card reader. Some merchants may also have card readers that can receive cardholder information through a contactless
connection with an enabled card or mobile phone. The card reader can be integrated either into a standalone POS terminal or a
software application the merchant uses to manage its business. For e-commerce transactions, the cardholder types in the card number
and related information into the merchant&rsquo;s website where it is collected by the website&rsquo;s payment processing software.
The POS terminal or software application electronically records sales draft information, such as the card identification number,
transaction date and value of the goods or services purchased. After the card and transaction information is captured by the POS
terminal or software, the merchant acquirer routes the authorization request through the applicable card network to the card issuer,
whose systems determine whether a transaction is &ldquo;approved&rdquo; or &ldquo;declined&rdquo; based on a variety of factors,
including a determination of whether the particular card is authentic and whether the impending transaction value will cause the
cardholder to exceed defined limits for spending or balances. This response is then returned to the merchant&rsquo;s POS terminal
or software application. This entire authorization and response process is referred to as the &ldquo;frontend&rdquo; of a purchase
transaction and typically occurs within seconds from the time the cardholder initiates the transaction.</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Following
the purchase transaction approval, an electronic draft capture process transfers sales draft data into an electronic format. Once
in an electronic format, sales draft data is sent through the card networks for clearing and settlement, allowing the merchant
to receive payment for the goods or services sold. Card networks use a system known as &ldquo;interchange&rdquo; to transfer the
information and funds between the card issuer and the merchant acquirer to complete the link between the merchant and card issuer.
This portion of the payment processing cycle is referred to as the &ldquo;backend settlement&rdquo; and typically occurs within
48 hours following a completed purchase transaction.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
services provided directly to merchants and associated fees to the merchant vary depending on the type of card (<I>e.g.</I>, corporate,
consumer, debit, rewards), manner in which it is used (<I>e.g.</I>, credit/debit, e-commerce,&nbsp;face-to-face),&nbsp;merchant
category, the provider&rsquo;s&nbsp;in-house&nbsp;technology capabilities and the services that are outsourced to other providers.
Only a few providers have the capability to provide all of these services, and even fewer can provide all of their services from
an integrated platform. We are one of these providers. Below is an example of a sample transaction:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="img_008.jpg" ALT=""><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Sales
and Marketing</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
primarily use independent agents and other smaller ISOs to market our services. We intend to increase the number of independent
agents and ISO&rsquo;s that sell on our behalf. We may also gain additional agents through the acquisition of merchant portfolios
or companies. We may also add to our direct sales channel for certain industry segments or customer profiles.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Growth
Strategy</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
growth strategy consists of the following: (1) we plan to begin offering the OmniSoft suite of products and applications to our
existing eVance customers, (2) we expect to bring in-house a sales team to generate organic revenues from the suite of products
that we have and (3) we expect to make additional acquisitions of merchant portfolios that we can integrate into our applications.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B><I>&nbsp;</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
payment processing industry is highly competitive. We compete with other ISOs for the acquisition of merchant agreements.&nbsp;Several
sponsor banks and processors including First National Bank of Omaha, Chase Paymentech, L.P., Bank of America Merchant Services,
First Data Corporation, Global Payments, Elavon Inc., as well as Wells Fargo, U.S. Bank and others, frequently solicit merchants
directly or through their own network of ISOs. Competition is based upon a number of factors including price, service and product
offerings. Many of these competitors are larger and have substantially greater resources than us.&nbsp;We believe we remain competitive
to these processors and competitive ISOs through a combination of beneficial pricing and services to our merchant customers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Cash
Advance Business</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to our business as an ISO, we may, through eVance Capital, a subsidiary of eVance, begin to provide cash advances and
loans to our merchant customers. In this capacity, we would act as a retail ISO providing alternative financing and working capital
solutions to small and medium sized businesses using a variety of third party funding sources. eVance Capital would not provide
capital directly or take credit risk, instead seeking to earn commissions from independent third parties by placing their financial
products with our merchant customers. No cash advances and/or loans were provided to our merchant customers for the years ended
December 31, 2018 and 2017 or during the three months ended March 31, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Description
of our OmniSoft Business</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B><I>&nbsp;</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">OmniSoft
operates a cloud-based business management platform that provides turnkey solutions for merchants to enable them to build and
manage their retail businesses, whether online or at a &ldquo;brick and mortar&rdquo; location. The OmniSoft platform, which can
be accessed by merchants through any mobile and computing device, allows merchants to, among other features, manage and track
inventory, track sales and process customer transactions and can provide interactive data analysis concerning sales of products
and need for additional inventory. Merchants generally utilize the platform by uploading to the platform information about their
inventory (description of units, number of units, price per unit, and related information). Once such information has been uploaded,
merchants, either with their own device or with hardware that we sell directly to them, are able to utilize the platform to monitor
inventory and process and track sales of their products (including coordinating shipping of their products with third party logistics
companies). We manage and maintain the OmniSoft platform through a variety of domain names or a merchant can integrate our platform
with their own domain name. Using the OmniSoft platform, merchants can &ldquo;check-out&rdquo; their customers at their &ldquo;brick
and mortar&rdquo; stores or can sell products to customers online, in both cases accepting payment via a simple credit card or
debit card transaction (either swiping the credit card or entering the credit card number), a cash payment, or by use of a QR
code or loyalty and reward points, and then print or email receipts to the customer. OmniSoft has recognized an immaterial amount
of the Company&rsquo;s revenue, if any, historically (including during the periods presented in the financial statements included
herein).</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
Operations</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">OmniSoft
is a SaaS business that offers OMNI Commerce Solutions as a white label service. OmniSoft provides customized solutions to ISOs
and banks or financial institutions that processes credit or debit card payments on behalf of a merchant that operate in the payments
processing market and have the need for e-commerce and mobile commerce. We provide software that enable companies to offer similar
services as competitors such as PayPal, Intuit QuickBooks, Square, Google, Apple Pay and Amazon. Our cloud based software has
comparable features to Shopify under ShopFast. We also provide white labeled services for large ISOs. Our solutions are cloud-based
so there is no need to install any software, backup or update applications by our clients, including large Merchant Acquiring
Banks. The OmniSoft software works on web based computers &amp; tablets, Apple IOS, Android, and Windows. Our target clients are
merchant acquiring banks, and ISOs (wholesale price) Direct to retailers. Our business model provides a sign-up integration fee,
custom features development fees, and ongoing monthly fees, per merchant per month. The pricing for a single merchant includes
an initial setup fee of $49 and approximately $100-$200 per month for use of the software as SaaS fees. Hardware costs range from
$300 to $1,000. Large white label projects have a one-time fee of $50,000.</FONT></P>

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

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    <TD STYLE="width: 1%; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 49%; text-align: center; font: 10pt Times New Roman, Times, Serif"><IMG SRC="img_010.jpg" ALT=""></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">OmniSoft
allows mobile shopping and self-checkout with credit or debit cards, reward points and Apple Pay. OmniSoft features include: a
product catalog, marketing and promotions, shipping features, payment gateways to Point-of-Sale (POS) terminals, customer service,
secure HTTPS &amp; SSL and Payment Card Industry (PCI) Compliance.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
service features include: maintenance, hosting, monitoring, updates, custom solutions, software support, and service level agreement.
Retailers and merchants have access to website development tools, marketing functions and curation capabilities, mobile commerce
and social media engagement. Key back-office management functions, including statistical analysis reports and inventory management,
are available through OmniSoft&rsquo;s advanced API and pre-built integrations with leading accounting applications.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
utilize OmniSoft software to be able to provide companies with branded web sites. We partner with clients such as traditional
marketing companies which include cataloguers, retailers, wholesalers and manufacturers, seeking to develop their Internet sales
through their own websites. Which we help develop, operate, host and market on the ShopFast platform.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Many
of our clients need to establish an Internet presence in order to effectively compete in the e-commerce marketplace, but do not
either have the resources or the expertise to effectively operate and market an e-commerce retail website. By working with the
Company, these companies are able to establish, maintain and market up-to-date, customized, commerce-enabled websites, while avoiding
high set up costs and fees such as software maintenance and upgrades.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
ShopFast solution is equipped with the most advanced Internet commerce technology available to help our clients provide superior
service to their customers. We provide such clients with a 24/7 global marketplace for the sale of their products, while at the
same time allowing for instant price changes, evaluation of marketing campaigns, measurement of consumer product acceptance, and
handling of customer service. Each ShopFast website is custom tailored to meet the needs of our clients. We have cultivated relationships
with our clients to be able to provide the market with turnkey online private label stores. In addition, we provide product content
from our clients to our Direct Shopping Database (DSD) of partners, which is a multi-inventory shopping services that matches
suppliers with customer traffic. While our clients are responsible for driving traffic to their own website through their own
marketing efforts, the ShopFast DSD creates an additional sales channel for the client at no additional cost.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Through
ShopFast, consumers can purchase products and services from websites of clients across variety of business sectors including:
Cafes &amp; Delis, Retail Stores, Salons &amp; SPAS, Restaurants, Street Vendors, and Car &amp; Limousine.</FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
help expand the market for our suite of OmniSoft business solutions, we also purchase hardware products from wholesalers, which
after installation of our OmniSoft proprietary software, we resell through our ShopFast website. Hardware products we sell are
merchant focused including credit card swipers, barcode scanners, cash drawers and printers. Other popular products include Apple
iPads, and payment processing hardware such as the Poynt smart terminal that facilitates payments and customer receipts for merchants
and customers.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
compete against companies such as Shopify, Square, ShopKeep and Revel.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Description
of our CrowdPay Business</B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">CrowdPay operates
a white label capital raising platform that is used mainly by small and midsized businesses seeking to raise capital and by registered
broker-dealers seeking to host capital raising campaigns for such businesses by integrating the platform onto such company&rsquo;s
or broker-dealer&rsquo;s website. Our CrowdPay platform is tailored for companies seeking to raise money through a crowdfunding
offering of between $1 million and $50 million pursuant to Regulation CF under the JOBS Act, offerings pursuant to Rule 506(b)
and Rule 506(c) under Regulation D of the Securities Act, and offerings pursuant to Regulation A+ of the Securities Act. Our platform,
which can be used for multiple offerings at once, provides companies and broker-dealers with an easy-to-use, turnkey solution
to support company offerings, allowing companies and broker-dealers to easily present online to potential investors relevant marketing
and offering materials and by aiding in the accreditation and background check processes to ensure investors meets the applicable
requirements under the rules and regulations of the SEC. CrowdPay charges a fee to each company and broker-dealer for the use
of its platform under a fee structure that is agreed to between CrowdPay and the Company and/or broker-dealer prior to the initiation
of the offering. CrowdPay also generates revenues by providing ancillary services to the companies and broker-dealers utilizing
our platform, including running background checks and providing anti-money laundering and know-your-customer compliance. CrowdPay
is not a registered funding portal or a registered broker-dealer. CrowdPay has recognized an immaterial amount of the Company&rsquo;s
revenue, if any, historically (including during the periods presented in the financial statements included herein).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
Operations</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a SaaS company, CrowdPay offers white label Omni Channel e-commerce and content solutions for crowdfunding, while offering custom
solutions to broker dealers, merchant banks and securities law firms that have the need for platforms to market and collect offerings.
We install all software, backup, and update applications for all issuers that are customers of our platform. CrowdPay works on
web based computers, IOS and Android devices. The platform can be up and running in approximately four to six weeks after the
initial onboarding process and configurations for hardware.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><IMG SRC="img_011.jpg" ALT="">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Maintenance,
hosting, billing transactions and compliance are all provided for on the platform. Our pricing model for these services ranges
from $25,000 to $100,000 per month, which includes transaction fees, set up fees and platform fees. In lieu of cash fees, we also
accept, on a case by case basis, equity shares from companies that use our platform.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
special feature requiring development will be developed as custom work, and will be quoted prior to starting development. Per
our business model, there is a onetime upfront fee that provides for implementation and integration specified ACH and processing
credit cards for payments on the platform. ACH and wire processing are required to be processed using our other subsidiaries,
eVance and OmniSoft. Per corporate design, the portal provides processes for compliance with certain regulations, e-signatures,
accreditation and Bad Actor checks with integrated third party software. CrowdPay is also connected to reputable service bureaus
that provide us with background checks. The dashboard provides management and offering information on identity validation, custom
forms, know your customer (KYC), anti-money laundering (AML) checks, residency requirements and cool-off periods.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="img_012.jpg" ALT="">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Crowdfunding platform monitors compliance with AML and KYC laws and regulations. Our SaaP key feature integrations include: standard
delivery mechanisms, accounting management, search engine tools and cloud based tools through Microsoft Azure.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Examples
of Platform Offerings</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
<I>Growth eREIT</I> can be offered on a platform to focus primarily on opportunistic equity ownership of commercial real estate
assets that have greater potential to appreciate in value over time.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
<I>Income eREIT</I> can be offered on a platform to focus primarily on debt investments in commercial real estate assets, which
typically generate steady cash flow throughout the life of the investment.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have clients in various industries including automotive, biotech and educational products that are currently utilizing the platform
to offer securities under Rule 506(c), Regulation A+ and Regulation CF.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Significantly,
we are one of the few crowdfunding platforms that can accept investments using credit cards, which we process through our eVance
business.</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: #045F86; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 20%; border: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase; color: White"><B>INVESTOR
    LIMITS</B></FONT></TD>
    <TD STYLE="width: 16%; border-top: #DDDDDD 1pt solid; border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase; color: White"><B>title
    II &ndash;<BR>
rule 506(b)</B></FONT></TD>
    <TD STYLE="width: 16%; border-top: #DDDDDD 1pt solid; border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase; color: White"><B>title
    II &ndash;<BR>
 rule 506(c)</B></FONT></TD>
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; padding: 6pt; text-align: center; width: 16%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase; color: White"><B>title
    III</B></FONT></TD>
    <TD STYLE="width: 16%; border-top: #DDDDDD 1pt solid; border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase; color: White"><B>Regulation&nbsp;A+<BR>
    Tier 1</B></FONT></TD>
    <TD STYLE="width: 16%; border-top: #DDDDDD 1pt solid; border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase; color: White"><B>Regulation&nbsp;A+<BR>
    Tier 2</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">Maximum
    Dollar Amounts</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No
    Maximum</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No
    Maximum</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$1
    Million</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$20
    Million</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$50
    Million</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Types
    of Investors Permitted</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Accredited
    &ndash; up to 35<BR>
    Non-Accredited</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Only
    Accredited</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Accredited
    and<BR>
    Non-Accredited</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Accredited
    and<BR>
    Non-Accredited</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Accredited
    and<BR>
    Non-Accredited</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Investment
    Limits</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;None</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;None</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes<BR>
    (the lesser of 5% or 10% of income or net worth)</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes
    &ndash; for non-accredited<BR>
    investors (10% of income, net worth)</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes
    &ndash; for non-accredited<BR>
    investors (10% of income, net worth)</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Typical
    Number of Investors</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&lt;100</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&lt;100</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&lt;1000</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;~1500
    to ~5500</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;~2500
    to ~7500</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Shareholder
    Limits</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;2,000
    accredited investors, 35 Non-Accredited friends and family investors.</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;2,000
    accredited investors</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;None</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;None</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;None</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Investor
    Liquidity</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;12
    month hold</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;12
    month hold</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;12
    month hold</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes
    &ndash; Transfer Agency to OTC or NASDAQ</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes
    &ndash; Transfer Agency to OTC or NASDAQ</FONT></TD></TR>
<TR STYLE="background-color: #045F86; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase; color: White"><B>&nbsp;Offering
    LIMITS</B></FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase; color: White"><B>&nbsp;title
    II &ndash; rule 506(b)</B></FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase; color: White"><B>&nbsp;title
    II &ndash; rule 506(c)</B></FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase; color: White"><B>&nbsp;title
    III</B></FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase; color: White"><B>Regulation
    A+<BR>
    Tier 1</B></FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase; color: White"><B>&nbsp;Regulation&nbsp;A+<BR>
    Tier 2</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;General
    Solicitation (Advertising) Allowed</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes,
    but only through the portal.</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Requires
    Integrated Escrow and Payment Processor</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Allows
    &lsquo;Test The Waters&rsquo;</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Requires
    a Funding Portal</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes
    (register with FINRA)</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Simultaneous
    Other Offerings Allowed For The Same Company</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Average
    Time Before Launch</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&lt;2
    weeks</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&lt;2
    weeks</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&lt;4
    weeks</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;16-20
    weeks</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;16-20
    weeks</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Filing
    Required</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Post
    Sale</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Post
    Sale</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Pre
    Sale</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Pre
    Sale</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Pre
    Sale</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Regulatory
    Approval Required Prior to Launch</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;CF
    Portal = Yes Individual<BR>
    Deal = No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Approximate
    Legal and Accounting Fees</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;$5,000
    to $20,000</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;$5,000
    to $20,000</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;
    $5,000 to $15,000</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;
    $40,000 to $150,000</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;
    $50,000 to $200,000</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Ongoing
    Reporting Requirements</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;None</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;None</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;None</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Audited
    Financials</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: #DDDDDD 1pt solid; border-bottom: #DDDDDD 1pt solid; border-left: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #26B1D5; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: White">&nbsp;Social
    Sharing Allowed</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;No</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD>
    <TD STYLE="border-bottom: #DDDDDD 1pt solid; font: 10pt Times New Roman, Times, Serif; border-right: #DDDDDD 1pt solid; background-color: #EDE6E6; padding-top: 6pt; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Yes</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
partners are proven experts in their own fields. CrowdPay integrates into software or may be available as third-party enhancements
or extensions. CrowdPay constantly seeks to work with reputable partners as we continue to enhance our software and platform.
We currently partner with companies well known in the e-commerce and technology sectors, such as Profit Stars, DocuSign, Verify
Investors, Salesforce, Hub Spot, CFIRA, CFPA, Block Score, and LexisNexis.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are connected with our partners over APIs and have direct access to their products and services. For example, our connection to
ProfitStars allows us to offer services directly to their clients, which includes credit unions and small banks under management.
eVance and OmniSoft are integrated into the back end system to process ACH and credit card transactions.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><IMG SRC="img_013.jpg" ALT="">&nbsp;</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
CrowdPay website builder enables a client to create a responsive website without coding that can be customized using desktops,
tablets, iPhones and Android mobile devices. All CrowdPay websites follow Google&rsquo;s SEO best practices and come with many
designs and widgets that enhance the user&rsquo;s overall experience and exposure. Our website builder offers an intuitive drag
and drop editor that creates efficiencies by significantly cutting down on development time. Widgets make site building faster
where a client can copy and paste any element within a site.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="img_014.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Almost
every element in CrowdPay&rsquo;s content management system, or CMS, can be customized on each device. Alternatively, CrowdPay
offers pre-arranged templates. A client can simply pick one and use our user-friendly, responsive website builder to bring the
client&rsquo;s vision to life. A client can pull from a library of free stock images, upload or import images from any URL to
easily express their unique concept and corporate culture. Our clients can improve their website&rsquo;s search engine ranking
by setting up page titles and descriptions and approximately 300 redirects. Images uploaded to CrowdPay&rsquo;s CMS are automatically
resized and compressed so they load seamlessly across desktop, tablet and mobile devices. Our website builder displays blogs seamlessly
across desktop, tablet, and mobile devices. ATOM and RSS feeds are automatically generated. Automatic backups are created every
time you make changes and publish them. In addition, clients can revert back to any version at any time.</FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
crowdfunding platform competes with companies such as Start Engine, Crowd Engine and SeedInvest.</FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
success of our business model is dependent on the synergies between the business segments operated by our subsidiaries. We have
created and developed an ecosystem of e-commerce to provide a variety of clients, from online equity financing companies or merchants
selling online or in brick and mortar stores, with multiple product offerings and ancillary services from underwriting with the
banks and merchant billing from the cloud software. These synergies create additional revenue by charging transaction fees on
each service provided to clients by our partnerships with Merchant Acquiring Banks and PCI Compliance.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Competitive
Advantages</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
OLB platform of services provides the following key advantages.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Time to Market &ndash;
    we can create a customized website for retailers within days and have it fully operational in less than 2 weeks.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cost &ndash; we
    are the only content service provider that does not charge a setup fee.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Flexibility &ndash;
    our platform has the flexibility to provide customized solutions for partners.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pricing &ndash;
    we provide partners with a price comparison feature which they can utilize if they wish to set prices for products or run
    promotions.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payment processing
    &ndash; we can provide financial service companies with the ability to have their customers&rsquo; accounts directly debited
    for payment.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Customers</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a result of our various business platforms, we service a wide array of customers, including:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Content sites, portals,
    Internet Service Providers (ISPs) and Fortune 1,000 companies with high traffic but no e-commerce functionality searching
    for a fully outsourced solution, or with some e-commerce in place but are seeking either an additional channel or a more effective
    market approach.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">System integrators
    and web developers who can provide added value to their customers or generate additional revenue by including e-commerce functionality
    in their offerings.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Existing &ldquo;brick
    &amp; mortar&rdquo; businesses that have inventory and fulfillment capability but do not wish to create and maintain an e-commerce
    website and infrastructure.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Startups to early-stage
    companies looking for an effective and less costly way to raise capital.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Regulations</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Various
aspects of our service areas are subject to U.S. federal, state, and local regulation. Certain of our services also are subject
to rules&nbsp;promulgated by various card networks and banking and other authorities as more fully described below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>The
Dodd-Frank Act</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
July&nbsp;2010, the Dodd-Frank Act was signed into law in the United States. The Dodd-Frank Act has resulted in significant structural
and other changes to the regulation of the financial services industry. Among other things, Title X of the Dodd-Frank Act established
a new, independent regulatory agency known as the Consumer Financial Protection Bureau (the &ldquo;CFPB&rdquo;) to regulate consumer
financial products and services (including some offered by our customers). The CFPB may also have authority over us as a provider
of services to regulated financial institutions in connection with consumer financial products. Separately, under the Dodd-Frank
Act, debit interchange transaction fees that a card issuer receives and are established by a payment card network for an electronic
debit transaction are now regulated by the Federal Reserve and must be &ldquo;reasonable and proportional&rdquo; to the cost incurred
by the card issuer in authorizing, clearing, and settling the transaction. Effective October&nbsp;1, 2011, the Federal Reserve
capped debit interchange rates for card issuers operating in the United States with assets of $10&nbsp;billion or more at the
sum of $0.21 per transaction and an ad valorem component of 5 basis points to reflect a portion of the issuer&rsquo;s fraud losses
plus, for qualifying issuers, an additional $0.01 per transaction in debit interchange for fraud prevention costs. In addition,
the new regulations contain&nbsp;non-exclusivity&nbsp;provisions that ban debit card networks from prohibiting an issuer from
contracting with any other card network that may process an electronic debit transaction involving an issuer&rsquo;s debit cards
and prohibit card issuers and card networks from inhibiting the ability of merchants to direct the routing of debit card transactions
over any network that can process the transaction.&nbsp;Beginning April&nbsp;1, 2012, all debit card issuers in the United States
were required to participate in at least two unaffiliated debit card networks.&nbsp;On April&nbsp;1, 2013, the ban on network
exclusivity arrangements became effective for prepaid card and healthcare debit card issuers, with certain exceptions for prepaid
cards issued before that date.</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Effective
July&nbsp;22, 2010, merchants were allowed to set minimum dollar amounts (not to exceed $10) for the acceptance of a credit card
(while federal governmental entities and institutions of higher education may set maximum amounts for the acceptance of credit
cards). They were also allowed to provide discounts or incentives to entice consumers to pay with an alternative payment method,
such as cash, checks or debit cards.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Association
and network rules</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are subject to the rules&nbsp;of credit card associations and other credit and debit networks. In order to provide processing
services, a number of our subsidiaries are registered with Visa or Mastercard as service providers for member institutions. Various
subsidiaries of ours are also processor level members of numerous debit and electronic benefits transaction networks or are otherwise
subject to various network rules&nbsp;in connection with processing services and other services we provide. As such, we are subject
to applicable network rules. Card networks and their member financial institutions regularly update and generally expand security
expectations and requirements related to the security of cardholder data and environments. We are also subject to network operating
rules&nbsp;promulgated by the National Automated Clearing House Association relating to payment transactions processed by us using
the Automated Clearing House Network and to various state federal and foreign laws regarding such operations, including laws pertaining
to electronic benefits transactions.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Privacy
and information security regulations</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
provide services that may be subject to various state, federal, and foreign privacy laws and regulations, including, among others,
the Financial Services Modernization Act of 1999 (the &ldquo;Gramm-Leach-Bliley Act&rdquo;). These laws and their implementing
regulations restrict certain collection, processing, storage, use, and disclosure of personal information, require notice to individuals
of privacy practices, and provide individuals with certain rights to prevent use and disclosure of protected information. These
laws also impose requirements for the safeguarding and proper destruction of personal information through the issuance of data
security standards or guidelines. Certain federal, state and foreign laws and regulations impose similar privacy obligations and,
in certain circumstances, obligations to notify affected individuals, state officers or other governmental authorities, the media,
and consumer reporting agencies, as well as businesses and governmental agencies, of security breaches affecting personal information.
In addition, there are state and foreign laws restricting the ability to collect and utilize certain types of information such
as Social Security and driver&rsquo;s license numbers.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Unfair
trade practice regulations</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
and our clients are subject to various federal and state laws prohibiting unfair or deceptive trade practices, such as Section&nbsp;5
of the Federal Trade Commission Act. Various regulatory agencies, including the Federal Trade Commission, the Consumer Financial
Protection Bureau, and state attorneys general, have authority to take action against parties that engage in unfair or deceptive
trade practices or violate other laws, rules, and regulations, and to the extent we are processing payments for a client that
may be in violation of laws, rules, and regulations, we may be subject to enforcement actions and incur losses and liabilities
that may impact our business.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Anti-money
laundering, anti-bribery, sanctions, and counter-terrorist regulations</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are subject to anti-money laundering laws and regulations, including certain sections of the USA PATRIOT Act of 2001. We are also
subject to anti-corruption laws and regulations, including the U.S. Foreign Corrupt Practices Act (the &ldquo;FCPA&rdquo;) and
other laws, that prohibit the making or offering of improper payments to foreign government officials and political figures and
includes anti-bribery provisions enforced by the Department of Justice and accounting provisions enforced by the SEC. The FCPA
has a broad reach and requires maintenance of appropriate records and adequate internal controls to prevent and detect possible
FCPA violations. Many other jurisdictions where we conduct business also have similar anticorruption laws and regulations. We
have policies, procedures, systems, and controls designed to identify and address potentially impermissible transactions under
such laws and regulations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are also subject to certain economic and trade sanctions programs that are administered by the Office of Foreign Assets Control
(&ldquo;OFAC&rdquo;) which prohibit or restrict transactions to or from or dealings with specified countries, their governments,
and in certain circumstances, their nationals, and with individuals and entities that are specially-designated nationals of those
countries, narcotics traffickers, and terrorists or terrorist organizations. Other group entities may be subject to additional
local sanctions requirements in other relevant jurisdictions.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since
the JOBS Act was passed, Crowdfunding, Regulation D offerings and Regulation A and A+ offerings rapidly became a familiar concept
among investment firms, venture capitalists, real estate developers and small to medium sized businesses as a way to facilitate
and democratize financing. We believe it has created, and continues to create, a profound shift in the world of investments. Below
is a brief overview of the rules that permit the offer and sale of securities through such platforms. This overview is in no way
intended to be a comprehensive review of all the rules and regulations associated with the above mentioned offerings and should
not be relied upon by anyone.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Regulation
D under the Securities Act is the most common regulatory exemption used small businesses to raise capital through equity financing.
It exempts private placement offerings under Rule 506(b) and 506(c) when sold to accredited investors, as defined under Rule 501
of Regulation D. Companies relying on the Rule 506 exemptions can raise an unlimited amount of money, so long as they comply with
the rule&rsquo;s requirements. Regulation A and Regulation A+ are more similar to a public offerings, and require filing Form
1-A with the SEC. Regulation A and Regulation A+ offer two tiers of offerings; the first tier is for offerings of up to $20 million
within any 12 month period and the second tier is for offerings of up to $50 million, within any 12 month period. Regulation CF
allows a company to raise up to $1.07 million from non-accredited investors.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Intellectual
property</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Our
products and services utilize a combination of proprietary software and hardware that we own and license from third parties. Over
the last few years, we have developed a payment gateway, merchant boarding system, ecommerce platform, recurring billings and
a crowdfunding platform. We generally control access to and use of our proprietary software and other confidential information
through the use of internal and external controls, including entering into&nbsp;non-disclosure&nbsp;and confidentiality agreements
with both our employees and third parties. As of the date of this prospectus, we have a patent pending on transferable QR codes
on Omni Commerce devices.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Legal
proceedings</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
time to time we may be involved in claims and legal actions that arise in the ordinary course of business. We do not believe that
the ultimate resolution of any of these actions, individually or in the aggregate, will have a material adverse effect on our
financial position, results of operations, liquidity or capital resources.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Employees</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of June 26, 2019, we had six key employees as part of our overall staff of 24 full-time employees. Our risk, compliance,
underwriting and analyst&rsquo;s accounting and customer service functions are located in Atlanta, Georgia. In addition, we
have operations in India where we retain 15 to 35 developers at any given time depending on our requirements and scope of
projects. None of our employees are represented by a labor union or covered by a collective bargaining agreement. We consider
our relationship with our employees to be good.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Description
of Property</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
currently lease 5,000 square feet of office space in Alpharetta, GA for which we currently pay rent of approximately $8,700 per
month.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_010"></A>MANAGEMENT</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Executive
Officers and Directors</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth information concerning our executive officers and directors and their ages of the date of this prospectus:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font-style: normal; font-weight: normal">
    <TD STYLE="font-weight: normal; border-bottom: Black 1.5pt solid; text-align: left; font-style: normal"><FONT STYLE="font-style: normal; font-weight: normal">Name</FONT></TD><TD STYLE="font-weight: normal; padding-bottom: 1.5pt; text-align: center; font-style: normal"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; text-align: center; font-style: normal"><FONT STYLE="font-style: normal; font-weight: normal">Age</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; text-align: center; font-style: normal"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font-weight: normal; padding-bottom: 1.5pt; text-align: center; font-style: normal"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; border-bottom: Black 1.5pt solid; text-align: center; font-style: normal"><FONT STYLE="font-style: normal; font-weight: normal">Position(s)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 20%; text-align: left">Ronny Yakov</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: center">60</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 62%; text-align: left">Chief Executive Officer and Chairman of the Board of Directors</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Rachel Boulds</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">49</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Chief Financial Officer</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Patrick Smith</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">45</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Vice President</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Ronny
Yakov</B> is Chief Executive Officer, Chairman of the Board of Directors, founder and majority shareholder of the Company. Mr.
Yakov has over 25 years of experience of concept-to-print, software and e-commerce marketing experience with Fortune 500 and 1,000
companies and a proven track record of helping clients adapt their businesses to technological developments. In 1996, Mr. Yakov
entered into the electronic mail-order catalog business with Playboy Enterprises, creating and hosting two e-commerce sites: Critics&rsquo;
Choice Video and Collectors&rsquo; Choice Music. As founder of the Company, Mr. Yakov has since developed a number of other branded
e-commerce sites for clients, selling a variety of products including sporting goods, chocolates and cosmetics, with which the
Company now partners to provide ongoing hosting and maintenance. Other significant accomplishments of Mr. Yakov have included
establishing an AT&amp;T wholesale e-commerce platform for 180,000 employees and working with high-profile clients such as Disney,
Cisco Systems, Pfizer, Motorola, and Microsoft, among many others. Mr. Yakov also developed and maintains a complex extranet/intranet
infrastructure that allows Doremus, an Omnicom Communication subsidiary, to provide its advertising services to 50 of the top
financial institutions on a real-time basis.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Rachel
Boulds</B> is Chief Financial Officer of the Company. Ms. Boulds currently works for the Company on a part-time basis (spending
approximately 80% of her time working for the Company) while also operating her sole accounting practice which she has led since
2009 and which provides all aspects of consulting and accounting services to clients, including the preparation of full disclosure
financial statements for public companies to comply with GAAP and SEC requirements. Ms. Boulds also currently provides outsourced
chief financial officer services for two other companies. From August 2004 through July 2009, she was employed as a Senior Auditor
for HJ &amp; Associates, LLC, where she performed audits and reviews of public and private companies, including the preparation
of financial statements to comply with GAAP and SEC requirements. From 2003 through 2004, Ms. Boulds was employed as a Senior
Auditor at Mohler, Nixon and Williams. From September 2001 through July 2003, Ms. Boulds worked as an ABAS Associate for PriceWaterhouseCoopers.
From April 2000 through February 2001, Ms. Boulds was employed as an e-commerce Accountant for the Walt Disney Group&rsquo;s GO.com.
Ms. Boulds earned a B.S. in Accounting from San Jose University in 2001 and is licensed as a CPA in the state of Utah.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Patrick
Smith</B> is Vice President of the Company. Mr. Smith has over 20 years of finance, accounting and operational experience in the
merchant services industry. Mr. Smith joined eVance (Formerly Calpian Commerce) in 2014 as Director of Finance.&nbsp; Prior to
eVance, Mr. Smith spent 2 years as Director of Financial Planning and Analysis at Cynergy Data, an ISO with over 75,000 merchants.
He worked with Pay by Touch, a biometric payments start-up company based in San Francisco, and was part of the financial team
that raised over $300M in its capital funding.&nbsp; From 1996 to 2004, Mr. Smith worked for Concord EFS, a large merchant acquirer.
His titles at Concord included Internal Audit, Financial Analyst and Vice President/Controller.&nbsp; While at Concord EFS, he
was part of the diligence team that worked on several large acquisitions, including those of Star and EPS Debit networks.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">None
of our directors or officers are related to each other. There are no arrangements or understandings with any of our principal
stockholders, customers, suppliers, or any other person, pursuant to which any of our directors or executive officers were appointed.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No
officer or director has, during the past five years, been involved in (a) any bankruptcy petition filed by or against any business
of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior
to that time, (b) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic
violations and other minor offenses), (c) any order, judgment, or decree, not subsequently reversed, suspended or vacated, of
any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement
in any type of business, securities or banking activities or (d) a finding by a court of competent jurisdiction (in a civil action),
the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law,
and the judgment has not been reversed, suspended, or vacated.</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Director
Independence </B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Our
Board of Directors may establish the authorized number of directors from time to time by resolution. Our Board of Directors is
currently comprised of one member. Prior to the completion of this offering, we will appoint [ &nbsp;&nbsp;&nbsp;&nbsp;] directors
to the Board of Directors, each of whom stand for reelection annually by our stockholders.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">We
have applied to list our common stock on the NASDAQ Capital Market. The listing rules of this stock exchange generally require
that a majority of the members of a listed company&rsquo;s board of directors, and each member of a listed company&rsquo;s audit,
compensation and nominating and corporate governance committees, be independent. Our Board of Directors has determined that [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] do not have any relationships that would interfere with
the exercise of independent judgment in carrying out the responsibilities of a director and such directors are &ldquo;independent&rdquo;
as that term is defined under the rules of the stock market.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Audit
committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Exchange Act, subject to the transition
rule that is applicable to a newly public company. In order to be considered independent for purposes of Rule 10A-3, a member
of an audit committee of a listed company may not, other than in his or her capacity as a member of the audit committee, the Board
of Directors, or any other board committee accept, directly or indirectly, any consulting, advisory, or other compensatory fee
from the listed company or any of its subsidiaries; or be an affiliated person of the listed company or any of its subsidiaries.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Controlled
Company Status</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
giving effect to this offering, our Chief Executive Officer and Chairman, Ronny Yakov, will control &nbsp;&nbsp;&nbsp;&nbsp;%
of the voting power of our outstanding common stock. As a result, Mr. Yakov will have the ability to control the outcome of matters
submitted to our stockholders for approval, including the election of our directors, as well as the overall management and direction
of our company.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Because
Mr. Yakov controls, and will continue to control following completion of this offering a majority of our outstanding voting power,
we are, and will continue to be, a &ldquo;controlled company&rdquo; under the corporate governance rules for NASDAQ-listed companies.
Therefore, we are not required to have a majority of our board of directors be independent, nor are we required to have a compensation
committee or an independent nominating function.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
we have determined to have a majority of our directors be independent for NASDAQ purposes, in light of our status as a controlled
company, our board of directors has determined not to have an independent nominating function and to have the full board of directors
be directly responsible for compensation matters and for nominating members of our board.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
expect our company will continue to qualify as a controlled company until such time as Mr. Yakov controls less than 50% of our
outstanding common stock.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Role
of the Board of Directors in Risk Oversight </B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Board of Directors is responsible for assessing the risks facing our company and considers risk in every business decision and
as part of our business strategy. The Board of Directors recognizes that it is neither possible nor prudent to eliminate all risk,
and that strategic and appropriate risk-taking is essential for us to compete in our industry and in the global market and to
achieve our growth and profitability objectives. Effective risk oversight, therefore, is an important priority of the Board of
Directors.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
the Board of Directors oversees our risk management, management is responsible for day-to-day risk management processes. Our Board
of Directors expects management to consider risk and risk management in each business decision, to proactively develop and monitor
risk management strategies and processes for day-to-day activities and to effectively implement risk management strategies that
are adopted by the Board of Directors. The Board of Directors expects to review and adjust our risk management strategies at regular
intervals following the completion of the offering, or as needed.</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Code
of Business Conduct </B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Board of Directors has adopted a code of business conduct and ethics, the &ldquo;Code of Business Conduct,&rdquo; to ensure that
our business is conducted in a consistently legal and ethical manner. Our policies and procedures cover all major areas of professional
conduct, including employee policies, conflicts of interest, protection of confidential information, and compliance with applicable
laws and regulations. The Code of Business Conduct is available at our website at http://www.olb.com/code-of-conduct/. The reference
to our website address in this prospectus does not include or incorporate by reference the information on our website into this
prospectus. We intend to disclose future amendments to certain provisions of our code of conduct, or waivers of these provisions,
on our website or in public filings.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Board
Committees </B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
completion of the offering, our Board of Directors will appoint an Audit Committee, Compensation Committee and a Nominating and
Corporate Committee, and will adopt charters for each of these committees.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Audit
Committee </I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
the closing of this offering, the Audit Committee will consist of [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, ] with [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ]
serving as Chairman. The Audit Committee will assist the Board of Directors in discharging its responsibilities relating to the
financial management of our Company and oversight of our accounting and financial reporting, our independent registered public
accounting firm and their audits, our internal financial controls and the continuous improvement of our financial policies and
practices. In addition, the Audit Committee will be responsible for reviewing and discussing with management our policies with
respect to risk assessment and risk management. The responsibilities of the Audit Committee, which will be set forth in its charter,
will include:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">appointing, approving
    the compensation of, and assessing the independence of our independent registered public accounting firm;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">pre-approving audit
    and permissible non-audit services, and the terms of such services, to be provided by our independent registered public accounting
    firm;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and discussing
    with management and the independent registered public accounting firm our annual and quarterly financial statements and related
    disclosures;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">coordinating the
    oversight and reviewing the adequacy of our internal control over financial reporting;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">establishing policies
    and procedures for the receipt and retention of accounting-related complaints, whistleblowers, and concerns; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and approving
    any related party transactions.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
expected composition of our Audit Committee will comply with all applicable requirements of the SEC and the listing requirements
of the Nasdaq Capital Market. We intend to comply with future requirements to the extent they become applicable to us.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Compensation
Committee </I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
the closing of this offering, the Compensation Committee will consist of , and , with serving as Chairman. The Compensation Committee
will assist the Board of Directors in setting and maintaining the Company&rsquo;s compensation philosophy and in discharging its
responsibilities relating to executive and other human resources hiring, assessment and compensation, and succession planning.
The responsibilities of the Compensation Committee, which will be set forth in its charter, include:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and approving
    corporate goals and objectives relevant to compensation of our chief executive officer;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">evaluating the performance
    of our chief executive officer in light of such corporate goals and objectives and determining the compensation of our chief
    executive officer;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">determining the
    compensation of all our other officers and reviewing periodically the aggregate amount of compensation payable to such officers;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">overseeing and making
    recommendations to the Board of Directors with respect to our incentive-based compensation and equity plans; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and making
    recommendations to the Board of Directors with respect to director compensation.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
expected composition of our Compensation Committee will comply with all applicable requirements of the SEC and the listing requirements
of the Nasdaq Capital Market. We intend to comply with future requirements to the extent they become applicable to us.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Nominating
and Corporate Governance Committee </I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
the closing of this offering, the Nominating and Corporate Governance Committee will consist of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, with &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;serving as Chairman. The
responsibilities of the Nominating and Corporate Governance Committee, which will be set forth in its charter, will include:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">making recommendations
    to the Board of Directors regarding the size and composition of the Board of Directors;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">recommending qualified
    individuals as nominees for election as directors;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing the appropriate
    skills and characteristics required of director nominees;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">establishing and
    administering a periodic assessment procedure relating to the performance of the Board of Directors as a whole and its individual
    members; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">periodically reviewing
    the corporate governance guidelines and supervising the management representative charged with implementing the Company&rsquo;s
    corporate governance procedures.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
expected composition of our Nominating and Corporate Governance Committee will comply with all applicable requirements of the
SEC and the listing requirements of the Nasdaq Capital Market. We intend to comply with future requirements to the extent they
become applicable to us.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Compensation
Committee Interlocks and Insider Participation </B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">None
of the expected members of the Compensation Committee will or was at any time been an officer or employee. None of our executive
officers serve or in the past fiscal year has served as a member of the Board of Directors or Compensation Committee of any other
entity that has one or more executive officers serving as a member of our Board of Directors or expected to serve on the Compensation
Committee.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_011"></A>EXECUTIVE
COMPENSATION</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Summary
Compensation Table</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
table below summarizes all compensation awarded to, earned by, or paid to each named executive officer for our last two completed
fiscal years for all services rendered to us.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Summary
Compensation Table</B></FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid">Name and Principal Position</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Year</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Salary&nbsp;<BR> ($)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Bonus&nbsp;<BR> ($)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Stock Awards&nbsp;<BR> ($) (4)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Option Awards <BR>($) (3)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Non-Equity Incentive Plan Compensation&nbsp;<BR> ($)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Nonqualified&nbsp;<BR> Deferred&nbsp;<BR> Compensation&nbsp;<BR> Earnings<BR> ($)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">All Other Compensation&nbsp;<BR> ($) (2)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 10%; text-align: left; text-indent: -5pt; padding-left: 5pt">Ronny Yakov,</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">2018</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">375,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">66,667</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">18,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">459,667</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -5pt; padding-left: 5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CEO,&nbsp;<B><SUP>(1)</SUP></B>&nbsp;Chairman</FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2017</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">275,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">18,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">293,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -5pt; padding-left: 5pt">Patrick Smith,</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2018</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">175,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">168,942</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">343,942</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -5pt; padding-left: 5pt">Vice President</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2017</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -5pt; padding-left: 5pt">Rachel Boulds,</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2018</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">27,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">27,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>CFO</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2017</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 4%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="width: 96%; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Partially
    accrued but not paid.</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Car allowance</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stock based compensation
    of options grated during the year ended December 31, 2018</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 31,
    2017, the Company issued 25,000 shares of common stock to its CFO for accounting services previously rendered. The shares
    were issued at $0.10 per share for total non-cash expense of $2,500.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Employment
Agreements</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On October 20, 2017,
the Company entered into a new employment agreement with Ronny Yakov for 7 years effective January 1, 2018 through December 31,
2024. The agreement provides for an annual salary of $375,000, fringe benefits ($2,500 monthly automobile allowance, any benefit
plans of the Company and 4 weeks paid vacation), an incentive bonus of $200,000 based on the achievement of certain performance
criteria. As of December 31, 2018, no bonuses have been accrued or paid.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 10, 2018, the Company entered into an employment agreement with Patrick Smith until either party terminates the agreement.
The agreement provides for an annual salary of $175,000, an annual bonus of up to $45,000. As of December 31, 2018, no bonuses
have been accrued or paid.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Outstanding
Equity Awards at Fiscal Year-End</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2018, the following equity awards were outstanding:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Per the terms of Mr.
Smith&rsquo;s employment agreement, he was granted a stock option to purchase 7,955,168 shares of restricted stock at an exercise
price of $0.0001 per share. The grant vests at the rate of 1/5 beginning on each anniversary of the effective date of grant (April
10, 2018). The stock options will cease vesting after the termination of Mr. Smith&rsquo;s employment and any unvested restricted
stock shall be forfeited upon the termination of employment.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Per the terms of Mr.
Yakov&rsquo;s employment agreement, effective on January 1, 2018, and on each anniversary thereafter during the term of his employment
agreement, the Company will grant to him 200,000 options to purchase shares of common stock with a per share exercise price equal
$0.001 per share. Each stock option shall become exercisable in increments of one-third upon each anniversary of the date on which
it is granted.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>2019
Equity Incentive Plan</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], 2019, our Board of Directors adopted a 2019 Equity Incentive Plan for our company, which plan
will be effective as of the completion of our corporate conversion and the closing of this offering. The holders of majority of
our outstanding membership units approved such plan on [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], 2019. An aggregate number of shares of
our common stock equal to [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]% of our issued and outstanding common stock following this offering
(including any shares issued in this offering) are reserved for issuance under our 2019 Equity Incentive Plan. No options or other
awards have been granted as of the date of this prospectus under our 2019 Equity Incentive Plan. In general, awards under the
2019 Equity Incentive Plan shall vest ratably over a period of three years (on the first, second and third anniversaries of the
agreement) subject to accelerated vesting upon a change of control of our company (although awards may be granted with different
vesting terms).</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
purpose of our 2019 Equity Incentive Plan is to attract and retain directors, officers, consultants, advisors and employees whose
services are considered valuable, to encourage a sense of proprietorship and to stimulate an active interest of such persons in
our development and financial achievements. The 2019 Equity Incentive Plan will be administered by the Compensation Committee
of our Board of Directors or by the full Board, which may determine, among other things, the (a) terms and conditions of any option
or stock purchase right granted, including the exercise price and the vesting schedule, (b) persons who are to receive options
and stock purchase rights and (c) the number of shares to be subject to each option and stock purchase right. The 2019 Equity
Incentive Plan will provide for the grant of (i) &ldquo;incentive&rdquo; options (qualified under section 422 of the Internal
Revenue Code of 1986, as amended) to employees of our company and (ii) non-qualified options to directors and consultants of our
company.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with the administration of our 2019 Equity Incentive Plan, our Compensation Committee will:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">determine which
    employees and other persons will be granted awards under our 2019 Equity Incentive Plan;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">grant the awards
    to those selected to participate;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">determine the exercise
    price for options; and</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">prescribe any limitations,
    restrictions and conditions upon any awards, including the vesting conditions of awards.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
grant of awards to any of directors under our 2019 Equity Incentive Plan must be approved by the Compensation Committee of our
Board of Directors. In addition, our Compensation Committee will: (i) interpret our 2019 Equity Incentive Plan; and (ii) make
all other determinations and take all other action that may be necessary or advisable to implement and administer our 2019 Equity
Incentive Plan.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
2019 Equity Incentive Plan provides that in the event of a change of control, the Compensation Committee or our Board of Directors
shall have the discretion to determine whether and to what extent to accelerate the vesting, exercise or payment of an award.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, our Board of Directors may amend our 2019 Equity Incentive Plan at any time. However, without stockholder approval,
our 2019 Equity Incentive Plan may not be amended in a manner that would:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">increase the number
    of shares that may be issued under our 2019 Equity Incentive Plan;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">materially modify
    the requirements for eligibility for participation in our 2019 Equity Incentive Plan;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">materially increase
    the benefits to participants provided by our 2019 Equity Incentive Plan; or</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">otherwise disqualify
    our 2019 Equity Incentive Plan for coverage under Rule 16b-3 promulgated under the Exchange Act.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Awards
previously granted under our 2019 Equity Incentive Plan may not be impaired or affected by any amendment of our 2019 Equity Incentive
Plan, without the consent of the affected grantees.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
directors do not receive fixed compensation for their services as directors. Directors are reimbursed for their reasonable out-of-pocket
expenses incurred in connection with their duties.</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_012"></A>PRINCIPAL
STOCKHOLDERS</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
solely upon information made available to us, the following table sets forth information as of June 26, 2019 regarding the beneficial ownership of our common stock after giving effect to our anticipated corporate conversion by:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">each person known
    by us to be the beneficial owner of more than 5% of our outstanding shares of common stock;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">each of our named
    executive officers and directors; and</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">all our executive
    officers and directors as a group.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
percentage ownership information shown in the table is based upon 162,350,364 shares of common stock outstanding. In addition,
the number of shares and percentage of shares beneficially owned after the offering gives effect to the issuance by us of [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
shares of common stock in this offering assuming an public offering price of $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] per share.
The percentage ownership information assumes no exercise of the underwriters&rsquo; over-allotment option.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beneficial
ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the securities.
Except as otherwise indicated, each person or entity named in the table has sole voting and investment power with respect to all
shares of our capital shown as beneficially owned, subject to applicable community property laws.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
computing the number and percentage of shares beneficially owned by a person, shares that may be acquired by such person (for
example, upon the exercise of options or warrants) within 60&nbsp;days of the date of this prospectus are counted as outstanding,
while these shares are not counted as outstanding for computing the percentage ownership of any other person.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
address of each holder listed below, except as otherwise indicated, is c/o The OLB Group, Inc., 200 Park Avenue, Suite 1700, New
York, NY.</FONT></P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name of Beneficial Owner</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares of Common Beneficially Stock Owned&nbsp;(1)**</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Percent of Common&nbsp;Stock Beneficially Owned&nbsp;Before Offering&nbsp;(1)**</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Percent of Common&nbsp;Stock Beneficially Owned After Offering&nbsp;(1)**</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>5% Beneficial Owners</U></B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 73%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">John Herzog (2)</FONT></TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">16,757,602</FONT></TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.6</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 6%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Directors and Officers</U></B></FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ronny Yakov (3)</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">104,407,546</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">64.3</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rachel Boulds</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">25,000</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Patrick Smith (4)</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,591,034</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.0</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All directors and executive officers as a group (3 persons)</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">106,023,580</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">64.7</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
</TABLE>


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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 4%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less than 1%.</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">**</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under SEC rules,
    beneficial ownership includes shares over which the individual or entity has voting or investment power and any shares which
    the individual or entity has the right to acquire within sixty days</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 4%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Percentage ownership
    is based on 162,350,364 shares of our common stock outstanding prior to this offering and shares of our common stock outstanding
    after this offering.</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes 1,492,501 shares of common stock owned by Herzog &amp; Co. and 855,719 shares of common stock
held by John E Herzog TTEE John E Herzog REV Trust U/A/D 02/07/2014. John Herzog is the Chairman of Herzog &amp; Co. and the trustee
of the trust.</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes 66,667
    vested options.</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes 1,591,034
    vested options.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_013"></A>CERTAIN
RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are a party to certain related party transactions, as described below. Upon the consummation of offering, our policy is that all
related party transactions will be reviewed and approved by the Audit Committee of our board of directors prior to our entering
into any related party transactions.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
accordance with the requirements of the Term Loan, on May 9, 2018, we entered into separate share exchange agreements with the
shareholders of OmniSoft (the &ldquo;OmniSoft Share Exchange Agreement&rdquo;) and CrowdPay (the &ldquo;CrowdPay Share Exchange
Agreement&rdquo; and together with the OmniSoft Share Exchange Agreement, the &ldquo;Share Exchange Agreements&rdquo;). Pursuant
to the terms of the OmniSoft Share Exchange Agreement, the shareholders of OmniSoft (Ronny Yakov, our Chief Executive Officer
and director, and Mr. Herzog, an affiliate of the Company) transferred to us all of the issued and outstanding shares of OmniSoft
common stock in exchange for an aggregate of 55,000,000 shares of our common stock. Pursuant to the terms of the CrowdPay Share
Exchange Agreement, the shareholders of CrowdPay (Mr. Yakov and Mr. Herzog) transferred to us all of the issued and outstanding
shares of CrowdPay common stock in exchange for an aggregate of 87,500,000 shares of the Company&rsquo;s common stock. The transactions
contemplated by the Share Exchange Agreements closed on May 9, 2018.&nbsp;Mr. Yakov, our sole director, determined the appropriate
valuation of each of our common stock and the common stock of OmniSoft and CrowdPay in reliance upon, among other matters, a third
party independent valuation report prepared by Corporate Valuation Advisors, Inc.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
2017, Mr. Herzog loaned $53,500 to the Company pursuant to a promissory note (which, along with a loan of $163,000 from Mr. Herzog
pursuant to a promissory note dated July 12, 2016, brought the total amount loaned from Mr. Herzog to $216,500). On November 20,
2017, the $216,500 of principal and $35,105 of accrued interest was converted into 2,516,050 shares of the Company&rsquo;s common
stock.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 12, 2018, the Company received $30,000 from John Herzog. The advance was used for operating expenses, is unsecured, bears
interest at 18% and is due on demand. This loan was repaid in full as of September 30, 2018.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In July 2018,
the Company issued to Mr. Herzog a subordinated promissory note in the principal amount of $1,000,000 for cash proceeds of
$1,000,000. At the time of issuance, the note was to mature on March 31, 2019 (though the Company has the right to prepay the
note, in whole or in part, at any time prior to maturity) and bears interest at a rate of 12% per annum, compounding
annually. The note is secured by shares of common stock of a publicly traded company held by the Company (the &ldquo;Note
Collateral Shares&rdquo;). The note is subordinated to the Credit Agreement, other than the Note Collateral Shares. The
Company used the proceeds received by the Mr. Herzog to make the initial payment under the Credit Agreement.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On March 1, 2019, the
Company entered into Amendment No. 1 to the subordinated promissory note with Mr. Herzog. The purpose of the amendment was to amend
the subordinated promissory note issued in July 2018 to reflect an increase in the amount of principal due under the note from
$1,000,000 to $3,000,000 reflecting a payment made by Mr. Herzog to the Company of $2,000,000 on November 14, 2018 (the proceeds
of which were used by the Company to make a second required payment under the Credit Agreement) and to extend the maturity date
of the subordinated promissory note from March 31, 2019 to September 30, 2020. On June 25, 2019, the Company entered into Amendment
No. 2 to the subordinated promissory note with Mr. Herzog. The purpose of the amendment was to amend the maturity date of such
subordinated promissory note such that it will be extended until September 30, 2022 simultaneous to the completion of this offering.</P>



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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In May 2019, Mr. Herzog committed to providing any additional financial support, if needed, to satisfy the company&rsquo;s
debt or other obligations through November 2020.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
interest expense on the two loans from Mr. Herzog for the three months ended March 31, 2019 was $88,767. Total accrued interest
as of March 31, 2019 and December 31, 2018 is $131,616 and $52,849, respectively.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 10, 2018, Ronny Yakov, the Chief Executive Officer, Chairman and majority stockholder, loaned the Company $25,000, in order
to pay for audit services. The loan is unsecured, bears interest at 12% and is due on demand. &nbsp;Mr. Yakov loaned the Company
an additional $45,000 to the Company during the three months ended March 31, 2019. The loans are unsecured, bears interest at
12% and are due on demand. As of March 31, 2019, there is $2,367 of interest accrued on these loans.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of March 31, 2019 and December 31, 2018, the Company has total accrued compensation due to Mr. Yakov of $568,080 and $568,292,
respectively, and advances to be repaid to Mr. Yakov of $17,684 and $17,684, respectively. The accrued compensation due to Mr.
Yakov and the advances to be repaid to Mr. Yakov do not bear any interest or have any term. The Company will not use the proceeds
of this offering to repay the amounts due to Mr. Yakov and expects to repay such amounts in due course.</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">All
future transactions between us and our officers, directors or five percent stockholders, and respective affiliates will be on
terms no less favorable than could be obtained from unaffiliated third parties and will be approved by a majority of our independent
directors who do not have an interest in the transactions and who had access, at our expense, to our legal counsel or independent
legal counsel.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">To
the best of our knowledge, during the past three fiscal years, other than as set forth above, there were no material transactions,
or series of similar transactions, or any currently proposed transactions, or series of similar transactions, to which we were
or are to be a party, in which the amount involved exceeds $120,000, and in which any director or executive officer, or any security
holder who is known by us to own of record or beneficially more than 5% of any class of our common stock, or any member of the
immediate family of any of the foregoing persons, has an interest (other than compensation to our officers and directors in the
ordinary course of business).</FONT></P>

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


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_014"></A>DESCRIPTION
OF CAPITAL STOCK</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>General
</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
certificate of incorporation authorizes the issuance of up to 200,000,000 shares of common stock, par value $0.0001 per share,
and 50,000,000 shares of preferred stock, par value $0.01 per share. As of the date of this prospectus, we have 162,350,364 shares of common stock issued and outstanding, and no shares of preferred stock issued and outstanding. Our shares of common
stock are held of record by approximately [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] stockholders.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Holders
of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not
have cumulative voting rights. An election of directors by our stockholders is determined by a plurality of the votes cast by
the stockholders entitled to vote on the election. Subject to the supermajority votes for some matters, other matters are decided
by the affirmative vote of our stockholders having a majority in voting power of the votes cast by the stockholders present or
represented and voting on such matter. Our amended and restated bylaws also provide that our directors may be removed only for
cause by the affirmative vote of at least sixty-six and two-thirds percent (66 2/3%) of the votes that all our stockholders would
be entitled to cast in any annual election of directors. In addition, the affirmative vote of the holders of at least sixty-six
and two-thirds percent (66 2/3%) of the votes that all of our stockholders would be entitled to cast in any annual election of
directors is required to amend or repeal or to adopt any provisions inconsistent with any of the provisions of our amended and
restated bylaws<I>; provided, however,</I> that no such change to any bylaw may alter, modify, waive, abrogate or diminish the
our obligation to provide the indemnity called for by Article 10 thereunder. Holders of common stock are entitled to receive proportionately
any dividends as may be declared by our board of directors, subject to any preferential dividend rights of outstanding preferred
stock.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the event of our liquidation or dissolution, the holders of common stock are entitled to receive proportionately all assets available
for distribution to stockholders after the payment of all debts and other liabilities and subject to the prior rights of any outstanding
preferred stock. Holders of common stock have no preemptive, subscription, redemption or conversion rights. The rights, preferences
and privileges of holders of common stock are subject to and may be adversely affected by the rights of the holders of shares
of any series of preferred stock that we may designate and issue in the future.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
certificate of incorporation authorizes the issuance of 50,000,000&nbsp;shares of blank check preferred stock with such designation,
rights and preferences as may be determined from time to time by our board of directors. No shares of preferred stock are currently
issued or outstanding. Accordingly, our board of directors is empowered, without stockholder approval, to issue preferred stock
with dividend, liquidation, redemption, voting or other rights which could adversely affect the voting power or other rights of
the holders of common stock. We may issue some or all of the preferred stock to effect a business transaction. In addition, the
preferred stock could be utilized as a method of discouraging, delaying or preventing a change in control of us.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
transfer agent and registrar for our common stock is Transfer Online, Inc., 317 SW Alder Street, 2nd Floor Portland, OR 97204.
Their telephone number is (503) 227-2950.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Delaware
Law and Certain Charter and By-Law Provisions</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Delaware
Anti-Takeover Law.</I> We are subject to Section&nbsp;203 of the Delaware General Corporation Law. Section&nbsp;203 generally
prohibits a public Delaware corporation from engaging in a &ldquo;business combination&rdquo; with an &ldquo;interested stockholder&rdquo;
for a period of three years after the date of the transaction in which the person became an interested stockholder, unless:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">prior to the date
    of the transaction, the board of directors of the corporation approved either the business combination or the transaction
    which resulted in the stockholder becoming an interested stockholder;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">upon consummation
    of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at
    least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding specified shares;
    or&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">at or subsequent
    to the date of the transaction, the business combination is approved by the board of directors and authorized at an annual
    or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66<SUP>2</SUP>/3% of the
    outstanding voting stock which is not owned by the interested stockholder.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section&nbsp;203
defines a &ldquo;business combination&rdquo; to include:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any merger or consolidation involving the corporation
    and the interested stockholder;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any sale, lease,
    exchange, mortgage, pledge, transfer or other disposition of 10% or more of the assets of the corporation to or with the interested
    stockholder;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">subject to exceptions,
    any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested
    stockholder;&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">subject to exceptions,
    any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class
    or series of the corporation beneficially owned by the interested stockholder; or&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the receipt by the
    interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by
    or through the corporation.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
general, Section&nbsp;203 defines an &ldquo;interested stockholder&rdquo; as any person that is:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the owner of 15% or more of the outstanding
    voting stock of the corporation;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an affiliate or
    associate of the corporation who was the owner of 15% or more of the outstanding voting stock of the corporation at any time
    within three years immediately prior to the relevant date; or&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the affiliates and associates of the above.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
specific circumstances, Section&nbsp;203 makes it more difficult for an &ldquo;interested stockholder&rdquo; to effect various
business combinations with a corporation for a three-year period, although the stockholders may, by adopting an amendment to the
corporation&rsquo;s certificate of incorporation or bylaws, elect not to be governed by this section, effective 12&nbsp;months
after adoption.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
certificate of incorporation and bylaws do not exclude us from the restrictions of Section&nbsp;203. We anticipate that the provisions
of Section&nbsp;203 might encourage companies interested in acquiring us to negotiate in advance with our board of directors since
the stockholder approval requirement would be avoided if a majority of the directors then in office approve either the business
combination or the transaction that resulted in the stockholder becoming an interested stockholder.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Certificate
of Incorporation and Bylaws.</I> Our certificate of incorporation and bylaws contain provisions that could have the effect of
discouraging potential acquisition proposals or tender offers or delaying or preventing a change of control of our company. These
provisions are as follows:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">authorizing the issuance of &ldquo;blank check&rdquo;
    preferred stock without any need for action by stockholders;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">limiting the ability of stockholders to call
    special meetings of stockholders;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">permitting stockholder action by written consent;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">establishing advance
    notice requirements for nominations for election to the board of directors or for proposing matters that can be acted on by
    stockholders at stockholder meetings;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">requiring a super-majority vote of our stockholders
    to remove directors of our company; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">providing that our stockholders may only remove
    our directors for &ldquo;cause&rdquo; (as defined in our bylaws).</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
provisions affect your rights as a stockholder since they permit our Board of Directors to make it more difficult for common stockholders
to replace members of the Board or undertake other significant corporate actions. Because our Board of Directors is responsible
for appointing the members of our management team, these provisions could in turn affect any attempt to replace our current management
team.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Elimination
of Monetary Liability for Officers and Directors</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
certificate of incorporation incorporates certain provisions permitted under the Delaware General Corporation Law relating to
the liability of directors. The provisions eliminate a director&rsquo;s liability for monetary damages for a breach of fiduciary
duty, including gross negligence, except in circumstances involving certain wrongful acts, such as the breach of director&rsquo;s
duty of loyalty or acts or omissions, which involve intentional misconduct or a knowing violation of law. These provisions do
not eliminate a director&rsquo;s duty of care. Moreover, these provisions do not apply to claims against a director for certain
violations of law, including knowing violations of federal securities law. Our certificate of incorporation also contains provisions
to indemnify the directors, officers, employees or other agents to the fullest extent permitted by the Delaware General Corporation
Law. We believe that these provisions will assist us in attracting and retaining qualified individual to serve as directors.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Indemnification
of Officers and Directors</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
certificate of incorporation also contains provisions to indemnify the directors, officers, employees or other agents to the fullest
extent permitted by the Delaware General Corporation Law. These provisions may have the practical effect in certain cases of eliminating
the ability of shareholders to collect monetary damages from directors. We are also a party to indemnification agreements with
each of our directors. We believe that these provisions will assist us in attracting or retaining qualified individuals to serve
as our directors.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Disclosure
of Commission Position on Indemnification for Securities Act Liabilities</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling
persons pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against
public policy as expressed in the Securities Act and is, therefore, unenforceable.</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_015"></A>SHARES
ELIGIBLE FOR FUTURE SALE</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Immediately
prior to this offering, there was a limited public market for our common stock. Future sales of substantial amounts of our common
stock in the public market could adversely affect prevailing market prices. Furthermore, since only a limited number of shares
will be available for sale shortly after this offering because of contractual and legal restrictions on resale described below,
sales of substantial amounts of common stock in the public market after the restrictions lapse could adversely affect the prevailing
market price for our common stock as well as our ability to raise equity capital in the future.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
the closing of this offering, approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million shares of common stock
will be outstanding, assuming a public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share and further assuming
no exercise of the underwriters&rsquo; over-allotment option. All of the shares sold in this offering will be freely tradable
unless held by an affiliate of ours. Of the remaining shares of common stock outstanding after this offering, will be restricted
as a result of securities laws or lock-up agreements (such other outstanding shares are generally freely tradable pursuant to
various exemptions from securities laws). These remaining restricted shares will generally become available for sale in the public
market as follows: Approximately&nbsp; &nbsp;restricted shares held by non-affiliates will be eligible for sale under Rule&nbsp;144
or Rule&nbsp;701 upon expiration of lock-up agreements at least 180&nbsp;days after the date of this offering.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Rule&nbsp;144</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
general, under Rule&nbsp;144 as currently in effect, any person who is not an affiliate of ours and has held their shares for
at least six months, as measured by SEC rule, including the holding period of any prior owner other than one of our affiliates,
may sell shares without restriction, provided current public information about us is available. In addition, under Rule&nbsp;144,
any person who is not an affiliate of ours and has held their shares for at least one year, as measured by SEC rule, including
the holding period of any prior owner other than one of our affiliates, would be entitled to sell an unlimited number of shares
immediately upon the closing of this offering without regard to whether current public information about us is available. Additionally,
a person who is an affiliate of ours and who has beneficially owned restricted securities for at least six months, as measured
by SEC rule, including the holding period of any prior owner other than one of our affiliates, is entitled to sell a number of
restricted shares within any three-month period that does not exceed the greater of:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1% of the number
    of shares of our common stock then outstanding, which will equal approximately [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
    shares immediately after this offering; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 34px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the average weekly
    trading volume of our common stock on The NASDAQ Capital Market during the four calendar weeks preceding the filing of a notice
    on Form&nbsp;144 with respect to the sale.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sales
of restricted shares under Rule&nbsp;144 held by our affiliates are also subject to requirements regarding the manner of sale,
notice and the availability of current public information about us. Rule&nbsp;144 also provides that affiliates relying on Rule&nbsp;144
to sell shares of our common stock that are not restricted shares must nonetheless comply with the same restrictions applicable
to restricted shares, other than the holding period requirement. Notwithstanding the availability of Rule&nbsp;144, the holders
of [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] of our restricted shares have entered into lock-up agreements as described
below and their restricted shares will become eligible for sale at the expiration of the restrictions set forth in those agreements.</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B><A NAME="a_016"></A>Underwriting</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ThinkEquity,
a division of Fordham Financial Management, Inc., is acting as the representative of the underwriters of the offering. We have
entered into an underwriting agreement dated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2019 with the representative. Subject
to the terms and conditions of the underwriting agreement, we have agreed to sell to each underwriter named below, and each underwriter
named below has severally agreed to purchase, at the public offering price less the underwriting discounts set forth on the cover
page of this prospectus, the number of shares of common stock at the public offering price, less the underwriting discounts
and commissions, as set forth on the cover page of this prospectus, the number of shares of common stock listed next to its name
in the following table:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font-style: normal; font-weight: normal">
    <TD STYLE="font-weight: normal; border-bottom: Black 1.5pt solid; font-style: normal"><FONT STYLE="font-style: normal; font-weight: normal">Underwriter</FONT></TD><TD STYLE="font-weight: normal; padding-bottom: 1.5pt; font-style: normal"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; text-align: center; border-bottom: Black 1.5pt solid; font-style: normal"><FONT STYLE="font-style: normal; font-weight: normal">Number
    of Shares</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%; text-align: left">ThinkEquity, a division of Fordham Financial Management, Inc.</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
underwriters are committed to purchase all the shares of common stock offered by the Company, other than those covered by the
over-allotment option to purchase additional shares of common stock described below. The obligations of the underwriters may be
terminated upon the occurrence of certain events specified in the underwriting agreement. Furthermore, the underwriting agreement
provides that the obligations of the underwriters to pay for and accept delivery of the shares offered by us in this prospectus
are subject to various representations and warranties and other customary conditions specified in the underwriting agreement,
such as receipt by the underwriters of officers&rsquo; certificates and legal opinions.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have agreed to indemnify the underwriters against specified liabilities, including liabilities under the Securities Act, and to
contribute to payments the underwriters may be required to make in respect thereof.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
underwriters are offering the shares of common stock subject to prior sale, when, as and if issued to and accepted by them, subject
to approval of legal matters by their counsel and other conditions specified in the underwriting agreement. The underwriters reserve
the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have granted the underwriters an over-allotment option. This option, which is exercisable within 45 days after the date of the
closing of the Offering, permits the underwriters to purchase up to an aggregate of additional shares of common stock (equal to
15% of the total number of shares of common stock sold in this offering) at the public offering price per share, less underwriting
discounts and commissions, solely to cover over-allotments, if any. If the underwriters exercise this option in whole or in part,
then the underwriters will be severally committed, subject to the conditions described in the underwriting agreement, to purchase
the additional shares of common stock in proportion to their respective commitments set forth in the prior table.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Discounts,
Commissions and Reimbursement</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
representative has advised us that the underwriters propose to offer the shares of common stock to the public at the public
offering price per share set forth on the cover page of this prospectus. The underwriters may offer shares to securities dealers
at that price less a concession of not more than $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share of which up to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share may be reallowed to other
dealers. After the initial offering to the public, the public offering price and other selling terms may be changed by the representative.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table summarizes the underwriting discounts and commissions and proceeds, before expenses, to us assuming both no exercise
and full exercise by the underwriters of their over-allotment option:</FONT></P>

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

<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"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-weight: normal; font-style: normal">Total</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-weight: normal; font-style: normal">Per
    Share</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-weight: normal; font-style: normal">Without
    Option</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-weight: normal; font-style: normal">With
    Option</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%">Public offering price</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Underwriting discounts and commissions (7%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Non-accountable expense allowance (1%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Proceeds, before expenses, to us</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have agreed to pay an advance of $50,000 to the representative, which will be applied against the actual out-of-pocket accountable
expenses that will be paid by us to the underwriters in connection with this offering, and will be reimbursed to us to the extent
not incurred, of which $[___] has been paid as of the date hereof.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, we have also agreed to pay the following expenses of the underwriters relating to the offering: (a) all fees, expenses
and disbursements relating to background checks of our officers, directors and entities in an amount not to exceed $15,000 in
the aggregate; (b) all filing fees and communication expenses relating to the registration of the Shares to be sold in the Offering
(including the Option Shares) with the Commission (c) all filing fees and communication expenses associated with the review of
this offering by FINRA; (d) all fees and expenses relating to the listing of such Shares on The Nasdaq Capital Market, The Nasdaq
Global Market, The Nasdaq Global Select Market, the NYSE or the NYSE American and on such other stock exchanges as the Company
and the representative together determine, including any fees charged by The Depository Trust Company (DTC) for new securities;
(e) all fees, expenses and disbursements relating to the registration, qualification or exemption of securities offered under
the securities laws of foreign jurisdictions reasonably designated by the underwriter, including the reasonable fees and expenses
of the underwriter&rsquo;s blue sky counsel up to $20,000, but only if the offering is commenced on OTCQB; (f) $29,500 for the
underwriters&rsquo; use of Ipreo&rsquo;s book-building, prospectus tracking and compliance software for this offering; (g) the
reasonable costs associated with bound volumes of the public offering materials as well as commemorative mementos and lucite tombstones,
(h) the fees and expenses of the representatives&rsquo; legal counsel and other agents and representatives, incurred in connection
with this offering in an amount up to $125,000; (i) $10,000 for data services and communications expenses; (j) the costs of all
mailing and printing of the underwriting documents, registration statements, prospectuses and all amendments, supplements and
exhibits thereto and as many preliminary and final prospectuses as the representative may reasonably deem necessary; (k) the costs
associated with post-Closing advertising the Offering in the national editions of the Wall Street Journal and New York Times;
(l) the fees and expenses of the Company&rsquo;s accountants; (m) $10,000 for data services and communication expenses; and (n)
up to $20,000 of the representative&rsquo;s actual accountable road show expenses for the offering. In no event shall the Company&rsquo;s
obligation for payment of the underwriters&rsquo; accountable expenses exceed $150,000 in the aggregate.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
estimate the expenses of this offering payable by us, not including underwriting discounts and commissions, will be approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
the closing of this offering, we have agreed to issue to the representative warrants, or the Representative&rsquo;s Warrants,
to purchase a number of shares of common stock equal to 5% of the total number of shares sold in this public offering. The Representative&rsquo;s
Warrants will be exercisable at a per share exercise price equal to 125% of the public offering price per share of common stock
sold in this offering. The Representative&rsquo;s Warrants are exercisable at any time and from time to time, in whole or in part,
during the four and one-half year period commencing six months from the effective date of the registration statement related to
this offering. The Representative&rsquo;s Warrants also provide for one demand registration right of the shares underlying the
Representative&rsquo;s Warrants, and unlimited &ldquo;piggyback&rdquo; registration rights with respect to the registration of
the shares of common stock underlying the Representative&rsquo;s Warrants and customary anti-dilution provisions. The demand registration
right provided will not be greater than five years from the effective date of the registration statement related to this offering
in compliance with FINRA Rule 5110(f)(2)(G). The piggyback registration right provided will not be greater than seven years from
the effective date of the registration statement related to this offering in compliance with FINRA Rule 5110(f)(2)(G).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Representative&rsquo;s Warrants and the shares of common stock underlying the Representative&rsquo;s Warrants have been deemed
compensation by the Financial Industry Regulatory Authority, or FINRA, and are therefore subject to a 180-day lock-up pursuant
to Rule&nbsp;5110(g)(1) of FINRA. The representative, or permitted assignees under such rule, may not sell, transfer, assign,
pledge, or hypothecate the Representative&rsquo;s Warrants or the securities underlying the Representative&rsquo;s Warrants, nor
will the representative engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective
economic disposition of the Representative&rsquo;s Warrants or the underlying shares for a period of 180&nbsp;days from the effective
date of the registration statement. Additionally, the Representative&rsquo;s Warrants may not be sold transferred, assigned, pledged
or hypothecated for a 180-day period following the effective date of the registration statement except to any underwriter and
selected dealer participating in the offering and their bona fide officers or partners. The Representative&rsquo;s Warrants will
provide for adjustment in the number and price of the Representative&rsquo;s Warrants and the shares of common stock underlying
such Representative&rsquo;s Warrants in the event of recapitalization, merger, stock split or other structural transaction, or
a future financing undertaken by us.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Right
of First Refusal</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Until
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2020, twelve (12) months from the effective date of the registration statement
related to this offering, the representative shall have an irrevocable right of first refusal to act as sole investment banker,
sole book-runner and/or sole placement agent, at the representative sole discretion, for each and every future public and private
equity and debt offerings for the Company, or any successor to or any subsidiary of the Company, including all equity linked financings,
on terms customary to the representative. The representative shall have the sole right to determine whether or not any other broker-dealer
shall have the right to participate in any such offering and the economic terms of any such participation. The representative
will not have more than one opportunity to waive or terminate the right of first refusal in consideration of any payment or fee.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Lock-Up
Agreements</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company, each of its directors and officers and 5% or greater holders of the Company&rsquo;s outstanding shares of common stock
as of the date of this prospectus, have agreed for a period of (i) six months after the date of this prospectus in the case of
directors and officers and the 5% or greater holders of the Company&rsquo;s outstanding common stock and (ii) three months after
the date of this prospectus in the case of the Company, without the prior written consent of the representative, not to directly
or indirectly:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">issue (in the case
    of us), offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to
    sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of any shares of common stock
    or other capital stock or any securities convertible into or exercisable or exchangeable for our common stock or other capital
    stock; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in the case of us,
    file or cause the filing of any registration statement under the Securities Act with respect to any shares of common stock
    or other capital stock or any securities convertible into or exercisable or exchangeable for our common stock or other capital
    stock; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">complete any offering
    of debt securities of the Company, other than entering into a line of credit, term loan arrangement or other debt instrument
    with a traditional bank; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">enter into any swap
    or other agreement, arrangement, hedge or transaction that transfers to another, in whole or in part, directly or indirectly,
    any of the economic consequences of ownership of our common stock or other capital stock or any securities convertible into
    or exercisable or exchangeable for our common stock or other capital stock, whether any transaction described in any of the
    foregoing bullet points is to be settled by delivery of our common stock or other capital stock, other securities, in cash
    or otherwise, or publicly announce an intention to do any of the foregoing.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Electronic
Offer, Sale and Distribution of Securities</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
prospectus in electronic format may be made available on the websites maintained by one or more of the underwriters or selling
group members. The representative may agree to allocate a number of securities to underwriters and selling group members for sale
to its online brokerage account holders. Internet distributions will be allocated by the underwriters and selling group members
that will make internet distributions on the same basis as other allocations. Other than the prospectus in electronic format,
the information on these websites is not part of, nor incorporated by reference into, this prospectus or the registration statement
of which this prospectus forms a part, has not been approved or endorsed by us, and should not be relied upon by investors.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with this offering, the underwriters may engage in stabilizing transactions, over-allotment transactions, syndicate-covering
transactions, penalty bids and purchases to cover positions created by short sales.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stabilizing
transactions permit bids to purchase shares so long as the stabilizing bids do not exceed a specified maximum, and are engaged
in for the purpose of preventing or retarding a decline in the market price of the shares while the offering is in progress.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Over-allotment
transactions involve sales by the underwriters of shares in excess of the number of shares the underwriters are obligated to purchase.
This creates a syndicate short position which may be either a covered short position or a naked short position. In a covered short
position, the number of shares over-allotted by the underwriters is not greater than the number of shares that they may purchase
in the over-allotment option. In a naked short position, the number of shares involved is greater than the number of shares in
the over-allotment option. The underwriters may close out any short position by exercising their over-allotment option and/or
purchasing shares in the open market.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Syndicate
covering transactions involve purchases of shares in the open market after the distribution has been completed in order to cover
syndicate short positions. In determining the source of shares to close out the short position, the underwriters will consider,
among other things, the price of shares available for purchase in the open market as compared with the price at which they may
purchase shares through exercise of the over-allotment option. If the underwriters sell more shares than could be covered by exercise
of the over-allotment option and, therefore, have a naked short position, the position can be closed out only by buying shares
in the open market. A naked short position is more likely to be created if the underwriters are concerned that after pricing there
could be downward pressure on the price of the shares in the open market that could adversely affect investors who purchase in
the offering.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Penalty
bids permit the representative to reclaim a selling concession from a syndicate member when the shares originally sold by that
syndicate member are purchased in stabilizing or syndicate covering transactions to cover syndicate short positions.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market
price of our shares of common stock or preventing or retarding a decline in the market price of our shares of common stock. As
a result, the price of our common stock in the open market may be higher than it would otherwise be in the absence of these transactions.
Neither we nor the underwriters make any representation or prediction as to the effect that the transactions described above may
have on the price of our common stock. These transactions may be effected in the&nbsp;over-the-counter&nbsp;market or otherwise
and, if commenced, may be discontinued at any time.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain
of the underwriters and their affiliates may in the future provide various investment banking, commercial banking and other financial
services for us and our affiliates for which they may in the future receive customary fees.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Offer
restrictions outside the United States</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities
offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus
may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in
connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances
that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this
prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution
of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered
by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
prospectus is not a disclosure document under Chapter 6D of the Australian Corporations Act, has not been lodged with the Australian
Securities and Investments Commission and does not purport to include the information required of a disclosure document under
Chapter 6D of the Australian Corporations Act. Accordingly, (i)&nbsp;the offer of the securities under this prospectus is only
made to persons to whom it is lawful to offer the securities without disclosure under Chapter 6D of the Australian Corporations
Act under one or more exemptions set out in section 708 of the Australian Corporations Act, (ii)&nbsp;this prospectus is made
available in Australia only to those persons as set forth in clause (i)&nbsp;above, and (iii)&nbsp;the offeree must be sent a
notice stating in substance that by accepting this offer, the offeree represents that the offeree is such a person as set forth
in clause (i)&nbsp;above, and, unless permitted under the Australian Corporations Act, agrees not to sell or offer for sale within
Australia any of the securities sold to the offeree within 12 months after its transfer to the offeree under this prospectus.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
information in this document does not constitute a public offer of the securities, whether by way of sale or subscription, in
the People&rsquo;s Republic of China (excluding, for purposes of this paragraph, Hong Kong Special Administrative Region, Macau
Special Administrative Region and Taiwan). The securities may not be offered or sold directly or indirectly in the PRC to legal
or natural persons other than directly to &ldquo;qualified domestic institutional investors.&rdquo;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>European
Economic Area&mdash;Belgium, Germany, Luxembourg and Netherlands</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
information in this document has been prepared on the basis that all offers of securities will be made pursuant to an exemption
under the Directive 2003/71/EC (&ldquo;Prospectus Directive&rdquo;), as implemented in Member States of the European Economic
Area (each, a &ldquo;Relevant Member State&rdquo;), from the requirement to produce a prospectus for offers of securities.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
offer to the public of securities has not been made, and may not be made, in a Relevant Member State except pursuant to one of
the following exemptions under the Prospectus Directive as implemented in that Relevant Member State:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">to legal entities
    that are authorized or regulated to operate in the financial markets or, if not so authorized or regulated, whose corporate
    purpose is solely to invest in securities;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">to any legal entity
    that has two or more of (i)&nbsp;an average of at least 250 employees during its last fiscal year; (ii)&nbsp;a total balance
    sheet of more than &euro;43,000,000 (as shown on its last annual unconsolidated or consolidated financial statements) and
    (iii)&nbsp;an annual net turnover of more than &euro;50,000,000 (as shown on its last annual unconsolidated or consolidated
    financial statements);</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">to fewer than 100
    natural or legal persons (other than qualified investors within the meaning of Article 2(1)(e) of the Prospectus Directive)
    subject to obtaining the prior consent of the Company or any underwriter for any such offer; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in any other circumstances
    falling within Article 3(2) of the Prospectus Directive, provided that no such offer of securities shall result in a requirement
    for the publication by the Company of a prospectus pursuant to Article 3 of the Prospectus Directive.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
document is not being distributed in the context of a public offering of financial securities (offre au public de titres financiers)
in France within the meaning of Article&nbsp;L.411-1&nbsp;of the French Monetary and Financial Code (Code Mon&eacute;taire et
Financier) and Articles&nbsp;211-1 et seq. of the General Regulation of the French Autorit&eacute; des march&eacute;s financiers
(&ldquo;AMF&rdquo;). The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to
the public in France.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
document and any other offering material relating to the securities have not been, and will not be, submitted to the AMF for approval
in France and, accordingly, may not be distributed or caused to distributed, directly or indirectly, to the public in France.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Such
offers, sales and distributions have been and shall only be made in France to (i) qualified investors (investisseurs qualifi&eacute;s)
acting for their own account, as defined in and in accordance with Articles L.411-2-II-2&deg; and D.411-1 to D.411-3, D.744-1,
D.754-1 ;and D.764-1 of the French Monetary and Financial Code and any implementing regulation and/or (ii) a restricted number
of non-qualified investors (cercle restreint d&rsquo;investisseurs) acting for their own account, as defined in and in accordance
with Articles L.411-2-II-2&deg; and D.411-4, D.744-1, D.754-1; and D.764-1 of the French Monetary and Financial Code and any implementing
regulation.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to Article 211-3 of the General Regulation of the AMF, investors in France are informed that the securities cannot be distributed
(directly or indirectly) to the public by the investors otherwise than in accordance with Articles L.411-1, L.411-2, L.412-1 and
L.621-8 to L.621-8-3 of the French Monetary and Financial Code.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
information in this document does not constitute a prospectus under any Irish laws or regulations and this document has not been
filed with or approved by any Irish regulatory authority as the information has not been prepared in the context of a public offering
of securities in Ireland within the meaning of the Irish Prospectus (Directive 2003/71/EC) Regulations 2005 (the &ldquo;Prospectus
Regulations&rdquo;). The securities have not been offered or sold, and will not be offered, sold or delivered directly or indirectly
in Ireland by way of a public offering, except to (i)&nbsp;qualified investors as defined in Regulation 2(l) of the Prospectus
Regulations and (ii)&nbsp;fewer than 100 natural or legal persons who are not qualified investors.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
securities offered by this prospectus have not been approved or disapproved by the Israeli Securities Authority (the ISA), or
ISA, nor have such securities been registered for sale in Israel. The shares may not be offered or sold, directly or indirectly,
to the public in Israel, absent the publication of a prospectus. The ISA has not issued permits, approvals or licenses in connection
with the offering or publishing the prospectus; nor has it authenticated the details included herein, confirmed their reliability
or completeness, or rendered an opinion as to the quality of the securities being offered. Any resale in Israel, directly or indirectly,
to the public of the securities offered by this prospectus is subject to restrictions on transferability and must be effected
only in compliance with the Israeli securities laws and regulations.</FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
offering of the securities in the Republic of Italy has not been authorized by the Italian Securities and Exchange Commission
(Commissione Nazionale per le Societ&mdash;$$&mdash;Aga e la Borsa, &ldquo;CONSOB&rdquo; pursuant to the Italian securities legislation
and, accordingly, no offering material relating to the securities may be distributed in Italy and such securities may not be offered
or sold in Italy in a public offer within the meaning of Article 1.1(t) of Legislative Decree No.&nbsp;58 of 24&nbsp;February
1998 (&ldquo;Decree No.&nbsp;58&rdquo;), other than:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">to Italian qualified
    investors, as defined in Article 100 of Decree no.58 by reference to Article&nbsp;34-ter&nbsp;of CONSOB Regulation no. 11971
    of 14&nbsp;May 1999 (&ldquo;Regulation no. 1197l&rdquo;) as amended (&ldquo;Qualified Investors&rdquo;); and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in other circumstances
    that are exempt from the rules on public offer pursuant to Article 100 of Decree No.&nbsp;58 and Article&nbsp;34-ter&nbsp;of
    Regulation No.&nbsp;11971 as amended.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
offer, sale or delivery of the securities or distribution of any offer document relating to the securities in Italy (excluding
placements where a Qualified Investor solicits an offer from the issuer) under the paragraphs above must be:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">made by investment
    firms, banks or financial intermediaries permitted to conduct such activities in Italy in accordance with Legislative Decree
    No.&nbsp;385 of 1&nbsp;September 1993 (as amended), Decree No.&nbsp;58, CONSOB Regulation No.&nbsp;16190 of 29&nbsp;October
    2007 and any other applicable laws; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in compliance with
    all relevant Italian securities, tax and exchange controls and any other applicable laws.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
subsequent distribution of the securities in Italy must be made in compliance with the public offer and prospectus requirement
rules provided under Decree No.&nbsp;58 and the Regulation No.&nbsp;11971 as amended, unless an exception from those rules applies.
Failure to comply with such rules may result in the sale of such securities being declared null and void and in the liability
of the entity transferring the securities for any damages suffered by the investors.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
securities have not been and will not be registered under Article 4, paragraph 1 of the Financial Instruments and Exchange Law
of Japan (Law No.&nbsp;25 of 1948), as amended (the &ldquo;FIEL&rdquo;) pursuant to an exemption from the registration requirements
applicable to a private placement of securities to Qualified Institutional Investors (as defined in and in accordance with Article
2, paragraph 3 of the FIEL and the regulations promulgated thereunder). Accordingly, the securities may not be offered or sold,
directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan other than Qualified Institutional Investors.
Any Qualified Institutional Investor who acquires securities may not resell them to any person in Japan that is not a Qualified
Institutional Investor, and acquisition by any such person of securities is conditional upon the execution of an agreement to
that effect.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
document is not being distributed in the context of a public offer of financial securities (oferta p&uacute;blica de valores mobili&aacute;rios)
in Portugal, within the meaning of Article 109 of the Portuguese Securities Code (C&oacute;digo dos Valores Mobili&aacute;rios).
The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in Portugal.
This document and any other offering material relating to the securities have not been, and will not be, submitted to the Portuguese
Securities Market Commission (Comiss&#259;o do Mercado de Valores Mobili&aacute;rios) for approval in Portugal and, accordingly,
may not be distributed or caused to distributed, directly or indirectly, to the public in Portugal, other than under circumstances
that are deemed not to qualify as a public offer under the Portuguese Securities Code. Such offers, sales and distributions of
securities in Portugal are limited to persons who are &ldquo;qualified investors&rdquo; (as defined in the Portuguese Securities
Code). Only such investors may receive this document and they may not distribute it or the information contained in it to any
other person.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
document has not been, and will not be, registered with or approved by Finansinspektionen (the Swedish Financial Supervisory Authority).
Accordingly, this document may not be made available, nor may the securities be offered for sale in Sweden, other than under circumstances
that are deemed not to require a prospectus under the Swedish Financial Instruments Trading Act (1991:980) (Sw. lag (1991:980)
om handel med finansiella instrument). Any offering of securities in Sweden is limited to persons who are &ldquo;qualified investors&rdquo;
(as defined in the Financial Instruments Trading Act). Only such investors may receive this document and they may not distribute
it or the information contained in it to any other person.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
securities may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange (&ldquo;SIX&rdquo;) or
on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the
disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure
standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange
or regulated trading facility in Switzerland. Neither this document nor any other offering material relating to the securities
may be publicly distributed or otherwise made publicly available in Switzerland.</FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Neither
this document nor any other offering material relating to the securities have been or will be filed with or approved by any Swiss
regulatory authority. In particular, this document will not be filed with, and the offer of securities will not be supervised
by, the Swiss Financial Market Supervisory Authority (FINMA).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This
document is personal to the recipient only and not for general circulation in Switzerland.</FONT></P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Neither
this document nor the securities have been approved, disapproved or passed on in any way by the Central Bank of the United Arab
Emirates or any other governmental authority in the United Arab Emirates, nor has the Company received authorization or licensing
from the Central Bank of the United Arab Emirates or any other governmental authority in the United Arab Emirates to market or
sell the securities within the United Arab Emirates. This document does not constitute and may not be used for the purpose of
an offer or invitation. No services relating to the securities, including the receipt of applications and/or the allotment or
redemption of such shares, may be rendered within the United Arab Emirates by the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No
offer or invitation to subscribe for securities is valid or permitted in the Dubai International Financial Centre.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>United
Kingdom</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Neither
the information in this document nor any other document relating to the offer has been delivered for approval to the Financial
Services Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets
Act 2000, as amended (&ldquo;FSMA&rdquo;) has been published or is intended to be published in respect of the securities. This
document is issued on a confidential basis to &ldquo;qualified investors&rdquo; (within the meaning of section 86(7) of FSMA)
in the United Kingdom, and the securities may not be offered or sold in the United Kingdom by means of this document, any accompanying
letter or any other document, except in circumstances which do not require the publication of a prospectus pursuant to section
86(1) FSMA. This document should not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed
by recipients to any other person in the United Kingdom.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) received in connection with
the issue or sale of the securities has only been communicated or caused to be communicated and will only be communicated or caused
to be communicated in the United Kingdom in circumstances in which section 21(1) of FSMA does not apply to the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the United Kingdom, this document is being distributed only to, and is directed at, persons (i)&nbsp;who have professional experience
in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Markets
Act 2000 (Financial Promotions) Order 2005 (&ldquo;FPO&rdquo;), (ii) who fall within the categories of persons referred to in
Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the FPO or (iii)&nbsp;to whom it may
otherwise be lawfully communicated (together &ldquo;relevant persons&rdquo;). The investments to which this document relates are
available only to, and any invitation, offer or agreement to purchase will be engaged in only with, relevant persons. Any person
who is not a relevant person should not act or rely on this document or any of its contents.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Canada</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
securities may be sold in Canada only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors,
as defined in National Instrument&nbsp;45-106&nbsp;Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario),
and are permitted clients, as defined in National Instrument 31-103&nbsp;Registration Requirements, Exemptions and Ongoing Registrant
Obligations. Any resale of the securities must be made in accordance with an exemption from, or in a transaction not subject to,
the prospectus requirements of applicable securities laws. Securities legislation in certain provinces or territories of Canada
may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains
a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit
prescribed by the securities legislation of the purchaser&rsquo;s province or territory. The purchaser should refer to any applicable
provisions of the securities legislation of the purchaser&rsquo;s province or territory for particulars of these rights or consult
with a legal advisor. Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriters
are not required to comply with the disclosure requirements of NI33-105 regarding underwriter conflicts of interest in connection
with this offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_017"></A>EXPERTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">The
consolidated financial statements as of December 31, 2018 and for the year ended included in this prospectus have been included
herein in reliance upon the report of Marcum LLP, an independent registered public accounting firm, appearing elsewhere herein,
and upon the authority of Marcum LLP as experts in accounting and auditing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">The
financial statement as of December 31, 2017 and for the years then ended included in this prospectus have been audited by Liggett
&amp; Webb, P.A.</FONT>, an independent registered public accounting firm, as stated in its report appearing in the registration
statement, and are included in reliance upon the report of such firm given upon its authority as experts in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_018"></A>LEGAL
MATTERS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ellenoff
Grossman&nbsp;&amp; Schole&nbsp;LLP, New York, New York, will pass upon the validity of the securities offered hereby. Certain
legal matters are being passed on for the underwriters by Loeb &amp; Loeb LLP.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_019"></A>WHERE
YOU CAN FIND MORE INFORMATION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have filed with the SEC a registration statement on Form&nbsp;S-1 under the Securities Act with respect to the shares of our common
stock offered by this prospectus. This prospectus, which constitutes a part of the registration statement, does not contain all
of the information set forth in the registration statement, some of which is contained in exhibits to the registration statement
as permitted by the rules and regulations of the SEC. For further information with respect to us and our common stock, we refer
you to the registration statement, including the exhibits filed as a part of the registration statement. Statements contained
in this prospectus concerning the contents of any contract or any other document is not necessarily complete. If a contract or
document has been filed as an exhibit to the registration statement, please see the copy of the contract or document that has
been filed. Each statement is this prospectus relating to a contract or document filed as an exhibit is qualified in all respects
by the filed exhibit. The SEC maintains an Internet website that contains reports, proxy statements and other information about
issuers, like us, that file electronically with the SEC. The address of that website is <U>www.sec.gov</U>. We also maintain a
website at http://www.olb.com/. You may access these materials free of charge as soon as reasonably practicable after they are
electronically filed with, or furnished to, the SEC. Information contained on our website is not a part of this prospectus and
the inclusion of our website address in this prospectus is an inactive textual reference only.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_020"></A>INDEX
TO FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif; width: 90%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>December
    31, 2018 and 2017 Consolidated Financial Statements</B></FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; width: 9%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><A HREF="#fin_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Report of Independent Registered Public Accounting Firm</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-2</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><A HREF="#fin_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reports of Independent Registered Public Accounting Firm</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-3</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><A HREF="#fin_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Balance Sheets as of December 31, 2018 and 2017</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-6</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><A HREF="#fin_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of Operations for the Years Ended December 31, 2018 and 2017</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-7</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><A HREF="#fin_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of Stockholders&rsquo; Deficit for the Years Ended December 31, 2018 and 2017</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-8</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><A HREF="#fin_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of Cash Flows for the Years Ended December 31, 2018 and 2017</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-9</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><A HREF="#fin_007"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes to the Consolidated Financial Statements</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-11</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>March
    31, 2019 Consolidated Financial Statements</B></FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><A HREF="#mfin_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Condensed Consolidated Balance Sheets as of March 31, 2019 (unaudited) and December 31, 2018</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-24</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><A HREF="#mfin_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2019 and 2018 (unaudited)</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-25</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><A HREF="#mfin_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Condensed Consolidated Statements of Stockholders&rsquo; Deficit for the Three Months Ended March 31, 2019 and 2018 (unaudited)</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-26</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><A HREF="#mfin_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2019 and 2018 (unaudited)</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-27</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 10pt; text-indent: -10pt; font: 10pt Times New Roman, Times, Serif"><A HREF="#mfin_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes to the Condensed Consolidated Financial Statements (unaudited)</FONT></A></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-28</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="fin_001"></A>REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
the Shareholders and Board of Directors of</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
OLB Group, Inc.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Opinion
on the Financial Statements</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have audited the accompanying consolidated balance sheet of The OLB Group, Inc. (the &ldquo;Company&rdquo;) as of December 31,
2018, and the related consolidated statements of operations, changes stockholders&rsquo; deficit and cash flows the year then
ended, and the related notes (collectively referred to as the &ldquo;financial statements&rdquo;). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018, and the results
of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the
United States of America.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
financial statements of The OLB Group, Inc. as of and for the year ended December 31, 2017 were audited by other auditors whose
report dated April 13, 2018, expressed an unqualified opinion on those financial statements. As discussed in Note 8 to the financial
statements, the Company has adjusted its 2017 financial statements to retrospectively apply the effects of two common control
mergers that occurred subsequent to the year ended December 31, 2017. The other auditors reported on the financial statements
before the retrospective adjustments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
part of our audit of the 2018 financial statements, we also audited the adjustments to the 2017 financial statements to retroactively
apply the effects of the common control mergers that occurred subsequent to the year ended December 31, 2017 as described in Note
8. In our opinion, such adjustments are appropriate and have been properly applied. We were not engaged to audit, review, or apply
any procedures to the Company&rsquo;s 2017 financial statements other than with respect to these adjustments and, accordingly,
we do not express an opinion or any other form of assurance on the 2017 financial statements as whole.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Basis
for Opinion</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
financial statements are the responsibility of the Company&rsquo;s management. Our responsibility is to express an opinion on
the Company&rsquo;s financial statements based on our audit. We are a public accounting firm registered with the Public Company
Accounting Oversight Board (United States) (&ldquo;PCAOB&rdquo;) and are required to be independent with respect to the Company
in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not
for the purpose of expressing an opinion on the effectiveness of the Company&rsquo;s internal control over financial reporting.
Accordingly, we express no such opinion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that our audit provides a reasonable basis for our opinion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
Marcum&nbsp;<FONT STYLE="font-variant: small-caps">llp</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Marcum&nbsp;<FONT STYLE="font-variant: small-caps">llp</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have served as the Company&rsquo;s auditor since 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">New
York, NY</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">April
18, 2019</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="fin_002"></A>REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
the Board of Directors and Stockholders of</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
OLB Group, Inc.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Opinion
on the Financial Statements</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have audited the accompanying balance sheet of The OLB Group, Inc. (&ldquo;Company&rdquo;) as of December 31, 2017, and the related
statements of operations, stockholders&rsquo; deficit, and cash flows for the year then ended, and the related notes (collectively
referred to as the &ldquo;financial statements&rdquo;). In our opinion, the financial statements present fairly, in all material
respects, the financial position of the Company as of December 31, 2017 and the results of its operations and its cash flows for
the year then ended, in conformity with accounting principles generally accepted in the United States of America.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
Company&rsquo;s Ability to Continue as a Going Concern</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accompanying financial statements have been prepared assuming that the Company will continue as a&nbsp;going concern. The Company
has limited cash resources, recurring cash used in operations and a history of operating losses. These conditions raise substantial
doubt about the Company&rsquo;s ability to continue as a&nbsp;going concern. The financial statements do not include any adjustments
that may result from the outcome of this uncertainty.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Basis
for Opinion</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
financial statements are the responsibility of the Company&rsquo;s management. Our responsibility is to express an opinion on
these financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight
Board (United States) (&ldquo;PCAOB&rdquo;) and are required to be independent with respect to the Company in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not
for the purpose of expressing an opinion on the effectiveness of the Company&rsquo;s internal control over financial reporting.
Accordingly, we express no such opinion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that our audit provides a reasonable basis for our opinion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have served as the Company&rsquo;s auditor since 2015 until 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Liggett &amp; Webb P.A.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">New
York, New York&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">April
13, 2018</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
the Stockholders and the Board of Directors of</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Excel
Corporation</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Opinion
on the Financial Statements</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have audited Excel Corporation&rsquo;s (the &ldquo;Company&rdquo;) consolidated statements of operations and cash flows for the
period from January 1, 2018 to April 8, 2018, and the related notes (collectively referred to as the &ldquo;consolidated financial
statements&rdquo;). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated
results of its operations and its cash flows for the period from January 1, 2018 to April 8, 2018, in conformity with accounting
principles generally accepted in the United States of America.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
Company&rsquo;s Ability to Continue as a Going Concern</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accompanying consolidated financial statements have been prepared assuming that the Company will continue as a&nbsp;going concern.
The Company was also in default of its debt covenants. These conditions raise substantial doubt about the Company&rsquo;s ability
to continue as a&nbsp;going concern. The consolidated financial statements do not include any adjustments that may result from
the outcome of this uncertainty.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Basis
for Opinion</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
consolidated financial statements are the responsibility of the Company&rsquo;s management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audit. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (&ldquo;PCAOB&rdquo;) and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether
due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over
financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting
but not for the purpose of expressing an opinion on the effectiveness of the Company&rsquo;s internal control over financial reporting.
Accordingly, we express no such opinion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
audit included performing procedures to assess the risks of material misstatement of the consolidated 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 consolidated financial statements. Our audit also included evaluating the
accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Emphasis
of a Matter</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
discussed in Note 1 to the consolidated financial statements the Company was in default on its note payable. In 2018, the secured
noteholder foreclosed on the note and exercised its post-default remedies under the loan and security agreement by conducting
a public auction of all of the Company&rsquo;s assets on April 9, 2018, in accordance with the UCC, at which time the Company
ceased operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;We
have served as the Company&rsquo;s auditor since 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Liggett &amp; Webb P.A.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">New
York, New York&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">April
18, 2019</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
the Stockholders and the Board of Directors of</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Excel
Corporation</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Opinion
on the Financial Statements</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have audited the accompanying consolidated balance sheet of Excel Corporation (the &ldquo;Company&rdquo;) as of December 31, 2017,
the related consolidated statements of operations, stockholders&rsquo; equity (deficit), and cash flows for the year then ended,
and the related notes (collectively referred to as the &ldquo;consolidated financial statements&rdquo;). In our opinion, the consolidated
financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December
31, 2017, and the consolidated results of its operations and its cash flows for the year then ended, in conformity with accounting
principles generally accepted in the United States of America.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
Company&rsquo;s Ability to Continue as a Going Concern</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accompanying consolidated financial statements have been prepared assuming that the Company will continue as a&nbsp;going concern.
As discussed in Note 2 to the consolidated financial statements, the Company has an accumulated deficit of $19,018,311 at December
31, 2017, and has generated a net loss of $13,821,521 and used cash in operations of $1,001,491 for the year ended December 31,
2017. The Company is also in default of its debt covenants at December 31, 2017. These conditions raise substantial doubt about
the Company&rsquo;s ability to continue as a&nbsp;going concern. The consolidated financial statements do not include any adjustments
that may result from the outcome of this uncertainty.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Basis
for Opinion</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
consolidated financial statements are the responsibility of the Company&rsquo;s management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audit. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (&ldquo;PCAOB&rdquo;) and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether
due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over
financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting
but not for the purpose of expressing an opinion on the effectiveness of the Company&rsquo;s internal control over financial reporting.
Accordingly, we express no such opinion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
audit included performing procedures to assess the risks of material misstatement of the consolidated 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 consolidated financial statements. Our audit also included evaluating the
accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Emphasis
of a Matter</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
discussed in Note 1 to the consolidated financial statements the Company was in default on its note payable at December 31, 2017.
In 2018 the secured noteholder foreclosed on the note and exercised its post-default remedies under the loan and security agreement
by conducting a public auction of all of the Company&rsquo;s assets on April 9, 2018, in accordance with the UCC, at which time
the Company ceased operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have served as the Company&rsquo;s auditor since 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Liggett &amp; Webb P.A.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">New
York, New York&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">October
3, 2018</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="fin_003"></A>The
OLB Group, Inc. and Subsidiaries</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Consolidated
Balance Sheets</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">(Predecessor)</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><U>ASSETS</U></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Current Assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; padding-left: 0.125in">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">111,586</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">225,227</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Accounts receivable, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">406,110</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,790</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">564,014</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Note receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">357,330</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,135</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">69,119</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Other current assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">8,278</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">85,839</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total Current Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">547,109</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,790</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,301,529</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other Assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Property and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65,945</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">118,240</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Intangible assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,148,096</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,784,532</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt">Goodwill</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,858,216</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Other long-term assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">379,908</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">4,965</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">412,513</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">TOTAL ASSETS</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">11,999,274</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">32,755</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3,616,814</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-decoration: underline; text-align: left">LIABILITIES AND STOCKHOLDERS&rsquo; DEFICIT</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current Liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">467,526</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">138,134</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,323,926</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Accrued compensation &ndash; related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">640,009</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">416,738</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73,625</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Wages payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">472,912</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Other accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,152</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">381,031</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Note payable &ndash; current portion</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">25,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">13,911,233</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total Current Liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,221,312</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">554,872</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">17,089,102</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Long Term Liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Note payable, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Notes payable &ndash; related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Other long-term liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">31,909</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total Liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">13,721,312</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">554,872</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">17,121,011</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Commitments and contingencies (Note 15)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Stockholders&rsquo; Deficit:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued and outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Common stock, $0.0001 par value; 200,000,000 shares authorized, 162,350,364 and 162,325,364 shares issued and outstanding, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,237</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,234</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,770,192</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,576,572</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,514,114</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(17,508,467</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(16,114,923</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(19,018,311</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 Stockholders&rsquo; Deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,722,038</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(522,117</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(13,504,197</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">TOTAL LIABILITIES AND STOCKHOLDERS&rsquo; DEFICIT</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">11,999,274</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">32,755</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3,616,814</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>The
accompanying notes are an integral part of these consolidated financial statements.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="fin_004"></A>The
OLB Group, Inc. and Subsidiaries</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Consolidated
Statements of Operations</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<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">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid">For the Years Ended<BR> December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">For the period ended April&nbsp;8,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">For the Year Ended December&nbsp;31, 2017</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">(Predecessor)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">(Predecessor)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Revenue:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 60%; text-align: left; padding-left: 9pt">Transaction and processing fees</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">8,863,008</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">3,164,949</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">14,656,301</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Merchant equipment sales and other</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,756</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,590</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">251,408</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Other revenue</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">121,112</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">183,998</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total revenue</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">9,019,876</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">183,998</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,174,539</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">14,907,709</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 0.25in">Processing and servicing costs, excluding merchant portfolio amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,992,619</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,398</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,748,141</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,395,994</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Amortization expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">541,904</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">90,739</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">362,956</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Salaries and wages</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,401,192</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">525,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">374,345</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,782,079</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Outside commissions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">181,510</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">508,296</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">336,290</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">General and administrative expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,435,717</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">274,996</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">367,524</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,969,301</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 9pt">Impairment of goodwill</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">7,914,269</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Total operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">9,552,942</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">819,394</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,089,045</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">24,760,889</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Income (loss) from operations</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(533,066</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(635,396</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">85,494</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(9,853,180</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Other Income (Expense):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(800,467</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(832,564</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,836,495</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-left: 9pt">Interest expense, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(82,849</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(26,901</TD><TD STYLE="text-align: left">)</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Gain on settlement of payables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,039</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 9pt">Other</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">6,799</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">908</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(131,846</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Total other expense</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(860,478</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(26,901</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(831,656</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,968,341</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net Loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(1,393,544</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(662,297</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(746,162</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(13,821,521</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss per share, basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.01</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.00</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.14</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt">Weighted average shares outstanding, basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">162,343,378</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">155,996,684</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">100,482,497</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 54.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>The
accompanying notes are an integral part of these consolidated financial statements.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="fin_005"></A>The
OLB Group, Inc. and Subsidiaries</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Consolidated
Statements of Stockholders&rsquo; Deficit</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Years
ended December 31, 2018 and 2017</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<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">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Common Stock</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Additional Paid</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Accumulated</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Shares</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">In Capital</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 50%; text-indent: -10pt; padding-left: 10pt">Balance at&nbsp;January 1, 2017</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">155,979,297</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">15,598</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">14,942,601</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">(15,452,626</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">(494,427</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Common stock issued for related party debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,516,050</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">252</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">251,353</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">251,605</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Common stock issued for accrued&nbsp;<BR> compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,805,017</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">381</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">380,121</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">380,502</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Common stock issued for services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,497</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Net loss for the year ended December 31, 2017</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(662,297</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(662,297</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">Balance at December 31, 2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">162,325,364</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,234</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,576,572</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(16,114,923</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(522,117</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Common stock issued for services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,747</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,750</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Warrants issued as non-cash interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,660</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,660</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Option expense for officers</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">182,213</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">182,213</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Net loss for the year ended December 31, 2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,393,544</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,393,544</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; text-indent: -10pt; padding-left: 10pt">Balance at December 31, 2018</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">162,350,364</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">16,237</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">15,770,192</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(17,508,467</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(1,722,038</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>The
accompanying notes are an integral part of these consolidated financial statements.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="fin_006"></A>The
OLB Group, Inc. and Subsidiaries</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Consolidated
Statements of Cash Flows</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<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">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid">For the Years Ended<BR> December 31,</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">For the period ended April 8, <BR>
2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">For the Year Ended December&nbsp;31, 2017</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">(Predecessor)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">(Predecessor)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>CASH FLOWS FROM OPERATING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 60%; text-align: left">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">(1,393,544</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">(662,297</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">(746,162</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">(13,821,521</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Adjustments to Reconcile Net Loss to Net Cash Used in Operations:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.25in">Depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">582,559</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">109,225</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">446,525</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Paid in kind interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">275,369</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,614,564</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.25in">Stock based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">185,963</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,001</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Non-cash interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,660</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.25in">Gain on settlement of payables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(16,039</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Bad debt expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,113</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">656,131</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.25in">Loss on disposal of property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,539</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Gain in investment accounted for under the equity method</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">171,469</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.25in">Loss on impairment of goodwill</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,914,269</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Changes in assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">63,869</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(27,790</TD><TD STYLE="text-align: left">)</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">99,190</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">304,519</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">63,810</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,445</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,876</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,278</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(298</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,211</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Other long-term assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(26,576</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,775</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,523</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">149,161</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">104,406</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(219,888</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,746,706</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Accrued compensation &ndash; related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">239,310</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">501,620</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,156</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">87,909</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Other accrued liabilities &ndash; related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,901</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Other accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(17,100</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">63,905</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(220,416</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; padding-left: 9pt">Other long-term liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,511</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(9,796</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net Cash Used in Operating Activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(131,092</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(54,660</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(382,106</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,001,491</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">CASH FLOWS FROM INVESTING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Purchase of property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,274</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(46,906</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Proceeds from note receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">174,967</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">182,362</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Cash received in business combination</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">42,711</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net Cash provided by Investing Activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">217,678</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">176,088</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">153,094</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">CASH FLOWS FROM FINANCING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Proceeds from notes payable &ndash; related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,055,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Payment on notes payable &ndash; related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(30,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Payment on notes payable</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,000,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(512,583</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net Cash provided by (used in) Financing Activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">25,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">53,500</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(512,583</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net Change in Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">111,586</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,160</TD><TD STYLE="text-align: left">)</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(206,018</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,360,980</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">Cash &ndash; Beginning of Period</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,160</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">225,227</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,586,207</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt">Cash &ndash; End of Period</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">111,586</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">0</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">19,209</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">225,227</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Cash Paid For:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Interest</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">728,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">458,812</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,040,338</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Income taxes</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Supplemental disclosure of non-cash investing and financing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 9pt">Stock issued in conversion of debt and related accrued interest</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">251,605</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Stock issued in conversion of accrued salary</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">380,502</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 9pt">Forgiveness of accrued compensation credited to additional paid-in capital</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">669,529</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 9pt">Preferred stock converted into common stock</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">460</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
allocation of the purchase price and the estimated fair market values of the assets acquired and liabilities assumed in the business
combination further described in Note 1 are shown below:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-style: italic">Consideration</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%; text-align: left">Consideration issued</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">12,500,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left">Identified assets and liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,711</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Accounts and other receivables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">480,302</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Note receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">174,967</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,945</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Long-term assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">348,367</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">106,600</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(180,231</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Accrued Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(105,877</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Merchant portfolios</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,190,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt">Tradename</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,500,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total identified assets and liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,641,784</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Excess purchase price allocated to goodwill</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">6,858,216</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>The
accompanying notes are an integral part of these consolidated financial statements.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="fin_007"></A>The
OLB Group, Inc. and Subsidiaries</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Notes
to the Consolidated Financial Statements</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>For
the Years Ended December 31, 2018 and 2017</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
1 &ndash; BACKGROUND AND RECENT ACQUISITIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Background</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
OLB Group, Inc. (&ldquo;OLB&rdquo; the &ldquo;Company&rdquo;) was incorporated in the State of Delaware on November 18, 2004 and
provides services through its wholly-owned subsidiaries.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company provides integrated financial and transaction processing services to businesses throughout the United States. Through
its eVance Capital, Inc. subsidiary (&ldquo;eVance&rdquo;), the Company provides an integrated suite of third-party merchant payment
processing services and related proprietary software enabling products that deliver credit and debit card-based internet payment
processing solutions primarily to small and mid-sized merchants operating in physical &ldquo;brick and mortar&rdquo; business
environments, on the internet and in retail settings requiring both wired and wireless mobile payment solutions. eVance operates
as an independent sales organization (&ldquo;ISO&rdquo;) generating individual merchant processing contracts in exchange for future
residual payments. As a wholesale ISO, eVance has a direct contractual relationship with the merchants and takes greater responsibility
in the approval and monitoring of merchants than do retail ISOs and as a result, receives additional consideration for this service
and risk. The Company&rsquo;s Securus365, Inc. subsidiary operates as a retail ISO and receives residual income as commission
for merchants it places with third party processors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CrowdPay.us,
Inc. (&ldquo;CrowdPay&rdquo;) is a Crowdfunding platform used to facilitate a capital raise anywhere from $1,000,0000 -$50,000,000
of various types of securities under Regulation D, Regulation Crowdfunding, Regulation A and the Securities Act of 1933. To date,
the activities of this subsidiary have been insignificant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">OmniSoft.io,
Inc. (&ldquo;OmniSoft&rdquo;) operates a software platform for small merchants The Omnicommerce applications work on an iPad,
mobile device and the web and allows you to sell a store&rsquo;s products in a physical, retail setting. To date, the activities
of this subsidiary have been insignificant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
also provide ecommerce development and consulting services on a project by project basis.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Memorandum
of Sale</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 9, 2018, Securus365, Inc., a Delaware corporation (&ldquo;Securus&rdquo;), eVance Capital, Inc., a Delaware corporation
(&ldquo;eVance Capital&rdquo;), and eVance Inc., a Delaware corporation (&ldquo;eVance&rdquo;, and collectively with Securus and
eVance Capital, the &ldquo;Purchasers&rdquo;), each of which Purchaser is a newly formed wholly-owned subsidiary of OLB, entered
into a Memorandum of Sale (the &ldquo;Memorandum of Sale&rdquo;) by and among the Purchasers and GACP Finance Co., LLC, a Delaware
limited liability company (&ldquo;GACP&rdquo;), in its capacity as administrative agent and collateral agent to certain secured
lenders of the Debtors (as defined below), pursuant to which the Purchasers acquired substantially all of the assets of the Debtors
(the &ldquo;Asset Acquisition&rdquo;) through a foreclosure sale arranged by GACP under the Uniform Commercial Code of the State
of New York (&ldquo;UCC&rdquo;) of the collateral of Excel Corporation (&ldquo;Excel&rdquo;) and its subsidiaries Payprotec Oregon,
LLC, Excel Business Solutions, Inc. and eVance Processing, Inc. (Excel and such subsidiaries, collectively, the &ldquo;Debtors&rdquo;)
under the Loan and Security Agreement, dated as of November 2, 2016, by and among GACP, the lenders thereunder and the Debtors
and related loan documents, as amended (the &ldquo;Excel Loan and Security Agreement&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">GACP
exercised its post-default remedies and realized on the collateral securing the Debtors&rsquo; obligations under the Excel Loan
and Security Agreement by conducting a public auction of certain assets of the Debtors on April 9, 2018 in accordance with the
UCC. The Purchasers submitted the Memorandum of Sale at such auction, which constituted the Purchasers&rsquo; bid for substantially
all of the assets of the Debtors (&ldquo;Acquired Assets&rdquo;), which bid was accepted by GACP on April 9, 2018 in connection
with the simultaneous signing and closing (the &ldquo;Closing&rdquo;) of the transactions contemplated under the Memorandum of
Sale and the Credit Agreement (defined below).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
consideration for the sale and transfer of the Acquired Assets at the Closing, the Purchasers assumed certain post-Closing obligations
under assigned contracts and issued GACP a note payable in the amount of $12,500,000, through the deemed simultaneous financing
of such purchase price to the Purchasers under the Credit Agreement. Pursuant to the Memorandum of Sale, the Purchasers purchased
from GACP and accepted all of the Debtors&rsquo; right, title and interest in and to the Acquired Assets &ldquo;as is&rdquo;,
&ldquo;where is&rdquo; and &ldquo;with all faults&rdquo; and without any representations or warranties, express or implied, of
any nature whatsoever. Any representations made by the parties in the Memorandum of Sale did not survive the Closing, and there
is no indemnification rights for either party&rsquo;s breach.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Common
Control Mergers</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Effective
May 9, 2018, the Company entered into a share exchange agreement with CrowdPay.US, Inc., a New York corporation for which the
Company issued 87,500,000 shares of common stock for all of the authorized stock of CrowdPay. CrowdPay became a wholly owned subsidiary
of OLB. The Company&rsquo;s two majority stockholders were the two stockholders of CrowdPay and as a result this transaction was
accounted for as a common control merger. See Note 8.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Effective
May 9, 2018, the Company entered into a share exchange agreement with OmniSoft, Inc., a Delaware corporation for which the Company
issued 55,000,000 shares of common stock for all of the authorized stock of OmniSoft. OmniSoft became a wholly owned subsidiary
of OLB. The Company&rsquo;s two majority stockholders were the two stockholders of OmniSoft and as a result this transaction was
accounted for as a common control merger. See Note 8.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
2 &ndash; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Basis
of Presentation</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
Company&rsquo;s financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America (&ldquo;U.S. GAAP&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Use
of Estimates</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period.&nbsp;Actual results could differ from
those estimates. The Company&rsquo;s accounting estimates include the collectability of receivables, useful lives of long lived
assets and recoverability of those assets, valuation allowances for income taxes, stock based compensation and estimates made
for business combinations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Principles
of Consolidation</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, eVance,
Securus, CrowdPay.US, and OMNISOFT, Inc. All significant intercompany transactions and balances have been eliminated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Segments</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operating
segments are defined as components of an enterprise about which separate financial information is available that is evaluated
regularly by the chief operating decision maker, or decision&ndash;making group in deciding how to allocate resources and in assessing
performance. Our chief operating decision&ndash;making group is composed of the chief executive officer. We currently operate
in one segment surrounding our ISO operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Cash
and Cash Equivalents</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and all highly liquid debt
instruments purchased with a maturity of three months or less as cash and cash equivalents. The carrying amount of financial instruments
included in cash and cash equivalents approximates fair value because of the short maturities for the instruments held.&nbsp;The
Company had no cash equivalents as of December 31, 2018 and 2017.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Concentration
of Credit Risk</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial
instruments that potentially expose the Company to concentration of credit risk consist primarily of cash and accounts receivable.
The Company&rsquo;s cash is deposited with major financial institutions. At times, such deposits may be in excess of the Federal
Deposit Insurance Corporation insurable amount.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Accounts
Receivable</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounts
receivable represent contractual residual payments due from the Company&rsquo;s processing partners or other customers. Residual
payments are determined based on transaction fees and revenues from the credit and debit card processing activity of merchants
for which the Company&rsquo;s processing partners pay the Company. Based on collection experience and periodic reviews of outstanding
receivables, management considers all accounts receivable for our residual payments to be fully collectible and accordingly, no
allowance for doubtful accounts is required; however, CrowdPay has a recorded an allowance of $38,113 and $0, as of December 31,
2018 and 2017, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Reserve
for Chargeback Losses</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Disputes
between a cardholder and a merchant periodically arise as a result of, among other things, cardholder dissatisfaction with merchandise
quality or merchant services. Such disputes may not be resolved in the merchant&rsquo;s favor. In these cases, the transaction
is &ldquo;charged back&rdquo; to the merchant, which means the purchase price is refunded to the customer through the merchant&rsquo;s
bank and charged to the merchant. If the merchant has inadequate funds, the Company must bear the credit risk for the full amount
of the transaction. The Company evaluates the risk for such transactions and estimates the potential loss for chargebacks based
primarily on historical experience and records a loss reserve accordingly. For the years ended December 31, 2018 and 2017, respectively,
chargebacks were immaterial.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Property
and Equipment</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property
and equipment is stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is calculated
using the straight-line method over the estimated useful lives of the assets, which range from three to seven years. Leasehold
improvements are amortized over the lesser of the remaining term of the lease or the estimated useful life of the asset. Expenditures
for repairs and maintenance are expensed as incurred.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Impairment
of Long&ndash;Lived Assets</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company periodically reviews the carrying value of its long-lived assets held and used at least annually or when events and circumstances
warrant such a review. If significant events or changes in circumstances indicate that the carrying value of an asset or asset
group may not be recoverable, the Company performs a test of recoverability by comparing the carrying value of the asset or asset
group to its undiscounted expected future cash flows. Cash flow projections are sometimes based on a group of assets, rather than
a single asset. If cash flows cannot be separately and independently identified for a single asset, the Company determines whether
impairment has occurred for the group of assets for which it can identify the projected cash flows. If the carrying values are
in excess of undiscounted expected future cash flows, it measures any impairment by comparing the fair value of the asset group
to its carrying value. If the fair value of an asset or asset group is determined to be less than the carrying amount of the asset
or asset group, impairment in the amount of the difference is recorded.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Merchant
Portfolios</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Merchant
portfolios are valued at fair value of merchant customers on the date of acquisition and are amortized over their estimated useful
lives (7 years).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Goodwill</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounts for business combinations under the acquisition method of accounting in accordance with Accounting Standards
Codification (&ldquo;ASC&rdquo;) 805, &ldquo;Business Combinations,&rdquo; where the total purchase price is allocated to the
tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. The purchase
price is allocated using the information currently available, and may be adjusted, up to one year from acquisition date, after
obtaining more information regarding, among other things, asset valuations, liabilities assumed and revisions to preliminary estimates.
The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed
is recognized as goodwill.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company tests for indefinite lived intangibles and goodwill impairment in the fourth quarter of each year and whenever events
or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable. In accordance
with its policies, the Company performed a qualitative assessment of indefinite lived intangibles and goodwill at December 31,
2018 and determined there was no impairment of indefinite lived intangibles and goodwill.&nbsp;&nbsp;For the year ended December
31, 2017,&nbsp;<FONT STYLE="background-color: white">during the annual assessment of goodwill, management determined that goodwill
had been fully impaired. Due to this impairment the Company recorded an impairment charge of $7.9 million. The impairment charge
resulted from the default of the loan with GACP Finance Co. LLC.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Business
Combinations</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Acquisitions
are accounted for using the acquisition method of accounting. The purchase price of an acquisition is allocated to the assets
acquired and liabilities assumed using the estimated fair values at the acquisition date. Transaction costs are expensed as incurred.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible
assets acquired and identified based on their estimated fair values. The excess of the fair value of purchase consideration over
the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make
significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain
intangible assets include, but are not limited to, future expected cash flows from acquired customer lists, acquired technology,
and trade names from a market participant perspective, useful lives and discount rates. Management&rsquo;s estimates of fair value
are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual
results may differ from estimates. During the measurement period, which is one year from the acquisition date, we may record adjustments
to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement
period, any subsequent adjustments are recorded to earnings.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Stock-based
Compensation</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
account for equity-based transactions with nonemployees under the provisions of ASC Topic No. 505-50,&nbsp;<I>Equity-Based Payments
to Non-Employees</I>&nbsp;(&ldquo;ASC 505-50&rdquo;). ASC 505-50 establishes that equity-based payment transactions with nonemployees
shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever
is more reliably measurable. The fair value of common stock issued for payments to nonemployees is measured at the market price
on the date of grant. The fair value of equity instruments, other than common stock, is estimated using the Black-Scholes option
valuation model. In general, we recognize the fair value of the equity instruments issued as deferred stock compensation and amortize
the cost over the term of the contract.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
account for employee stock-based compensation in accordance with the guidance of Financial Accounting Standards Board (&ldquo;FASB&rdquo;)
ASC Topic 718,&nbsp;<I>Compensation&mdash;Stock Compensation,</I>&nbsp;which requires all share-based payments to employees, including
grants of employee stock options, to be recognized in the financial statements based on their fair values. The fair value of the
equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during
which services are rendered.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Net
Loss per Share</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Basic
net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding
during the period.&nbsp;Diluted net loss per common share is computed by dividing net loss by the weighted average number of shares
of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares
for the year ended December 31, 2018 does not include warrants to acquire 1,200,000 shares of common stock because of their anti-dilutive
effect. There were no potentially dilutive shares as of December 31, 2017.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Revenue
Recognition and Cost of Revenues</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company will recognize revenue when it is realized or realizable and earned. &nbsp;The Company considers revenue realized or realizable
and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has
been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability
is reasonably assured.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company receives a percentage of recurring monthly transaction related fees comprised of credit and debit card fees charged to
merchants, net of association fees, otherwise known as Interchange, as well as certain service charges and convenience fees, for
payment processing services, including authorization, capture, clearing, settlement and information reporting of electronic transactions.
Fees are calculated on either a percentage of the dollar volume of the transaction or a fixed fee or a hybrid of the two and are
recognized at the time of the transaction. In the case of &ldquo;wholesale&rdquo; residual revenue in which the Company has a
direct contractual relationship with the merchant, bears risk of chargebacks and performs underwriting on the merchants, the Company
records the full discount charged to the merchant as revenue and the related interchange and other processing fees as expenses.
In cases of residual revenue where the Company is not responsible for merchant underwriting and has no chargeback liability and
has no or limited contractual relationship with the merchant, the Company records the amount it receives from the processor net
of interchange and other processing fees as revenue.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Income
Taxes</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Income
taxes are provided for the tax effects of the transactions reported in the financial statements and&nbsp;consist of taxes currently
due plus deferred taxes related primarily to tax net operating loss carryforwards. The deferred tax assets and liabilities represent
the future tax return consequences of these differences, which will either be taxable or deductible when assets and liabilities
are recovered or settled, as well as operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted
tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that
includes the enactment date. A valuation allowance is established against deferred tax assets when in the judgment of management,
it is more likely than not that such deferred tax assets will not become available. Because the judgment about the level of future
taxable income is dependent to a great extent on matters that may, at least in part, be beyond the Company&rsquo;s control, it
is at least reasonably possible that management&rsquo;s judgment about the need for a valuation allowance for deferred taxes could
change in the near term.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tax
benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities.
The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon
settlement. A liability for &ldquo;unrecognized tax benefits&rdquo; is recorded for any tax benefits claimed in the Company&rsquo;s
tax returns that do not meet these recognition and measurement standards. As of December 31, 2018, and 2017, no liability for
unrecognized tax benefits was required to be reported.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Fair
Value Measurements</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fair
value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in
the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on
the measurement date. ASC Topic No. 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value into three broad levels, as described below:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
1: Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
2: Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable, either directly or indirectly.
Level 2 inputs include quoted prices for similar assets, quoted prices in markets that are not considered to be active, and observable
inputs other than quoted prices such as interest rates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
3: Level 3 inputs are unobservable inputs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following required disclosure of the estimated fair value of financial instruments has been determined by the Company using available
market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data
to develop the estimates of fair value. Accordingly, the use of different market assumptions and/or estimation methodologies may
have a material effect on the estimated fair value amounts.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
methods and assumptions used to estimate the fair values of each class of financial instruments are as follows: Cash and Cash
Equivalents, Accounts Receivable, and Accounts Payable. The items are generally short-term in nature, and accordingly, the carrying
amounts reported on the consolidated balance sheets are reasonable approximations of their fair values.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
carrying amounts of Notes Receivable and Notes Payable approximate the fair value as the notes bear interest rates that are consistent
with current market rates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Subsequent
Events</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management
evaluates events that have occurred after the balance sheet date and through the date the financial statements are issued. Based
upon the review, management did not identify any recognized or non-recognized subsequent events which would have required an adjustment
or disclosure in the financial statements, except as described in&nbsp;<I>Note 17 Subsequent Events</I>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Recently
Adopted Accounting Standards</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
November 2015, the Financial Accounting Standards Board (&ldquo;FASB&rdquo;) issued Accounting Standards Update (&ldquo;ASU&rdquo;)
No. 2015-17,&nbsp;<I>Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes</I>. The ASU simplifies the presentation
of deferred income taxes under U.S. GAAP by requiring that all deferred tax assets and liabilities be classified as non-current.
The guidance in ASU No. 2015-17 is effective for fiscal years beginning after December 15, 2016, including interim periods within
those fiscal years. The Company adopted this ASU and it did not have a material impact on the Company&rsquo;s consolidated financial
statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2016, the FASB issued ASU No. 2016-09,&nbsp;<I>Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based
Payment Accounting</I>. This ASU makes targeted amendments to the accounting for employee share-based payments. This guidance
is to be applied using various transition methods such as full retrospective, modified retrospective, and prospective based on
the criteria for the specific amendments as outlined in the guidance. The guidance is effective for annual periods, and interim
periods within those annual periods, beginning after December 15, 2016. The Company adopted this ASU and it did not have a material
impact on the Company&rsquo;s disclosures in the footnotes to its consolidated financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
August 2016, the FASB issued ASU 2016-15,&nbsp;Statement of Cash Flows: Clarification of Certain Cash Receipts and Cash Payments&nbsp;(&ldquo;ASU
2016-15&rdquo;), which eliminates the diversity in practice related to classification of certain cash receipts and payments in
the statement of cash flows, by adding or clarifying guidance on eight specific cash flow issues. This new guidance will be effective
for annual reporting periods beginning after December 15, 2017, and interim periods within those fiscal years and early adoption
is permitted, including adoption in an interim period. The adoption of this ASU has had no material impact on the Company&rsquo;s
consolidated financial statements and disclosures.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
November 2016, the FASB issued ASU 2016-18,&nbsp;<I>Statement of Cash Flows (Topic 230): Restricted Cash</I>&nbsp;(&ldquo;ASU
2016-18&rdquo;), which provides guidance that will require that a statement of cash flows explain the change during the period
in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As
a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash
equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This
new guidance will be effective for annual reporting periods beginning after December 15, 2017, and interim periods within those
fiscal years and early adoption is permitted, including adoption in an interim period. The adoption of this ASU has had no material
impact of the Company&rsquo;s Consolidated Statement of Cash Flows.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
January 2017, the FASB issued ASU 2017-01,&nbsp;<I>Business Combinations (Topic 805): Clarifying the Definition of a Business.&nbsp;</I>&nbsp;
This ASU clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or
disposals) of assets or businesses.&nbsp;This new guidance will be effective for annual reporting periods beginning after December
15, 2017, including interim periods within those periods. The adoption of this ASU has had no material impact on the Company&rsquo;s
consolidated financial statements and disclosures.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
January 2017, the FASB issued ASU 2017-04,&nbsp;<I>Intangibles&mdash;Goodwill and Other (Topic 350)</I>. This ASU simplifies the
subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test, which required computing the
implied fair value of goodwill. Under the amendments in this update, an entity should perform its annual, or interim, goodwill
impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized
for the amount by which the carrying amount exceeds the reporting unit&rsquo;s fair value; however, the loss recognized should
not exceed the total amount of goodwill allocated to that reporting unit. This new guidance will be effective January 1, 2020.
The Company is currently in the process of evaluating the potential effect that the adoption of this standard will have on its
consolidated financial position and results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
May 2017, the FASB issued ASU 2017-09,&nbsp;<I>Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting.&nbsp;</I>This
ASU clarifies an entity&rsquo;s ability to modify the terms or conditions of a share-based payment award presented. An entity
should account for the effects of a modification unless all the following are met: the fair value of the modified award has not
changed from the fair value on the date of issuance; the vesting conditions of the modified award are the same as the vesting
conditions of the original award immediately before the original award is modified; and, the classification of the modified award
as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the
original award is modified. This new guidance will be effective for annual reporting periods beginning after December 15, 2017,
including interim periods within those periods. The adoption of this ASU has had no material impact on the Company&rsquo;s consolidated
financial statements and disclosures.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
July 2017, the FASB issued ASU 2017-11,&nbsp;<I>Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic
480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part
II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and
Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception</I>. This ASU clarifies the recognition, measurement,
and effect on earnings per share of certain freestanding equity-classified financial instruments that include down round features
affect entities that present earnings per share in accordance with the guidance in Topic 260,&nbsp;<I>Earnings Per Share</I>.
When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round
feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity&rsquo;s own stock.
The amendments also clarify existing disclosure requirements for equity-classified instruments. This new guidance will be effective
for annual reporting periods beginning after December 15, 2018, including interim periods within those periods. The Company adopted
this ASU and it did not have a material impact on the Company&rsquo;s consolidated financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Recent
Accounting Standards</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
February 2016, the FASB issued ASU 2016-02,&nbsp;<I>Leases (Topic 842)</I>. The ASU requires that a lessee recognize the assets
and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability
to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the
lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class
of underlying asset not to recognize lease assets and lease liabilities. This new guidance will be effective for annual reporting
periods beginning after December 15, 2018, including interim periods within those annual reporting periods, and early adoption
is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest
period presented using a modified retrospective approach. The Company is currently in the process of evaluating the potential
effect that the adoption of this standard will have on its consolidated financial position and results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers, to establish
ASC Topic 606, (ASC 606).&nbsp; ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition
and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of the guidance is
that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the entity expects to be entitled in exchange for those goods or services.&nbsp; The guidance includes
a five-step framework that requires an entity to: (i)&nbsp;identify the contract(s) with a customer, (ii)&nbsp;identify the performance
obligations in the contract, (iii)&nbsp;determine the transaction price, (iv)&nbsp;allocate the transaction price to the performance
obligations in the contract, and (v)&nbsp;recognize revenue when the entity satisfies a performance obligation.&nbsp; In addition,
the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts
with customers.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
August 2015, the FASB issued ASU 2015-14, Deferral of the Effective Date, which amended the effective date for nonpublic entities
to annual reporting periods beginning after December 15, 2018.&nbsp; In March&nbsp;2016, the FASB issued an update (ASU 2016-08)
to ASC 606, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the guidance on principal
versus agent considerations. In April 2016, the FASB issued an update (ASU 2016-10) to ASC 606, Identifying Performance Obligations
and Licensing, which provides clarification related to identifying performance obligations and licensing implementation guidance
under ASU 2014-09. In May 2016, the FASB issued an update (ASU 2016-12) to ASC 606, Narrow-Scope Improvements and Practical Expedients,
which amends guidance on transition, collectability, noncash consideration and the presentation of sales and other similar taxes.
In December 2016, the FASB issued an update (ASU 2016-20) to ASC 606, Technical Corrections and Improvements, which outlines technical
corrections to certain aspects of the new revenue recognition standard such as provisions for losses on construction type contracts
and disclosure of remaining performance obligations, among other aspects. The effective date and transition requirements are the
same as those in ASU 2014-09 for all subsequent clarifying guidance discussed herein.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method),
or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application
(modified retrospective method). The Company has elected to apply the modified retrospective method. Accordingly, the new revenue
standard will be applied prospectively in the Company&rsquo;s financial statements from January 1, 2019 forward and reported financial
information for historical comparable periods will not be revised and will continue to be reported under the accounting standards
in effect during those historical periods.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company has reviewed other recently issued accounting pronouncements and plans to adopt those that are applicable to it. The Company
does not expect the adoption of any other pronouncements to have an impact on its results of operations or financial position.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
3 &ndash; LIQUIDITY AND CAPITAL RESOURCES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
December 31, 2018, the Company had&nbsp;cash of $111,586&nbsp;and a working capital deficit of $649,203. For the year ended December
31, 2018, the Company&rsquo;s net loss and cash used in operating activities was $1,393,544 and $131,092, respectively.&nbsp;<FONT STYLE="background-color: white">T</FONT>he
Company expects to fund future liquidity and capital requirements through cash flow generated from its operating activities resulting
from increases in its merchants and revenues generated. Additionally, included in the working capital deficit as of December 31,
2018 was accrued payroll, a note payable and other expenses due to the Company&rsquo;s Chief Executive Officer, Mr. Ronny Yakov,
in the amount of $610,976, which he has agreed to defer receiving payment until the Company has sufficient working capital. As
a result of the recent amendments to its long-term and related party long-term debt arrangements, coupled with &nbsp;its operations
acquired in the business combination and commitment from a related party and significant stockholder, that he will provide any
additional financial support, if needed, to satisfy the Company&rsquo;s debt or other obligations through April 2020, the Company
has alleviated its previously reported substantial doubt regarding its ability to continue as a going concern.&nbsp; The Company&rsquo;s
future capital requirements could depend on many factors, including the need to expand its services, competing technological and
market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies
to enhance or complement the Company&rsquo;s product and service offerings. If the Company is unable to secure additional capital,
it may be required to curtail its future plans and take additional measures to reduce costs in order to conserve cash.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
4 &ndash; NOTE RECEIVABLE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 30, 2017, the predecessor entity entered into a forbearance agreement with MoneyonMobile, Inc. (formerly Calpain, Inc)
concerning a $675,000 note payable dated April 12, 2016.&nbsp; In the agreement, MoneyonMobile agreed to a periodic payment schedule
for the principal of the note with the first payment of $200,000 due and paid on December 15, 2017.&nbsp;The remain balance of
$475,000 was to be paid in six-monthly installments beginning January 15, 2018 with a final payment made on June 15, 2018. Due
to certain financial uncertainties with MoneyonMobile, management of the predecessor determined it necessary to reserve for the
final payments due on the note and recorded bad debt expense of $117,670 during the year ended December 31, 2017. During the period
from January 1, 2018 to April 8, 2018, the predecessor collected $182,362&nbsp;and subsequent to the date the Company completed
the business combination (Note 7), the Company collected the remaining $174,967.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
5 &ndash; PROPERTY AND EQUIPMENT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property
and equipment are summarized as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-weight: normal; font-style: normal">December
    31</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-weight: normal; font-style: normal">December&nbsp;31,
    2017</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Predecessor</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left">Furniture and Fixtures</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">14,895</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">36,471</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Office Equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73,205</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">180,576</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Leasehold improvements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,208</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Computer Software</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">12,292</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">63,607</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">106,600</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">280,654</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accumulated depreciation</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(40,655</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(162,414</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: 4pt">Property and equipment, net</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">65,945</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">118,240</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Depreciation
expense was $40,655 and $0 for the years ended December 31, 2018 and 2017, respectively. As it pertains to the predecessor, for
the period from January 1, 2018 through April 8, 2018, depreciation expense was $18,486 and for the year ended December 31, 2017,
depreciation expense was $83,569.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
6 &ndash; INTANGIBLE ASSETS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
assets consist of the following as of:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid">December 31</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">December 31, 2017</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Predecessor</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left">Merchant Portfolios</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,190,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,540,690</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less Accumulated Amortization</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(208,571</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(756,158</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net residual portfolios</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,981,429</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,784,532</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid">December 31</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">December 31, 2017</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Predecessor</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left">Trade name</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,500,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less Accumulated Amortization</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(333,333</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net trade name</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,166,667</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amortization
expense amounted to $541,904 for the year ended December 31, 2018. The predecessor&rsquo;s amortization expense for the period
from January 1, 2018 to April 8, 2018 and for the year ended December 31, 2017 was $90,739 and $362,956, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s merchant portfolios and tradename are being amortized over respective useful lives of 7 and 5
years.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following sets forth the estimated amortization expense related to amortizing intangible assets for the years ended December 31:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">2019</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">812,857</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2020</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">812,857</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">812,857</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">812,857</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">479,524</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Thereafter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">417,144</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
weighted average remaining useful life of amortizing intangible assets was 6 years at December 31, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
7 &ndash; BUSINESS COMBINATIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
disclosed in Note 1, on April 9, 2018, the Company entered into a Memorandum of Sale by and among the Purchasers and GACP. In
consideration for the sale and transfer of the Acquired Assets at the Closing, the Company assumed certain post-Closing obligations
under assigned contracts and issued GACP a note payable for $12,500,000, through the deemed simultaneous financing of such purchase
price to the Purchasers under the Credit Agreement. &nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounted for the transaction as a business combination under ASC 805 and as a result, allocated the fair value of the
identifiable assets acquired and liabilities assumed as of the acquisition date as outlined in the table below. The results of
operations of the business acquired by the Company have been included in the consolidated statements of operations since the date
of acquisition. The excess of the purchase price over the estimated fair values of the underlying identifiable assets acquired
and liabilities assumed was allocated to goodwill. The amount assigned to goodwill was deemed appropriate based on several factors,
including: (i) the multiple paid by market participants for businesses in the merchant card processing business; (ii) levels of
eVance Payments, current and future projected cash flows; and (iii) the Company&rsquo;s strategic business plan. Goodwill is expected
to be deductible for tax purposes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
allocation of the purchase price and the estimated fair market values of the assets acquired and liabilities assumed are shown
below:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-style: italic">Consideration</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">Consideration issued</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">12,500,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left">Identified assets and liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,711</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounts and other receivables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">480,302</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Note receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">174,967</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,945</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Long-term assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">348,367</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">106,600</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(180,231</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accrued Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(105,877</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Merchant portfolios</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,190,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Tradename</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,500,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total identified assets and liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,641,784</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Excess purchase price allocated to goodwill</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">6,858,216</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unaudited
pro forma results of operations for the years ended December 31, 2018 and 2017, as if the Company and its subsidiaries had been
combined on January 1, 2017, follow. The pro forma results include estimates and assumptions which management believes are reasonable.
The pro forma results do not include any anticipated cost savings or other effects of the planned integration of these entities,
and are not necessarily indicative of the results that would have occurred if the business combination had been in effect on the
date indicated, or which may result in the future. The unaudited pro forma results of operations are as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">Revenues</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">12,194,415</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">15,091,707</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(124,442</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(3,023,848</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,816,576</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(6,979,090</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net loss per share &ndash; basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.01</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.04</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
8 &ndash; COMMON CONTROL MERGERS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
May 9, 2018, the Company acquired 100% of OmniSoft in exchange for the issuance of 55,000,000 shares of common stock. The acquisition
of OmniSoft., was determined to be a common control transaction as each Company has the same two shareholder with a majority ownership.
As a result, the assets and liabilities assumed were recorded on the Company&rsquo;s consolidated financial statements at their
respective carry-over basis. Under ASC 805, &ldquo;Business Combinations,&rdquo; the Company recorded the common control merger
as of the earliest date presented in these consolidated financial statements, or January 1, 2017 as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">Accounts receivable</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">250</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(602</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accrued expenses &ndash; related party</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(265,319</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net liabilities assumed</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(265,671</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
results of operations included in the consolidated statement of operations for the year ended December 31, 2017 as a result of
the common control merger were as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">250</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(134,154</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(133,904</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
May 9, 2018, the Company acquired 100% of CrowdPay in exchange for 87,500,000 shares of common stock. The acquisition of CrowdPay.,
as a wholly owned subsidiary is considered a common control transaction as each Company has the same shareholder with a majority
ownership. As a result, the assets and liabilities assumed were recorded on the Company&rsquo;s consolidated financial statements
at their respective carry-over basis. Under ASC 805, &ldquo;Business Combinations,&rdquo; the Company recorded the common control
merger as of the earliest date presented in these consolidated financial statements, or January 1, 2017 as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">Accounts receivable</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">27,540</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Other receivable &ndash; related party</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,705</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Accounts payable and accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(48,472</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accrued expenses &ndash; related party</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(149,645</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net liabilities assumed</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(168,872</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
results of operations included in the consolidated statement of operations for the year ended December 31, 2017 as a result of
the common control merger were as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">132,205</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(261,860</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(129,655</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
9 &ndash; NOTES PAYABLE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2017, the Company had a balance due on its note payable to GACP of $13,911,233.&nbsp;<FONT STYLE="background-color: white">The
Loan accrues interest of 18% per annum of which 13% is payable in cash monthly and 5% is payable in kind (PIK).&nbsp;</FONT>The
note was extinguished due to the foreclosure on the collateral of the note.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
order to finance the Asset Acquisition, GACP, as administrative agent and collateral agent (&ldquo;Agent&rdquo;), and as the initial
sole lender thereunder, provided a term loan of $12,500,000 (the &ldquo;Term Loan&rdquo;) to the Purchasers, OmniSoft, Inc., a
Delaware corporation and CrowdPay.us, Inc., a New York corporation, each of OmniSoft and CrowdPay being affiliates of the Company&rsquo;s
majority stockholder, which obligations are guaranteed by the Company (collectively with the Borrowers, the &ldquo;Loan Parties&rdquo;),
under the Loan and Security Agreement (the &ldquo;Credit Agreement&rdquo;), dated as of April 9, 2018, by and among the Loan Parties,
the lenders from time to time party thereto as lenders (the &ldquo;Lenders&rdquo;) and the Agent.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Term Loan matures in full on April 9, 2021, the third anniversary of the Closing. $1,000,000 of the principal amount under the
Term Loan must be repaid on or prior to July 15, 2018, and an additional $2,000,000 in principal due on or prior to October 31,
2018 (in each case subject to earlier repayment under certain circumstances, including if a Loan Party consummates an equity financing),
with the remaining principal due upon maturity. The Term Loan can be prepaid without penalty in part by the Loan Parties with
ten days&rsquo; prior written notice to the Agent, and in full within thirty days&rsquo; prior written notice. The Term Loan is
subject to an interest rate of 9.0% per annum, payable monthly in arrears.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
obligations of the Loan Parties under the Credit Agreement are secured by all of their respective assets and the Loan Parties
pledged all of their assets as collateral for their obligations under the Credit Agreement. Additionally, the Company pledged
its ownership interests in the Purchasers and any of its other subsidiaries that it may form or acquire from time to time.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Credit Agreement includes customary representations, warranties and financial and other covenants of the Loan Parties for the
benefit of the Lenders and the Agent. The obligations of the Loan Parties under the Credit Agreement are subject to customary
events of default for a secured term loan. Each Loan Party is jointly and severally liable for the obligations under the Credit
Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 30, 2018, the Company entered into Amendment No. 1 to the Loan and Security Agreement (the &ldquo;Amendment&rdquo;) amending
that certain Loan and Security Agreement, dated as of April 9, 2018 (the &ldquo;Original Credit Agreement,&rdquo; and as amended
by the Amendment, the &ldquo;Credit Agreement&rdquo;), by and among GACP Finance Co., LLC, as administrative agent and collateral
agent, the lenders party thereto, Securus365, Inc., eVance, Inc., eVance Capital, Inc., OMNISOFT, Inc., and CrowdPay.us, Inc.,
as borrowers, and the Company, as parent guarantor. Pursuant to the Amendment, among other things, the lenders (i) waived the
Company&rsquo;s existing defaults under the Original Credit Agreement for its failure to make payment of $1,000,000 (the &ldquo;initial
payment&rdquo;) under the Original Credit Agreement on or prior to July 15, 2018 and to deliver to the lenders unaudited monthly
financial statements and compliance certificates of the Company, (ii) extended the date on which the initial payment was required
to be made to July 30, 2018 and extended the date on which the Company is required to provide audited financial statements for
the fiscal years ended December 31, 2017 and 2018, (iii) permitted the Company to enter into a subordinated loan arrangement for
the Note concurrently with the Amendment such that the Company could make the initial payment under the terms of the Credit Agreement,
and permitted the Note to be repaid either from the sale of the Note Collateral Shares or at any time after the second payment
under the Credit Agreement. The Company borrowed $1,000,000 from a related party (Note 11) in order to make its first scheduled
payment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 14, 2018, the $2,000,000 second payment due under the Original Credit Agreement that was due by October 31, 2018 was
paid. The Company borrowed $2,000,000 from a related party (Note 11) in order to make its second scheduled payment. Total interest
expense for the GACP loan incurred during the year ended December 31, 2018 was $791,625, $73,625 of which is accrued as of December
31, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 5, 2019, the Company entered into Amendment No. 3 to Loan and Security Agreement (the &ldquo;Amendment&rdquo;) amending
that certain Loan and Security Agreement, dated as of April 9, 2018 (the &ldquo;Original Credit Agreement,&rdquo; and as amended,
including by the Amendment, the &ldquo;Credit Agreement&rdquo;), by and among GACP Finance Co., LLC, as administrative agent and
collateral agent, the lenders party thereto, Securus365, Inc., eVance, Inc., eVance Capital, Inc., OMNISOFT, Inc., and CrowdPay.us,
Inc., as borrowers, and the Company, as parent guarantor. Pursuant to the Amendment, among other things, the lenders waived the
Company&rsquo;s existing default under the Original Credit Agreement for its failure to comply with certain financial covenants
set forth in the Original Credit Agreement and the parties amended the terms of the financial covenants that the Company must
comply with.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
10 &ndash; WARRANTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to and as additional consideration for the Term Loan under the Credit Agreement, on April 9, 2018 the Company issued to GACP a
Warrant to purchase 1,200,000 shares of common stock of the Company at an exercise price of $0.25 per share, subject to adjustment
as set forth in the Warrant. The Warrant is exercisable by GACP at any time from the Issuance Date until the later of (i) the
third (3<SUP>rd</SUP>) anniversary of the Issuance Date and (ii) the date on which all obligations under the Credit Agreement
have been satisfied in full. The Warrant may be redeemed for $0.0001 per Warrant Share, at the sole discretion of the Company,
at any time after the six (6) month anniversary of the Issuance Date if the closing sales price of the Company&rsquo;s common
stock equals or exceeds $5.00 per share on each of the 20 trading days within any 30 day trading day period ending on the third
(3<SUP>rd</SUP>) trading day prior to the date on which the Company provides a notice of redemption. GACP has certain piggy-back
registration rights as set forth in the Warrant with respect to the Warrant Shares to be issued upon exercise of the Warrant.
After the six (6) month anniversary of the Issuance Date, GACP can exercise the Warrant using a &ldquo;cashless exercise&rdquo;
feature to the extent that GACP exercises the Warrant for a number of Warrant Shares in excess of the number Warrant Shares that
have been registered for resale under U.S. securities laws.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
additional consideration for the Term Loan under the Credit Agreement, on April 9, 2018 the Company also entered into a letter
agreement (the &ldquo;Additional Warrants Agreement&rdquo;) with GACP, pursuant to which the Company agreed that if the Company
at any time after the Closing and prior to the satisfaction of all outstanding obligations under the Credit Agreement requests
for GACP to provide debt financing for the acquisition of a company or operating business by the Company or its subsidiaries,
and GACP or its affiliates provide all of the debt financing for such acquisition, the Company will issue to GACP a warrant to
purchase 200,000 shares of the Company&rsquo;s common stock (an &ldquo;Additional Warrant&rdquo;) upon the closing of such debt-financing,
with such Additional Warrant in substantially the same form as the Warrant, up to a total of four (4) Additional Warrants for
four debt-financed acquisitions under the Additional Warrants Agreement. The exercise price of the Additional Warrants, if issued,
will be $0.30 per share for the first Additional Warrant, $0.35 per share for the second Additional Warrant, $0.40 per share for
the third Additional Warrant and $0.45 per share for the fourth Additional Warrant, with the number of shares and exercise price
subject to adjustment as set forth in the Additional Warrants Agreement and the Additional Warrant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
warrants have an exercise price of $0.25 and expire in three years.&nbsp;The aggregate fair value of the warrants, which was charged
to interest expense, totaled $7,660 based on the Black Scholes Merton pricing model using the following estimates: exercise price
of $0.25, 2.28% risk free rate, 114.11% volatility and expected life of the warrants of 3 years.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
summary of the status of the Company&rsquo;s outstanding stock warrants and changes during the year is presented below:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Shares available to purchase with warrants</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Weighted&nbsp;<BR> Average&nbsp;<BR> Price</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Weighted&nbsp;<BR> Average&nbsp;<BR> Fair&nbsp;Value</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Aggregate Intrinsic Value</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Outstanding, December 31, 2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%">Issued</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,200,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.25</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.0064</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Forfeited</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Expired</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">$</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">$</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Outstanding, December 31, 2018</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,200,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">$</TD><TD STYLE="padding-bottom: 4pt; text-align: right">0.25</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$0. 0064</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">$</TD><TD STYLE="padding-bottom: 4pt; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Exercisable, December 31, 2018</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,200,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">$</TD><TD STYLE="padding-bottom: 4pt; text-align: right">0.25</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$0. 0064</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">$</TD><TD STYLE="padding-bottom: 4pt; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid">Range of Exercise <BR>
Prices</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid">Number Outstanding<BR>
12/31/2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid">Weighted Average<BR>
Remaining Contractual Life</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid">Weighted Average<BR>
Exercise Price</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 25%; text-align: center">$0.25</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center">1,200,000</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center">2.27 years</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center">$0.25</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
aggregate intrinsic value represents the total pretax intrinsic value, based on warrants with an exercise price less than the
Company&rsquo;s stock price as of December 31, 2018, which would have been received by the warrant holder had the warrant holder
exercised their warrants as of that date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
11 &ndash; STOCK OPTIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 10, 2018, the Company entered into an employment agreement with its VP of Finance pursuant to which he was granted 7,955,168
common stock options. The grant shall vest at the rate of 1/5 beginning on each anniversary of the effective date of grant. The
options have an exercise price of $0.0001 and expire in three years after each vest date.&nbsp;The aggregate fair value of the
options totaled $1,192,535 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $0.0001,
2.43% risk free rate, 123.7% volatility and expected life of the options of 5 years. The fair value is being amortized over the
applicable vesting period and credited to additional paid in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the terms on the employment agreement with Mr. Yakov he was granted 200,000 common stock options. The grant shall vest at the
rate of 1/3 beginning on each anniversary of the effective date of grant. The options have an exercise price of $0.001 and expire
in three years after each vest date.&nbsp;The aggregate fair value of the options totaled $39,812 based on the Black Scholes Merton
pricing model using the following estimates: exercise price of $0.001, 2.13% risk free rate, 123.7% volatility and expected life
of the options of 4 years. The fair value is being amortized over the applicable vesting period and credited to additional paid
in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid">For the year ended<BR> December 31, <BR>
2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid">Stock Options</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Shares</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Weighted Average Exercise Price</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Options outstanding at January 1</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 76%">Granted</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">8,155,168</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.0001</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Forfeited</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Options outstanding December 31</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,155,168</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.0001</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Shares exercisable at December 31</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
12 &ndash; RELATED PARTY TRANSACTIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">On
December 31, 2017, the Company converted $380,502 of accrued salary due to the CEO into 3,805,017 shares of common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">On
December 31, 2017, the Company issued 25,000 shares of common stock to its CFO for accounting services previously rendered. The
shares were valued at $0.10 per shares for total non-cash expense of $2,500.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 12, 2018, the Company received $30,000 from Mr. John Herzog. The advance was used for operating expenses, was unsecured,
non interest bearing and due on demand. This was repaid in full on April 19, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 30, 2018, pursuant to the terms of the Amendment (Note 8), the Company issued to Mr. John Herzog, a significant stockholder
of the Company a subordinated promissory note in the principal amount of $1,000,000 (the &ldquo;Note&rdquo;) for cash proceeds
of $1,000,000. The Note initially matured on March 31, 2019 (though the Company has the right to prepay the Note, in whole or
in part, at any time prior to maturity) and bears interest at a rate of 12% per annum, compounding annually. The Note is subordinated
to the Credit Agreement. The Company used the proceeds received to make the initial payment under the Credit Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 14, 2018, the Company issued to Mr. Herzog a subordinated promissory note (&ldquo;Note 2&rdquo;) in the principal amount
of $2,000,000 for cash proceeds of $2,000,000.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">On
March 1, 2019, the Company entered into Amendment No. 1 to Subordinated Promissory Note (the &ldquo;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subordinated
Note Amendment<FONT STYLE="background-color: white">&rdquo;) with Mr. Herzog. The purpose of the Subordinated Note Amendment was
to amend that certain subordinated promissory note issued on July 26, 2018 in the principal amount of $1,000,000 to reflect an
increase in the amount of principal due under the note from $1,000,000 to $3,000,000 reflecting a payment made by the payee to
the Company of $2,000,000 on November 14, 2018 (the proceeds of which were used by the Company to make a second required payment
under the Credit Agreement) and to extend the maturity date of the Note from March 31, 2019 to September 30, 2020.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
interest expense on the two loans from Mr. Herzog for 2018 was $82,849, of which $52,849 is accrued as of December 31, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2018 and 2017, the Company has total accrued compensation due to Mr. Yakov of $568,292 and $394,927, respectively,
and advances to be repaid to Mr. Yakov of $17,684 and $18,366, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 10, 2018, Ronny Yakov, the CEO, loaned the Company $25,000, in order to pay for audit services. The loan is unsecured,
bears interest at 12% and is due on demand. As of December 31, 2018, there is $1,184 of interest accrued on this note.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
13 &ndash; PREFERRED STOCK</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
certificate of incorporation authorizes the issuance of 50,000,000&nbsp;shares of blank check preferred stock with such designation,
rights and preferences as may be determined from time to time by our board of directors. No shares of preferred stock are currently
issued or outstanding. Accordingly, our board of directors is empowered, without stockholder approval, to issue preferred stock
with dividend, liquidation, redemption, voting or other rights which could adversely affect the voting power or other rights of
the holders of common stock. We may issue some or all of the preferred stock to effect a business transaction. In addition, the
preferred stock could be utilized as a method of discouraging, delaying or preventing a change in control of us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
14 &ndash; COMMON STOCK</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 12, 2018, the Company issued 25,000 shares of common stock for services previously rendered for total non-cash expense of
$3,750.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
15 &ndash; COMMITMENTS AND CONTINGENCIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the normal course of business, the Company may be involved in legal proceedings, claims and assessments arising in the ordinary
course of business. The Company records legal costs associated with loss contingencies as incurred and accrues for all probable
and estimable settlements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 20, 2017, the Company entered into a new employment agreement with its founder and president for 7 years effective January
1, 2018 through December 31, 2024. The agreement provides for an annual salary of $375,000, fringe benefits ($2,500 monthly automobile
allowance, any benefit plans of the Company and 4 weeks paid vacation), an incentive bonus of $200,000 based on the achievement
of certain performance criteria and an acquisition bonus equal to two (2%) percent of the gross purchase price paid in connection
therewith upon the closing of any acquisition directly or indirectly by the Company or its subsidiaries during the Employment
Period of any company or business (including purchases of all or substantially all of the assets of any such entity) having then
existing sales of not less than three million five hundred thousand dollars ($3,500,000). As of December 31, 2018, no bonuses
have been paid or accrued.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Office
Lease</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company leases its Georgia office facilities under an operating lease expiring in November 2019. Monthly lease payments range
from $8,278 to $9,046 throughout the term of the lease.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
16 &ndash; INCOME TAX</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deferred
taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating
loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences
are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced
by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred
tax assets will not be realized.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
income tax provision (benefit) consist of the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: White; font-style: normal; font-weight: normal">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center; font-style: normal; font-weight: normal"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD><TD STYLE="font-weight: normal; padding-bottom: 1.5pt; text-align: center; font-style: normal"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; text-align: center; font-style: normal"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD><TD COLSPAN="5" STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; text-align: center; font-style: normal"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal; font-style: normal">For
                                         the Years Ended&nbsp;</FONT><FONT STYLE="font-weight: normal; font-style: normal"><BR>
                                         <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">December 31,</FONT></FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-style: normal; font-weight: normal"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font-style: normal; font-weight: normal">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center; font-style: normal; font-weight: normal"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD><TD STYLE="font-weight: normal; padding-bottom: 1.5pt; text-align: center; font-style: normal"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; text-align: center; font-style: normal"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; text-align: center; font-style: normal"><FONT STYLE="font-weight: normal; font-style: normal">2018</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; text-align: center; font-style: normal"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD><TD STYLE="font-weight: normal; padding-bottom: 1.5pt; text-align: center; font-style: normal"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; text-align: center; font-style: normal"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; text-align: center; font-style: normal"><FONT STYLE="font-weight: normal; font-style: normal">2017</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; text-align: center; font-style: normal"><FONT STYLE="font-weight: normal; font-style: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Federal:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; padding-left: 9pt">Current</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Deferred</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">State and local:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt">Current</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Deferred</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 22, 2017, the Tax Cuts and Jobs Act (TCJA) was signed into law by the President of the United States. TCJA is a tax reform
act that among other things, reduced corporate tax rates to 21 percent effective January 1, 2018. We have recorded a provisional
decrease of $701,000, with a corresponding adjustment to valuation allowance of $701,000 as of December 31, 2017. No additional
adjustments were made for the year ended December 31, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
deferred tax assets consist of the following components as of December 31:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Deferred Tax Assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; padding-left: 9pt">NOL Carryover</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">944,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">818,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Payroll accrual</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Allowance for Doubtful Accounts</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Related party accrual</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">213,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Less valuation allowance</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,178,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(818,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net deferred tax assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income
from continuing operations for the period ended December 31, due to the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Book loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(292,600</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(125,000</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">State taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(138,500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Meals and entertainment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,800</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,800</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Stock options</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Other nondeductible expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,300</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">125,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Valuation allowance</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">360,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,800</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">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
December 31, 2018, the Company had net federal and state net operating loss carry forwards of approximately $3,803,000 and $847,000,
respectively, which may be offset against future taxable income from the year 2019 to 2038. In accordance with Section 382 of
the Internal Revenue code, the usage of the Company&rsquo;s net operating loss carryforwards may be limited in the event of a
change in ownership. A full Section 382 analysis has not been prepared and NOLs could be subject to limitation under Section 382.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s policy is to record interest and penalties on uncertain tax positions as a component of income tax expense. No
interest or penalties were recorded during the years ended December 31, 2018 and 2017. The Company is currently not aware of any
issues under review that could result in significant payments, accruals or material deviation from its position in the next twelve
months.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company files income tax returns in the U.S. federal jurisdiction, New York and Georgia which remain subject to examination by
the various taxing authorities beginning with the tax year ended December 31, 2015 (or the tax year ended December 31, 2001 if
the Company were to utilize its NOLs). No tax audits were commenced or were in process during the years ended December 31, 2018
and 2017.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
17 &ndash; SUBSEQUENT EVENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the terms on the employment agreement with Mr. Yakov, he was granted 200,000 common stock options on January 1, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="mfin_001"></A>The
OLB Group, Inc. and Subsidiaries</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Condensed&nbsp;Consolidated
Balance Sheets</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">March&nbsp;31,<BR> 2019</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">(Unaudited)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><U>ASSETS</U></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Current Assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-indent: -9pt; padding-left: 0.25in">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">42,845</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">111,586</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Accounts receivable, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">477,140</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">406,110</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,126</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,135</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Other current assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">8,278</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">8,278</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Total Current Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">550,389</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">547,109</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Other Assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Property and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">57,075</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65,945</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Intangible assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,920,449</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,148,096</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -9pt; padding-left: 0.25in">Goodwill</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,858,216</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,858,216</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Other long-term assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">385,327</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">379,908</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">TOTAL ASSETS</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">11,771,456</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">11,999,274</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-decoration: underline; text-align: left; text-indent: -9pt; padding-left: 9pt">LIABILITIES AND STOCKHOLDERS&rsquo; DEFICIT</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Current Liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">460,155</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">467,526</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Accrued expenses &ndash; related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">720,001</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">640,009</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73,625</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73,625</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Other accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,396</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,152</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Note payable &ndash;related parties&ndash; current portion</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">70,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">25,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total Current Liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,334,177</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,221,312</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Long Term Liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Note payable, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Notes payable &ndash; related parties</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,000,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,000,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total Liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">13,834,177</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">13,721,312</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Commitments and contingencies (Note 13)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Stockholders&rsquo; Deficit:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued and outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Common stock, $0.0001 par value; 200,000,000 shares authorized, 162,350,364 shares issued and outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,237</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,237</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,836,454</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,770,192</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Accumulated deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(17,915,412</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(17,508,467</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total Stockholders&rsquo; Deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,062,721</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,722,038</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: 4pt; text-indent: -9pt; padding-left: 9pt">TOTAL LIABILITIES AND STOCKHOLDERS&rsquo; DEFICIT</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">11,771,456</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">11,999,274</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="mfin_002"></A>The
OLB Group, Inc. and Subsidiaries</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Condensed&nbsp;Consolidated
Statements of Operations</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Unaudited)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<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">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid">For the Three Months Ended<BR> March&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">For the Three Months Ended March&nbsp;31,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">(Predecessor)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Revenue:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left; padding-left: 9pt">Transaction and processing fees</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,576,284</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,164,949</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Merchant equipment sales and other</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,410</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,590</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Other revenue</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">6,200</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">77,025</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total revenue</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,590,894</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">77,025</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,174,539</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 0.25in">Processing and servicing costs, excluding merchant portfolio amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,718,098</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,097</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,748,141</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Amortization expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">227,647</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">90,739</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Salaries and wages</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">434,793</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">156,250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">374,345</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Outside commissions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,869</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">508,296</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">General and administrative expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">273,022</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">43,012</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">367,524</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Total operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,694,429</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">203,359</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,089,045</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Income (loss) from operations</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(103,535</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(126,334</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">85,494</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other Income (Expense):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(213,750</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(832,564</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Interest expense, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(90,204</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(296</TD><TD STYLE="text-align: left">)</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 9pt">Other</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">544</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">908</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Total other expense</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(303,410</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(296</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(831,656</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net Loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(406,945</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(126,630</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(746,162</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss per share, basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.00</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.00</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt">Weighted average shares outstanding, basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">162,350,364</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">162,325,364</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="mfin_003"></A>The
OLB Group, Inc. and Subsidiaries</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Condensed&nbsp;Consolidated
Statements of Stockholders&rsquo; Deficit</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Three
Months ended March 31, 2019 and 2018</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Unaudited)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<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">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Common Stock</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Additional Paid</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Accumulated</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Shares</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">In Capital</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-indent: -9pt; padding-left: 9pt">Balance at January 1, 2019</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">162,350,364</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">16,237</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">15,770,192</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(17,508,467</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,722,038</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Stock based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,262</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,262</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Net loss for the three months ended March 31, 2019</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(406,945</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(406,945</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Balance at March 31, 2019</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">162,350,364</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">16,237</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">15,836,454</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(17,915,412</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(2,062,721</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Common Stock</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Additional Paid</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Accumulated</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Shares</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">In Capital</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-indent: -9pt; padding-left: 9pt">Balance at January 1, 2018</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">162,325,364</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">16,234</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">15,576,572</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(16,114,923</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(522,117</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Stock based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Net loss for the three months ended March 31, 2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(126,630</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(126,630</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Balance at March 31, 2018</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">162,325,364</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">16,234</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">15,576,572</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(16,241,553</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(648,747</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="mfin_004"></A>The
OLB Group, Inc. and Subsidiaries</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Condensed
Consolidated Statements of Cash Flows</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Unaudited)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid">For the Three Months Ended<BR> March&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">For the Three Months Ended March&nbsp;31,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">(Predecessor)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>CASH FLOWS FROM OPERATING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left; text-indent: -9pt; padding-left: 9pt">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(406,945</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(126,630</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(746,162</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Adjustments to Reconcile Net Loss to Net Cash Used in Operations:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 27pt">Depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">236,517</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">109,225</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 27pt">Stock based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,262</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 27pt">Paid in kind interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">275,369</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Changes in assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 27pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(71,030</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(26,828</TD><TD STYLE="text-align: left">)</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">99,190</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 27pt">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(991</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,445</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 27pt">Other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(22,851</TD><TD STYLE="text-align: left">)</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(298</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 27pt">Other long-term assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,419</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,775</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 27pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,371</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,631</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(219,888</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 27pt">Accrued compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,156</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 27pt">Accrued expenses &ndash; related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">79,992</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">144,477</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 27pt">Other accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,756</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">63,905</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 27pt">Other long-term liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,511</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Net Cash Used in Operating Activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(113,741</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(28,201</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(382,106</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: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">CASH FLOWS FROM INVESTING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 27pt">Purchase of property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,274</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.5in">Proceeds from note receivable</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">182,362</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Net Cash provided by Investing Activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">176,088</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">CASH FLOWS FROM FINANCING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 27pt">Proceeds from notes payable &ndash; related party</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">45,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">30,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Net Cash provided by Financing Activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">45,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">30,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Net Change in Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(68,741</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,799</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(206,018</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Cash &ndash; Beginning of Period</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">111,586</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">225,227</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Cash &ndash; End of Period</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">42,845</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,799</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">19,209</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Cash Paid For:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-indent: -9pt; padding-left: 0.25in">Interest</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">223,750</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">458,812</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 0.25in">Income taxes</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; border-left: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="mfin_005"></A>The
OLB Group, Inc. and Subsidiaries</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Notes
to the Condensed Consolidated Financial Statements</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>March
31, 2019</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(Unaudited)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
1 - BACKGROUND</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Background</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
OLB Group, Inc. (&ldquo;OLB&rdquo; the &ldquo;Company&rdquo;) was incorporated in the State of Delaware on November 18, 2004 and
provides services through its wholly-owned subsidiaries.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company provides integrated financial and transaction processing services to businesses throughout the United States. Through
its eVance Capital, Inc. subsidiary (&ldquo;eVance&rdquo;), the Company provides an integrated suite of third-party merchant payment
processing services and related proprietary software enabling products that deliver credit and debit card-based internet payment
processing solutions primarily to small and mid-sized merchants operating in physical &ldquo;brick and mortar&rdquo; business
environments, on the internet and in retail settings requiring both wired and wireless mobile payment solutions. eVance operates
as an independent sales organization (&ldquo;ISO&rdquo;) generating individual merchant processing contracts in exchange for future
residual payments. As a wholesale ISO, eVance has a direct contractual relationship with the merchants and takes greater responsibility
in the approval and monitoring of merchants than do retail ISOs and as a result, receives additional consideration for this service
and risk. The Company&rsquo;s Securus365, Inc. subsidiary operates as a retail ISO and receives residual income as commission
for merchants it places with third party processors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CrowdPay.us,
Inc. (&ldquo;CrowdPay&rdquo;) is a Crowdfunding platform used to facilitate a capital raise anywhere from $1,000,0000 -$50,000,000
of various types of securities under Regulation D, Regulation Crowdfunding, Regulation A and the Securities Act of 1933. To date,
the activities of this subsidiary have been insignificant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">OmniSoft.io,
Inc. (&ldquo;OmniSoft&rdquo;) operates a software platform for small merchants The Omnicommerce applications work on an iPad,
mobile device and the web and allows you to sell a store&rsquo;s products in a physical, retail setting. To date, the activities
of this subsidiary have been insignificant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
also provide ecommerce development and consulting services on a project by project basis.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Memorandum
of Sale</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 9, 2018, Securus365, Inc., a Delaware corporation (&ldquo;Securus&rdquo;), eVance Capital, Inc., a Delaware corporation
(&ldquo;eVance Capital&rdquo;), and eVance Inc., a Delaware corporation (&ldquo;eVance&rdquo;, and collectively with Securus and
eVance Capital, the &ldquo;Purchasers&rdquo;), each of which Purchaser is a newly formed wholly-owned subsidiary of OLB, entered
into a Memorandum of Sale (the &ldquo;Memorandum of Sale&rdquo;) by and among the Purchasers and GACP Finance Co., LLC, a Delaware
limited liability company (&ldquo;GACP&rdquo;), in its capacity as administrative agent and collateral agent to certain secured
lenders of the Debtors (as defined below), pursuant to which the Purchasers acquired substantially all of the assets of the Debtors
(the &ldquo;Asset Acquisition&rdquo;) through a foreclosure sale arranged by GACP under the Uniform Commercial Code of the State
of New York (&ldquo;UCC&rdquo;) of the collateral of Excel Corporation (&ldquo;Excel&rdquo;) and its subsidiaries Payprotec Oregon,
LLC, Excel Business Solutions, Inc. and eVance Processing, Inc. (Excel and such subsidiaries, collectively, the &ldquo;Debtors&rdquo;)
under the Loan and Security Agreement, dated as of November 2, 2016, by and among GACP, the lenders thereunder and the Debtors
and related loan documents, as amended (the &ldquo;Excel Loan and Security Agreement&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">GACP
exercised its post-default remedies and realized on the collateral securing the Debtors&rsquo; obligations under the Excel Loan
and Security Agreement by conducting a public auction of certain assets of the Debtors on April 9, 2018 in accordance with the
UCC. The Purchasers submitted the Memorandum of Sale at such auction, which constituted the Purchasers&rsquo; bid for substantially
all of the assets of the Debtors (&ldquo;Acquired Assets&rdquo;), which bid was accepted by GACP on April 9, 2018 in connection
with the simultaneous signing and closing (the &ldquo;Closing&rdquo;) of the transactions contemplated under the Memorandum of
Sale and the Credit Agreement (defined below).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
consideration for the sale and transfer of the Acquired Assets at the Closing, the Purchasers assumed certain post-Closing obligations
under assigned contracts and issued GACP a note payable in the amount of $12,500,000, through the deemed simultaneous financing
of such purchase price to the Purchasers under the Credit Agreement. Pursuant to the Memorandum of Sale, the Purchasers purchased
from GACP and accepted all of the Debtors&rsquo; right, title and interest in and to the Acquired Assets &ldquo;as is&rdquo;,
&ldquo;where is&rdquo; and &ldquo;with all faults&rdquo; and without any representations or warranties, express or implied, of
any nature whatsoever. Any representations made by the parties in the Memorandum of Sale did not survive the Closing, and there
is no indemnification rights for either party&rsquo;s breach.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Common
Control Mergers</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Effective
May 9, 2018, the Company entered into a share exchange agreement with CrowdPay.US, Inc., a New York corporation for which the
Company issued 87,500,000 shares of common stock for all of the authorized stock of CrowdPay. CrowdPay became a wholly owned subsidiary
of OLB. The Company&rsquo;s two majority stockholders were the two stockholders of CrowdPay and as a result this transaction was
accounted for as a common control merger. See Note 7.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Effective
May 9, 2018, the Company entered into a share exchange agreement with OmniSoft, Inc., a Delaware corporation for which the Company
issued 55,000,000 shares of common stock for all of the authorized stock of OmniSoft. OmniSoft became a wholly owned subsidiary
of OLB. The Company&rsquo;s two majority stockholders were the two stockholders of OmniSoft and as a result this transaction was
accounted for as a common control merger. See Note 6.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 49.5pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Basis
of Presentation</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles
generally accepted in the United States of America (&ldquo;U.S. GAAP&rdquo;). These unaudited condensed consolidated financial
statements should be read in conjunction with the audited financial statements and footnotes for the year ended December 31, 2018
included on the Company&rsquo;s Form 10-K. The results of the three months ended March 31, 2019 are not necessarily indicative
of the results to be expected for the full year ending December 31, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the opinion of management, all adjustments necessary to present fairly the financial position as of March 31, 2019 and the results
of operations and cash flows presented herein have been included in the financial statements. All such adjustments are of a normal
and recurring nature. Interim results are not necessarily indicative of results of operations for the full year.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Use
of Estimates</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period.&nbsp;Actual results could differ from
those estimates. The Company&rsquo;s accounting estimates include the collectability of receivables, useful lives of long lived
assets and recoverability of those assets, valuation allowances for income taxes, stock based compensation and estimates made
for business combinations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Net
Loss per Share</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Basic
net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding
during the period.&nbsp;Diluted net loss per common share is computed by dividing net loss by the weighted average number of shares
of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares
for the three months ended March 31, 2019 does not include warrants to acquire 1,200,000 shares of common stock and options to
acquire 8,355,168 shares of commons stock because of their anti-dilutive effect. There were no potentially dilutive shares for
the three months ended March 31, 2018 .</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Revenue
Recognition and Cost of Revenues</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company will recognize revenue when it is realized or realizable and earned. &nbsp;The Company considers revenue realized or realizable
and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has
been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability
is reasonably assured.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company receives a percentage of recurring monthly transaction related fees comprised of credit and debit card fees charged to
merchants, net of association fees, otherwise known as Interchange, as well as certain service charges and convenience fees, for
payment processing services, including authorization, capture, clearing, settlement and information reporting of electronic transactions.
Fees are calculated on either a percentage of the dollar volume of the transaction or a fixed fee or a hybrid of the two and are
recognized at the time of the transaction. In the case of &ldquo;wholesale&rdquo; residual revenue in which the Company has a
direct contractual relationship with the merchant, bears risk of chargebacks and performs underwriting on the merchants, the Company
records the full discount charged to the merchant as revenue and the related interchange and other processing fees as expenses.
In cases of residual revenue where the Company is not responsible for merchant underwriting and has no chargeback liability and
has no or limited contractual relationship with the merchant, the Company records the amount it receives from the processor net
of interchange and other processing fees as revenue.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Principles
of Consolidation</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, eVance,
Securus, CrowdPay.US, and OMNISOFT, Inc. All significant intercompany transactions and balances have been eliminated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Segments</U></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operating
segments are defined as components of an enterprise about which separate financial information is available that is evaluated
regularly by the chief operating decision maker, or decision&ndash;making group in deciding how to allocate resources and in assessing
performance. Our chief operating decision&ndash;making group is composed of the chief executive officer. We currently operate
in one segment surrounding our ISO operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Recent
Accounting Standards</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
February 2016, the FASB issued ASU 2016-02,&nbsp;<I>Leases (Topic 842)</I>. The ASU requires that a lessee recognize the assets
and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability
to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the
lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class
of underlying asset not to recognize lease assets and lease liabilities. This new guidance will be effective for annual reporting
periods beginning after December 15, 2019, including interim periods within those annual reporting periods, and early adoption
is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest
period presented using a modified retrospective approach. The Company is currently in the process of evaluating the potential
effect that the adoption of this standard will have on its consolidated financial position and results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers, to establish
ASC Topic 606, (ASC 606).&nbsp; ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition
and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of the guidance is
that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the entity expects to be entitled in exchange for those goods or services.&nbsp; The guidance includes
a five-step framework that requires an entity to: (i)&nbsp;identify the contract(s) with a customer, (ii)&nbsp;identify the performance
obligations in the contract, (iii)&nbsp;determine the transaction price, (iv)&nbsp;allocate the transaction price to the performance
obligations in the contract, and (v)&nbsp;recognize revenue when the entity satisfies a performance obligation.&nbsp; In addition,
the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts
with customers.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
August 2015, the FASB issued ASU 2015-14, Deferral of the Effective Date, which amended the effective date for nonpublic entities
to annual reporting periods beginning after December 15, 2018.&nbsp; In March&nbsp;2016, the FASB issued an update (ASU 2016-08)
to ASC 606, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the guidance on principal
versus agent considerations. In April 2016, the FASB issued an update (ASU 2016-10) to ASC 606, Identifying Performance Obligations
and Licensing, which provides clarification related to identifying performance obligations and licensing implementation guidance
under ASU 2014-09. In May 2016, the FASB issued an update (ASU 2016-12) to ASC 606, Narrow-Scope Improvements and Practical Expedients,
which amends guidance on transition, collectability, noncash consideration and the presentation of sales and other similar taxes.
In December 2016, the FASB issued an update (ASU 2016-20) to ASC 606, Technical Corrections and Improvements, which outlines technical
corrections to certain aspects of the new revenue recognition standard such as provisions for losses on construction type contracts
and disclosure of remaining performance obligations, among other aspects. The effective date and transition requirements are the
same as those in ASU 2014-09 for all subsequent clarifying guidance discussed herein.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method),
or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application
(modified retrospective method). As an Emerging Growth Company, the standard is effective for the Company&rsquo;s 2019 annual
reporting period and for interim periods after 2019. The Company is currently in the initial phase of analyzing the potential
impact this standard will have on its consolidated financial position and results of operations. The Company expects to apply
the modified retrospective method upon adoption.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company has reviewed other recently issued accounting pronouncements and plans to adopt those that are applicable to it. The Company
does not expect the adoption of any other pronouncements to have an impact on its results of operations or financial position.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
3 &ndash; LIQUIDITY AND CAPITAL RESOURCES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
March 31, 2019, the Company had&nbsp;cash of $42,845&nbsp;and a working capital deficit of $783,788. For the three months
ended March 31, 2019, the Company&rsquo;s net loss and cash used in operating activities was $406,945 and $113,741,
respectively.&nbsp;<FONT STYLE="background-color: white">T</FONT>he Company expects to fund future liquidity and capital
requirements through cash flow generated from its operating activities resulting from increases in its merchants and revenues
generated. Additionally, included in the working capital deficit as of March 31, 2019 was accrued payroll, a note payable and
other expenses due to the Company&rsquo;s Chief Executive Officer, Mr. Ronny Yakov, in the amount of $657,229, which he has
agreed to defer receiving payment until the Company has sufficient working capital. As a result of the recent amendments to
its long-term and related party long-term debt arrangements, coupled with &nbsp;its operations acquired in the business
combination and commitment from a related party and significant stockholder that he will provide any additional financial
support, if needed, to satisfy the Company&rsquo;s debt or other obligations through November 2020, the Company has
alleviated its previously reported substantial doubt regarding its ability to continue as a going concern.&nbsp; The
Company&rsquo;s future capital requirements could depend on many factors, including the need to expand its services,
competing technological and market developments, and the need to enter into collaborations with other companies or acquire
other companies or technologies to enhance or complement the Company&rsquo;s product and service offerings. If the Company is
unable to secure additional capital, it may be required to curtail its future plans and take additional measures to reduce
costs in order to conserve cash.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
4 &ndash; INTANGIBLE ASSETS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
assets consist of the following as of:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">March 31,<BR> 2019</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">December 31,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Merchant Portfolios</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,190,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,190,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less Accumulated Amortization</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(311,218</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(208,571</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: 4pt">Net residual portfolios</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,878,782</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,981,429</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">March 31,<BR> 2019</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">December 31,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Trade name</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,500,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,500,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less Accumulated Amortization</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(458,333</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(333,333</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: 4pt">Net trade name</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,041,667</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,166,667</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amortization
expense was $227,647 and $0 for the three months ended March 31, 2019 and $90,739 for the predecessor three months ended March
31, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s merchant portfolios and tradename are being amortized over respective useful lives of 7 and 5 years.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following sets forth the estimated amortization expense related to amortizing intangible assets for the years ended December 31:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">2019 (remainder of year)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">585,210</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2020</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">812,857</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">812,857</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">812,857</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">479,524</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Thereafter</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">417,144</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; text-align: left">Total</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3,920,449</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
weighted average remaining useful life of amortizing intangible assets was 5.75 years at March 31, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
5 &ndash; BUSINESS COMBINATIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
disclosed in Note 1, on April 9, 2018, the Company entered into a Memorandum of Sale by and among the Purchasers and GACP. In
consideration for the sale and transfer of the Acquired Assets at the Closing, the Company assumed certain post-Closing obligations
under assigned contracts and issued GACP a note payable for $12,500,000, through the deemed simultaneous financing of such purchase
price to the Purchasers under the Credit Agreement. &nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounted for the transaction as a business combination under ASC 805 and as a result, allocated the fair value of the
identifiable assets acquired and liabilities assumed as of the acquisition date as outlined in the table below. The results of
operations of the business acquired by the Company have been included in the consolidated statements of operations since the date
of acquisition. The excess of the purchase price over the estimated fair values of the underlying identifiable assets acquired
and liabilities assumed was allocated to goodwill. The amount assigned to goodwill was deemed appropriate based on several factors,
including: (i) the multiple paid by market participants for businesses in the merchant card processing business; (ii) levels of
eVance Payments, current and future projected cash flows; and (iii) the Company&rsquo;s strategic business plan. Goodwill is expected
to be deductible for tax purposes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
allocation of the purchase price and the estimated fair market values of the assets acquired and liabilities assumed are shown
below:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-style: italic">Consideration</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">Consideration issued</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">12,500,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left">Identified assets and liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,711</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounts and other receivables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">480,302</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Note receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">174,967</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,945</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Long-term assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">348,367</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">106,600</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(180,231</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accrued Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(105,877</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Merchant portfolios</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,190,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Tradename</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,500,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total identified assets and liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,641,784</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Excess purchase price allocated to goodwill</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">6,858,216</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unaudited
pro forma results of operations for the three months ended March 31, 2018, as if the Company and its subsidiaries had been combined
on January 1, 2018, follow. The pro forma results include estimates and assumptions which management believes are reasonable.
The pro forma results do not include any anticipated cost savings or other effects of the planned integration of these entities,
and are not necessarily indicative of the results that would have occurred if the business combination had been in effect on the
date indicated, or which may result in the future. The unaudited pro forma results of operations are as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended<BR> March&nbsp;31,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%">Revenues</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,251,564</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(153,315</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(985,267</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net loss per share &ndash; basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.01</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
6 &ndash; COMMON CONTROL MERGERS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
May 9, 2018, the Company acquired 100% of OmniSoft in exchange for the issuance of 55,000,000 shares of common stock. The acquisition
of OmniSoft., was determined to be a common control transaction as each Company has the same two shareholder with a majority ownership.
As a result, the assets and liabilities assumed were recorded on the Company&rsquo;s consolidated financial statements at their
respective carry-over basis. Under ASC 805, &ldquo;Business Combinations,&rdquo; the Company recorded the common control merger
as of the earliest date presented in these consolidated financial statements, or March 31, 2018 as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
results of operations included in the condensed consolidated statement of operations for the three months ended March 31, 2018
as a result of the common control merger were as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(43,274</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(38,774</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
May 9, 2018, the Company acquired 100% of CrowdPay in exchange for 87,500,000 shares of common stock. The acquisition of CrowdPay.,
as a wholly owned subsidiary is considered a common control transaction as each Company has the same shareholder with a majority
ownership. As a result, the assets and liabilities assumed were recorded on the Company&rsquo;s consolidated financial statements
at their respective carry-over basis. Under ASC 805, &ldquo;Business Combinations,&rdquo; the Company recorded the common control
merger as of the earliest date presented in these condensed consolidated financial statements, or March 31, 2018 as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
results of operations included in the condensed consolidated statement of operations for the three months ended March 31, 2018
as a result of the common control merger were as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">62,621</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(42,035</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net income</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">20,586</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
7 &ndash; NOTE PAYABLE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
order to finance the Asset Acquisition, GACP, as administrative agent and collateral agent (&ldquo;Agent&rdquo;), and as the initial
sole lender thereunder, provided a term loan of $12,500,000 (the &ldquo;Term Loan&rdquo;) to the Purchasers, OmniSoft, Inc., a
Delaware corporation and CrowdPay.us, Inc., a New York corporation, each of OmniSoft and CrowdPay being affiliates of the Company&rsquo;s
majority stockholder, which obligations are guaranteed by the Company (collectively with the Borrowers, the &ldquo;Loan Parties&rdquo;),
under the Loan and Security Agreement (the &ldquo;Credit Agreement&rdquo;), dated as of April 9, 2018, by and among the Loan Parties,
the lenders from time to time party thereto as lenders (the &ldquo;Lenders&rdquo;) and the Agent.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Term Loan matures in full on April 9, 2021, the third anniversary of the Closing. $1,000,000 of the principal amount under the
Term Loan must be repaid on or prior to July 15, 2018, and an additional $2,000,000 in principal due on or prior to October 31,
2018 (in each case subject to earlier repayment under certain circumstances, including if a Loan Party consummates an equity financing),
with the remaining principal due upon maturity. The Term Loan can be prepaid without penalty in part by the Loan Parties with
ten days&rsquo; prior written notice to the Agent, and in full within thirty days&rsquo; prior written notice. The Term Loan is
subject to an interest rate of 9.0% per annum, payable monthly in arrears.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
obligations of the Loan Parties under the Credit Agreement are secured by all of their respective assets and the Loan Parties
pledged all of their assets as collateral for their obligations under the Credit Agreement. Additionally, the Company pledged
its ownership interests in the Purchasers and any of its other subsidiaries that it may form or acquire from time to time.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Credit Agreement includes customary representations, warranties and financial and other covenants of the Loan Parties for the
benefit of the Lenders and the Agent. The obligations of the Loan Parties under the Credit Agreement are subject to customary
events of default for a secured term loan. Each Loan Party is jointly and severally liable for the obligations under the Credit
Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 30, 2018, the Company entered into Amendment No. 1 to the Loan and Security Agreement (the &ldquo;Amendment&rdquo;) amending
that certain Loan and Security Agreement, dated as of April 9, 2018 (the &ldquo;Original Credit Agreement,&rdquo; and as amended
by the Amendment, the &ldquo;Credit Agreement&rdquo;), by and among GACP Finance Co., LLC, as administrative agent and collateral
agent, the lenders party thereto, Securus365, Inc., eVance, Inc., eVance Capital, Inc., OMNISOFT, Inc., and CrowdPay.us, Inc.,
as borrowers, and the Company, as parent guarantor. Pursuant to the Amendment, among other things, the lenders (i) waived the
Company&rsquo;s existing defaults under the Original Credit Agreement for its failure to make payment of $1,000,000 (the &ldquo;initial
payment&rdquo;) under the Original Credit Agreement on or prior to July 15, 2018 and to deliver to the lenders unaudited monthly
financial statements and compliance certificates of the Company, (ii) extended the date on which the initial payment was required
to be made to July 30, 2018 and extended the date on which the Company is required to provide audited financial statements for
the fiscal years ended December 31, 2017 and 2018, (iii) permitted the Company to enter into a subordinated loan arrangement for
the Note concurrently with the Amendment such that the Company could make the initial payment under the terms of the Credit Agreement,
and permitted the Note to be repaid either from the sale of the Note Collateral Shares or at any time after the second payment
under the Credit Agreement. The Company borrowed $1,000,000 from a related party (Note 11) in order to make its first scheduled
payment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 14, 2018, the $2,000,000 second payment due under the Original Credit Agreement that was due by October 31, 2018 was
paid. The Company borrowed $2,000,000 from a related party (Note 10) in order to make its second scheduled payment. Total interest
expense for the GACP loan incurred during the three months ended March 31, 2019 was $213,750, $73,625 of which is accrued as of
March 31, 2019. Total interest expense for the GACP loan incurred during the year ended December 31, 2018 was $791,625, $73,625
of which is accrued as of December 31, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 5, 2019, the Company entered into Amendment No. 3 to Loan and Security Agreement (the &ldquo;Amendment&rdquo;) amending
that certain Loan and Security Agreement, dated as of April 9, 2018 (the &ldquo;Original Credit Agreement,&rdquo; and as amended,
including by the Amendment, the &ldquo;Credit Agreement&rdquo;), by and among GACP Finance Co., LLC, as administrative agent and
collateral agent, the lenders party thereto, Securus365, Inc., eVance, Inc., eVance Capital, Inc., OMNISOFT, Inc., and CrowdPay.us,
Inc., as borrowers, and the Company, as parent guarantor. Pursuant to the Amendment, among other things, the lenders waived the
Company&rsquo;s existing default under the Original Credit Agreement for its failure to comply with certain financial covenants
set forth in the Original Credit Agreement and the parties amended the terms of the financial covenants that the Company must
comply with.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
8 - WARRANTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to and as additional consideration for the Term Loan under the Credit Agreement, on April 9, 2018 the Company issued to GACP a
Warrant to purchase 1,200,000 shares of common stock of the Company at an exercise price of $0.25 per share, subject to adjustment
as set forth in the Warrant. The Warrant is exercisable by GACP at any time from the Issuance Date until the later of (i) the
third (3<SUP>rd</SUP>) anniversary of the Issuance Date and (ii) the date on which all obligations under the Credit Agreement
have been satisfied in full. The Warrant may be redeemed for $0.0001 per Warrant Share, at the sole discretion of the Company,
at any time after the six (6) month anniversary of the Issuance Date if the closing sales price of the Company&rsquo;s common
stock equals or exceeds $5.00 per share on each of the 20 trading days within any 30 day trading day period ending on the third
(3<SUP>rd</SUP>) trading day prior to the date on which the Company provides a notice of redemption. GACP has certain piggy-back
registration rights as set forth in the Warrant with respect to the Warrant Shares to be issued upon exercise of the Warrant.
After the six (6) month anniversary of the Issuance Date, GACP can exercise the Warrant using a &ldquo;cashless exercise&rdquo;
feature to the extent that GACP exercises the Warrant for a number of Warrant Shares in excess of the number Warrant Shares that
have been registered for resale under U.S. securities laws.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
additional consideration for the Term Loan under the Credit Agreement, on April 9, 2018 the Company also entered into a letter
agreement (the &ldquo;Additional Warrants Agreement&rdquo;) with GACP, pursuant to which the Company agreed that if the Company
at any time after the Closing and prior to the satisfaction of all outstanding obligations under the Credit Agreement requests
for GACP to provide debt financing for the acquisition of a company or operating business by the Company or its subsidiaries,
and GACP or its affiliates provide all of the debt financing for such acquisition, the Company will issue to GACP a warrant to
purchase 200,000 shares of the Company&rsquo;s common stock (an &ldquo;Additional Warrant&rdquo;) upon the closing of such debt-financing,
with such Additional Warrant in substantially the same form as the Warrant, up to a total of four (4) Additional Warrants for
four debt-financed acquisitions under the Additional Warrants Agreement. The exercise price of the Additional Warrants, if issued,
will be $0.30 per share for the first Additional Warrant, $0.35 per share for the second Additional Warrant, $0.40 per share for
the third Additional Warrant and $0.45 per share for the fourth Additional Warrant, with the number of shares and exercise price
subject to adjustment as set forth in the Additional Warrants Agreement and the Additional Warrant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
warrants have an exercise price of $0.25 and expire in three years.&nbsp;The aggregate fair value of the warrants, which was charged
to interest expense, totaled $7,660 based on the Black Scholes Merton pricing model using the following estimates: exercise price
of $0.25, 2.28% risk free rate, 114.11% volatility and expected life of the warrants of 3 years.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
summary of the status of the Company&rsquo;s outstanding stock warrants as of March 31, 2019 is presented below:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid">Range of Exercise <BR>
Prices</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid">Number Outstanding<BR>
3/31/2019</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid">Weighted Average<BR>
Remaining Contractual Life</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid">Weighted Average<BR>
Exercise Price</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 25%; text-align: center">$0.25</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center">1,200,000</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center">2.00 years</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center">$0.25</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
aggregate intrinsic value represents the total pretax intrinsic value, based on warrants with an exercise price less than the
Company&rsquo;s stock price as of March 31, 2019, which would have been received by the warrant holder had the warrant holder
exercised their warrants as of that date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
9 &ndash; STOCK OPTIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the terms on the employment agreement with Mr. Yakov he was granted 200,000 common stock options on January 1, 2019. The grant
shall vest at the rate of 1/3 beginning on each anniversary of the effective date of grant. The options have an exercise price
of $0.001 and expire in three years after each vest date.&nbsp;The aggregate fair value of the options totaled $39,814 based on
the Black Scholes Merton pricing model using the following estimates: exercise price of $0.001, 2.47% risk free rate, 104.8% volatility
and expected life of the options of 4 years. The fair value is being amortized over the applicable vesting period and credited
to additional paid in capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
summary of the status of the Company&rsquo;s outstanding stock options and changes during the year is presented below:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="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">Stock Options</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Shares</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Weighted Average Exercise<BR> Price</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">Aggregate<BR> Intrinsic<BR> Value</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%">Options outstanding at January 1, 2019</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">8,155,168</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.0001</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Granted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.001</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Forfeited</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Options outstanding March 31, 2019</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,355,168</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.0001</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,126,752</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Shares exercisable at March 31, 2019</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,667</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.001</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8,933</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
10 &ndash; RELATED PARTY TRANSACTIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 30, 2018, pursuant to the terms of the Amendment (Note 7), the Company issued to Mr. John Herzog, a significant stockholder
of the Company a subordinated promissory note in the principal amount of $1,000,000 (the &ldquo;Note&rdquo;) for cash proceeds
of $1,000,000. The Note initially matured on March 31, 2019 (though the Company has the right to prepay the Note, in whole or
in part, at any time prior to maturity) and bears interest at a rate of 12% per annum, compounding annually. The Note is subordinated
to the Credit Agreement. The Company used the proceeds received to make the initial payment under the Credit Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 14, 2018, the Company issued to John Herzog, a subordinated promissory note in the principal amount of $2,000,000 for
cash proceeds of $2,000,000.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">On
March 1, 2019, the Company entered into Amendment No. 1 to Subordinated Promissory Note (the &ldquo;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subordinated
Note Amendment<FONT STYLE="background-color: white">&rdquo;) with Mr. Herzog. The purpose of the Subordinated Note Amendment was
to amend that certain subordinated promissory note issued on July 26, 2018 in the principal amount of $1,000,000 to reflect an
increase in the amount of principal due under the note from $1,000,000 to $3,000,000 reflecting a payment made by the payee to
the Company of $2,000,000 on November 14, 2018 (the proceeds of which were used by the Company to make a second required payment
under the Credit Agreement) and to extend the maturity date of the Note from March 31, 2019 to September 30, 2020.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
interest expense on the two loans from Mr. Herzog for the three months ended March 31, 2019 was $88,767. Total accrued interest
as of March 31, 2019 and December 31, 2018 is $131,616 and $52,849, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of March 31, 2019 and December 31, 2018, the Company has total accrued compensation due to Mr. Yakov of $568,080 and $568,292,
respectively, and advances to be repaid to Mr. Yakov of $17,684 and $17,684, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 10, 2018, Ronny Yakov, the CEO, loaned the Company $25,000, in order to pay for audit services. Mr. Yakov loaned the Company
an additional $45,000 to the Company during the three months ended March 31, 2019. The loans are unsecured, bears interest at
12% and are due on demand. As of March 31, 2019, there is $2,367 of interest accrued on these loans.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
11 &ndash; COMMITMENTS AND CONTINGENCIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the normal course of business, the Company may be involved in legal proceedings, claims and assessments arising in the ordinary
course of business. The Company records legal costs associated with loss contingencies as incurred and accrues for all probable
and estimable settlements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 20, 2017, the Company entered into a new employment agreement with its founder and president for 7 years effective January
1, 2018 through December 31, 2024. The agreement provides for an annual salary of $375,000, fringe benefits ($2,500 monthly automobile
allowance, any benefit plans of the Company and 4 weeks paid vacation), an incentive bonus of $200,000 based on the achievement
of certain performance criteria and an acquisition bonus equal to two (2%) percent of the gross purchase price paid in connection
therewith upon the closing of any acquisition directly or indirectly by the Company or its subsidiaries during the Employment
Period of any company or business (including purchases of all or substantially all of the assets of any such entity) having then
existing sales of not less than three million five hundred thousand dollars ($3,500,000). As of March 31, 2019, no bonuses have
been paid or accrued.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Office
Lease</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company leases its Georgia office facilities under an operating lease expiring in November 2019. Monthly lease payments range
from $8,278 to $9,046 throughout the term of the lease.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;<IMG SRC="backcover.jpg" width="725" height="1069" ALT=""></B></FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
Shares of Common Stock</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><IMG SRC="img_015.jpg" ALT="">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ThinkEquity</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>a
division of Fordham Financial Management, Inc.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Through
and including &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2019 (the 25th
day after the commencement of this offering), all dealers effecting transactions in these securities, whether or not participating
in this offering, may be required to deliver a prospectus. </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>,
2019</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>PART
II</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>INFORMATION
NOT REQUIRED IN PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
13. Other Expenses of Issuance and Distribution</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth the expenses in connection with this registration statement. All of such expenses are estimates, other
than the filing fees payable to the Securities and Exchange Commission and to FINRA.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amount<BR>
    to&nbsp;be&nbsp;paid</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 89%; padding-left: 12pt; text-indent: -12pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SEC
    registration fee</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 8%; text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;*</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FINRA
    filing fee</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
    NASDAQ Capital Market initial listing fee</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transfer
    agent and registrar fees</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounting
    fees and expenses</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Legal
    fees and expenses</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Printing
    expenses</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Miscellaneous</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 4%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>*</B></FONT></TD><TD STYLE="text-align: justify; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
be completed by amendment</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
14. Indemnification of Directors and Officers</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section
145 of the Delaware General Corporation Law provides that a corporation may indemnify directors and officers as well as other
employees and individuals against expenses (including attorneys&rsquo; fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred by such person in connection with any threatened, pending or completed actions, suits or proceedings
in which such person is made a party by reason of such person being or having been a director, officer, employee or agent of the
corporation. Section 145 of the Delaware General Corporation Law also provides that expenses (including attorneys&rsquo; fees)
incurred by a director or officer in defending an action may be paid by a corporation in advance of the final disposition of an
action if the director or officer undertakes to repay the advanced amounts if it is determined such person is not entitled to
be indemnified by the corporation. The Delaware General Corporation Law provides that Section 145 is not exclusive of other rights
to which those seeking indemnification may be entitled under any bylaw, agreement, vote of stockholders or disinterested directors
or otherwise. Our amended and restated bylaws provide that, to the fullest extent permitted by law, we shall indemnify and hold
harmless any person who was or is made or is threatened to be made a party or is otherwise involved in any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that such
person, or the person for whom he is the legally representative, is or was a director or officer of ours, against all liabilities,
losses, expenses (including attorney&rsquo;s fees), judgments, fines and amounts paid in settlement actually and reasonably incurred
by such person in connection with such proceeding.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section
102(b)(7) of the Delaware General Corporation Law permits a corporation to provide in its certificate of incorporation that a
director of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach
of fiduciary duty as a director, except for liability (i) for any breach of the director&rsquo;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) for unlawful payments of dividends or unlawful stock repurchases, redemptions or other distributions, or (iv) for
any transaction from which the director derived an improper personal benefit.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
certificate of incorporation provides that <FONT STYLE="background-color: white">we shall, to the maximum extent permitted from
time to time under the law of the State of Delaware, indemnify and upon request shall advance expenses to any person who is or
was a party or is threatened to be made a party to any threatened, pending or completed action, suit, proceeding or claim, whether
civil, criminal, administrative or investigative, by reason of the fact that such person is or was or has agreed to be a director
or officer of ours or while a director or officer is or was serving at our request as a director, officer, partner, trustee, employee
or agent of any corporation, partnership, joint venture, trust or other enterprise, including service with respect to employee
benefit plans, against expenses (including attorneys&rsquo; fees and expenses), judgments, fines, penalties and amounts paid in
settlement incurred in connection with the investigation, preparation to defend or defense of such action, suit, proceeding or
claim;&nbsp;provided,&nbsp;however, that the foregoing shall not require us to indemnify or advance expenses to any person in
connection with any action, suit, proceeding or claim initiated by or on behalf of such person or any counterclaim against us
initiated by or on behalf of such person. Such indemnification shall not be exclusive of other indemnification rights arising
under any by-law, agreement, vote of directors or stockholders or otherwise and shall inure to the benefit of the heirs and legal
representatives of such person. Any person seeking indemnification shall be deemed to have met the standard of conduct required
for such indemnification unless the contrary shall be established. Any repeal or modification of our certificate of incorporation
shall not adversely affect any right or protection of a director or officer of ours with respect to any acts or omissions of such
director or officer occurring prior to such repeal or modification</FONT>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
bylaws provide we shall, to the fullest extent permitted under the laws of the State of Delaware, as amended and supplemented
from time to time, indemnify each person who was or is a party or is threatened to be made a party to any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that
such party is or was, or has agreed to become, a director or officer of ours, or is or was serving, or has agreed to serve, at
our request, as a director, officer or trustee of, or in a similar capacity with, another corporation, partnership, joint venture,
trust or other enterprise, including any employee benefit plan, or by reason of any action alleged to have been taken or omitted
in such capacity, against all expenses (including attorneys&rsquo; fees), judgments, fines and amounts paid in settlement actually
and reasonably incurred by such party or on such party&rsquo;s behalf in connection with such action, suit or proceeding and any
appeal therefrom.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expenses
incurred by such a person in defending a civil or criminal action, suit or proceeding by reason of the fact that such person is
or was, or has agreed to become, a director or officer of ours, or is or was serving, or has agreed to serve, at our request,
as a director, officer or trustee of, or in a similar capacity with, another corporation, partnership, joint venture, trust or
other enterprise, including any employee benefit plan, or by reason of any action alleged to have been taken or omitted in such
capacity shall be paid by us in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking
by or on behalf of such person to repay such amount if it shall ultimately be determined that he is not entitled to be indemnified
by us as authorized by relevant sections of the Delaware General Corporation Law. Notwithstanding the foregoing, we shall not
be required to advance such expenses to a person who is a party to an action, suit or proceeding brought by us and approved by
a majority of our Board of Directors that alleges willful misappropriation of corporate assets by such person, disclosure of confidential
information in violation of such person&rsquo;s fiduciary or contractual obligations to us or any other willful and deliberate
breach in bad faith of such person&rsquo;s duty to us or our stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
shall not indemnify any such person seeking indemnification in connection with a proceeding (or part thereof) initiated by such
person unless the initiation thereof was approved by our Board of Directors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
indemnification rights provided in our amended and restated bylaws shall not be deemed exclusive of any other rights to which
those indemnified may be entitled under any by-law, agreement or vote of stockholders or disinterested directors or otherwise,
both as to action in their official capacities and as to action in another capacity while holding such office, continue as to
such person who has ceased to be a director or officer, and inure to the benefit of the heirs, executors and administrators of
such a person.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
the Delaware General Corporation Law is amended to expand further the indemnification permitted to indemnitees, then we shall
indemnify such persons to the fullest extent permitted by the Delaware General Corporation Law, as so amended.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may, to the extent authorized from time to time by our Board of Directors, grant indemnification rights to other employees or
agents of ours or other persons serving us and such rights may be equivalent to, or greater or less than, those set forth in our
amended and restated bylaws.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
obligation to provide indemnification under our amended and restated bylaws shall be offset to the extent of any other source
of indemnification or any otherwise applicable insurance coverage under a policy maintained by us or any other person.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
assure indemnification under our amended and restated bylaws of all directors, officers, employees or agents who are determined
by us or otherwise to be or to have been &ldquo;fiduciaries&rdquo; of any employee benefit plan of ours that may exist from time
to time, Section 145 of the Delaware General Corporation Law shall, for the purposes of our amended and restated bylaws, be interpreted
as follows: an &ldquo;other enterprise&rdquo; shall be deemed to include such an employee benefit plan, including without limitation,
any plan of ours that is governed by the Act of Congress entitled &ldquo;Employee Retirement Income Security Act of 1974,&rdquo;
as amended from time to time; we shall be deemed to have requested a person to serve an employee benefit plan where the performance
by such person of his duties to us also imposes duties on, or otherwise involves services by, such person to the plan or participants
or beneficiaries of the plan; and excise taxes assessed on a person with respect to an employee benefit plan pursuant to such
Act of Congress shall be deemed &ldquo;fines.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
bylaws shall be deemed to be a contract between us and each person who was or is a party or is threatened to be made a party to
any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by
reason of the fact that person is or was, or has agreed to become, a director or officer of ours, or is or was serving, or has
agreed to serve, at our request, as a director, officer or trustee of, or in a similar capacity with, another corporation, partnership,
joint venture, trust or other enterprise, including any employee benefit plan, or by reason of any action alleged to have been
taken or omitted in such capacity, at any time while this by-law is in effect, and any repeal or modification thereof shall not
affect any rights or obligations then existing with respect to any state of facts then or theretofore existing or any action,
suit or proceeding theretofore or thereafter brought based in whole or in part upon any such state of facts.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
indemnification provision of our amended and restated bylaws does not affect directors&rsquo; responsibilities under any other
laws, such as the federal securities laws or state or federal environmental laws.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may purchase and maintain insurance on behalf of any person who is or was a director, officer or employee of ours, or is or was
serving at our request as a director, officer, employee or agent of another company, partnership, joint venture, trust or other
enterprise against liability asserted against him and incurred by him in any such capacity, or arising out of his status as such,
whether or not we would have the power to indemnify him against liability under the provisions of this section. We currently maintain
such insurance.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
right of any person to be indemnified is subject to our right, in lieu of such indemnity, to settle any such claim, action, suit
or proceeding at our expense of by the payment of the amount of such settlement and the costs and expenses incurred in connection
therewith.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling
our company pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the Securities and
Exchange Commission, such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the event that a claim for indemnification against such liabilities (other than the payment of expenses incurred or paid by a
director, officer or controlling person in a successful defense of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities being registered herewith, we will, unless in the opinion of our
counsel the matter has been settled by controlling precedent, submit to the court of appropriate jurisdiction the question whether
such indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication
of such issue.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
15. Recent Sales of Unregistered Securities</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Issuances
for Services Rendered</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
May 2018, the Company approved the issuance of 25,000 shares of common stock for services rendered, the shares were issued at
$0.15, the closing stock price on the date of grant, for total non-cash expense of $3,750. All shares were privately issued
with a restrictive legend, in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities
Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 31, 2017, the Company converted $380,502 of accrued salary due to our Chief Executive Officer into 3,805,017 shares of
common stock. All shares were privately issued with a restrictive legend, in reliance on the exemption from registration provided
by Section 4(a)(2) of the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 31, 2017, the Company issued 25,000 shares of common stock to a third party for accounting services. The shares were
valued at $0.10 per shares for total non-cash expense of $2,500. All shares were privately issued with a restrictive legend, in
reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Issuances
related to Term Loan</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to and as
additional consideration for the Term Loan under the Credit Agreement, on April 9, 2018 (the &ldquo;Issuance Date&rdquo;) we issued
to GACP a Warrant (the &ldquo;Warrant&rdquo;) to purchase 1,200,000 shares of common stock (&ldquo;Warrant Shares&rdquo;) at an
exercise price of $0.25 per share, subject to adjustment as set forth in the Warrant. The Warrant is exercisable by GACP at any
time from the Issuance Date until the later of (i) the third anniversary of the Issuance Date and (ii) the date on which all obligations
under the Credit Agreement have been satisfied in full. The Warrant may be redeemed for $0.0001 per Warrant Share, at our sole
discretion, at any time after the six (6) month anniversary of the Issuance Date if the closing sales price of our common stock
equals or exceeds $5.00 per share on each of 20 trading days within any 30 trading day period ending on the third trading day
prior to the date on which we provide a notice of redemption. GACP has certain piggy-back registration rights as set forth in
the Warrant with respect to the Warrant Shares to be issued upon exercise of the Warrant (we are seeking waivers of such rights
in connection with this offering). After the six month anniversary of the Issuance Date, GACP can exercise the Warrant using a
&ldquo;cashless exercise&rdquo; feature to the extent that GACP exercises the Warrant for a number of Warrant Shares in excess
of the number Warrant Shares that have been registered for resale under the Securities Act in accordance with the terms of the
Warrant. The Warrants were privately issued with a restrictive legend, in reliance on the exemption from registration provided
by Section 4(a)(2) of the Securities Act.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Issuances
related to Share Exchange</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Effective
May 9, 2018, the Company entered into a share exchange agreement with CrowdPay.US, Inc., a New York corporation (&ldquo;CrowdPay&rdquo;),
for which the Company will issue 87,500,000 shares of common stock for all of the authorized stock of CrowdPay. CrowdPay will
become a wholly owned subsidiary of OLB. All shares were privately issued with a restrictive legend, in reliance on the exemption
from registration provided by Section 4(a)(2) of the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Effective
May 9, 2018, the Company entered into a share exchange agreement with OMNISOFT, Inc., a Delaware corporation (&ldquo;OMNISOFT&rdquo;),
for which the Company will issue 55,000,000 shares of common stock for all of the authorized stock of OMNISOFT. OMNISOFT will
become a wholly owned subsidiary of OLB. All shares were privately issued with a restrictive legend, in reliance on the exemption
from registration provided by Section 4(a)(2) of the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Other
Issuances</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 31, 2015, 848,738 shares of common stock were issued for conversion of $135,798 of accrued officer compensation. All
shares were privately issued with a restrictive legend, in reliance on the exemption from registration provided by Section 4(a)(2)
of the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 31, 2015, 1,330,125 shares of common stock were issued for conversion of $212,820 of principle and interest. No gain
or loss was recognized on the conversion. All shares were privately issued with a restrictive legend, in reliance on the exemption
from registration provided by Section 4(a)(2) of the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 31, 2017, the Company converted $251,605 of notes payable and accrued interest into 2,516,050 shares of common stock.
All shares were privately issued with a restrictive legend, in reliance on the exemption from registration provided by Section
4(a)(2) of the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
16. Exhibits and Financial Statement Schedules </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit&nbsp;No.</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Description</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.1</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 90%; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Underwriting Agreement (**)</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.1</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1314196/000121390018004410/f8k040918ex2-1_theolb.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Memorandum of Sale, dated as of April 9, 2018, by and among eVance, Inc., eVance Capital, Inc., Securus365, Inc. and GACP (1)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.1</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certificate of Incorporation,
    as amended (**)</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.2</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amended and Restated
    Bylaws of the Company (**)</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.1</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1314196/000121390018004410/f8k040918ex10-2_theolb.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Warrant, dated April 9, 2018, issued by the Company to GACP (1)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.1</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Opinion of Ellenoff
    Grossman &amp; Schole LLP (**)</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.1</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1314196/000121390018004410/f8k040918ex10-1_theolb.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Loan and Security Agreement, dated as of April 9, 2018, by and among GACP, the lenders from time to time party thereto, the Company, as parent guarantor, and the Borrowers (1)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.2</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1314196/000121390018010192/f8k073018ex10-1_theolbgroup.htm">Amendment No. 1 to Loan and Security Agreement, dated as of July 30, 2018, by and among GACP Finance Co., LLC, as administrative agent and collateral agent, the lenders party thereto, Securus365, Inc., eVance, Inc., eVance Capital, Inc., OMNISOFT, Inc., and CrowdPay.us, Inc., as borrowers, and the Company, as parent guarantor (3)</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.3</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1314196/000121390019003928/f8k030119ex10-1_theolbgroup.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amendment No. 3 to Loan and Security Agreement, dated as of February 5, 2019, by and among GACP Finance Co., LLC, as administrative agent and collateral agent, the lenders party thereto, Securus365, Inc., eVance, Inc., eVance Capital, Inc., OMNISOFT, Inc., and CrowdPay.us, Inc., as borrowers, and the Company, as parent guarantor (4)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.4</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1314196/000121390018004410/f8k040918ex10-3_theolb.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Agreement Regarding Additional Warrants, dated April 9, 2018, by and between the Company and GACP (1)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.5</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1314196/000121390018006362/f8k050918ex10-1_theolbgroup.htm">Share Exchange Agreement, dated May 9, 2018, by and between The OLB Group, Inc. and the shareholders of CrowdPay.US, Inc. (2)</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.6</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1314196/000121390018006362/f8k050918ex10-2_theolbgroup.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Share Exchange Agreement, dated May 9, 2018, by and between The OLB Group, Inc. and the shareholders of OmniSoft, Inc. (2)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.7</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1314196/000121390018010192/f8k073018ex10-2_theolbgroup.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subordinated Promissory Note, dated July 30, 2018, by and between the Company and John Herzog (3)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.8</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1314196/000121390019003928/f8k030119ex10-2_theolbgroup.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amendment No. 1 to Subordinated Promissory Note, dated as of November 14, 2019, by and between the Company and John Herzog (4)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">10.9</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="fs12019ex10-9_theolb.htm">Amendment No. 2 to Subordinated Promissory Note, dated June 25, 2019, by and between the Company and John
Herzog (*)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.10</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="fs12019ex10-10_theolb.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Employment Agreement with Ronny Yakov (*)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.11</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="fs12019ex10-11_theolb.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Employment Agreement with Patrick Smith (*)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">21.1</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="fs12019ex21-1_theolb.htm">Subsidiaries
    of the Registrant (*)</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.1</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="fs12019ex23-1_theolb.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent of Marcum LLP (*)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.2</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="fs12019ex23-2_theolb.htm" STYLE="-sec-extract: exhibit">Consent of Liggett &amp; Webb, P.A. (*)</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">23.3</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="fs12019ex23-3_theolb.htm">Consent of Liggett &amp; Webb, P.A. (*)</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.4</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent of Ellenoff Grossman &amp; Schole LLP (contained in Exhibit 5.1) (**)</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24.1</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><A HREF="#poa"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Power of Attorney (included on the signature page of this Registration Statement)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.ins</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">XBRL Instance Document(*)</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.xsd</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">XBRL Taxonomy Extension
    Schema Document(*)</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.cal</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">XBRL Taxonomy Calculation
    Linkbase Document(*)</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.def</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">XBRL Taxonomy Definition
    Linkbase Document(*)</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.lab</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">XBRL Taxonomy Label
    Linkbase Document(*)</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.pre</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">XBRL Taxonomy Presentation
    Linkbase Document(*)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 4%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 96%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Filed herewith.</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">**</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To be filed by amendment.</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Previously filed with Current Report on Form
    8-K filed April 13, 2018</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Previously filed with Current Report on Form
    8-K filed May 15, 2018</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Previously filed with Current Report on Form
    8-K filed August 3, 2018</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Previously filed with Current Report on Form
    8-K filed March 12, 2019</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
17. Undertakings</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
undersigned registrant hereby undertakes:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.
For purposes of determining any liability under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;)
the information omitted from the form of prospectus filed as part of this registration statement in reliance upon
Rule&nbsp;430A and contained in a form of prospectus filed by the registrant pursuant to Rule&nbsp;424(b)(1) or (4)&nbsp;or
497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared
effective.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.
To provide to the underwriters at the closing specified in the underwriting agreement certificates in such denominations and
registered in such names as required by the underwriters to permit prompt delivery to each purchaser.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons
of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant
of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered,
the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities
Act and will be governed by the final adjudication of such issue.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SIGNATURES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the requirements of the Securities Act, the registrant has duly caused this registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in New York, New York on June 26, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 229.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>THE OLB GROUP, INC.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 60%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 36%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
Ronny Yakov</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name: Ronny Yakov</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title: Chief Executive Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 229.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="poa"></A>POWER
OF ATTORNEY</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">KNOW
ALL MEN BY THESE PRESENTS, that we, the undersigned officers and directors of The OLB Group, Inc., a corporation formed under
the laws of the State of Delaware, do hereby constitute Ronny Yakov, as his or her true and lawful attorney-in-fact and agent,
with full power of substitution and re-substitution, for him and in his name, place, and stead, in any and all capacities, to
sign any and all amendments (including post-effective amendments, exhibits thereto and other documents in connection therewith)
to this Registration Statement and any subsequent registration statement filed by the registrant pursuant to Rule&nbsp;462(b)
of the Securities Act of 1933, as amended, which relates to this Registration Statement, and to file the same, with all exhibits
thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact
and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection
therewith, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said
attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the requirements of the Securities Act, this registration statement has been signed below by the following persons in the capacities
and on the dates indicated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 36%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Signature</B></FONT></TD>
    <TD STYLE="width: 2%; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 46%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title</B></FONT></TD>
    <TD STYLE="width: 2%; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 14%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Date</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Ronny Yakov</FONT></TD>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive
    Officer and<BR>
    Chairman of the Board of Directors</FONT></TD>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 26, 2019</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ronny Yakov</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;(Principal Executive Officer)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Rachel Boulds</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Financial Officer</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 26, 2019</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rachel Boulds</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;(Principal Financial Officer and Principal
    Accounting Officer)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0; font: 10pt Times New Roman, Times, Serif">II-6</P>

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{"company-data": {"conformed-name": "OLB GROUP, INC.", "cik": "0001314196", "assigned-sic": "7389", "irs-number": "133712553", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-232368", "film-number": "19922383"}, "business-address": {"street1": "200 PARK AVENUE", "street2": "SUITE 1700", "city": "NEW YORK", "state": "NY", "zip": "10166", "phone": "212-278-0900"}, "mail-address": {"street1": "200 PARK AVENUE", "street2": "SUITE 1700", "city": "NEW YORK", "state": "NY", "zip": "10166"}}
As
filed with the U.S. Securities and Exchange Commission on June 26, 2019
Registration Number 333-________
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
S-1
REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933
THE
OLB GROUP, INC
(Exact Name of Registrant as Specified in its Charter)
Delaware
7389
13-4188568
(State
or other jurisdiction of
incorporation or organization)
(Primary Standard
    Industrial
Classification Code Number)
(I.R.S. Employer
Identification No.)
200
Park Avenue, Suite 1700
New
York, NY 10166
(212)
278-0900
(Address,
Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)
Ronny
Yakov
Chief
Executive Officer
200
Park Avenue, Suite 1700
New
York, NY 10166
(212)
278-0900
(Name,
Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent for Service)
with
copies to:
Barry
        I. Grossman, Esq.
David
        Selengut, Esq.
Ellenoff
        Grossman & Schole LLP
1345 Avenue of the Americas
New York, NY 10105
Phone: (212) 370-1300
Fax: (212) 370-7889
Mitchell Nussbaum,
    Esq.
Norwood P. Beveridge, Jr., Esq.
Lili Taheri, Esq.
Loeb & Loeb LLP
345 Park Avenue
New York, NY 10154
Phone: (212) 407-4000
Fax: (212) 407-4990
Approximate date
of commencement of proposed sale to the public:
As soon as practicable after the effective date hereof.
If any of the securities
being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities
Act of 1933, check the following box.
☐
If this Form is filed
to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following
box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
☐
If this Form is a
post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering.
☐
If this Form is a
post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering.
☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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
þ
Smaller reporting company
þ
Emerging growth company
þ
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 to Section 7(a)(2)(B) of the Securities Act. ☐
CALCULATION
OF REGISTRATION FEE
Title of Each Class of Securities to be Registered
Proposed Maximum
Aggregate offering
Price
(1)
Amount of
Registration Fee
(1)
Common stock, $0.0001 par value
$
15,000,000
$
1,818
(1)
Estimated
solely for the purpose of calculating the registration fee pursuant to Rule 457(a) under the Securities Act of 1933, as amended.
Includes shares of our common stock that the underwriters have the option to purchase.  Pursuant to Rule 416 under the Securities
Act of 1933, as amended (or the Securities Act), the securities being registered hereunder include such indeterminate number of
additional shares of common stock as may be issued after the date hereof as a result of stock splits, stock dividends or similar
transactions.
The
registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until
the registrant shall file a further amendment which specifically states that this registration statement shall thereafter
become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall
become effective on such date as the Commission, acting pursuant to Section 8(a), may determine.
The
information contained in this preliminary prospectus is not complete and may be changed. These securities may not be sold until
the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not
an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale
is not permitted.
PRELIMINARY
    PROSPECTUS
SUBJECT
    TO COMPLETION
DATED
    JUNE 26, 2019
Shares
Common
Stock
THE
OLB GROUP, INC.
This
is a public offering of shares of common stock of The OLB Group, Inc. We are offering [       
] shares of our common stock in this offering at an assumed offering price of $[     ]. Our common stock is currently quoted on the
Pink Open Market (f/k/a OTC Pink) published by OTC Markets Group, Inc. ("OTC Pink") under the symbol "OLBG."
On [     ], 2019, the last reported sale price of our common stock on the OTC Pink was $[     
].
We
have applied to have our common stock listed on The NASDAQ Capital Market under the symbol "OLB." After giving effect
to this offering, our Chief Executive Officer, Ronny Yakov, will control [     ]% of the voting
power of our outstanding common stock. Because Mr. Yakov controls, and will continue to control following completion of this offering,
a majority of our outstanding voting power, we are, and will continue to be, a "controlled company" under the corporate
governance rules for NASDAQ-listed companies. Therefore, we are not required to have a majority of our board of directors be independent,
nor are we required to have a compensation committee or an independent nominating function.
We
are an "emerging growth company" under the federal securities laws and have elected to comply with certain reduced
public company reporting requirements.
Investing
in our common stock is speculative and involves a high degree of risk. See "Risk Factors" beginning on page 4. 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 Share
Total
Public offering price
$
$
Underwriting discounts and commissions (1)
$
$
Proceeds to us, before expenses
$
$
(1)
Underwriting discounts and commissions do not
    include a non-accountable expense allowance equal to 1.0% of the public offering price payable to the underwriters.
    We refer you to "Underwriting" beginning on page 66 for additional information regarding underwriters'
    compensation.
We
have granted a 45 -day option to the representative of the underwriters to purchase up to an additional [       
] shares of common stock solely to cover over-allotments, if any.
The
underwriters expect to deliver the shares to purchasers on or about [        ], 2019.
ThinkEquity
a
division of Fordham Financial Management, Inc.
The
date of this prospectus is              , 2019
TABLE
OF CONTENTS
Page
Prospectus Summary
1
Risk Factors
4
Cautionary Note Regarding Forward-Looking Statements
35
Use of Proceeds
36
Dividend Policy
37
Capitalization
38
Dilution
39
Management's Discussion and Analysis of Financial Condition and Results of Operations
40
Business
43
Management
54
Executive Compensation
58
Principal Stockholders
60
Certain Relationships and Related Party Transactions
61
Description of Capital Stock
62
Shares Eligible For Future Sale
65
Underwriting
66
Experts
73
Legal Matters
73
Where You Can Find More Information
73
Index to Financial Statements
F-1
You
should rely only on the information contained in this prospectus. We have not authorized any other person to provide you with
information different from or in addition to that contained in this prospectus. If anyone provides you with different or inconsistent
information, you should not rely on it. We are not making an offer to sell these securities in any jurisdiction where an offer
or sale is not permitted. You should assume that the information appearing in this prospectus is accurate only as of the date
on the front cover of this prospectus. Our business, financial condition, results of operations and prospects may have changed
since that date.
This prospectus
includes estimates, statistics and other industry data that we obtained from industry publications, research, surveys and studies
conducted by third parties and publicly available information. Such data involves a number of assumptions and limitations and
contains projections and estimates of the future performance of the industries in which we operate that are subject to a high
degree of uncertainty. This prospectus also includes data based on our own internal estimates. We caution you not to give undue
weight to such projections, assumptions and estimates.
We use our registered
trademarks and trade names in this prospectus. This prospectus also includes trademarks, trade names and service marks that are
the property of other organizations. Solely for convenience, trademarks and trade names referred to in this prospectus do not
always appear with the ® and ™ symbols, but those references are not intended to indicate that we will not assert, to
the fullest extent under applicable law, our rights, or that the applicable owner will not assert its rights, to these trademarks
and trade names. We do not intend our use or display of other companies' trade names or trademarks to imply a relationship
with, or endorsement or sponsorship of us by, any other companies.
i
PROSPECTUS
SUMMARY
This
summary highlights certain information appearing elsewhere in this prospectus. Because it is only a summary, it does not contain
all of the information that you should consider before investing in shares of our common stock and it is qualified in its entirety
by, and should be read in conjunction with, the more detailed information appearing elsewhere in this prospectus. Before you decide
to invest in our common stock, you should read the entire prospectus carefully, including "Risk Factors" beginning
on page 4 and the financial statements and related notes included in this prospectus.
Prior
to the closing of this offering, we will effect a reverse stock split of the outstanding shares of our common stock at a ratio
of 1-for-[     ] shares. The reverse stock split was approved by our Board of Directors and by our majority
stockholder on June 21, 2018. The share amount and per share information in this prospectus do not reflect the implementation
of the reverse stock split.
Unless
the context indicates otherwise, as used in this prospectus, the terms "OLB," "we," "us,"
"our," "our company" and "our business" refer, to The OLB Group, Inc., including its subsidiaries
named herein.
Our
Company
We
are FinTech company and payment facilitator ("PayFac") that focuses on a suite of products in the merchant services
and payment facilitator verticals and provides integrated business solutions to merchants throughout the United States. We seek
to accomplish this by providing merchants with a wide range of products and services through our various online platforms, including
financial and transaction processing services and support for crowdfunding and other capital raising initiatives. We supplement
our online platforms with certain hardware solutions that are integrated with our online platforms. In 2018, we were ranked 62
nd
among merchant acquirers in the United States ranked by Visa/Mastercard volume. Our business functions primarily through
three wholly-owned subsidiaries, eVance, Inc., a Delaware corporation ("eVance"), OmniSoft.io, Inc., a Delaware corporation
("OmniSoft"), and CrowdPay.Us, Inc., a New York corporation ("CrowdPay").
eVance
    is an independent sales organization (an "ISO") that signs up new merchants on behalf of acquiring banks and processors
    that provides financial and transaction processing solutions to merchants throughout the United States. eVance differentiates
    itself from other ISOs by focusing on both obtaining and maintaining new merchant contracts for its own account (including,
    but not limited to, merchants that utilize the OmniSoft platform) and also obtaining and maintaining merchant contracts obtained
    by third-party ISOs (for which we negotiate a shared fee arrangement) and utilizing our own software and technology to provide
    merchants and other ISOs differentiating products and software.  In particular, we (i) own our own payments gateway,
    (ii) have proprietary omni-commerce software platform, (iii) have in-house underwriting and customer service, (iv) have in-house
    sub-ISO management system which offers sub-ISOs and agents tools for online boarding, account management, residual reports
    among other tools, (v) utilize a PayFac model and (vi) offer a suite of products in the financial markets (through CrowdPay).
    Leveraging our relationship with three of the top five merchant processors in the United States (representing a majority of
    the merchant processing market) and with the use of our proprietary software. eVance provides competitive payment processing
    solutions to merchants which enable merchants to process credit and debit card-based internet payments for sales of their
    products at competitive prices (whether such sales occur online or at a "brick and mortar" location). Our payment
    gateway (which we call "SecurePay") also enables merchants to reduce the cost of transacting with their customers
    by removing the need for a third-party payment gateway solution. eVance operates as both a wholesale ISO and a retail ISO
    depending on the risk profile of the merchant and the applicable merchant processor and acquiring bank. As a wholesale ISO,
    eVance underwrites the processing transactions for merchants, establishing a direct relationship with the merchant and generating
    individual merchant processing contracts in exchange for future residual payments. As a retail ISO, eVance primarily gathers
    the documents and information that our partners (acquiring banks and acquiring processors) need to underwrite merchants'
    transactions and as a result receives only residual income as commission for merchants it places with our partners. For more
    information regarding the electronic payment industry, see "Business–Description of our eVance Business–Our
    Industry."
OmniSoft operates
    a cloud-based business management platform that provides turnkey solutions for merchants to enable them to build and manage
    their retail businesses, whether online or at a "brick and mortar" location. The OmniSoft platform, which can
    be accessed by merchants through any mobile and computing device, allows merchants to, among other features, manage and track
    inventory, track sales and process customer transactions and can provide interactive data analysis concerning sales of products
    and need for additional inventory. Merchants generally utilize the platform by uploading to the platform information about
    their inventory (description of units, number of units, price per unit, and related information). Once such information has
    been uploaded, merchants, either with their own device or with hardware that we sell directly to them, are able to utilize
    the platform to monitor inventory and process and track sales of their products (including coordinating shipping of their
    products with third party logistics companies). We manage and maintain the OmniSoft platform through a variety of domain names
    or a merchant can integrate our platform with their own domain name. Using the OmniSoft platform, merchants can "check-out"
    their customers at their "brick and mortar" stores or can sell products to customers online, in both cases accepting
    payment via a simple credit card or debit card transaction (either swiping the credit card or entering the credit card number),
    a cash payment, or by use of a QR code or loyalty and reward points, and then print or email receipts to the customer. For
    more information regarding our OmniSoft platform, see "Business–Description of our OmniSoft Business."
1
CrowdPay.us™ operates a white
label capital raising platform that targets small and midsized businesses seeking to raise capital and by registered broker-dealers
seeking to host capital raising campaigns for such businesses by integrating the platform onto such company's or broker-dealer's
website.  Our CrowdPay platform is tailored for companies seeking to raise money through a crowdfunding offering of
between $1 million and $50 million pursuant to Regulation CF under Title III of the Jumpstart Our Business Startups (the "JOBS
Act"), offerings pursuant to Rule 506(b) and Rule 506(c) under Regulation D of the Securities Act of 1933, as amended (the
"Securities Act"), and offerings pursuant to Regulation A+ of the Securities Act.  Our platform, which can
be used for multiple offerings at once, provides companies and broker-dealers with an easy-to-use, turnkey solution to support
company offerings, allowing companies and broker-dealers to easily present online to potential investors relevant marketing and
offering materials and by aiding in the accreditation and background check processes to ensure investors meets the applicable
requirements under the rules and regulations of the Securities Exchange Commission (the "SEC"). CrowdPay charges a
fee to each company and broker-dealer for the use of its platform under a fee structure that is agreed to between CrowdPay and
the Company and/or broker-dealer prior to the initiation of the offering. CrowdPay also generates revenues by providing ancillary
services to the companies and broker-dealers utilizing our platform, including running background checks and providing anti-money
laundering and know-your-customer compliance. CrowdPay is not a registered funding portal or a registered broker-dealer.
Substantially all
of our revenue has been generated from our eVance business (see our financial statements and related notes included in this prospectus
and Management's Discussion and Analysis of Financial Condition and Results of Operations for more information), but we
expect to begin generating revenue from our OmniSoft and CrowdPay business by the end of 2019. We expect to build out our OmniSoft
software business and to rely more on our PayFac model to transition away from our reliance on our eVance business but there is
no guarantee that we will be able to do so. See the section entitled "Risk Factors" in this prospectus.
Risks
Associated with our Business
Our
business and ability to execute our business strategy are subject to a number of risks of which you should be aware before you
decide to buy our common stock. In particular, you should consider the following risks, which are discussed more fully in the
section entitled "Risk Factors" in this prospectus:
●
Our acquisition
    of eVance and share exchange with OmniSoft and CrowdPay has collectively formed a new business platform that needs to be integrated,
    which may create certain risks and may adversely affect our business, financial condition or results of operations;
●
Our failure to pay
    our outstanding indebtedness will result in a substantial loss of our assets;
●
We operate in a
    regulatory environment that is evolving and uncertain and any changes to regulations could have a material impact on our business
    and financial condition;
●
We rely on a combination
    of confidentiality clauses, assignment agreements and license agreements with employees and third parties, trade secrets,
    copyrights and trademarks to protect our intellectual property and competitive advantage, all of which offer only limited
    protection meaning that we may be unable to maintain and protect our intellectual property rights and proprietary information
    or prevent third-parties from making unauthorized use of our technology; and
●
Our growth may not
    be sustainable and depends on our ability to attract new merchants, retain existing merchants and increase sales to both new
    and existing merchants.
Controlled
Company Status
After
giving effect to this offering, our Chief Executive Officer, Ronny Yakov, will control [     ]%
of the voting power of our outstanding common stock. As a result, Mr. Yakov will have the ability to control the outcome of matters
submitted to our stockholders for approval, including the election of our directors, as well as the overall management and direction
of our company. Because Mr. Yakov controls, and will continue to control following completion of this offering, a majority of
our outstanding voting power, we are, and will continue to be, a "controlled company" under the corporate governance
rules for NASDAQ-listed companies. Therefore, we are not required to have a majority of our board of directors be independent,
nor are we required to have a compensation committee or an independent nominating function.
We
expect our company will continue to qualify as a controlled company until such time as Mr. Yakov controls less than 50% of our
outstanding common stock.
Corporate
Information
We
were incorporated in the State of Delaware on November 18, 2004 for the purpose of merging with OLB.com, Inc., a New York corporation
incorporated in 1993 ("OLB.com"). The merger was done for the purpose of changing our state of incorporation from
New York to Delaware. In April 2018, we completed an acquisition of substantially all of the assets of Excel Corporation ("Excel")
and its subsidiaries Payprotec Oregon, LLC, Excel Business Solutions, Inc. and eVance Processing, Inc. (such assets are the foundation
of our eVance business). In connection with such acquisition, in May 2018, we entered into share exchange agreements with CrowdPay
and OmniSoft, affiliate companies owned by Mr. Yakov and John Herzog, an affiliate of our company, pursuant to which each of CrowdPay
and OmniSoft became wholly owned subsidiaries of our company. Our Company's headquarters is located at 200 Park Avenue,
Suite 1700, New York, NY 10166. Our telephone number is (212) 278-0900.
2
Implications
of Being an Emerging Growth Company
We
qualify as an "emerging growth company" as defined under the Securities Act. As a result, we are permitted to, and
intend to, rely on exemptions from certain disclosure requirements that are otherwise applicable to public companies. These provisions
include, but are not limited to:
●
not being required
    to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended (or the Sarbanes-Oxley
    Act);
●
reduced disclosure
    obligations regarding executive compensation in our periodic reports, proxy statements and registration statements; and
●
exemptions from
    the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute
    payments not previously approved.
In
addition, an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting
standards. This provision allows an emerging growth company to delay the adoption of some accounting standards until those standards
would otherwise apply to private companies. We have elected to avail ourselves of this extended transition period. We will remain
an emerging growth company until the earliest to occur of: (i) our reporting $1.07 billion or more in annual gross revenues; (ii)
the end of fiscal year 2024; (iii) our issuance, in a three year period, of more than $1 billion in non-convertible debt; and
(iv) the end of the fiscal year in which the market value of our common stock held by non-affiliates exceeded $700 million on
the last business day of our second fiscal quarter.
The
Offering
Common stock offered by us
shares
Common stock outstanding before this offering (1)
shares
Common stock to be outstanding after this offering (1)
shares (or            shares if the underwriters exercise their over-allotment option in full).
Over-allotment option
We have granted the underwriters a 45-day option to purchase up to an additional [     ] shares of our common stock at the public offering price to cover over-allotments, if any (the "overallotment option")
Use of proceeds
We intend to use the net proceeds of this offering primarily to repay, at the discretion of our Board
of Directors, outstanding indebtedness up to [20%] of the proceeds in this offering, invest in or acquire companies or technologies
that are synergistic with or complimentary to our business, to expand and market our current products and for working capital and
other general corporate purposes. If our Board of Directors elects not to repay outstanding indebtedness with the proceeds of this
offering, such proceeds will be used for working capital and other general corporate purposes.
Reverse Stock Split
Prior to the closing of this offering, we will effect a reverse stock split of the outstanding shares of our common stock at a ratio of 1-for-[     ] shares. The reverse stock split was approved by our Board of Directors and by our majority stockholder on June 21, 2018. The share amount and per share information in this prospectus do not reflect the implementation of the reverse stock split.
Concentration of ownership
Upon completion of this offering, our executive officers and directors will beneficially own, in the aggregate, approximately [     ] % of the outstanding shares of our common stock.
Proposed NASDAQ Capital Market symbol
OLB
Risk Factors
Investing in our common stock is highly speculative and involves a high degree of risk
. See "Risk Factors" beginning on page 4 and the other information in this prospectus for a discussion of the factors you should consider carefully before you decide to invest in our common stock.
All
information in this prospectus assumes the underwriters do not exercise their over-allotment option, and excludes the following:
●
8,355,168 shares
    of common stock issuable upon exercise of outstanding options to purchase common stock with a weighted average exercise
    price of $0.0001 per share;
●
1,200,000 shares
    of common stock issuable upon exercise of outstanding common stock purchase warrants with a weighted average exercise price
    of $0.25 per share; and
●
[            ]
    shares of our common stock (which is equal to [     ] % of our issued and outstanding common stock
    immediately after the consummation this offering) reserved for future issuance under our 2019 Equity Incentive Plan, which
    will become effective as of the closing of this offering.
3
RISK
FACTORS
Any
investment in our securities is highly speculative and involves a high degree of risk. You should carefully consider the risks
described below, which we believe represent certain of the material risks to our business, together with the information contained
elsewhere in this prospectus, before you make a decision to invest in our shares of common stock. 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.
Risks
Related to Our Company
Our acquisition
of assets of Excel and its subsidiaries Payprotec Oregon, LLC, Excel Business Solutions, Inc. and eVance Processing, Inc. and
share exchange with OmniSoft and CrowdPay has collectively formed a new business platform that needs to be integrated, which may
create certain risks and may adversely affect our business, financial condition or results of operations.
On
April 9, 2018, we acquired substantially all of the assets of Excel and its subsidiaries Payprotec Oregon, LLC, Excel Business
Solutions, Inc. and eVance Processing, Inc. through a foreclosure sale conducted under the Uniform Commercial Code of the State
of New York ("Asset Acquisition"). Since closing the Asset Acquisition, we have been in the process of integrating
our operations with the acquired assets.
On
May 9, 2018, we entered into separate share exchange agreements with the shareholders of OmniSoft and CrowdPay, affiliate companies
of our company's majority stockholder. Pursuant to the share exchange agreement with OmniSoft, the shareholders of OmniSoft
transferred to us all of the issued and outstanding shares of OmniSoft common stock in exchange for an aggregate of 55,000,000
shares of our common stock. Pursuant to the share exchange agreement with CrowdPay, the shareholders of CrowdPay transferred to
us all of the issued and outstanding shares of CrowdPay common stock in exchange for an aggregate of 87,500,000 shares of our
common stock. The share exchange transactions closed on May 9, 2018, on which date OmniSoft and CrowdPay became wholly owned subsidiaries
of the Company (the "Share Exchange").
Since
the consummation of the Asset Acquisition and the Share Exchange, we have a limited history upon which an evaluation of our performance
and future prospects can be made. Our current and proposed operations are subject to all the business risks associated with new
enterprises. These include likely fluctuations in operating results as we manage our growth and react to competitors and developments
in the markets in which we compete. As we can be considered an early stage company and have not yet generated any profits, there
is no assurance that we will be profitable in the near term or generate sufficient revenues to meet our capital requirements.
As
a result, we may experience interruptions of, or loss of momentum in, the activities of one or more of our combined businesses
and the possible loss of key personnel. The diversion of our management's attention and any delays or difficulties encountered
in connection with the integration of Excel could adversely affect our business, financial condition or results of operations.
Our
failure to raise sufficient funds may result in a default under our loan agreement with GACP and result in a substantial loss
of our assets.
In order to finance
the Asset Acquisition, we entered into a Loan and Security Agreement (as amended by Amendment No. 1 to Loan and Security Agreement
dated July 30, 2018 and Amendment No. 3 to Loan and Security Agreement dated February 5, 2019, the "Credit Agreement"),
dated as of April 9, 2018, by and among our subsidiaries Securus365, Inc., eVance Capital, Inc., and eVance Inc., (the "Purchasers")
and GACP Finance Co., LLC, a Delaware limited liability company ("GACP"), as administrative agent and collateral agent
("Agent"), and as the initial sole lender thereunder. Under the Credit Agreement, GACP provided a term loan of $12,500,000
(the "Term Loan") to us, which obligations are guaranteed by our Company.
The Term Loan matures
in full on April 9, 2021, the third anniversary of the closing of the Asset Acquisition. The Term Loan can be prepaid without
penalty in part with ten (10) days' prior written notice to the Agent, and in full with thirty (30) days' prior written
notice. The Term Loan is subject to an interest rate of 9.0% per annum, payable monthly in arrears. OmniSoft and CrowdPay were
also each liable as a loan party under the Term Loan. To date, we have made principal payments of $1,000,000 in July 2018 and
$2,000,000 in November 2018 pursuant to the terms of the Credit Agreement (though the payments were made with the proceeds of
a subordinated promissory note in the principal amount of $3,000,000 with a maturity date of September 30, 2020 (to be extended
to September 30, 2022 simultaneous to the completion of this offering), issued to a significant stockholder of our company, which
bears interest at a rate of 12% per annum and is subordinated to the Term Loan).
The
obligations of the loan parties under the Credit Agreement are secured by all of their respective assets and the loan parties
pledged all of their assets as collateral for their obligations under the Credit Agreement. Additionally, our ownership interests
in OmniSoft, CrowdPay and the Purchasers are pledged in favor of GACP pursuant to the Term Loan.
4
If,
by the time our principal payments become due in 2021, we are unable to obtain sufficient financing to meet our payment obligations
under the Term Loan, we will be in default under the Credit Agreement. If not cured or waived, such default under the Credit Agreement
could enable GACP to declare all outstanding amounts under the Term Loan, together with accrued and unpaid interest and fees,
to be due and payable. In addition, GACP could also elect to foreclose on our assets securing the Term Loan. In such event, we
may not be able to refinance or repay all of its indebtedness or have sufficient liquidity to meet operating and capital expenditure
requirements. Any such acceleration of the Term Loan could cause us to lose a substantial portion of our assets and will substantially
adversely affect our ability to continue our operations.
We
are subject to significant restrictive debt covenants, which limit our operating flexibility.
We
are subject to restrictive debt covenants which impose significant restrictions on the manner we and our subsidiaries operate,
including (but not limited to) restrictions on the ability to:
●
create certain liens;
●
incur debt and/or
    guarantees;
●
enter into transactions
    other than on arm's-length basis;
●
pay dividends or
    make certain distributions or payments;
●
sell certain kinds
    of assets;
●
enter into any sale
    and leaseback transactions;
●
make certain investments
    or other types of restricted payments;
●
substantially change
    the nature of our business; and
●
effect mergers,
    consolidations or sale of assets.
In
addition, our Credit Agreement also requires us to comply with a consolidated fixed charge coverage ratio and to maintain minimum
revenue for the trailing twelve month period. We have not complied with these obligations at certain times since the Credit Agreement
was entered into and were obligated to obtain certain waivers and modifications of these provisions to avoid an acceleration event
under the Credit Agreement. Our ongoing ability to comply with these covenants may be affected by events beyond our control and
these covenants could limit our ability to finance our future operations and our ability to pursue acquisitions and other business
activities.
The
substantial and continuing losses, and significant operating expenses incurred in the past few years may cause us to be unable
to pursue all of our operational objectives if sufficient financing and/or additional cash from revenues is not realized.
We have limited cash
resources, recurring cash used in operations and operating losses history. As of March 31, 2019, we had a working capital deficiency
of $783,788, and a net loss of $406,945 for the three months ended March 31, 2019. Our cash flow used in operating activities
for the period through March 31, 2019 was $113,741, while $45,000 was provided by financing from a related party. Further, while
the auditor report for December 31, 2018 did not include a substantial doubt regarding our ability to continue as a going concern,
this doubt was not included due in large part to a related party and significant stockholder commitment to provide us with additional
financial support that may be needed to satisfy the Company's debt or other obligations through April 2020. This same affiliate
and major stockholder also provided the funding the Company used to make recent debt repayments to certain of the Company's
creditors.
We
may not be able to attract financing as needed, or if available, on reasonable terms as required and therefore may not be able
to accomplish our business goals or repay certain of our debts. Further, the terms of any such financing may be dilutive to existing
stockholders or otherwise on terms not favorable to us or existing stockholders. If we are unable to secure financing, as circumstances
require, or do not succeed in meeting our sales objectives, we may be required to change, significantly reduce our operations
or ultimately may not be able to continue our operations. As a result of our historical net losses and cash flow deficits, and
net capital deficiency, these conditions raise substantial doubt as to our ability to continue as a going concern.
We
may be subject to liabilities arising prior to the Asset Acquisition under certain "successor liability" theories.
We
acquired our business by means of a foreclosure of the relevant secured lender's security interest in the assets in the
Asset Acquisition through an auction under Article 9 of the Uniform Commercial Code. Although the general rule in the context
of transactions such as the Asset Acquisition is that a purchaser of assets does not assume the seller's liabilities, various
courts have established exceptions to this general rule, including where the purchaser is a 'mere continuation' of the seller
and there is a 'continuity of enterprise.' This is a highly fact specific inquiry, and there can be no assurance that
any interested creditor, the United States (through the Internal Revenue Service) or state or local taxing agencies will not seek
to hold us responsible for any existing liabilities at the time of the Asset Acquisition under one or more of these successor
liability theories, for which we have no indemnification protection under the agreements relating to the Asset Acquisition.
5
In connection
with our preparation of our financial statements, we identified material weaknesses in our internal control over financial reporting.
Any failure to maintain effective internal control over financial reporting could harm us.
Our management is responsible
for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting
is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements in accordance with U.S. generally accepted accounting principles ("GAAP"). During the preparation of our
financial statements for both 2017 and 2018, we identified material weaknesses in our internal control over financial reporting.
Under standards established by the Public Company Accounting Oversight Board ("PCAOB"), a deficiency in internal control
over financial reporting exists when the design or operation of a control does not allow management or personnel, in the normal
course of performing their assigned functions, to prevent or detect misstatements on a timely basis. The PCAOB defines a material
weakness as a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable
possibility that a material misstatement of annual or interim financial statements will not be prevented, or detected and corrected,
on a timely basis.
We are aware of the
following material weaknesses in internal control that could adversely affect the Company's ability to record, process, summarize
and report financial data:
●
Due to our size and limited resources, we currently do not employ the appropriate accounting personnel
to ensure (a) we maintain proper segregation of duties, (b) that all transactions are entered timely and accurately, and (c) we
properly account for complex or unusual transactions;
●
Due to our size and scope of operations, we currently do not have an independent audit committee
in place; and
●
Due to our size and limited resources, we have not properly documented a complete assessment of
the effectiveness of the design and operation of our internal control over financial reporting.
See "Management's
Discussion and Analysis of Financial Condition and Results of Operations" for more information.
Our independent registered
public accounting firm is not required to, and did not, perform an evaluation of our internal control over financial reporting
as of December 31, 2018, in accordance with the provisions of Section 404 of the Sarbanes-Oxley Act. Accordingly, we
cannot assure you that we have identified all, or that we will not in the future have additional, material weaknesses.
If we are unable to
assert that our internal control over financial reporting is effective, or when required in the future, if our independent registered
public accounting firm is unable to express an unqualified opinion as to the effectiveness of our internal control over financial
reporting, investors may lose confidence in the accuracy and completeness of our financial reports, the market price of our common
stock could be adversely affected and we could become subject to litigation or investigations by the stock exchange on which our
securities are listed, the SEC or other regulatory authorities, which could require additional financial and management resources.
We
operate in a complex regulatory environment, and failure to comply with applicable laws and regulations could adversely affect
our business.
Our
operations are subject to a broad range of complex and evolving laws and regulations. As a result, we must perform our services
in compliance with the legal and regulatory requirements of multiple jurisdictions. Some of these laws and regulations may be
difficult to ascertain or interpret and may change from time to time. Violation of such laws and regulations could subject us
to fines and penalties, damage our reputation, constitute a breach of our client agreements, impair our ability to obtain and
renew required licenses, and decrease our profitability or competitiveness. If any of these effects were to occur, our operating
results and financial condition could be adversely affected.
We
may not be able to integrate new technologies and provide new services in a cost-efficient manner.
The
online ecommerce industry is subject to rapid and significant changes in technology, frequent new service introductions and evolving
industry standards. We cannot predict the effect of these changes on our competitive position, our profitability or the industry
generally. Technological developments may reduce the competitiveness of our networks and our software solutions and require additional
capital expenditures or the procurement of additional products that could be expensive and time consuming. In addition, new products
and services arising out of technological developments may reduce the attractiveness of our services. If we fail to adapt successfully
to technological advances or fail to obtain access to new technologies, we could lose customers and be limited in our ability
to attract new customers and/or sell new services to our existing customers. In addition, delivery of new services in a cost-efficient
manner depends upon many factors, and we may not generate anticipated revenue from such services.
Disruptions
in our networks and infrastructure may result in customer dissatisfaction, customer loss or both, which could materially and adversely
affect our reputation and business.
Our
systems are an integral part of our customers' business operations. It is critical for our customers, that our systems provide
a continued and uninterrupted performance. Customers may be dissatisfied by any system failure that interrupts our ability to
provide services to them. Sustained or repeated system failures would reduce the attractiveness of our services significantly
and could result in decreased demand for our services.
6
We
face the following risks to our networks, infrastructure and software applications:
●
our territory can
    have significant weather events which physically damage access lines;
●
power surges and
    outages, computer viruses or hacking, earthquakes, terrorism attacks, vandalism and software or hardware defects which are
    beyond our control; and
●
Unusual spikes in
    demand or capacity limitations in our or our suppliers' networks.
Disruptions
may cause interruptions in service or reduced capacity for customers, either of which could cause us to lose customers and/or
incur expenses, and thereby adversely affect our business, revenue and cash flow.
Our
positioning in the marketplace as a smaller provider places a significant strain on our resources, and if not managed effectively,
could result in operational inefficiencies and other difficulties.
Our
positioning in the marketplace may place a significant strain on our management, operational and financial resources, and increase
demand on our systems and controls. To manage this position effectively, we must continue to implement and improve our operational
and financial systems and controls, invest in development & engineering, critical systems and network infrastructure to maintain
or improve our service quality levels, purchase and utilize other systems and solutions, and train and manage our employee base.
As we proceed with our development, operational difficulties could arise from additional demand placed on customer provisioning
and support, billing and management information systems, product delivery and fulfillment, sales and marketing and administrative
resources.
For
instance, we may encounter delays or cost overruns or suffer other adverse consequences in implementing new systems when required.
In addition, our operating and financial control systems and infrastructure could be inadequate to ensure timely and accurate
financial reporting.
We
must attract and retain skilled personnel. If we are unable to hire and retain technical, technical sales and operational employees,
our business could be harmed.
Our
ability to manage our reorganization and growth will be particularly dependent on our ability to develop and retain an effective
sales force and qualified technical and managerial personnel. We need software development specialists with in-depth knowledge
of a blend of IT and telecommunications or with a blend of security and telecom. We intend to hire additional necessary employees,
including software engineers, communication engineers, project managers, sales consultants, employees and operational employees,
on a permanent basis. The competition for qualified technical sales, technical, and managerial personnel in the communications
and software industry is intense in the markets where we operate, and we may not be able to hire and retain sufficient qualified
personnel. In addition, we may not be able to maintain the quality of our operations, control our costs, maintain compliance with
all applicable regulations, and expand our internal management, technical, information and accounting systems in order to support
our desired growth, which could have an adverse impact on our operations. Volatility in the stock market and other factors could
diminish our use, and the value, of our equity awards as incentives to employees, putting us at a competitive disadvantage or
forcing us to use more cash compensation.
We
are dependent on the continued services and performance of our senior management and other key employees, the loss of any of whom
could adversely affect our business, operating results and financial condition.
Our
future performance depends on the continued services and contributions of our senior management, including our Chief Executive
Officer, Ronny Yakov and other key employees to execute on our business plan and to identify and pursue new opportunities and
product innovations. The loss of services of senior management or other key employees could significantly delay or prevent the
achievement of our strategic objectives. In addition, some of the members of our current senior management team have only been
working together for a short period of time, which could adversely impact our ability to achieve our goals. From time to time,
there may be changes in our senior management team resulting from the hiring or departure of executives, which could disrupt our
business. We do not maintain key person life insurance policies on any of our employees other than a policy providing limited
coverage on the life of our Chief Executive Officer. The loss of the services of one or more of our senior management or other
key employees for any reason could adversely affect our business, financial condition and operating results and require significant
amounts of time, training and resources to find suitable replacements and integrate them within our business, and could affect
our corporate culture.
Our
Chief Financial Officer is employed on a part-time basis.
Given
the current size of the Company and our operations, we have hired our Chief Financial Officer, Rachel Boulds, on a part-time basis.
In addition to her role as Chief Financial Officer, Ms. Boulds is also operating her sole accounting practice and providing outsourced
chief financial officer services for two other companies. While we believe that Ms. Boulds currently devotes adequate time to
the Company to perform the role and duties of our Chief Financial Officer, we cannot guarantee that she will continue to do so
in the future. Additionally, while we do not believe that Ms. Boulds currently faces any conflicts of interest, including conflicts
in allocating time to the Company, Ms. Boulds may face conflicts of interest in the future. If Ms. Boulds cannot devote adequate
time to the Company to fulfill her role and duties as Chief Financial Officer or if any conflicts of interest arise, it could
have a material adverse impact on our Company.
7
Our
success depends on our continued investment in research and development, the level and effectiveness of which could reduce our
profitability.
We
intend to continue to make investments in research and development and product development in seeking to sustain and improve our
competitive position and meet our customers' needs. These investments currently include streamlining our suite of software
functionalities, including modularization and improving scalability of our integrated solutions. To maintain our competitive position,
we may need to increase our research and development investment, which could reduce our profitability and cash flows. In addition,
we cannot assure you that we will achieve a return on these investments, nor can we assure you that these investments will improve
our competitive position or meet our customers' needs.
Risks
Related to Our Business
CROWDPAY.US,
INC.
We
operate in a regulatory environment that is evolving and uncertain.
The
regulatory framework for online capital formation or crowdfunding is very new. The regulations that govern the companies and broker-dealers
that utilize our platform and the investors that find investment opportunities on our platform have been in existence for a very
few years. Further, there are constant discussions among legislators and regulators with respect to changing this regulatory environment.
New laws and regulations could be adopted in the United States and abroad. Further, existing laws and regulations may be interpreted
in ways that would impact our platform, including our ability to communicate and work with investors, broker-dealers and the companies
that use our platforms' services. For instance over the past year, there have been several attempts to modify the current
regulatory regime. Some of those suggested reforms could make it easier for anyone to sell securities (without using our platform),
or could increase our regulatory burden, including requiring us to register as a broker-dealer or funding portal before we choose
to do so. Any such changes would have a negative impact on our business.
In
the event we are required or decide to register as a broker-dealer or funding portal, our current business model could be affected.
Under
our current structure, we believe we are not required to register as a broker-dealer or funding portal under federal and state
laws. Further, none of our officers or our chairman has previous experience in securities markets or regulations or has passed
any related examinations or holds any accreditations. We comply with the rules surrounding funding portals and restrict our activities
and services so as to not be deemed a broker-dealer under state and federal regulations. However, if we were deemed by a relevant
authority to be acting as a broker-dealer or a funding portal, we could be subject to a variety of penalties, including fines
and rescission offers. Further, we may decide for business reasons or we may be required to register as a broker-dealer or a funding
portal, which would increase our costs, especially our compliance costs. If we are required but decide not to register as a broker-dealer
or act in association with a broker-dealer in our transactions or to register as a funding portal, we may not be able to continue
to operate under our current business model.
We
may be liable for misstatements made by issuers on our platform.
Under
the Securities Act and the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), issuers making offerings
through our platform may be liable for including untrue statements of material facts or for omitting information that could make
the statements made misleading. This liability may also extend in Regulation Crowdfunding offerings to funding portals. Even though
we are not a registered funding portal, there can be no assurance that if we were sued we would prevail. Further, even if we do
succeed, lawsuits are time consuming and expensive, and being a party to such actions may cause us reputational harm that would
negatively impact our business.
8
Our
compliance is focused on U.S. laws and we have not analyzed foreign laws regarding the participation of non-U.S. residents.
Some
of the investment opportunities posted on our platform are open to non-U.S. residents. We have not researched all the applicable
foreign laws and regulations, and therefore we have not set up our structure to be compliant with all those laws. It is possible
that we may be deemed in violation of those laws, which could result in fines or penalties as well as reputational harm. This
may limit our ability in the future to assist companies in accessing money from those investors, and compliance with those laws
and regulation may limit our business operations and plans for future expansion.
The
types of offerings that we expect to be posted on our platform are relatively new in an industry that is still quickly evolving
.
The
principal types of offerings that are posted on our platform are pursuant to Regulation A and Regulation Crowdfunding which have
only been in effect in their current form since 2015 and 2016, respectively. Our ability to penetrate the market to host these
types of offerings remains uncertain as potential issuer companies may choose to use different platforms or providers (including,
in the case of Regulation A, using their own online platform), or determine alternative methods of financing. Investors may decide
to invest their money elsewhere. Further, our potential market may not be as large, or our industry may not grow as rapidly, as
anticipated. With a smaller market than expected, we may have fewer customers. Success will likely be a factor of investing in
the development and implementation of marketing campaigns, subsequent adoption by issuer companies as well as investors, and favorable
changes in the regulatory environment.
CrowdPay
and its providers are vulnerable to hackers and cyber-attacks.
As
an internet-based business, we may be vulnerable to hackers who may access the data of the investors and the issuer companies
that utilize our platform. Further, any significant disruption in service on our platform or in our computer systems could reduce
the attractiveness of the platform and result in a loss of investors and companies interested in using our platform. Further,
we rely on a third-party technology provider to provide some of our back-up technology as well as act as our escrow agent. Any
disruptions of services or cyber-attacks either on our technology provider or on our company could harm our reputation and materially
negatively impact our financial condition and business.
CrowdPay
currently relies on one escrow agent and technology service provider.
We
currently rely on Microsoft Azure to serve as our technology provider and all escrow accounts are held at MVB Bank, Inc. Any change
in these relationships will require us to find another technology service provider, escrow agent and escrow bank. This may cause
us delays as well as additional costs in transitioning our technology.
We
are dependent on general economic conditions.
Our
business model is dependent on investors investing in the companies presented on our platform. Investment dollars are disposable
income. Our business model is thus dependent on national and international economic conditions. Adverse national and international
economic conditions may reduce the future availability of investment dollars, which would negatively impact revenues generated
by CrowdPay and possibly our ability to continue operations at CrowdPay. It is not possible to accurately predict the potential
adverse impacts on us, if any, of current economic conditions on its financial condition, operating results and cash flow.
We
face significant market competition.
We
facilitate online capital formation. Though this is a new market, we compete against a variety of entrants in the market as well
likely new entrants into the market. Some of these follow a regulatory model that is different from ours and might provide them
competitive advantages. New entrants could include those that may already have a foothold in the securities industry, including
some established broker-dealers. Further, online capital formation is not the only way to address helping start-ups raise capital,
and we have to compete with a number of other approaches, including traditional venture capital investments, loans and other traditional
methods of raising funds and companies conducting crowdfunding raises on their own websites. Additionally, some competitors and
future competitors may be better capitalized than us, which would give them a significant advantage in marketing and operations.
9
Our
revenues and profits are subject to fluctuations.
It
is difficult to accurately forecast our revenues and operating results, and these could fluctuate in the future due to a number
of factors. These factors may include adverse changes in: number of investors and amount of investors' dollars that utilize
our platform to make investments, the success of world securities markets, general economic conditions, our ability to market
our platform to companies and investors, headcount and other operating costs, and general industry and regulatory conditions and
requirements. Our operating results may fluctuate from year to year due to the factors listed above and others not listed. At
times, these fluctuations may be significant and could impact our ability to operate our business.
EVANCE,
INC.
We
are substantially dependent on our eVance business for revenue. If we are unable to maintain our eVance business for any reason
(including the various reasons described in the risk factors herein) or for no reason it will have a material adverse effect on
our company.
Substantially all
of our revenue has been generated from our eVance business (see our financial statements and related notes included in this prospectus
for more information), but we expect to begin generating revenue from our OmniSoft and CrowdPay business by the end of 2019. While
we expect to build out our OmniSoft software business over the next 12 to 18 months and to rely more heavily on our PayFac model
to generate revenue and to transition away from our reliance on our eVance business, there is no guarantee that we will be able
to do so. Accordingly, if we are unable to maintain our eVance business it will have a material adverse effect on our company.
Our
ability to anticipate and respond to changing industry trends and the needs and preferences of our merchants and consumers may
adversely affect our competitiveness or the demand for our products and services.
The
financial services and payments technology industries are subject to rapid technological advancements, resulting in new products
and services, including mobile payment applications and customized integrated software payment solutions, and an evolving competitive
landscape, as well as changing industry standards and merchant and consumer needs and preferences. We expect that new services
and technologies applicable to the financial services and payment technology industries will continue to emerge. These changes
may limit the competitiveness of and demand for our services. Also, our merchants and consumers continue to adopt new technology
for business and personal uses. We must anticipate and respond to these changes in order to remain competitive within our relative
markets. In addition, failure to develop value-added services that meet the needs and preferences of our merchants could adversely
affect our ability to compete effectively in our industry. Furthermore, merchants' or consumers' potential negative
reaction to our products and services can spread quickly through social media and damage our reputation before we have the opportunity
to respond. If we are unable to anticipate or respond to technological or industry standard changes on a timely basis, our ability
to remain competitive could be adversely affected.
Substantial
and increasingly intense competition worldwide in the financial services and payment technology industries may adversely affect
our overall business and operations.
The
financial services and payment technology industries are highly competitive, and our payment services and solutions compete against
all forms of financial services and payment systems, including cash and checks, and electronic, mobile, ecommerce and integrated
payment platforms. If we are unable to differentiate ourselves from our competitors and drive value for our merchants, we may
not be able to compete effectively. Our competitors may introduce their own value-added or other innovative services or solutions
more effectively than we do, which could adversely impact our current competitive position and prospects for growth. They also
may be able to offer and provide services that we do not offer. In addition, in certain of our markets in which we operate, we
process "on-us" transactions whereby we receive fees as a merchant acquirer and for processing services for the issuing
bank. As competition in these markets grows, the number of transactions in which we receive fees for both of these roles may decrease,
which could reduce our revenue and margins in these jurisdictions. We also compete against new entrants that have developed alternative
payment systems, ecommerce payment systems, payment systems for mobile devices and customized integrated software payment solutions.
Failure to compete effectively against any of these competitive threats could adversely affect our business, financial condition
or results of operations. In addition, some of our competitors are larger and have greater financial resources than us, enabling
them to maintain a wider range of product offerings, mount extensive promotional campaigns and be more aggressive in offering
products and services at lower rates, which may adversely affect our business, financial condition or results of operations.
10
Potential
changes in the competitive landscape, including disintermediation from other participants in the payments chain, could harm our
business.
We
expect that the competitive landscape will continue to change, including:
●
rapid and significant
    changes in technology, resulting in new and innovative payment methods and programs, that could place us at a competitive
    disadvantage and reduce the use of our products and services;
●
competitors, merchants,
    governments and other industry participants may develop products and services that compete with or replace our value-added
    products and services, including products and services that enable card networks and banks to transact with consumers directly;
●
participants in
    the financial services and payment technology industries may merge, create joint ventures, or form other business combinations
    that may strengthen their existing business services or create new payment services that compete with our services; and
●
new services and
    technologies that we develop may be impacted by industry-wide solutions and standards, including chip technology, tokenization,
    Blockchain and other safety and security technologies.
Failure
to compete effectively against any of these or other competitive threats could adversely affect our business, financial condition
or results of operations.
Global
economic, political and other conditions may adversely affect trends in consumer, business and government spending, which may
adversely impact the demand for our services and our revenue and profitability.
The
financial services and payment technology industries in which we operate depend heavily upon the overall level of consumer, business
and government spending. A sustained deterioration in general economic conditions (including distress in financial markets, turmoil
in specific economies around the world and additional government intervention), particularly in North America or Europe, or increases
in interest rates in key countries in which we operate, may adversely affect our financial performance by reducing the number
or average purchase amount of transactions we process. A reduction in the amount of consumer spending could result in a decrease
of our revenue and profits.
Adverse
economic trends may accelerate the timing, or increase the impact of, risks to our financial performance. These trends could include:
●
declining economies,
    foreign currency fluctuations and the pace of economic recovery can change consumer spending behaviors, such as cross-border
    travel patterns, on which the majority of our revenue is dependent;
●
low levels of consumer
    and business confidence typically associated with recessionary environments, and those markets experiencing relatively high
    unemployment, may result in decreased spending by cardholders;
●
budgetary concerns
    in the United States and other countries around the world could affect the United States and other specific sovereign credit
    ratings, impact consumer confidence and spending, and increase the risks of operating in those countries;
●
emerging market
    economies tend to be more volatile than the more established markets we serve in North America and Europe, and adverse economic
    trends may be more pronounced in those emerging markets where we conduct business;
●
financial institutions
    may restrict credit lines to cardholders or limit the issuance of new cards to mitigate cardholder credit concerns;
●
uncertainty and
    volatility in the performance of our merchants' businesses may make estimates of our revenues and financial performance
    less predictable;
●
cardholders may
    decrease spending for value-added services we market and sell; and
●
government intervention,
    including the effect of laws, regulations and government investments in our merchants, may have potential negative effects
    on our business and our relationships with our merchants or otherwise alter their strategic direction away from our products
    and services.
11
We
are subject to U.S. governmental regulation and other legal obligations, particularly related to privacy, data protection and
information security, and consumer protection laws across different markets where we conduct our business. Our actual or perceived
failure to comply with such obligations could harm our business.
In
the United States, we are subject to various consumer protection laws (including laws on disputed transactions) and related regulations.
If we are found to have breached any consumer protection laws or regulations in any such market, we may be subject to enforcement
actions that require us to change our business practices in a manner which may negatively impact revenue, as well as litigation,
fines, penalties and adverse publicity that could cause our customers to lose trust in us, which could have an adverse effect
on our reputation and business in a manner that harms our financial position.
We
collect personally identifiable information and other data from our consumers and merchants. Laws and regulations in several countries
restrict certain collection, processing, storage, use, disclosure and security of personal information, require notice to individuals
of privacy practices, and provide individuals with certain rights to prevent use and disclosure of protected information.
Future
restrictions on the collection, use, sharing or disclosure of personally identifiable information or additional requirements and
liability for security and data integrity could require us to modify our solutions and features, possibly in a material manner,
and could limit our ability to develop new services and features. If our privacy or data security measures fail to comply with
applicable current or future laws and regulations, we may be subject to litigation, regulatory investigations, enforcement notices
requiring us to change the way we use personal data or our marketing practices, fines or other liabilities, as well as negative
publicity and a potential loss of business.
Our
inability to protect our systems and data from continually evolving cybersecurity risks or other technological risks could affect
our reputation among our merchants and consumers and may expose us to liability.
In
conducting our business, we process, transmit and store sensitive business information and personal information about our merchants,
consumers, sales and financial institution partners, vendors, and other parties. This information may include account access credentials,
credit and debit card numbers, bank account numbers, social security numbers, driver's license numbers, names and addresses
and other types of sensitive business or personal information. Some of this information is also processed and stored by our merchants,
sales and financial institution partners, third-party service providers to whom we outsource certain functions and other agents,
which we refer to collectively as our associated third parties. We have certain responsibilities to card networks and their member
financial institutions for any failure, including the failure of our associated third parties, to protect this information.
We
are a regular target of malicious third-party attempts to identify and exploit system vulnerabilities, and/or penetrate or bypass
our security measures, in order to gain unauthorized access to our networks and systems or those of our associated third parties.
Such access could lead to the compromise of sensitive, business, personal or confidential information. As a result, we proactively
employ multiple methods at different layers of our systems to defend our systems against intrusion and attack and to protect the
data we collect. However, we cannot be certain that these measures will be successful and will be sufficient to counter all current
and emerging technology threats that are designed to breach our systems in order to gain access to confidential information.
Our
computer systems and our associated third parties' computer systems have been, and could be in the future, subject to breach,
and our data protection measures may not prevent unauthorized access. The techniques used to obtain unauthorized access, disable
or degrade service, or sabotage systems change frequently and are often difficult to detect. Threats to our systems and our associated
third parties' systems can derive from human error, fraud or malice on the part of employees or third parties, or may result
from accidental technological failure. Computer viruses and other malware can be distributed and could infiltrate our systems
or those of our associated third parties. In addition, denial of service or other attacks could be launched against us for a variety
of purposes, including to interfere with our services or create a diversion for other malicious activities. Our defensive measures
may not prevent downtime, unauthorized access or use of sensitive data. While we maintain cyber errors and omissions insurance
coverage that may cover certain aspects of cyber risks, our insurance coverage may be insufficient to cover all losses. Further,
while we select our associated third parties carefully, we do not control their actions. Any problems experienced by these third
parties, including those resulting from breakdowns or other disruptions in the services provided by such parties or cyber-attacks
and security breaches, could adversely affect our ability to service our merchant customers or otherwise conduct our business.
12
We
could also be subject to liability for claims relating to misuse of personal information, such as unauthorized marketing purposes
and violation of data privacy laws. We cannot provide assurance that the contractual requirements related to security and privacy
that we impose on our service providers who have access to customer and consumer data will be followed or will be adequate to
prevent the unauthorized use or disclosure of data. In addition, we have agreed in certain agreements to take certain protective
measures to ensure the confidentiality of merchant and consumer data. The costs of systems and procedures associated with such
protective measures may increase and could adversely affect our ability to compete effectively. Any failure to adequately enforce
or provide these protective measures could result in liability, protracted and costly litigation, governmental and card network
intervention and fines and, with respect to misuse of personal information of our merchants and consumers, lost revenue and reputational
harm.
Any
type of security breach, attack or misuse of data described above or otherwise, whether experienced by us or an associated third
party, could harm our reputation and deter existing and prospective merchants from using our services or from making electronic
payments generally, increase our operating expenses in order to contain and remediate the incident, expose us to unbudgeted or
uninsured liability, disrupt our operations (including potential service interruptions), distract our management, increase our
risk of regulatory scrutiny, result in the imposition of penalties and fines under state, federal and foreign laws or by card
networks and adversely affect our continued card network registration and financial institution sponsorship. If we were to be
removed from networks' lists of PCI DSS compliant service providers, our existing merchants, sales and financial institution
partners or other third parties may cease using or referring our services. Also, prospective merchants, sales partners, financial
institution partners or other third parties may choose to terminate their relationship with us, or delay or choose not to consider
us for their processing needs. In addition, card networks could refuse to allow us to process through their networks.
We
may experience failures in our processing systems due to software defects, computer viruses and development delays, which could
damage customer relations and expose us to liability.
Our
core business depends heavily on the reliability of our processing systems. A system outage or other failure could adversely affect
our business, financial condition or results of operations, including by damaging our reputation or exposing us to third-party
liability. Card network rules and certain governmental regulations allow for possible penalties if our systems do not meet certain
operating standards. To successfully operate our business, we must be able to protect our processing and other systems from interruption,
including from events that may be beyond our control. Events that could cause system interruptions include fire, natural disaster,
unauthorized entry, power loss, telecommunications failure, computer viruses, terrorist acts and war. Although we have taken steps
to protect against data loss and system failures, there is still risk that we may lose critical data or experience system failures.
To help protect against these events, we perform a significant portion of disaster recovery operations ourselves, as well as utilize
select third parties for certain operations, particularly outside of the United States. To the extent we outsource any disaster
recovery functions, we are at risk of the vendor's unresponsiveness or other failures in the event of breakdowns in our
systems. In addition, our property and business interruption insurance may not be adequate to compensate us for all losses or
failures that may occur.
Our
products and services are based on sophisticated software and computing systems that are constantly evolving. We often encounter
delays and cost overruns in developing changes implemented to our systems. In addition, the underlying software may contain undetected
errors, viruses or defects. Defects in our software products and errors or delays in our processing of electronic transactions
could result in additional development costs, diversion of technical and other resources from our other development efforts, loss
of credibility with current or potential merchants, harm to our reputation or exposure to liability claims. In addition, we rely
on technologies supplied to us by third parties that may also contain undetected errors, viruses or defects that could adversely
affect our business, financial condition or results of operations. Although we attempt to limit our potential liability for warranty
claims through disclaimers in our software documentation and limitation of liability provisions in our licenses and other agreements
with our merchants and partners, we cannot assure that these measures will be successful in limiting our liability. Additionally,
we and our merchants and partners are subject to card network rules. If we do not comply with card network requirements or standards,
we may be subject fines or sanctions, including suspension or termination of our registrations and licenses necessary to conduct
business.
13
Degradation
of the quality of the products and services we offer, including support services, could adversely impact our ability to attract
and retain merchants and partners.
Our
merchants and partners expect a consistent level of quality in the provision of our products and services. The support services
we provide are a key element of the value proposition to our merchants and partners. If the reliability or functionality of our
products and services is compromised or the quality of those products or services is otherwise degraded, or if we fail to continue
to provide a high level of support, we could lose existing merchants and partners and find it harder to attract new merchants
and partners. If we are unable to scale our support functions to address the growth of our merchant and partner network, the quality
of our support may decrease, which could adversely affect our ability to attract and retain merchants and partners.
Acquisitions
create certain risks and may adversely affect our business, financial condition or results of operations.
We
may make acquisitions of businesses or assets in the future. The acquisition and integration of businesses or assets involve a
number of risks. These risks include valuation (determining a fair price for the business or assets), integration (managing the
process of integrating the acquired business' people, products, technology and other assets to extract the value and synergies
projected to be realized in connection with the acquisition), regulation (obtaining regulatory or other government approvals that
may be necessary to complete the acquisition) and due diligence (including identifying risks to the prospects of the business,
including undisclosed or unknown liabilities or restrictions to be assumed in the acquisition).
The
process of integrating operations could cause an interruption of, or loss of momentum in, the activities of one or more of our
combined businesses and the possible loss of key personnel. The diversion of management's attention and any delays or difficulties
encountered in connection with acquisitions and their integration could adversely affect our business, financial condition or
results of operations.
Continued
consolidation in the banking industry could adversely affect our growth.
The
banking industry remains subject to consolidation regardless of overall economic conditions. In addition, in times of economic
distress, various regulators in the markets we serve have acquired and in the future may acquire financial institutions, including
banks with which we partner. If a current financial institution referral partner of ours is acquired by another bank, the acquiring
bank may seek to terminate our agreement and impose its own merchant services program on the acquired bank. If a financial institution
referral partner acquires another bank, our financial institution referral partner may take the opportunity to conduct a competitive
bidding process to determine whether to maintain our merchant acquiring services or switch to another provider. In either situation,
we may be unable to retain the relationship post-acquisition, or may have to offer financial concessions to do so, which could
adversely affect our results of operations or growth. If a current financial institution referral partner of ours is acquired
by a regulator, the regulator may seek to alter the terms or terminate our existing agreement with the acquired financial institution.
Increased
customer, referral partner or sales partner attrition could cause our financial results to decline.
We
experience attrition in merchant credit and debit card processing volume resulting from several factors, including business closures,
transfers of merchants' accounts to our competitors, unsuccessful contract renewal negotiations and account closures that
we initiate for various reasons, such as heightened credit risks or contract breaches by merchants. In addition, if an existing
sales partner switches to another payment processor, terminates our services, internalizes payment processing functions that we
perform, merges with or is acquired by one of our competitors, or shuts down or becomes insolvent, we may no longer receive new
customer referrals from the sales partner, and we risk losing existing merchants that were originally enrolled by the sales partner.
We cannot predict the level of attrition in the future and it could increase. Our referral partners are a significant source of
new business. Higher than expected attrition could adversely affect our business, financial condition or results of operations.
In addition, in certain of the markets in which we conduct business, a substantial portion of our revenue is derived from long-term
contracts. If we are unable to renew our referral partner and our merchant contracts on favorable terms, or at all, our business,
financial condition or results of operations could be adversely affected.
14
We
incur chargeback liability when our merchants refuse to or cannot reimburse chargebacks resolved in favor of their customers.
Any increase in chargebacks not paid by our merchants may adversely affect our business, financial condition or results of operations.
In
the event a dispute between a cardholder and a merchant is not resolved in favor of the merchant, the transaction is normally
charged back to the merchant and the purchase price is credited or otherwise refunded to the cardholder. If we are unable to collect
such amounts from the merchant's account or reserve account (if applicable), or if the merchant refuses or is unable, due
to closure, bankruptcy or other reasons, to reimburse us for a chargeback, we are responsible for the amount of the refund paid
to the cardholder. The risk of chargebacks is typically greater with those merchants that promise future delivery of goods and
services rather than delivering goods or rendering services at the time of payment, as well as "card not present"
transactions in which consumers do not physically present cards to merchants in connection with the purchase of goods and services,
such as ecommerce, telephonic and mobile transactions. We may experience significant losses from chargebacks in the future. Any
increase in chargebacks not paid by our merchants could have a material adverse effect on our business, financial condition or
results of operations. We have policies and procedures to monitor and manage merchant-related credit risks and often mitigate
such risks by requiring collateral (such as cash reserves) and monitoring transaction activity. Notwithstanding our policies and
procedures for managing credit risk, it is possible that a default on such obligations by one or more of our merchants could adversely
affect our business, financial condition or results of operations.
Failure
to maintain or collect reimbursements from our financial institution referral partners could adversely affect our business.
Certain
of our long-term referral arrangements with our financial institution partners permit our bank partners to offer their merchant
customers lower rates for processing services than we typically provide to the general market. If a bank partner elects to offer
these lower rates, under our contract the partner is required to reimburse us for the full amount of the discount provided to
its merchant customers. Notwithstanding such contractual commitments, there can be no assurance that these contractual provisions
will fully protect us from potential losses should a bank partner default on its obligations to reimburse us or seek to discontinue
such reimbursement obligations in the future. If we are unable to collect the full amount of any such reimbursements for any reason,
we may incur losses. In addition, any discount provided by our financial institution partner may cause merchants in these markets
to demand lower rates for our services in the future, which could further reduce our margins or cause us to lose merchants, either
of which could adversely affect our business, financial condition or results of operations.
Fraud
by merchants or others could adversely affect our business, financial condition or results of operations.
We
may be liable for certain fraudulent transactions and credits initiated by merchants or others. Examples of merchant fraud include
merchants or other parties knowingly using a stolen or counterfeit credit or debit card, card number, or other credentials to
record a false sales or credit transaction, processing an invalid card or intentionally failing to deliver the merchandise or
services sold in an otherwise valid transaction. Criminals are using increasingly sophisticated methods to engage in illegal activities
such as counterfeiting and fraud. Failure to effectively manage risk and prevent fraud could increase our chargeback liability
or cause us to incur other liabilities. It is possible that incidents of fraud could increase in the future. Increases in chargebacks
or other liabilities could adversely affect our business, financial condition or results of operations.
Because
we rely on third-party vendors to provide products and services, we could be adversely impacted if they fail to fulfill their
obligations.
We
depend on third-party vendors and partners to provide us with certain products and services, including components of our computer
systems, software, data centers and telecommunications networks, to conduct our business. For example, we rely on third parties
for services such as organizing and accumulating certain daily transaction data on a merchant-by-merchant and card issuer-by-card
issuer basis and forwarding the accumulated data to the relevant card network. We also rely on third parties for specific software
and hardware used in providing our products and services. Some of these organizations and service providers are our competitors
or provide similar services and technology to our competitors, and we do not have long-term or exclusive contracts with them.
Our
systems and operations or those of our third-party vendors and partners could be exposed to damage or interruption from, among
other things, fire, natural disaster, power loss, telecommunications failure, unauthorized entry, computer viruses, denial-of-service
attacks, acts of terrorism, human error, vandalism or sabotage, financial insolvency, bankruptcy and similar events. In addition,
we may be unable to renew our existing contracts with our most significant vendors and partners or our vendors and partners may
stop providing or otherwise supporting the products and services we obtain from them, and we may not be able to obtain these or
similar products or services on the same or similar terms as our existing arrangements, if at all. The failure of our vendors
and partners to perform their obligations and provide the products and services we obtain from them in a timely manner for any
reason could adversely affect our operations and profitability due to, among other consequences:
●
loss of revenues;
●
loss of merchants
    and partners;
●
loss of merchant
    and cardholder data;
●
fines imposed by
    card networks;
●
harm to our business
    or reputation resulting from negative publicity;
●
exposure to fraud
    losses or other liabilities;
●
additional operating
    and development costs; or
●
diversion of management,
    technical and other resources.
15
Our
risk management policies and procedures may not be fully effective in mitigating our risk exposure in all market environments
or against all types of risk.
We
operate in a rapidly changing industry. Accordingly, our risk management policies and procedures may not be fully effective to
identify, monitor and manage all risks our business encounters. If our policies and procedures are not fully effective or we are
not successful in identifying and mitigating all risks to which we are or may be exposed, we may suffer uninsured liability, harm
to our reputation or be subject to litigation or regulatory actions that could adversely affect our business, financial condition
or results of operations.
A
significant number of our merchants are small- and medium-sized businesses and small affiliates of large companies, which can
be more difficult and costly to retain than larger enterprises and may increase the impact of economic fluctuations on us.
We
market and sell our products and services to, among others, small and midsized businesses ("SMBs") and small affiliates
of large companies. To continue to grow our revenue, we must add merchants, sell additional services to existing merchants and
encourage existing merchants to continue doing business with us. However, retaining SMBs can be more difficult than retaining
large enterprises as SMB merchants:
●
often have higher
    rates of business failures and more limited resources;
●
are typically less
    sophisticated in their ability to make technology-related decisions based on factors other than price;
●
may have decisions
    related to the choice of payment processor dictated by their affiliated parent entity; and
●
are more able to
    change their payment processors than larger organizations dependent on our services.
SMBs
are typically more susceptible to the adverse effects of economic fluctuations. Adverse changes in the economic environment or
business failures of our SMB merchants may have a greater impact on us than on our competitors who do not focus on SMBs to the
extent that we do. As a result, we may need to attract and retain new merchants at an accelerated rate or decrease our expenses
to reduce negative impacts on our business, financial condition and results of operations.
Our
business depends on a strong and trusted brand, and damage to our reputation, or the reputation of our partners, could adversely
affect our business, financial condition or results of operations.
We
market our products and services under our brand or the brand of our partners, or both, and we must protect and grow the value
of our brand to continue to be successful in the future. If an incident were to occur that damages our reputation, or the reputation
of our partners, in any of our major markets, the value of our brand could be adversely affected and our business could be damaged.
Our
ability to recruit, retain and develop qualified personnel is critical to our success and growth.
All
of our businesses function at the intersection of rapidly changing technological, social, economic and regulatory environments
that require a wide range of expertise and intellectual capital. For us to successfully compete and grow, we must recruit, retain
and develop personnel who can provide the necessary expertise across a broad spectrum of intellectual capital needs. In addition,
we must develop, maintain and, as necessary, implement appropriate succession plans to assure we have the necessary human resources
capable of maintaining continuity in our business. The market for qualified personnel is competitive and we may not succeed in
recruiting additional personnel or may fail to effectively replace current personnel who depart with qualified or effective successors.
Our effort to retain and develop personnel may also result in significant additional expenses, which could adversely affect our
profitability. We cannot assure that key personnel, including our executive officers, will continue to be employed or that we
will be able to attract and retain qualified personnel in the future. Failure to recruit, retain or develop qualified personnel
could adversely affect our business, financial condition or results of operations.
16
There
may be a decline in the use of cards as a payment mechanism for consumers or adverse developments with respect to the card industry
in general.
If
consumers do not continue to use credit or debit cards as a payment mechanism for their transactions or if there is a change in
the mix of payments between cash, credit cards and debit cards our business could be adversely affected. Consumer credit risk
may make it more difficult or expensive for consumers to gain access to credit facilities such as credit cards. Regulatory changes
may result in financial institutions seeking to charge their customers additional fees for use of credit or debit cards. Such
fees may result in decreased use of credit or debit cards by cardholders. We believe future growth in the use of credit and debit
cards and other electronic payments will be driven by the cost, ease-of-use and quality of services offered to consumers and businesses.
In order to consistently increase and maintain our profitability, consumers and businesses must continue to use electronic payment
methods that we process, including credit and debit cards.
Increases
in card network fees and other changes to fee arrangements may result in the loss of merchants or a reduction in our earnings.
From
time to time, card networks, including Visa and MasterCard, increase the fees that they charge processors. We could attempt to
pass these increases along to our merchants, but this strategy might result in the loss of merchants to our competitors who do
not pass along the increases. If competitive practices prevent us from passing along the higher fees to our merchants in the future,
we may have to absorb all or a portion of such increases, which may increase our operating costs and reduce our earnings.
In
addition, in certain of our markets, card issuers pay merchant acquirers such as us fees based on debit card usage in an effort
to encourage debit card use. If these card issuers discontinue this practice, our revenue and margins in these jurisdictions could
be adversely affected.
If
we fail to comply with the applicable requirements of card networks, they could seek to fine us, suspend us or terminate our registrations.
If our merchants or sales partners incur fines or penalties that we cannot collect from them, we may have to bear the cost of
such fines or penalties.
In
order to provide our transaction processing services, several of our subsidiaries are registered with Visa and MasterCard and
other card networks as members or service providers for member institutions. Visa, MasterCard, and other card networks, set the
rules and standards with which we must comply. The termination of our member registration or our status as a certified service
provider, or any changes in network rules or standards, including interpretation and implementation of the rules or standards,
that increase the cost of doing business or limit our ability to provide transaction processing services to or through our merchants
or partners, could adversely affect our business, financial condition or results of operations.
As
such, we and our merchants are subject to card network rules that could subject us or our merchants to a variety of fines or penalties
that may be levied by card networks for certain acts or omissions by us. The rules of card networks are set by their boards, which
may be influenced by card issuers, and some of those issuers are our competitors with respect to these processing services. Many
banks directly or indirectly sell processing services to merchants in direct competition with us. These banks could attempt, by
virtue of their influence on the networks, to alter the networks' rules or policies to the detriment of non-members including
certain of our businesses. The termination of our registrations or our status as a service provider or a merchant processor, or
any changes in network rules or standards, including interpretation and implementation of the rules or standards, that increase
the cost of doing business or limit our ability to provide transaction processing services to our merchants, could adversely affect
our business, financial condition or results of operations. If a merchant or sales partner fails to comply with the applicable
requirements of card networks, it could be subject to a variety of fines or penalties that may be levied by card networks. If
we cannot collect the amounts from the applicable merchant or sales partner, we may have to bear the cost of the fines or penalties,
resulting in lower earnings for us. The termination of our registration, or any changes in card network rules that would impair
our registration, could require us to stop providing payment processing services relating to the affected card network, which
would adversely affect our ability to conduct our business.
17
OMNISOFT.IO,
INC.
Our
growth may not be sustainable and depends on our ability to attract new merchants, retain existing merchants and increase sales
to both new and existing merchants.
We
principally generate revenues through the sale of subscriptions to our platform and the sale of additional solutions to our merchants.
Our subscription plans typically have a one-month term, although a small percentage of our merchants have annual or multi-year
subscription terms. Our merchants have no obligation to renew their subscriptions after their subscription term expires. As a
result, even though the number of merchants using our platform has grown rapidly in recent years, there can be no assurance that
we will be able to retain these merchants. We have historically experienced merchant turnover as a result of many of our merchants
being small- and medium-sized businesses, or SMBs, that are more susceptible than larger businesses to general economic conditions
and other risks affecting their businesses. Many of these SMBs are in the entrepreneurial stage of their development and there
is no guarantee that their businesses will succeed. Our costs associated with subscription renewals are substantially lower than
costs associated with generating revenue from new merchants or costs associated with generating sales of additional solutions
to existing merchants. Therefore, if we are unable to retain merchants or if we are unable to increase revenues from existing
merchants, even if such losses are offset by an increase in new merchants or an increase in other revenues, our operating results
could be adversely impacted.
We
may also fail to attract new merchants, retain existing merchants or increase sales to both new and existing merchants as a result
of a number of other factors, including: reductions in our current or potential merchants' spending levels; competitive
factors affecting the software as a service, or SaaS, business software applications market, including the introduction of competing
platforms, discount pricing and other strategies that may be implemented by our competitors; our ability to execute on our growth
strategy and operating plans; a decline in our merchants' level of satisfaction with our platform and merchants' usage
of our platform; the difficulty and cost to switch to a competitor may not be significant for many of our merchants; changes in
our relationships with third parties, including our partners, app developers, theme designers, referral sources and payment processors;
the timeliness and success of new products and services we may offer in the future; the frequency and severity of any system outages;
technological change; and our focus on long-term value over short-term results, meaning that we may make strategic decisions that
may not maximize our short-term revenue or profitability if we believe that the decisions are consistent with our mission and
will improve our financial performance over the long-term.
Additionally,
we anticipate that our growth rate will decline over time to the extent that the number of merchants using our platform increases
and we achieve higher market penetration rates. To the extent our growth rate slows, our business performance will become increasingly
dependent on our ability to retain existing merchants and increase sales to existing merchants.
If
we fail to improve and enhance the functionality, performance, reliability, design, security and scalability of our platform in
a manner that responds to our merchants' evolving needs, our business may be adversely affected.
The
markets in which we compete are characterized by constant change and innovation and we expect them to continue to evolve rapidly.
Our success has been based on our ability to identify and anticipate the needs of our merchants and design a platform that provides
them with the tools they need to operate their businesses. Our ability to attract new merchants, retain existing merchants and
increase sales to both new and existing merchants will depend in large part on our ability to continue to improve and enhance
the functionality, performance, reliability, design, security and scalability of our platform.
We
may experience difficulties with software development that could delay or prevent the development, introduction or implementation
of new solutions and enhancements. Software development involves a significant amount of time for our research and development
team, as it can take our developers months to update, code and test new and upgraded solutions and integrate them into our platform.
We must also continually update, test and enhance our software platform. For example, our design team spends a significant amount
of time and resources incorporating various design enhancements, such as customized colors, fonts, content and other features,
into our platform. The continual improvement and enhancement of our platform requires significant investment and we may not have
the resources to make such investment. Our improvements and enhancements may not result in our ability to recoup our investments
in a timely manner, or at all. To the extent we are not able to improve and enhance the functionality, performance, reliability,
design, security and scalability of our platform in a manner that responds to our merchants' evolving needs, our business,
operating results and financial condition will be adversely affected.
18
We
store personally identifiable information of our merchants and their customers. If the security of this information is compromised
or otherwise subjected to unauthorized access, our reputation may be harmed and we may be exposed to liability.
We
store personally identifiable information, credit card information and other confidential information of our merchants and their
customers. The third-party apps sold on our platform may also store personally identifiable information, credit card information
and other confidential information of our merchants and their customers. We do not regularly monitor or review the content that
our merchants upload and store and, therefore, do not control the substance of the content on our servers, which may include personal
information. We may experience successful attempts by third parties to obtain unauthorized access to the personally identifiable
information of our merchants and their customers. This information could also be otherwise exposed through human error, malfeasance
or otherwise. The unauthorized access or compromise of this personally identifiable information could have a material adverse
effect on our business, financial condition and results of operations. Even if such a data breach were to affect one or more of
our competitors, the resulting consumer concern could negatively affect our merchants and our business.
We
are also subject to federal, state, provincial and foreign laws regarding privacy and protection of data. Some jurisdictions have
enacted laws requiring companies to notify individuals of data security breaches involving certain types of personal data and
our agreements with certain merchants require us to notify them in the event of a security incident. We post on our website our
privacy policy and terms of service, which describe our practices concerning the use, transmission and disclosure of merchant
data and data relating to their customers. In addition, the interpretation of data protection laws in the United States, and elsewhere,
and their application to the internet, is unclear and in a state of flux. There is a risk that these laws may be interpreted and
applied in conflicting ways from jurisdiction to jurisdiction, and in a manner that is not consistent with our current data protection
practices. Changes to such data protection laws may impose more stringent requirements for compliance and impose significant penalties
for non-compliance. Any such new laws or regulations, or changing interpretations of existing laws and regulations, may cause
us to incur significant costs and expend significant effort to ensure compliance. Because our services are accessible worldwide,
certain foreign jurisdictions may claim that we are required to comply with their laws, including in jurisdictions where we have
no local entity, employees or infrastructure.
Our
failure to comply with federal, state, provincial and foreign laws regarding privacy and protection of data could lead to significant
fines and penalties imposed by regulators, as well as claims by our merchants or their customers. These proceedings or violations
could force us to spend money in defense or settlement of these proceedings, result in the imposition of monetary liability, diversion
of management's time and attention, increase our costs of doing business, and materially adversely affect our reputation
and the demand for our solutions. In addition, if our security measures fail to protect credit card information adequately, we
could be liable to both our merchants and their customers for their losses, as well as our payments processing partners under
our agreements with them. As a result, we could be subject to fines and higher transaction fees, we could face regulatory action,
and our merchants could end their relationships with us. There can be no assurance that the limitations of liability in our contracts
would be enforceable or adequate or would otherwise protect us from any such liabilities or damages with respect to any particular
claim. We also cannot be sure that our existing insurance coverage and coverage for errors and omissions will continue to be available
on acceptable terms or will be available in sufficient amounts to cover one or more large claims, or that our insurers will not
deny coverage as to any future claim. The successful assertion of one or more large claims against us that exceeds our available
insurance coverage, or changes in our insurance policies, including premium increases or the imposition of large deductible or
co-insurance requirements, could have an adverse effect on our business, financial condition and results of operations.
19
If
our software contains serious errors or defects, we may lose revenue and market acceptance and may incur costs to defend or settle
claims with our merchants.
Software
such as ours often contains errors, defects, security vulnerabilities or software bugs that are difficult to detect and correct,
particularly when first introduced or when new versions or enhancements are released. Despite internal testing, our platform
may contain serious errors or defects, security vulnerabilities or software bugs that we may be unable to successfully correct
in a timely manner or at all, which could result in lost revenue, significant expenditures of capital, a delay or loss in market
acceptance and damage to our reputation and brand, any of which could have an adverse effect on our business, financial condition
and results of operations. Furthermore, our platform is a multi-tenant cloud based system that allows us to deploy new versions
and enhancements to all of our merchants simultaneously. To the extent we deploy new versions or enhancements that contain errors,
defects, security vulnerabilities or software bugs to all of our merchants simultaneously, the consequences would be more severe
than if such versions or enhancements were only deployed to a smaller number of our merchants.
Since
our merchants use our services for processes that are critical to their businesses, errors, defects, security vulnerabilities,
service interruptions or software bugs in our platform could result in losses to our merchants. Our merchants may seek significant
compensation from us for any losses they suffer or cease conducting business with us altogether. Further, a merchant could share
information about bad experiences on social media, which could result in damage to our reputation and loss of future sales. There
can be no assurance that provisions typically included in our agreements with our merchants that attempt to limit our exposure
to claims would be enforceable or adequate or would otherwise protect us from liabilities or damages with respect to any particular
claim. Even if not successful, a claim brought against us by any of our merchants would likely be time-consuming and costly to
defend and could seriously damage our reputation and brand, making it harder for us to sell our solutions.
We
may be unable to achieve or maintain data transmission capacity.
Our
merchants often draw significant numbers of consumers to their shops over short periods of time, including from events such as
new product releases, holiday shopping seasons and flash sales, which significantly increases the traffic on our servers and the
volume of transactions processed on our platform. Our servers may be unable to achieve or maintain data transmission capacity
high enough to handle increased traffic or process orders in a timely manner. Our failure to achieve or maintain high data transmission
capacity could significantly reduce demand for our solutions. In the future, we may be required to allocate resources, including
spending substantial amounts of money, to build, purchase or lease additional data centers and equipment and upgrade our technology
and network infrastructure in order to handle the increased load. Our ability to deliver our solutions also depends on the development
and maintenance of internet infrastructure by third-parties, including the maintenance of reliable networks with the necessary
speed, data capacity and bandwidth. If one of these third-parties suffers from capacity constraints, our business may be adversely
affected. In addition, because we and our merchants generate a disproportionate amount of revenue in the fourth quarter, any disruption
in our merchants' ability to process and fulfill customer orders in the fourth quarter could have a disproportionately negative
effect on our operating results.
Our
growth depends in part on the success of our strategic relationships with third parties.
We
anticipate that the growth of our business will continue to depend on third-party relationships, including relationships with
our app developers, theme designers, referral sources, resellers, payment processors and other partners. In addition to growing
our third-party partner ecosystem, we intend to pursue additional relationships with other third-parties, such as technology and
content providers and implementation consultants. Identifying, negotiating and documenting relationships with third parties requires
significant time and resources as does integrating third-party content and technology. Some of the third parties that sell our
services have the direct contractual relationships with the merchants, and therefore we risk the loss of such merchants if the
third parties fail to perform their obligations. Our agreements with providers of cloud hosting, technology, content and consulting
services are typically non-exclusive and do not prohibit such service providers from working with our competitors or from offering
competing services. These third-party providers may choose to terminate their relationship with us or to make material changes
to their businesses, products or services. Our competitors may be effective in providing incentives to third parties to favor
their products or services or to prevent or reduce subscriptions to our platform. In addition, these providers may not perform
as expected under our agreements or under their agreements with our merchants, and we or our merchants may in the future have
disagreements or disputes with such providers. If we lose access to products or services from a particular supplier, or experience
a significant disruption in the supply of products or services from a current supplier, especially a single-source supplier, it
could have an adverse effect on our business and operating results.
20
If
we fail to maintain a consistently high level of customer service, our brand, business and financial results may be harmed.
We
believe our focus on customer service and support is critical to onboarding new merchants and retaining our existing merchants
and growing our business. As a result, we have invested heavily in the quality and training of our support team along with the
tools they use to provide this service. If we are unable to maintain a consistently high level of customer service, we may lose
existing merchants. In addition, our ability to attract new merchants is highly dependent on our reputation and on positive recommendations
from our existing merchants. Any failure to maintain a consistently high level of customer service, or a market perception that
we do not maintain high-quality customer service, could adversely affect our reputation and the number of positive merchant referrals
that we receive.
We
use a limited number of data centers to deliver our services. Any disruption of service at these facilities could harm our business.
We
currently manage our services and serve all of our merchants from two third-party data center facilities. While we own the hardware
on which our platform runs and deploy this hardware to the data center facilities, we do not control the operation of these facilities.
We have experienced, and may in the future experience, failures at the third-party data centers where our hardware is deployed
from time to time. Data centers are vulnerable to damage or interruption from human error, intentional bad acts, earthquakes,
hurricanes, floods, fires, war, terrorist attacks, power losses, hardware failures, systems failures, telecommunications failures
and similar events. Any of these events could result in lengthy interruptions in our services. Changes in law or regulations applicable
to data centers in various jurisdictions could also cause a disruption in service. Interruptions in our services would reduce
our revenue, subject us to potential liability and adversely affect our ability to retain our merchants or attract new merchants.
The performance, reliability and availability of our platform is critical to our reputation and our ability to attract and retain
merchants. Merchants could share information about bad experiences on social media, which could result in damage to our reputation
and loss of future sales. The property and business interruption insurance coverage we carry may not be adequate to compensate
us fully for losses that may occur.
Mobile
devices are increasingly being used to conduct commerce, and if our solutions do not operate as effectively when accessed through
these devices, our merchants and their customers may not be satisfied with our services, which could harm our business.
We
are dependent on the interoperability of our platform with third-party mobile devices and mobile operating systems as well as
web browsers that we do not control. Any changes in such devices, systems or web browsers that degrade the functionality of our
platform or give preferential treatment to competitive services could adversely affect usage of our platform. Effective mobile
functionality is integral to our long-term development and growth strategy. In the event that our merchants and their customers
have difficulty accessing and using our platform on mobile devices, our business and operating results could be adversely affected.
Our
business and prospects would be harmed if changes to technologies used in our platform or new versions or upgrades of operating
systems and internet browsers adversely impact the process by which merchants and consumers interface with our platform.
We
believe the simple and straightforward interface for our platform has helped us to expand and offer our solutions to merchants
with limited technical expertise. In the future, providers of internet browsers could introduce new features that would make it
difficult for merchants to use our platform. In addition, internet browsers for desktop or mobile devices could introduce new
features, change existing browser specifications such that they would be incompatible with our platform, or prevent consumers
from accessing our merchants' shops. Any changes to technologies used in our platform, to existing features that we rely
on, or to operating systems or internet browsers that make it difficult for merchants to access our platform or consumers to access
our merchants' shops, may make it more difficult for us to maintain or increase our revenues and could adversely impact
our business and prospects.
21
The
impact of worldwide economic conditions, including the resulting effect on spending by SMBs, may adversely affect our business,
operating results and financial condition.
A
majority of the merchants that use our platform are SMBs and many of our merchants are in the entrepreneurial stage of their development.
Our performance is subject to worldwide economic conditions and their impact on levels of spending by SMBs and their customers.
SMBs and entrepreneurs may be disproportionately affected by economic downturns. SMBs and entrepreneurs frequently have limited
budgets and may choose to allocate their spending to items other than our platform, especially in times of economic uncertainty
or recessions.
Economic
downturns may also adversely impact retail sales, which could result in merchants who use our platform going out of business or
deciding to stop using our services in order to conserve cash. Weakening economic conditions may also adversely affect third-parties
with whom we have entered into relationships and upon which we depend in order to grow our business. Uncertain and adverse economic
conditions may also lead to increased refunds and chargebacks, any of which could adversely affect our business.
We
may be subject to claims by third-parties of intellectual property infringement.
The
software industry is characterized by the existence of a large number of patents and frequent claims and related litigation regarding
patents and other intellectual property rights. Third parties have in the past asserted, and may in the future assert, that our
platform, solutions, technology, methods or practices infringe, misappropriate or otherwise violate their intellectual property
or other proprietary rights. Such claims may be made by our competitors seeking to obtain a competitive advantage or by other
parties. Additionally, in recent years, non-practicing entities have begun purchasing intellectual property assets for the purpose
of making claims of infringement and attempting to extract settlements from companies like ours. The risk of claims may increase
as the number of solutions that we offer and competitors in our market increases and overlaps occur. In addition, to the extent
that we gain greater visibility and market exposure, we face a higher risk of being the subject of intellectual property infringement
claims.
Any
such claims, regardless of merit, that result in litigation could result in substantial expenses, divert the attention of management,
cause significant delays in introducing new or enhanced services or technology, materially disrupt the conduct of our business
and have a material and adverse effect on our brand, business, financial condition and results of operations. Although we do not
believe that our proprietary technology, processes and methods have been patented by any third party, it is possible that patents
have been issued to third parties that cover all or a portion of our business. As a consequence of any patent or other intellectual
property claims, we could be required to pay substantial damages, develop non-infringing technology, enter into royalty-bearing
licensing agreements, stop selling or marketing some or all of our solutions or re-brand our solutions. We may also be obligated
to indemnify our merchants or partners or pay substantial settlement costs, including royalty payments, in connection with any
such claim or litigation and to obtain licenses, modify applications or refund fees, which could be costly. If it appears necessary,
we may seek to secure license rights to intellectual property that we are alleged to infringe at a significant cost, potentially
even if we believe such claims to be without merit. If required licenses cannot be obtained, or if existing licenses are not renewed,
litigation could result. Litigation is inherently uncertain and can cause us to expend significant money, time and attention to
it, even if we are ultimately successful. Any adverse decision could result in a loss of our proprietary rights, subject us to
significant liabilities, require us to seek licenses for alternative technologies from third-parties, prevent us from offering
all or a portion of our solutions and otherwise negatively affect our business and operating results.
22
We
may be unable to obtain, maintain and protect our intellectual property rights and proprietary information or prevent third-parties
from making unauthorized use of our technology.
Our
trade secrets, trademarks, trade dress, domain names, copyrights, trade secrets and other intellectual property rights are important
to our business. We rely on a combination of confidentiality clauses, assignment agreements and license agreements with employees
and third parties, trade secrets, copyrights and trademarks to protect our intellectual property and competitive advantage, all
of which offer only limited protection. The steps we take to protect our intellectual property require significant resources and
may be inadequate. We will not be able to protect our intellectual property if we are unable to enforce our rights or if we do
not detect unauthorized use of our intellectual property. We may be required to use significant resources to monitor and protect
these rights. Despite our precautions, it may be possible for unauthorized third parties to copy our platform and use information
that we regard as proprietary to create services that compete with ours. Some license provisions protecting against unauthorized
use, copying, transfer and disclosure of our proprietary information may be unenforceable under the laws of certain jurisdictions
and foreign countries. Further, we hold no issued patents and thus would not be entitled to exclude or prevent our competitors
from using our proprietary technology, methods and processes to the extent independently developed by our competitors.
We
enter into confidentiality and invention assignment agreements with our employees and consultants and enter into confidentiality
agreements with the parties with whom we have strategic relationships and business alliances. No assurance can be given that these
agreements will be effective in controlling access to our proprietary information and trade secrets. The confidentiality agreements
on which we rely to protect certain technologies may be breached, may not be adequate to protect our confidential information,
trade secrets and proprietary technologies and may not provide an adequate remedy in the event of unauthorized use or disclosure
of our confidential information, trade secrets or proprietary technology. Further, these agreements do not prevent our competitors
or others from independently developing software that is substantially equivalent or superior to our software. In addition, others
may independently discover our trade secrets and confidential information, and in such cases, we likely would not be able to assert
any trade secret rights against such parties. Additionally, we may from time to time be subject to opposition or similar proceedings
with respect to applications for registrations of our intellectual property, including our trademarks. While we aim to acquire
adequate protection of our brand through trademark registrations in key markets, occasionally third parties may have already registered
or otherwise acquired rights to identical or similar marks for services that also address our market. We rely on our brand and
trademarks to identify our platform and to differentiate our platform and services from those of our competitors, and if we are
unable to adequately protect our trademarks third parties may use our brand names or trademarks similar to ours in a manner that
may cause confusion in the market, which could decrease the value of our brand and adversely affect our business and competitive
advantages.
Policing
unauthorized use of our intellectual property and misappropriation of our technology and trade secrets is difficult and we may
not always be aware of such unauthorized use or misappropriation. Despite our efforts to protect our intellectual property rights,
unauthorized third-parties may attempt to use, copy or otherwise obtain and market or distribute our intellectual property rights
or technology or otherwise develop services with the same or similar functionality as our platform. If our competitors infringe,
misappropriate or otherwise misuse our intellectual property rights and we are not adequately protected, or if our competitors
are able to develop a platform with the same or similar functionality as ours without infringing our intellectual property, our
competitive advantage and results of operations could be harmed. Litigation brought to protect and enforce our intellectual property
rights could be costly, time consuming and distracting to management and could result in the impairment or loss of portions of
our intellectual property. As a result, we may be aware of infringement by our competitors but may choose not to bring litigation
to enforce our intellectual property rights due to the cost, time and distraction of bringing such litigation. Furthermore, if
we do decide to bring litigation, our efforts to enforce our intellectual property rights may be met with defenses, counterclaims
and countersuits challenging or opposing our right to use and otherwise exploit particular intellectual property, services and
technology or the enforceability of our intellectual property rights. Our inability to protect our proprietary technology against
unauthorized copying or use, as well as any costly litigation or diversion of our management's attention and resources,
could delay further sales or the implementation of our solutions, impair the functionality of our platform, prevent or delay
introductions of new or enhanced solutions, result in our substituting inferior or more costly technologies into our platform
or injure our reputation. Furthermore, many of our current and potential competitors have the ability to dedicate substantially
greater resources to developing and protecting their technology or intellectual property rights than we do.
23
Our
use of "open source" software could negatively affect our ability to sell our solutions and subject us to possible
litigation.
Our
solutions incorporate and are dependent to a significant extent on the use and development of "open source" software
and we intend to continue our use and development of open source software in the future. Such open source software is generally
licensed by its authors or other third-parties under open source licenses and is typically freely accessible, usable and modifiable.
Pursuant to such open source licenses, we may be subject to certain conditions, including requirements that we offer our proprietary
software that incorporates the open source software for no cost, that we make available source code for modifications or derivative
works we create based upon, incorporating or using the open source software and that we license such modifications or derivative
works under the terms of the particular open source license. If an author or other third party that uses or distributes such open
source software were to allege that we had not complied with the conditions of one or more of these licenses, we could be required
to incur significant legal expenses defending against such allegations and could be subject to significant damages, enjoined
from the sale of our solutions that contained or are dependent upon the open source software and required to comply with the foregoing
conditions, which could disrupt the distribution and sale of some of our solutions. Litigation could be costly for us to defend,
have a negative effect on our operating results and financial condition or require us to devote additional research and development
resources to change our platform. The terms of many open source licenses to which we are subject have not been interpreted by
U.S. or foreign courts. As there is little or no legal precedent governing the interpretation of many of the terms of certain
of these licenses, the potential impact of these terms on our business is uncertain and may result in unanticipated obligations
regarding our solutions and technologies. It is our view that we do not distribute our software, since no installation of our
software is necessary and our platform is accessible solely through the "cloud." Nevertheless, this position could
be challenged. Any requirement to disclose our proprietary source code, termination of open source license rights or payments
of damages for breach of contract could be harmful to our business, results of operations or financial condition, and could help
our competitors develop products and services that are similar to or better than ours.
In
addition to risks related to license requirements, usage of open source software can lead to greater risks than the use of third-party
commercial software, as open source licensors generally do not provide warranties, controls on the origin or development of the
software, or remedies against the licensors. Many of the risks associated with usage of open source software cannot be eliminated
and could adversely affect our business.
Although
we believe that we have complied with our obligations under the various applicable licenses for open source software, it is possible
that we may not be aware of all instances where open source software has been incorporated into our proprietary software or used
in connection with our solutions or our corresponding obligations under open source licenses. We do not have robust open source
software usage policies or monitoring procedures in place. We rely on multiple software programmers to design our proprietary
software and we cannot be certain that our programmers have not incorporated open source software into our proprietary software
that we intend to maintain as confidential or that they will not do so in the future. To the extent that we are required to disclose
the source code of certain of our proprietary software developments to third-parties, including our competitors, in order to comply
with applicable open source license terms, such disclosure could harm our intellectual property position, competitive advantage,
results of operations and financial condition. In addition, to the extent that we have failed to comply with our obligations under
particular licenses for open source software, we may lose the right to continue to use and exploit such open source software in
connection with our operations and solutions, which could disrupt and adversely affect our business.
We
rely on search engines and social networking sites to attract a meaningful portion of our merchants. If we are not able to generate
traffic to our website through search engines and social networking sites, our ability to attract new merchants may be impaired.
In addition, if our merchants are not able to generate traffic to their shops through search engines and social networking sites,
their ability to attract consumers may be impaired.
Many
of our merchants locate our website through internet search engines, such as Google, and advertisements on social networking sites,
such as Facebook. The prominence of our website in response to internet searches is a critical factor in attracting potential
merchants to our platform. If we are listed less prominently or fail to appear in search results for any reason, visits to our
website could decline significantly, and we may not be able to replace this traffic.
Similarly,
many consumers locate our merchants' shops through internet search engines and advertisements on social networking sites.
If our merchants' shops are listed less prominently or fail to appear in search results for any reason, visits to our merchants'
shops could decline significantly. As a result, our merchants' businesses may suffer, which would affect the ability of
such merchants to pay for our solutions.
24
Search
engines revise their algorithms from time to time in an attempt to optimize their search results. If search engines modify their
algorithms, our website and our merchants' shops may appear less prominently or not at all in search results, which could
result in reduced traffic to our website and to our merchants' shops.
Additionally,
if the price of marketing our solutions over search engines or social networking sites increases, we may incur additional marketing
expenses or may be required to allocate a larger portion of our marketing spend to search engine marketing and our business and
operating results could be adversely affected. Furthermore, competitors may in the future bid on the search terms that we use
to drive traffic to our website. Such actions could increase our marketing costs and result in decreased traffic to our website.
In addition, search engines or social networking sites may change their advertising policies from time to time. If any change
to these policies delays or prevents us from advertising through these channels, it could result in reduced traffic to our website
and sales of our solutions. As well, new search engines or social networking sites may develop, particularly in specific jurisdictions
that reduce traffic on existing search engines and social networking sites. And if we are not able to achieve awareness through
advertising or otherwise, we may not achieve significant traffic to our website through these new platforms. If we are unable
to continue to successfully promote and maintain our websites, or if we incur excessive expenses to do so, our business and operating
results could be adversely affected.
Activities
of merchants or the content of their shops could damage our brand, subject us to liability and harm our business and financial
results.
Our
terms of service prohibit our merchants from using our platform to engage in illegal activities and our terms of service permit
us to take down a merchant's shop if we become aware of such illegal use. Merchants may nonetheless engage in prohibited
or illegal activities or upload store content in violation of applicable laws, which could subject us to liability. Furthermore,
our brand may be negatively impacted by the actions of merchants that are deemed to be hostile, offensive, inappropriate or illegal.
We do not proactively monitor or review the appropriateness of the content of our merchants' shops and we do not have control
over merchant activities. The safeguards we have in place may not be sufficient for us to avoid liability or avoid harm to our
brand, especially if such hostile, offensive, inappropriate or illegal use is high profile, which could adversely affect our business
and financial results.
If
third-party apps and themes change such that we do not or cannot maintain the compatibility of our platform with these apps and
themes, or if we fail to provide third-party apps and themes that our merchants desire to add to their shops, demand for our platform
could decline.
The
success of our platform depends, in part, on our ability to integrate third-party apps, themes and other offerings into our third-party
ecosystem. Third-party developers may change the features of their offerings or alter the terms governing the use of their offerings
in a manner that is adverse to us. If we are unable to maintain technical interoperation, our merchants may not be able to effectively
integrate our platform with other systems and services they use. We may also be unable to maintain our relationships with certain
third-party vendors if we are unable to integrate our platform with their offerings. Further, third-party developers may refuse
to partner with us or limit or restrict our access to their offerings. Such changes could functionally limit or terminate our
ability to use these third-party offerings with our platform, which could negatively impact our solution offerings and harm our
business. If we fail to integrate our platform with new third-party offerings that our merchants need for their shops, or to adapt
to the data transfer requirements of such third-party offerings, we may not be able to offer the functionality that our merchants
and their customers expect, which would negatively impact our offerings and, as a result, harm our business.
We
rely on computer hardware, purchased or leased, and software licensed from and services rendered by third parties in order to
provide our solutions and run our business, sometimes by a single-source supplier.
We
rely on computer hardware, purchased or leased, and software licensed from and services rendered by third-parties in order to
provide our solutions and run our business, sometimes by a single-source supplier. Third-party hardware, software and services
may not continue to be available on commercially reasonable terms, or at all. Any loss of the right to use or any failures of
third-party hardware, software or services could result in delays in our ability to provide our solutions or run our business
until equivalent hardware, software or services are developed by us or, if available, identified, obtained and integrated, which
could be costly and time-consuming and may not result in an equivalent solution, any of which could cause an adverse effect on
our business and operating results. Further, merchants could assert claims against us in connection with such service disruption
or cease conducting business with us altogether. Even if not successful, a claim brought against us by any of our merchants would
likely be time-consuming and costly to defend and could seriously damage our reputation and brand, making it harder for us to
sell our solutions.
25
We
may not be able to compete successfully against current and future competitors.
We
face competition in various aspects of our business and we expect such competition to intensify in the future, as existing and
new competitors introduce new services or enhance existing services. We have competitors with longer operating histories, larger
customer bases, greater brand recognition, greater experience and more extensive commercial relationships in certain jurisdictions,
and greater financial, technical, marketing and other resources than we do. As a result, our potential competitors may be able
to develop products and services better received by merchants or may be able to respond more quickly and effectively than we can
to new or changing opportunities, technologies, regulations or merchant requirements. In addition, some of our larger competitors
may be able to leverage a larger installed customer base and distribution network to adopt more aggressive pricing policies and
offer more attractive sales terms, which could cause us to lose potential sales or to sell our solutions at lower prices.
Competition
may intensify as our competitors enter into business combinations or alliances or raise additional capital, or as established
companies in other market segments or geographic markets expand into our market segments or geographic markets. For instance,
certain competitors could use strong or dominant positions in one or more markets to gain a competitive advantage against us in
areas where we operate including: by integrating competing platforms or features into products they control such as search engines,
web browsers, mobile device operating systems or social networks; by making acquisitions; or by making access to our platform
more difficult. Further, current and future competitors could choose to offer a different pricing model or to undercut prices
in an effort to increase their market share. We also expect new entrants to offer competitive services. If we cannot compete successfully
against current and future competitors, our business, results of operations and financial condition could be negatively impacted.
We
plan to make future acquisitions and investments, which could divert management's attention, result in operating difficulties
and dilution to our stockholders and otherwise disrupt our operations and adversely affect our business, operating results or
financial position.
From
time to time, we evaluate potential strategic acquisition or investment opportunities. Any transactions that we enter into could
be material to our financial condition and results of operations. The process of acquiring and integrating another company or
technology could create unforeseen operating difficulties and expenditures. Acquisitions and investments involve a number of risks,
such as:
●
diversion of management
    time and focus from operating our business;
●
use of resources
    that are needed in other areas of our business;
●
in the case of an
    acquisition, implementation or remediation of controls, procedures and policies of the acquired company;
●
in the case of an
    acquisition, difficulty integrating the accounting systems and operations of the acquired company, including potential risks
    to our corporate culture;
●
in the case of an
    acquisition, coordination of product, engineering and selling and marketing functions, including difficulties and additional
    expenses associated with supporting legacy services and products and hosting infrastructure of the acquired company and difficulty
    converting the customers of the acquired company onto our platform and contract terms, including disparities in the revenues,
    licensing, support or professional services model of the acquired company;
●
in the case of an
    acquisition, retention and integration of employees from the acquired company;
●
unforeseen costs
    or liabilities;
●
adverse effects
    to our existing business relationships with partners and merchants as a result of the acquisition or investment;
●
the possibility
    of adverse tax consequences; and
●
litigation or other
    claims arising in connection with the acquired company or investment.
26
In addition, we may
agree to grant to a lender under a credit facility warrants. Furthermore, a significant portion of the purchase price of companies
we acquire may be allocated to acquired goodwill and other intangible assets, which must be assessed for impairment at least annually.
In the future, if our acquisitions do not yield expected returns, we may be required to take charges to our operating results
based on this impairment assessment process, which could adversely affect our results of operations.
Acquisitions
and investments may also result in dilutive issuances of equity securities, which could adversely affect our share price, or result
in the incurrence of debt with restrictive covenants that limit our future uses of capital in pursuit of business opportunities.
We
may not be able to identify acquisition or investment opportunities that meet our strategic objectives, or to the extent such
opportunities are identified, we may not be able to negotiate terms with respect to the acquisition or investment that are acceptable
to us. At this time we have made no commitments or agreements with respect to any such transaction.
New
tax laws could be enacted or existing laws could be applied to us or our merchants, which could increase the costs of our solutions
and adversely impact our business.
The
application of federal, state, provincial, local and foreign tax laws to solutions provided over the internet is evolving. New
income, sales, use or other tax laws, statutes, rules, regulations or ordinances could be enacted at any time, possibly with retroactive
effect, and could be applied solely or disproportionately to solutions provided over the internet. These enactments could adversely
affect our sales activity due to the inherent cost increase the taxes would represent, and could ultimately result in a negative
impact on our results of operations and cash flows.
State
tax authorities may seek to assess state and local business taxes and sales and use taxes. If we are required to collect sales
and use taxes in additional jurisdictions, we might be subject to tax liability for past sales.
There
is a risk that U.S. states could assert that we are liable for U.S. state and local business activity taxes, which are levied
upon income or gross receipts, or for the collection of U.S. local sales and use taxes. This risk exists regardless of whether
we are subject to U.S. federal income tax. States are becoming increasingly active in asserting nexus for business activity tax
purposes and imposing sales and use taxes on products and services provided over the internet. We may be subject to U.S. state
and local business activity taxes if a state tax authority asserts that our activities or the activities of our non-U.S. subsidiaries
are sufficient to establish nexus. We could also be liable for the collection of U.S. state and local sales and use taxes if a
state tax authority asserts that distribution of our solutions over the internet is subject to sales and use taxes. Each state
has different rules and regulations governing sales and use taxes, and these rules and regulations are subject to varying interpretations
that change over time. We review these rules and regulations periodically and, when we believe we are subject to sales and use
taxes in a particular state, voluntarily engage state tax authorities in order to determine how to comply with their rules and
regulations. If a state tax authority asserts that distribution of our solutions is subject to such sales and use taxes, the additional
cost may decrease the likelihood that such merchants would purchase our solutions or continue to renew their subscriptions.
A
successful assertion by one or more states requiring us to collect sales or other taxes on subscription service revenue could
result in substantial tax liabilities for past transactions and otherwise harm our business. We cannot assure you that we will
not be subject to sales and use taxes or related penalties for past sales in states where we currently believe no such taxes are
required. New obligations to collect or pay taxes of any kind could increase our cost of doing business.
We
are dependent upon consumers' and merchants' willingness to use the internet for commerce.
Our
success depends upon the general public's continued willingness to use the internet as a means to pay for purchases, communicate,
access social media, research and conduct commercial transactions, including through mobile devices. If consumers or merchants
become unwilling or less willing to use the internet for commerce for any reason, including lack of access to high-speed communications
equipment, congestion of traffic on the internet, internet outages or delays, disruptions or other damage to merchants'
and consumers' computers, increases in the cost of accessing the internet and security and privacy risks or the perception
of such risks, our business could be adversely affected.
27
We
may face challenges in expanding into new geographic regions.
Our
future success will depend in part upon our ability to expand into new geographic regions, and we will face risks entering markets
in which we have limited or no experience and in which we do not have any brand recognition. Expanding into new geographic regions
where the main language is not English will require substantial expenditures and take considerable time and attention, and we
may not be successful enough in these new markets to recoup our investments in a timely manner, or at all. Our efforts to expand
into new geographic regions may not be successful, which could limit our ability to grow our business.
Risks
Related to Laws and Regulations
Failure
to comply with the U.S. Foreign Corrupt Practices Act, or the FCPA, anti-money laundering, economic and trade sanctions regulations,
and similar laws could subject us to penalties and other adverse consequences.
We
currently operate our business in the U.S. and Canada. We are subject to anti-corruption laws and regulations, including the FCPA,
and other laws that prohibit the making or offering of improper payments to foreign government officials and political figures,
including anti-bribery provisions enforced by the Department of Justice and accounting provisions enforced by the SEC. These laws
prohibit improper payments or offers of payments to foreign governments and their officials and political parties by the U.S.
and other business entities for the purpose of obtaining or retaining business. We have implemented policies, procedures, systems,
and controls designed to identify and address potentially impermissible transactions under such laws and regulations; however,
there can be no assurance that all of our employees, consultants and agents, including those that may be based in or from countries
where practices that violate U.S. or other laws may be customary, will not take actions in violation of our policies, for which
we may be ultimately responsible.
In
addition, we are subject to anti-money laundering laws and regulations, including the Bank Secrecy Act, as amended by the USA
PATRIOT Act of 2001, or the BSA. Among other things, the BSA requires money services businesses (such as money transmitters and
providers of prepaid access) to develop and implement risk-based anti-money laundering programs, report large cash transactions
and suspicious activity, and maintain transaction records.
We
are also subject to certain economic and trade sanctions programs that are administered by the Department of Treasury's
Office of Foreign Assets Control, or OFAC, which prohibit or restrict transactions to or from or dealings with specified countries,
their governments, and in certain circumstances, their nationals, and with individuals and entities that are specially-designated
nationals of those countries, narcotics traffickers, and terrorists or terrorist organizations. Other group entities may be subject
to additional foreign or local sanctions requirements in other relevant jurisdictions.
Similar
anti-money laundering and counter terrorist financing and proceeds of crime laws apply to movements of currency and payments through
electronic transactions and to dealings with persons specified in lists maintained by the country equivalents to OFAC lists in
several other countries and require specific data retention obligations to be observed by intermediaries in the payment process.
Our businesses in those jurisdictions are subject to those data retention obligations.
Failure
to comply with any of these laws and regulations or changes in this regulatory environment, including changing interpretations
and the implementation of new or varying regulatory requirements by the government, may result in significant financial penalties,
reputational harm or change the manner in which we currently conduct some aspects of our business, which could adversely affect
our business, financial condition or results of operations.
28
Failure
to enforce and defend our intellectual property rights may diminish our competitive advantages or interfere with our ability to
market and promote our products and services.
Our
trademarks, trade names, trade secrets, know-how, proprietary technology and other intellectual property are important to our
future success. We have a pending trademark application for "CrowdPay.us Crowdfunding & Compliance Platform".
We believe our trademarks and trade names are widely recognized and associated with quality and reliable service. While it is
our policy to protect and defend vigorously our rights to our intellectual property, we cannot predict whether steps taken by
us to protect our intellectual property will be adequate to prevent infringement, misappropriation or other violation of our rights.
We also cannot guarantee that others will not independently develop technology with the same or similar functions to any proprietary
technology we rely on to conduct our business and differentiate ourselves from our competitors. Furthermore, we may face claims
of infringement of third-party intellectual property that could interfere with our ability to market and promote our brands. Any
litigation to enforce our intellectual property rights or defend ourselves against claims of infringement of third-party intellectual
property rights could be costly, divert attention of management and may not ultimately be resolved in our favor. Moreover, if
we are unable to successfully defend against claims that we have infringed the intellectual property rights of others, we may
be prevented from using certain intellectual property and may be liable for damages, which in turn could materially adversely
affect our business, financial condition or results of operations. In addition, the laws of certain non-U.S. countries where we
do business or may do business in the future may not recognize intellectual property rights or protect them to the same extent
as do the laws of the United States.
New
or revised tax regulations or their interpretations, or becoming subject to additional foreign or U.S. federal, state or local
taxes that cannot be passed through to our merchants or partners, could reduce our net income.
We
are subject to tax laws in each jurisdiction where we do business. Changes in tax laws or their interpretations could decrease
the amount of revenues we receive, the value of any tax loss carry-forwards and tax credits recorded on our balance sheet and
the amount of our cash flow, and adversely affect our business, financial condition or results of operations.
On
December 22, 2017, President Trump signed into law H.R. 1, originally known as "The Tax Cuts and Jobs Act," which
significantly revised the Internal Revenue Code of 1986, as amended. The new legislation has significantly changed the U.S. federal
income taxation of U.S. corporations, including by reducing the U.S. corporate income tax rate, limiting interest deductions,
permitting immediate expensing of certain capital expenditures, adopting elements of a territorial tax system, imposing a one-time
transition tax, or repatriation tax, on all undistributed earnings and profits of certain U.S.-owned foreign corporations, revising
the rules governing net operating losses and the rules governing foreign tax credits, and introducing new anti-base erosion provisions.
Many of these changes are effective immediately, without any transition periods or grandfathering for existing transactions. The
legislation is unclear in many respects and could be subject to potential amendments and technical corrections, as well as interpretations
and implementing regulations by the Internal Revenue Service, or the IRS, any of which could lessen or increase certain adverse
impacts of the legislation. In addition, it is unclear how these U.S. federal income tax changes will affect state and local taxation,
which often uses federal taxable income as a starting point for computing state and local tax liabilities.
While
some of the changes made by the tax legislation may adversely affect us in one or more reporting periods and prospectively, other
changes may be beneficial on a going forward basis. We continue to work with our tax advisors to determine the full impact that
the recent tax legislation as a whole will have on us.
Additionally,
companies in the electronic payments industry, including us, may become subject to incremental taxation in various tax jurisdictions.
Taxing jurisdictions have not yet adopted uniform positions on this topic. If we are required to pay additional taxes and are
unable to pass the tax expense through to our merchants, our costs would increase and our net income would be reduced.
29
Failure
to comply with, or changes in, laws, regulations and enforcement activities may adversely affect the products, services and markets
in which we operate.
We
and our merchants are subject to laws and regulations that affect the electronic payments industry in the many countries in which
our services are used. In particular, our merchants are subject to numerous laws and regulations applicable to banks, financial
institutions, and card issuers in the United States and abroad, and, consequently, we are at times affected by these foreign,
federal, state, and local laws and regulations. The U.S. government has increased its scrutiny of a number of credit card practices,
from which some of our merchants derive significant revenue. Regulation of the payments industry, including regulations applicable
to us and our merchants, has increased significantly in recent years. Failure to comply with laws and regulations applicable to
our business may result in the suspension or revocation of licenses or registrations, the limitation, suspension or termination
of services or the imposition of consent orders or civil and criminal penalties, including fines which could adversely affect
our business, financial condition or results of operations.
We
are also subject to U.S. financial services regulations, a myriad of consumer protection laws, including economic sanctions, laws
and regulations, anticorruption laws, escheat regulations and privacy and information security regulations. Changes to legal rules
and regulations, or interpretation or enforcement of them, could have a negative financial effect on us. Any lack of legal certainty
exposes our operations to increased risks, including increased difficulty in enforcing our agreements in those jurisdictions and
increased risks of adverse actions by local government authorities, such as expropriations. In addition, certain of our alliance
partners are subject to regulation by federal and state authority and, as a result, could pass through some of those compliance
obligations to us, which could adversely affect our business, financial condition or results of operations.
In
particular, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act"), recently
significantly changed the U.S. financial regulatory system. Among other things, Title X of the Dodd-Frank Act established a new,
independent regulatory agency known as the Consumer Financial Protection Bureau, or CFPB, to regulate consumer financial products
and services (including some offered by our merchants). The CFPB rules, examinations and enforcement actions may require us to
adjust our activities and may increase our compliance costs.
Separately,
under the Dodd-Frank Act, debit interchange transaction fees that a card issuer receives and are established by a payment card
network for an electronic debit transaction are now regulated by the Board of Governors of the Federal Reserve System, or the
Federal Reserve, and must be "reasonable and proportional" to the cost incurred by the card issuer in authorizing,
clearing, and settling the transaction. Effective October 1, 2011, the Federal Reserve capped debit interchange rates for
card issuers operating in the United States with assets of $10 billion or more at the sum of $0.21 per transaction and an
ad
valorem
component of 5 basis points to reflect a portion of the card issuer's fraud losses plus, for qualifying
card issuers, an additional $0.01 per transaction in debit interchange for fraud prevention costs. Regulations such as these could
result in the need for us to make capital investments to modify our services to facilitate our existing merchants' and potential
merchants' compliance and reduce the fees we are able to charge our merchants. These regulations also could result in greater
pricing transparency and increased price-based competition leading to lower margins and higher rates of merchant attrition. Furthermore,
the requirements of the regulations and the timing of their effective dates could result in changes in our merchants' business
practices, which could change the demand for our services and alter the type or volume of transactions that we process on behalf
of our merchants.
Risks
Related to Our Capital Stock and this Offering
We
are controlled by Ronny Yakov, our Chief Executive Officer, whose interests may differ from the interests of our other stockholders.
Mr.
Yakov beneficially owns and possesses majority voting power of the fully diluted shares of our common stock. Through his control
of the voting power of our common stock, Mr. Yakov controls the election of our directors and all other matters requiring the
approval of our stockholders. By virtue of Mr. Yakov's voting control, we are a "controlled company," as defined
in The NASDAQ Stock Market LLC listing rules, and are not subject to NASDAQ requirements that would otherwise require us to have
a majority of independent directors, a nominating committee composed solely of independent directors or a compensation committee
composed solely of independent directors. Accordingly, our stockholders will not be afforded the same protections generally as
stockholders of other NASDAQ-listed companies with respect to corporate governance for so long as we rely on these exemptions
from the corporate governance requirements.
Mr.
Yakov effectively has control over all matters submitted to our stockholders for approval, including the election or removal of
directors, changes to our certificate of incorporation, a sale or merger of our company and other transactions requiring stockholder
approval under Delaware law. Mr. Yakov's controlling interest may have the effect of making it more difficult for a third
party to acquire, or discouraging a third party from seeking to acquire, the Company.
Our
management has broad discretion as to the use of the net proceeds from this offering.
We intend to use the
net proceeds from this offering to repay, at the discretion of our Board of Directors, outstanding indebtedness up to [20%] of
the net proceeds in this offering, invest in or acquire companies or technologies that are synergistic with or complimentary to
our business, to expand and market our current products and for working capital and general corporate purposes, however we cannot
specify with certainty the particular uses of the net proceeds we will receive from this offering. Our management will have broad
discretion in the application of the net proceeds, including for any of the purposes described in "Use of Proceeds."
Accordingly, you will have to rely upon the judgment of our management with respect to the use of the proceeds. Our management
may spend a portion or all of the net proceeds from this offering in ways that holders of our common stock may not desire or that
may not yield a significant return or any return at all. The failure by our management to apply these funds effectively could
harm our business. Pending their use, we may also invest the net proceeds from this offering in a manner that does not produce
income or that loses value.
30
There
is a very limited existing market for our common stock and we do not know if a more liquid market will develop to provide you
with adequate liquidity.
Prior
to this offering, there has been a very limited public market for our common stock. We cannot assure you that an active trading
market for our common stock will develop following this offering, or if it does develop, that will be maintained. You may not
be able to sell your securities quickly or at the market price if trading in our securities is not active. The public offering
price for the common stock will be determined by negotiations between us and the representatives of the underwriters and may not
be indicative of prices that will prevail in the trading market. We anticipate that our shares of common stock will be approved
for listing on the NASDAQ Capital Market in connection with this offering, however, we cannot ensure that an active public market
for our common stock will develop after this offering, or that if it does develop, it will be sustained. In the absence of a public
trading market:
●
you may not be able
    to liquidate your investment in our common stock;
●
you may not be able
    to resell your shares at or above the public offering price;
●
the market price
    of our common stock may experience more price volatility; and
●
there may be less
    efficiency in carrying out your purchase and sale orders.
The
market price of our common stock may be highly volatile, and you could lose all or part of your investment.
The
trading price of our common stock is likely to be volatile. This volatility may prevent you from being able to sell your shares
at or above the price you paid for your shares. Our stock price could be subject to wide fluctuations in response to a variety
of factors, which include:
●
whether we achieve
    our anticipated corporate objectives;
●
actual or anticipated
    fluctuations in our quarterly or annual operating results;
●
changes in financial
    or operational estimates or projections;
●
termination of the
    lock-up agreement or other restrictions on the ability of our stockholders and other security holders to sell shares after
    this offering;
●
changes in the economic
    performance or market valuations of companies similar to ours; and
●
general economic
    or political conditions in the United States or elsewhere.
In
addition, the stock market in general, and the stock of companies that are competitive to us in particular, have experienced extreme
price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of these companies.
Broad market and industry factors may negatively affect the market price of our common stock, regardless of our actual operating
performance.
The
NASDAQ Capital Market may not list our securities, which could limit investors' ability to make transactions in our securities
and subject us to additional trading restrictions.
We
anticipate that our shares of common stock will be listed on The NASDAQ Capital Market (or NASDAQ) upon consummation of this offering.
Although, after giving effect to this offering, we expect to meet, on a pro forma basis, NASDAQ's minimum initial listing
standards, which generally mandate that we meet certain requirements relating to stockholders' equity, market capitalization,
aggregate market value of publicly held shares and distribution requirements, we cannot assure you that we will be able to meet
those initial listing requirements. If NASDAQ does not list our securities for trading on its exchange, we could face significant
material adverse consequences, including:
●
a limited availability
    of market quotations for our securities;
●
reduced liquidity
    with respect to our securities;
31
●
a determination
    that our shares of common stock are "penny stock" which will require brokers trading in our shares of common stock
    to adhere to more stringent rules, possibly resulting in a reduced level of trading activity in the secondary trading market
    for our shares of common stock;
●
a limited amount
    of news and analyst coverage for our company; and
●
a decreased ability
    to issue additional securities or obtain additional financing in the future.
The
National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating
the sale of certain securities, which are referred to as "covered securities." Assuming our securities will be listed
on NASDAQ, our securities will be covered securities. Although the states are preempted from regulating the sale of our securities,
the federal statute does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding
of fraudulent activity, then the states can regulate or bar the sale of covered securities in a particular case. Furthermore,
if we were no longer listed on NASDAQ, our securities would not be covered securities and we would be subject to regulation in
each state in which we offer our securities.
Our
failure to meet the continued listing requirements of The NASDAQ Capital Market could result in a de-listing of our securities.
If
after listing we fail to satisfy the continued listing requirements of NASDAQ, such as the corporate governance requirements or
the minimum closing bid price requirement, NASDAQ may take steps to de-list our securities. Such a de-listing would likely have
a negative effect on the price of our common stock and would impair your ability to sell or purchase our common stock when you
wish to do so. In the event of a de-listing, we would take actions to restore our compliance with NASDAQ's listing requirements,
but we can provide no assurance that any such action taken by us would allow our common stock to become listed again, stabilize
the market price or improve the liquidity of our securities, prevent our common stock from dropping below the NASDAQ minimum bid
price requirement or prevent future non-compliance with NASDAQ's listing requirements.
If,
after listing on The NASDAQ Capital Market, we are delisted and our shares become subject to the penny stock rules, it would become
more difficult to trade our shares.
The
SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are
generally equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges
or authorized for quotation on certain automated quotation systems, provided that current price and volume information with respect
to transactions in such securities is provided by the exchange or system. If we do not obtain or retain a listing on NASDAQ and
if the price of our common stock is less than $5.00, our common stock will be deemed a penny stock. The penny stock rules require
a broker-dealer, before a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure
document containing specified information. In addition, the penny stock rules require that before effecting any transaction in
a penny stock not otherwise exempt from those rules, a broker-dealer must make a special written determination that the penny
stock is a suitable investment for the purchaser and receive (i) the purchaser's written acknowledgment of the receipt of
a risk disclosure statement; (ii) a written agreement to transactions involving penny stocks; and (iii) a signed and dated copy
of a written suitability statement. These disclosure requirements may have the effect of reducing the trading activity in the
secondary market for our common stock, and therefore stockholders may have difficulty selling their shares.
As
a "thinly-traded" stock, large sales can place downward pressure on our stock price.
Our
stock experiences periods when it could be considered "thinly traded". Financing transactions resulting in a large
number of newly issued shares that become readily tradable, or other events that cause current stockholders to sell shares, could
place further downward pressure on the trading price of our stock. In addition, the lack of a robust resale market may require
a stockholder who desires to sell a large number of shares to sell the shares in increments over time to mitigate any adverse
impact of the sales on the market price of our stock.
We
could issue additional common stock, which might dilute the book value of our capital stock.
The
Company may issue all or a part of its authorized but unissued shares of common stock. Any such stock issuance could be made at
a price that reflects a discount or a premium to the then-current trading price of our common stock. In addition, in order to
raise future capital, we may need to issue securities that are convertible into or exchangeable for a significant amount of our
common stock. These issuances, if any, would dilute your percentage ownership interest in the Company, thereby having the effect
of reducing your influence on matters on which stockholders vote. You may incur additional dilution if holders of stock options,
whether currently outstanding or subsequently granted, exercise their options, or if warrant holders exercise their warrants to
purchase shares of our common stock. As a result, any such issuances or exercises would dilute your interest in the Company and
the per share book value of the common stock that you owned, either of which could negatively affect the trading price of our
common stock and the value of your investment.
32
Shares
eligible for future sale may adversely affect the market for our common stock.
As of June 26, 2019 there
are 1,200,000 warrants to purchase shares of our common stock outstanding and options to purchase 8,355,168 shares of our common
stock outstanding. The warrants are exercisable at an exercise price of $0.25 per share and are entitled to piggy-back registration
rights generally obligating us to include the shares underlying the warrants in any registration statements we file with the SEC.
We are seeking waivers of such rights in connection with this offering. The stock options have a weighted average exercise price
of $0.0001 per share. If and when these securities are exercised into shares of our common stock, the number of our shares of
common stock outstanding will increase. Such increase in our outstanding shares, and any sales of such shares, could have a material
adverse effect on the market for our common stock and the market price of our common stock.
In
addition, from time to time, certain of our stockholders may be eligible to sell all or some of their shares of common stock by
means of ordinary brokerage transactions in the open market pursuant to Rule 144, promulgated under the Securities Act, subject
to certain limitations. In general, pursuant to Rule 144, after satisfying a six month holding period: (i) affiliated stockholders
(or stockholders whose shares are aggregated) may, under certain circumstances, sell within any three month period a number of
securities which does not exceed the greater of 1% of the then outstanding shares of common stock or the average weekly trading
volume of the class during the four calendar weeks prior to such sale and (ii) non-affiliated stockholders may sell without such
limitations, provided that we are current in our public reporting obligations. Rule 144 also permits the sale of securities by
non-affiliates that have satisfied a one year holding period without any limitation or restriction. Any substantial sale of our
common stock pursuant to Rule 144 or pursuant to any resale prospectus may have a material adverse effect on the market price
of our securities.
Because
certain principal stockholders own a large percentage of our voting stock, other stockholders' voting power may be limited.
As of June 26, 2019,
Ronny Yakov, our chief executive officer, owned or controlled approximately 64.3% of our outstanding common stock. Accordingly,
Mr. Yakov has the ability to have a substantial influence on matters submitted to our stockholders for approval, including the
election and removal of directors and the approval of any merger, consolidation or sale of all or substantially all of our assets.
As a result, our other stockholders may have little or no influence over matters submitted for stockholder approval. In addition,
the ownership of Mr. Yakov could preclude any unsolicited acquisition of us, and consequently, adversely affect the price of our
common stock. These stockholders may make decisions that are adverse to your interests.
In
making your investment decision, you should understand that we and the underwriters have not authorized any other party to provide
you with information concerning us or this offering.
You
should carefully evaluate all of the information in this prospectus before investing in our company. We may receive media coverage
regarding our company, including coverage that is not directly attributable to statements made by our officers, that incorrectly
reports on statements made by our officers or employees, or that is misleading as a result of omitting information provided by
us, our officers or employees. We and the underwriters have not authorized any other party to provide you with information concerning
us or this offering, and you should not rely on this information in making an investment decision.
You
will experience immediate and substantial dilution as a result of this offering and may experience additional dilution in the
future.
You
will incur immediate and substantial dilution as a result of this offering. After giving effect to the sale by us of [        ]
shares of common stock offered in this offering at an assumed public offering price of $[        ]
per share, and after deducting underwriter discounts and commissions and estimated offering expenses payable by us, investors
in this offering can expect an immediate dilution of $[     ] per share, or [     ]%
at the assumed public offering price. In addition, in the past, we issued warrants to acquire shares of common stock. Additionally,
to the extent that these warrants, or options we will grant to our officers, directors and employees, are ultimately exercised,
you will sustain future dilution. We may also acquire or license other technologies or finance strategic alliances by issuing
equity, which may result in additional dilution to our stockholders.
As
an "emerging growth company" under applicable law, we will be subject to lessened disclosure requirements, which could
leave our stockholders without information or rights available to stockholders of more mature companies.
For
as long as we remain an "emerging growth company", we have elected to 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;
●
taking advantage
    of an extension of time to comply with new or revised financial accounting standards;
●
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 stockholder approval of any golden parachute
    payments not previously approved.
We
expect to take advantage of these reporting exemptions until we are no longer an "emerging growth company." Because
of these lessened regulatory requirements, our stockholders would be left without information or rights available to stockholders
of more mature companies.
Because
we have elected to use the extended transition period for complying with new or revised accounting standards for an "emerging
growth company" our financial statements may not be comparable to companies that comply with public company effective dates.
We
have elected to use the extended transition period for complying with new or revised accounting standards for an emerging growth
company. This election allows us 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 a result of this election, our financial
statements may not be comparable to companies that comply with public company effective dates, and thus investors may have difficulty
evaluating or comparing our business, performance or prospects in comparison to other public companies, which may have a negative
impact on the value and liquidity of our common stock.
33
Anti-takeover
provisions in our charter documents and Delaware law could discourage, delay or prevent a change in control of our company and
may affect the trading price of our common stock.
The
anti-takeover provisions of the Delaware General Corporation Law may discourage, delay or prevent a change in control by prohibiting
us from engaging in a business combination with an interested stockholder for a period of three years after the person becomes
an interested stockholder, even if a change in control would be beneficial to our existing stockholders. In addition, our certificate
of incorporation, as amended (which we refer to as the certificate of incorporation), and bylaws, as amended (which we refer to
as the bylaws), may discourage, delay or prevent a change in our management or control over us that stockholders may consider
favorable. Our certificate of incorporation and bylaws:
●
provide that vacancies
    on our board of directors, including newly created directorships, may be filled only by a majority vote of directors then
    in office;
●
provide that special
    meetings of stockholders may be called by a majority vote of our board of directors or at least 25% of shares held by our
    stockholders;
●
not provide stockholders
    with the ability to cumulate their votes; and
●
provide that a majority
    of our stockholders (over 50%) and a vote by the majority of our board may amend our bylaws.
Failure
to establish and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material
adverse effect on our business and stock price.
We
are not currently required to comply with the rules of the SEC implementing Section 404 of the Sarbanes-Oxley Act and therefore
are not required to make a formal assessment of the effectiveness of our internal control over financial reporting for that purpose.
Upon becoming a publicly traded company, we will be required to comply with the SEC's rules implementing Sections 302 and
404 of the Sarbanes-Oxley Act, which will require management to certify financial and other information in our quarterly and annual
reports and provide an annual management report on the effectiveness of controls over financial reporting. Though we will be required
to disclose changes made in our internal controls and procedures on a quarterly basis, we will not be required to make our first
annual assessment of our internal control over financial reporting pursuant to Section 404 until the year following our first
annual report required to be filed with the SEC. Our independent registered public accounting firm will not be required to attest
to the effectiveness of our internal control over financial reporting until the later of the year following our first annual report
required to be filed with the SEC or the date we are no longer an emerging growth company and are an accelerated or large accelerated
filer.
To
comply with the requirements of being a public company, we may need to undertake various actions, such as implementing new internal
controls and procedures and hiring additional accounting or internal audit staff. In addition, we may identify material weaknesses
in our internal control over financial reporting that we may not be able to remediate in time to meet the applicable deadline
imposed upon us for compliance with the requirements of Section 404.
We
carried out an evaluation, under the supervision and with the participation of our management, including our principal executive
officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange
Act Rules 13a-15(e) and 15d-15(e)).  Based upon that evaluation, our principal executive officer and principal financial
officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were ineffective
to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended, is
recorded, processed, summarized and reported within the required time periods specified in the Commission's rules and forms
and is accumulated and communicated to our management, including our principal executive officer and principal financial officer,
as appropriate to allow timely decisions regarding required disclosure.
Our
principal executive officer and principal financial officer, do not expect that our disclosure controls and procedures or our
internal controls will prevent all error or fraud.  A control system, no matter how well conceived and operated, can
provide only reasonable, not absolute, assurance that the objectives of the control system are met.  Further, the design
of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered
relative to their costs.  Due to the inherent limitations in all control systems, no evaluation of controls can provide
absolute assurance that all control issues and instances of fraud, if any, have been detected. During the fourth quarter
of the year ended December 31, 2018, we carried out an evaluation, under the supervision and with the participation of our
principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure
controls and procedures. Based on that evaluation and due to the identified material weaknesses discussed below, our principal
executive officer and principal financial officer concluded that our disclosure controls and procedures were ineffective.
To
address the material weaknesses, we performed additional analysis and other post-closing procedures in an effort to ensure our
financial statements included in this Registration Statement of which this Prospectus forms a part, have been prepared in accordance
with generally accepted accounting principles.  Accordingly, management believes that the financial statements included
herein fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.
If
we are unable to comply with the requirements of Section 404 in a timely manner or to assert that our internal control over financial
reporting is effective, or if our independent registered public accounting firm is unable to express an opinion as to the effectiveness
of our internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our financial
reports and the market price of our common stock could be negatively affected, and we could become subject to investigations by
NASDAQ, the SEC or other regulatory authorities, which could require additional financial and management resources.
We
do not expect to pay dividends for the foreseeable future.
We
do not expect to pay dividends on our common stock offered in this transaction for the foreseeable future. Accordingly, any potential
investor who anticipates the need for current dividends should not purchase our securities.
34
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus contains "forward-looking statements" within the meaning of the federal securities laws, and that involve
significant risks and uncertainties. Words such as "may," "should," "could," "would,"
"predicts," "potential," "continue," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," and similar expressions, as well
as statements in future tense, identify forward-looking statements. Forward-looking statements should not be read as a guarantee
of future performance or results and may not be accurate indications of when such performance or results will be achieved. Forward-looking
statements are based on information we have when those statements are made or management's good faith belief as of that
time with respect to future events, and are subject to significant risks and uncertainties that could cause actual performance
or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that
could cause such differences include, but are not limited to:
●
Our acquisition
    of eVance and share exchange with OmniSoft and CrowdPay has collectively formed a new business platform that needs to be integrated,
    which may create certain risks and may adversely affect our business, financial condition or results of operations;
●
Our failure to pay
    our outstanding indebtedness will result in a substantial loss of our assets;
●
We operate in a
    regulatory environment that is evolving and uncertain and any changes to regulations could have a material impact on our business
    and financial condition;
●
We rely on a combination
    of confidentiality clauses, assignment agreements and license agreements with employees and third parties, trade secrets,
    copyrights and trademarks to protect our intellectual property and competitive advantage, all of which offer only limited
    protection meaning that we may be unable to maintain and protect our intellectual property rights and proprietary information
    or prevent third-parties from making unauthorized use of our technology; and
●
Our growth may not
    be sustainable and depends on our ability to attract new merchants, retain existing merchants and increase sales to both new
    and existing merchants.
The
foregoing does not represent an exhaustive list of matters that may be covered by the forward-looking statements contained herein
or risk factors that we are faced with. Forward-looking statements necessarily involve risks and uncertainties, and our actual
results could differ materially from those anticipated in the forward-looking statements due to a number of factors, including
those set forth above under "Risk Factors" and elsewhere in this prospectus. The factors set forth above under "Risk
Factors" and other cautionary statements made in this prospectus should be read and understood as being applicable to all
related forward-looking statements wherever they appear in this prospectus. The forward-looking statements contained in this prospectus
represent our judgment as of the date of this prospectus. We caution readers not to place undue reliance on such statements. Except
as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason, even if new information
becomes available or other events occur in the future. All subsequent written and oral forward-looking statements attributable
to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained above and
throughout this prospectus.
35
USE
OF PROCEEDS
We
estimate that the net proceeds from the sale of the shares of common stock we are offering will be approximately $[       ] million
based on an assumed offering price of $[       ] per share. If the underwriters fully exercise
the overallotment option, the net proceeds of the shares we sell will be approximately $[       ] million.
"Net proceeds" is what we expect to receive after deducting the underwriting discount and commission and estimated
offering expenses payable by us.
Each
$1.00 increase (decrease) in the assumed offering price of $[       ] would increase (decrease)
the net proceeds to us from this offering by approximately $[        ], after deducting estimated
underwriting discount and commission and estimated offering expenses payable by us, assuming that the number of shares offered
by us, as set forth on the cover page of this prospectus, remains the same. Each increase of 100,000 shares in the number of shares
offered by us at the assumed public offering price would increase the net proceeds to us in this offering by approximately $[       ] million.
Similarly, each decrease of 100,000 shares in the number of shares offered by us at the assumed public offering price would decrease
the net proceeds to us from this offering by approximately $[       ] million. A change
in the offering price or the number of shares by these amounts could have a material effect on our uses of the proceeds from this
offering, and it may impact the amount of time prior to which we will need to seek additional capital.
We intend to use the
net proceeds of this offering primarily to repay, at the discretion of our Board of Directors, a portion of our currently outstanding
long-term indebtedness in an amount in the aggregate of up to 20% of the net proceeds that we receive in this offering (specifically,
the Term Loan which matures in full on April 9, 2021, bears interest at a rate of 9% per annum and the proceeds of which were
used to finance the Asset Acquisition), invest in or acquire companies or technologies that are synergistic with or complimentary
to our business, expand and market our current products and for working capital and other general corporate purposes (including
payment of outstanding accounts payable). If our Board of Directors elects not to repay outstanding indebtedness with the
proceeds of this offering, such proceeds will be used for working capital and other general corporate purposes.
We
anticipate an approximate allocation of the use of net proceeds as follows:
Use of Net Proceeds
$ (in
millions)*
%
Repay, at the discretion of our Board of Directors, a portion of the Company's long-term debt
20
Acquisition of new companies or technologies
25
Expand and market our current products
45
General corporate purposes and working capital
10
Total
100
*
Assuming the over-allotment option is not exercised.
While
we expect to use the net proceeds for the purposes described above, the amounts and timing of our actual expenditures will depend
upon numerous factors, including [       	]. The expected net proceeds from the sale of
the shares offered hereby, if added to our current cash and cash equivalents is anticipated to be sufficient to fund our operations
through [       ]. In the event that our plans change, our assumptions change or prove to be
inaccurate, or the net proceeds of this offering are less than as set forth herein or otherwise prove to be insufficient, it may
be necessary or advisable to reallocate proceeds or curtail expansion activities, or we may be required to seek additional financing
or curtail our operations. As a result of the foregoing, our success will be affected by our discretion and judgment with respect
to the application and allocation of the net proceeds of this offering.
Pending
their use, we plan to invest the net proceeds from this offering in short- and intermediate-term, interest-bearing obligations,
investment-grade instruments, certificates of deposit or direct or guaranteed obligations of the U.S. government.
36
DIVIDEND
POLICY
We
have never declared or paid any cash dividends on our equity interests and we do not anticipate paying any cash dividends in the
foreseeable future. The payment of dividends, if any, in the future is prohibited by the Credit Agreement. If this prohibition
is lifted or at such time as we are no longer a party to the Credit Agreement, the payment of dividends, if any, in the future
will be within the discretion of our board of directors and will depend on our earnings, capital requirements and financial condition
and other relevant facts. We currently intend to retain all future earnings, if any, to finance the development and growth of
our business.
37
CAPITALIZATION
Prior
to the closing of this offering, we will effect a reverse stock split of the outstanding shares of our common stock at a ratio
of 1-for-[       ] shares. The reverse stock split was approved by our Board of Directors and by
our majority stockholder on June 21, 2018. The share amount and per share information in this prospectus do not reflect the implementation
of the reverse stock split.
The
following table sets forth our capitalization as of March 31, 2019:
●
on an actual basis;
    and
●
on a pro forma basis
    to give effect to the sale of shares of our common stock in this offering, assuming a public offering price of $[       ]
    per share, after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us,
    and the application of the net proceeds thereof as described under "Use of Proceeds."
You
should read the information in this table together with our financial statements and accompanying notes and "Management's
Discussion and Analysis of Financial Condition and Results of Operations" appearing elsewhere in this prospectus.
As of March 31,
2019
Actual
Pro Forma
Debt
$
13,834,177
$
Stockholders' Deficit:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued and outstanding, actual; no shares issued and outstanding, pro forma
-
-
Common stock, $0.0001 par value; 200,000,000 shares authorized, 162,350,364 shares issued and outstanding, actual; [   ] shares issued and outstanding, pro forma
16,237
Additional paid-in capital
15,836,454
Accumulated deficit
(17,915,412
)
Total Stockholders' Deficit
(2,062,721
)
Total Capitalization
$
11,771,456
$
All
information in this prospectus assumes the underwriters do not exercise their over-allotment option, and excludes the following:
●
8,355,168 shares
    of common stock issuable upon exercise of outstanding options to purchase common stock with a weighted average exercise
    price of $0.0001 per share;
●
1,200,000 shares
    of common stock issuable upon exercise of outstanding common stock purchase warrants with a weighted average exercise price
    of $0.25 per share; and
●
[       ]
    shares of our common stock (which is equal to [    ] % of our issued and outstanding common stock immediately
    after the consummation this offering) reserved for future issuance under our 2019 Equity Incentive Plan, which will become
    effective as of the closing of this offering.
38
DILUTION
Prior
to the closing of this offering, we will effect a reverse stock split of the outstanding shares of our common stock at a ratio
of 1-for-[
] shares. The reverse stock split was approved by our Board of Directors and by
our majority stockholder on June 21, 2018. The share amount and per share information in this prospectus do not reflect the implementation
of the reverse stock split.
If
you purchase shares of our common stock in this offering, your interest will be diluted immediately to the extent of the difference
between the assumed public offering price of $[     ] per share and the as adjusted net tangible book
value per share of our common stock immediately upon the consummation of this offering.
Net
tangible book value dilution per share to new investors represents the difference between the amount per share paid by purchasers
in this offering and the as adjusted net tangible book value per share of common stock immediately after completion of this offering.
After giving effect to our sale of [         ] shares of common stock in this offering
at an assumed public offering price of $[       ] per share, and after deducting underwriters'
commissions and estimated offering expenses, our as adjusted net tangible book value as of March 31, 2019 would have been $[            ] million,
or $[       ] per share. This represents an immediate increase in net tangible book value of
$[            ] per share to existing stockholders and an immediate
dilution in net tangible book value of $[            ] per share to
purchasers of shares in this offering, as illustrated in the following table:
Assumed
    public offering price per share
$
[   
    ]
Net
    tangible book value per share as of March 31, 2019
$
[   
    ]
Increase
    in net tangible book value per share attributable to new investors
$
[   
    ]
Adjusted
    net tangible book value per share as of March 31, 2019, after giving effect to this offering
$
[   
    ]
Dilution
    per share to new investors in this offering
$
[   
    ]
The
above discussion and tables do not include the following:
●
8,355,168 shares
    of common stock issuable upon exercise of outstanding options to purchase common stock with a weighted average exercise
    price of $0.0001 per share;
●
1,200,000 shares
    of common stock issuable upon exercise of outstanding common stock purchase warrants with a weighted average exercise price
    of $0.25 per share; and
●
[       ]
    shares of our common stock (which is equal to [   ] % of our issued and outstanding common stock immediately after
    the consummation this offering) reserved for future issuance under our 2019 Equity Incentive Plan, which will become effective
    as of the closing of this offering.
39
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The
following discussion and analysis of our consolidated financial condition and results of operations for the three months ended
March 31, 2019 and 2018, and the years ended December 31, 2018 and 2017, along with a discussion of the results of our predecessor
entity for the period from January 1, 2018 to April 8, 2018 and for the year ended December 31, 2017 should be read in conjunction
with the "Summary Historical Consolidated Financial and Operating Data" and the consolidated financial statements
and notes related thereto included elsewhere in this prospectus. For purposes of this section, we have also included a discussion
of certain results from operations on a combined basis, by comparing our consolidated results for the three months ended March
31, 2019 to the combined results of our three months ended March 31, 2018 with the predecessor's results for the three months
ended March 31, 2018, and also comparing our consolidated results for the year ended December 31, 2018 combined with the predecessor's
results for the period from January 1, 2018 to April 8, 2018 to the predecessor's results from operations for the year ended
December 31, 2017.
Prior
to the closing of this offering, we will effect a reverse stock split of the outstanding shares of our common stock at a ratio
of 1-for-[      ] shares. The reverse stock split was approved by our Board of Directors and by our majority
stockholder on June 21, 2018. The share amount and per share information in this prospectus do not reflect the implementation
of the reverse stock split.
Forward-looking
statements in this prospectus reflect the good-faith judgment of our management and the statements are based on facts and factors
as we currently know them. Forward-looking statements are subject to risks and uncertainties and actual results and outcomes
may differ materially from the results and outcomes discussed in the forward-looking statements.  Factors that could
cause or contribute to such differences in results and outcomes include, but are not limited to, those discussed below and in
"Risk Factors" as well as those discussed elsewhere in this prospectus. Readers are urged not to place undue
reliance on these forward-looking statements which speak only as of the date of this prospectus. We undertake no obligation
to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date
of this prospectus.
Overview
We
are FinTech company and PayFac that focuses on a suite of products in the merchant services and payment facilitator verticals
that is focused on providing integrated business solutions to merchants throughout the United States. We seek to accomplish this
by providing merchants with a wide range of products and services through our various online platforms, including financial and
transaction processing services and support for crowdfunding and other capital raising initiatives. We supplement our online platforms
with certain hardware solutions that are integrated with our online platforms. Our business functions primarily through three
wholly-owned subsidiaries, eVance, OmniSoft, and CrowdPay.
Our
merchants are currently processing over $82,000,000 in gross transactions monthly and average 1,400,000 transaction a month. These
transactions come from a variety of sources including direct accounts and ISO channels. The accounts consist of businesses across
the United States with no concentration of industries or merchants.
We
are finalizing the integration of all the applications for OmniSoft and the ShopFast Omnicommerce solution with the eVance mobile
payment gateway, SecurePay.com. The Company's proprietary gateway, SecurePay.com
TM
, is used by approximately
3,000 merchants processing over 32,000 transactions and approximately $9,000,000 of monthly gross transactions. We also expect
to launch new merchant and ISO boarding system that will be able to board merchants instantly online by the end of June 2019.
This will provide the merchant with an automated approval and ISOs will have the ability to see all their merchants and their
residuals as they load to the system.
Our
back office risk and compliance system, Ingres, is connected to a list of risk and mitigation vendors and tools that instantly
give us an in-depth understanding of new merchant applications. This allows our internal dashboard to provide Artificial intelligence
information on the merchant. We use this information to try to mitigate merchant risk and thus our liability risk for the transaction.
The
available merchant information processed through our systems gives us the ability to make intelligent decisions about what services
we can provide to specific merchants. Services such as small business loans and instant cash advances are available upon our approval,
although none have been issued to date.
We
plan to focus on prime verticals such as small banks that don't have merchant services in-house. This allows us to be the
merchant services provider for the bank and their merchants. Additionally, as a PayFac, we are able to instantly underwrite merchants
and take the credit risk from end to end.
We
are adding additional services to our payment gateway to provide services such as ACH and cloud based billings.
CrowdPay
plans to increase the platform services for crowd funding by offering its white labeled solutions to issuers and investment banking
firms.
40
Results
of Operations
Three
Months Ended March 31, 2019 Compared to the Three Months Ended March 31, 2018
During
the three months ended March 31, 2019 we had total revenue of $2,590,894, a majority of which is earned from transaction and processing
fees related to electronic payments. During the same period, costs related to payment processing fees totaled $1,718,098, or 66.3%
of revenue.
During
the predecessor's three months ended March 31, 2018, total revenues were $3,174,539, a majority of which is earned primarily
from transaction and processing fees related to electronic payments. During the same period, cost of revenue related to payment
processing combined for $1,748,141 or 55.0% of revenue.
Revenue
has decreased from the prior year due to the lack of a sales team and customer retention program in place to replace lost merchants
and gain new ones. Our goal is to build out our sales team in 2019 and expand our offering or products and services.
Selling,
general and administrative ("SG&A") expenses were $976,331 for the three months ended March 31, 2019. This includes
$434,793 for salaries and wage expense, $40,869 for outside commissions and $273,022 for other general and administrative costs
("G&A") which includes $66,262 of non-cash stock compensation expense related to the grant of options to our officers.
We also recognized amortization expense of $227,647.
For
the three months ended March 31, 2018, the SG&A expenses were $203,539. This includes $156,250 for salaries and wage expense,
$4,097 cost of revenue and $43,012 for G&A.
For
the three months ended March 31, 2018, the predecessor's SG&A expenses were $1,340,904. This includes $374,345 for salaries
and wage expense, $508,296 for outside commissions and $367,524 for G&A. We also recognized amortization expense of 90,739.
The
decrease in SG&A expense of $568,112 for the three months ended March 31, 2019 compared to the combined three months ended
March 31, 2018 is largely due to the decrease in outside commissions.
For
the three months ended March 31, 2019 we incurred $303,954 of interest expense, compared to $832,564 for the predecessor's
three months ended March 31, 2018. The decrease in interest expense of $528,610 is due to the restructuring of the GACP loan.
Our
net loss for the three months ended March 31, 2019 was $406,945 compared to the combined $872,792 for the three months ended March
31, 2018.
For
the Year Ended December 31, 2018 compared to the Year Ended December 31, 2017
During
the year ended December 31, 2018, a majority of our total revenues were earned from transaction and processing fees related to
electronic payments totaling $9,019,876. During the same period, costs related to payment processing fees totaled $5,992,619,
or 66.4% of revenue. For the period from January 1, 2018 through April 8, 2018, total revenues were $3,174,539, along with payment
processing fees of $1,748,141. The combined results for the full year 2018 revenue were $12,194,415 and processing fees of $7,740,760,
which are 63.5% of revenue.
During
year ended December 31, 2017, the predecessor revenues were earned primarily from transaction and processing fees related to electronic
payments totaling $14,907,709. During the same period, cost of revenue related to payment processing combined for $9,395,994 or
63.0% of revenue.
Revenue
has decreased from the prior year due to the lack of a sales team and customer retention program in place to replace lost merchants
and gain new ones. Our goal is to build out our sales team in 2019 and expand our offering or products and services.
SG&A expenses
were $2,836,206 for the year ended December 31, 2018. This includes $1,401,192 for salaries and wage expense, $181,510 for outside
commissions and $1,253,504 for other general and administrative costs. We also incurred $182,213 of non-cash stock compensation
expense related to the grant of options to our officers. For the period from January 1, 2018 through April 8, 2018, SG&A expenses
were $1,250,165. This includes $374,345 for salaries and wage expense, $508,296 for outside commissions and $367,524 for other
general and administrative costs.
During the year ended December 31, 2017, the predecessor's SG&A expenses were $7,087,670.
This includes $2,782,079 for salaries and wage expense, $336,290 for outside commissions and $3,969,301 for other G&A. Some
of the larger components of G&A costs included legal and other professional fees of $2,095,231 and rent expense of $184,336.
The predecessor also incurred $7,914,269 of non-cash expense for the impairment of goodwill.
41
The
combined decrease in SG&A expense of $3,001,299 from the year ended December 31, 2017 to 2018 is largely due to the decrease
in salaries and wages, legal and other professional fees and outside commissions.
For
the year ended December 31, 2018 we incurred $883,316 of interest expense, a $16,039 gain on forgiveness of debt and $6,799 of
interest income. For the period from January 1, 2018 through April 8, 2018, the predecessor incurred $832,564 of interest expense,
a $908 of other income. Total interest expense for the full year combined for $1,715,880. For the year ended December 31, 2017
we incurred $3,836,495 of interest expense and other expense of $131,846. The decrease in interest expense of $2,120,615 from
the year ended December 31, 2017 to the full year ended December 31, 2018, is due to the restructuring of the GACP loan.
Our
net loss for the year ended December 31, 2018, was $1,393,544. For the period from January 1, 2018 through April 8, 2018, our
net loss was $746,162, for a combined net loss of $2,139,706 for the full 2018 year compared to a net loss of $662,297 for the
year ended December 31, 2017. The net loss for the predecessor for the year ended December 31, 2017 was $13,821,521.
Liquidity
and Capital Resources
For
the three months ended March 31, 2019 we used $113,741 of cash in operating activities, which included reconciliation of $236,517
for amortization and depreciation expense, $66,262 for stock based compensation, an increase to accounts receivable of $71,030
and an increase to related party accruals of $79,992. We had proceeds from financing activities of $45,000 from a loan from our
CEO.
For
the three months ended March 31, 2018 we used $28,201 as a result of operating activities and received $30,000 from financing
activities from related party loans.
For
the predecessor three months ended March 31, 2018 we used $382,106 in operating activities which included reconciliation of $109,225
for amortization and depreciation expense, a decrease to accounts receivable of $99,190 and a decrease to accounts payable of
$219,888. And we received $176,088 from investing activities.
At
March 31, 2019, the Company had cash of $42,845 and a working capital deficit of $783,788. For the three months
ended March 31, 2019, the Company's net loss and cash used in operating activities was $406,945 and $113,741,
respectively.
T
he Company expects to fund future liquidity and capital
requirements through cash flow generated from its operating activities resulting from increases in its merchants and revenues
generated. Additionally, included in the working capital deficit as of March 31, 2019 was accrued payroll, a note payable and
other expenses due to the Company's Chief Executive Officer, Mr. Ronny Yakov, in the amount of $657,229, which he has
agreed to defer receiving payment until the Company has sufficient working capital. As a result of the recent amendments to
its long-term and related party long-term debt arrangements, coupled with its operations acquired in the business combination
and commitment from a related party and significant stockholder that he will provide any additional financial support, if
needed, to satisfy the Company's debt or other obligations through November 2020, the Company has alleviated its
previously reported substantial doubt regarding its ability to continue as a going concern.  The Company's future
capital requirements could depend on many factors, including the need to expand its services, competing technological
and market developments, and the need to enter into collaborations with other companies or acquire other companies or
technologies to enhance or complement the Company's product and service offerings. If the Company is unable to secure
additional capital, it may be required to curtail its future plans and take additional measures to reduce costs in order to
conserve cash.
Critical
Accounting Policies
Refer
to Note 2 of our financial statements contained elsewhere in this prospectus for a summary of our critical accounting policies
and recently adopting and issued accounting standards.
42
BUSINESS
Overview
We
are FinTech company and payment facilitator that focuses on a suite of products in the merchant services and payment facilitator
verticals that is focused on providing integrated business solutions to merchants throughout the United States. We seek to accomplish
this by providing merchants with a wide range of products and services through our various online platforms, including financial
and transaction processing services and support for crowdfunding and other capital raising initiatives. We supplement our online
platforms with certain hardware solutions that are integrated with our online platforms. In 2018, we were ranked 62
nd
among merchant acquirers in the United States ranked by Visa/Mastercard volume. Our business functions primarily through three
wholly-owned subsidiaries, eVance, OmniSoft, and CrowdPay.
We
were incorporated in the State of Delaware on November 18, 2004 for the purpose of merging with OLB.com. The merger was done for
the purpose of changing our state of incorporation from New York to Delaware. In April 2018, we completed an acquisition of substantially
all of the assets of Excel and its subsidiaries Payprotec Oregon, LLC, Excel Business Solutions, Inc. and eVance Processing, Inc.
(such assets are the foundation of our eVance business). In connection with such acquisition, in May 2018, we entered into share
exchange agreements with CrowdPay and OmniSoft, affiliate companies of our company's majority stockholder, pursuant to which
each of CrowdPay and OmniSoft became solely owned subsidiaries of our Company. Our Company's headquarters is located at
200 Park Avenue, Suite 1700, New York, NY 10166. Our telephone number is (212) 278-0900.
Payment
Facilitator
A
payment facilitator (or "PayFac") is a company that is sponsored by a bank or other financial institution and creates
a sub-merchant account in order to provide payment processing services to merchant clients. As a payment facilitator, we are able
to offer merchant services on a sub-merchant platform which allows us to on-board sub-merchants under our unique merchant ID account
(an "MID"). Said differently, PayFacs operate in the same way as an ISO in terms of payment process but the on-boarding
and accounting for merchants are different. With an ISO, merchants are identified with individual MID and the settlement to the
merchant is handled by the settlement/acquiring bank. A PayFac has its own MID with a settlement bank and each of the merchants
on-boarded by the PayFac are given sub-MID's under the PayFac's MID. This allows the PayFac to board a merchant very
quickly and also enables the PayFac to accept responsible for settling the payment of funds to the merchant which increases the
PayFac's fees. We operate under a TSYS/ProPay (the processor in the ecosystem) and the sponsoring bank that approved us
was Wells Fargo.
Description
of our eVance Business
General
eVance
is an independent sales organization that signs up new merchants on behalf of acquiring banks and processors (an "ISO")
that provides financial and transaction processing solutions to merchants throughout the United States. eVance differentiates
itself from other ISOs by focusing on both obtaining and maintaining new merchant contracts for its own account (including, but
not limited to, merchants that utilize the OmniSoft platform) and also obtaining and maintaining merchant contracts obtained by
third-party ISOs (for which we negotiate a shared fee arrangement) and utilizing our own software and technology to provide merchants
and other ISO's differentiating products and software. In particular, we (i) own our own payments gateway, (ii) have proprietary
omni-commerce software platform, (iii) have in-house underwriting and customer service, (iv) have in-house sub-ISO management
system which offers sub-ISO's and agents tools for online boarding, account management, residual reports among other tools,
(v) utilize a PayFac model and (vi) offer a suite of products in the financial markets (through CrowdPay). Leveraging our relationship
with three of the top five merchant processors in the United States (representing a majority of the merchant processing market)
and with use of our proprietary software, eVance provides competitive payment processing solutions to merchants which enable merchants
to process credit and debit card-based internet payments for sales of their products at competitive prices (whether such sales
occur online or at a "brick and mortar" location). Our payment gateway (which we call "SecurePay") also
enables merchants to reduce the cost of transacting with their customers by removing the need for a third-party payment gateway
solution.
43
Our
ISO Operations
As
described in more detail in the section entitled "Our Industry" below, an ISO is an organization that signs up new
merchants on behalf of acquiring banks and processors. As an ISO, we identify merchants that are interested in our financial and
transaction processing solutions and generate individual merchant processing contracts for such merchants. We operate as both
a wholesale ISO and a retail ISO depending on the risk profile of the merchant and the applicable merchant processor and acquiring
bank. As a wholesale ISO, we underwrite the processing transactions for merchants, establishing a direct relationship with the
merchant and generating individual merchant processing contracts in exchange for future residual payments. As a retail ISO, we
primarily gather the documents and information that our partners (acquiring banks and acquiring processors) need to underwrite
merchants' transactions and as a result receive only residual income as commission for merchants we place with our partners.
When we onboard a new merchant, such merchant is identified with an individual merchant ID account (an "MID") and
the settlement to the merchant is handled by the acquiring bank.
Our
Industry
The
payment processing industry allows merchants to process credit, debit and gift and loyalty card payments along with providing
other payment processing and related information services. The electronic payments industry continues to benefit from the migration
from cash and checks to credit and debit cards and other electronic payments, as well as intrinsic, aggregate growth in the Gross
Domestic Product ("GDP") in the markets we serve. This migration is being driven by consumer convenience and engagement,
the increased use by consumers of online shopping, card issuer rewards, e-commerce, regulations and innovative payment and commerce
solutions being introduced in these markets. In addition, broader merchant acceptance in industries that did not historically
accept electronic payments helps to drive this migration. Merchants are taking advantage of new hardware options, such as mobile
phone dongles and tablet solutions, to integrate payment processing solutions into general business applications, which reduce
the cost and complexities of doing business and serving consumers. The payment processing industry is served by a variety of providers
including:
●
Card issuers
–
Financial institutions that issue payment account products, such as credit and debit cards, to consumers
    backed by a credit line or a demand deposit account, such as a checking account and pay merchants on behalf of cardholders.
●
Acquiring banks
– Financial institutions that accept payments from the card issuer on behalf of a merchant (any organization that
    accepts card-based payments in exchange for the goods and services they provide) such that the merchant does not need to have
    an account with the card issuer in order to accept a payment from a customer.
●
Credit card associations
– Credit card brand companies (for example, Visa and MasterCard) that issue cards to consumers and set rules and
    route transactions among participants in their networks (card issuers and acquiring banks, for example).
●
Merchant acquirers
– Providers that enable merchants to accept, process and settle electronic payments. There are various types of
    merchant acquirers as described below. We operate as a type of merchant acquirer.
●
Third-party providers
    –
Other service, software and hardware companies that provide products and services designed to improve the payments
    experience for issuers, merchants, merchant acquirers and consumers, including mobile payment enablers, terminal manufacturers,
    payment gateway providers, independent software vendors, integrated point of sale systems, dealers and risk management service
    providers.
44
A
typical card transaction requires close coordination among the various industry participants described above that provide the
services and infrastructure required to enable such transactions. As a merchant acquirer, our role in this ecosystem is to act
as a conduit between acquiring banks and credit card associations, on the one hand, and merchants, on the other hand, to enable
merchants to accept, process and settle payments from customers. There are various types of merchant acquirers:
●
Non-bank merchant
    acquirers –
These independent providers offer merchant acquiring solutions using their own proprietary and third-party
    platforms, and are capable of facilitating all elements of the payment transaction cycle, including the acceptance (i.e.,
    authorization or rejection), processing and settling of merchant transactions.
●
Banks
–
    Historically, banks have been the merchant acquirers, as they marketed merchant acquiring services in combination with other
    commercial banking products to their customers. In the United States, however, most banks divested these services to non-bank
    merchant acquirers. While some banks elected to retain in-house merchant acquiring capabilities, the vast majority of U.S.
    banks chose to form joint ventures or referral relationships with independent merchant acquirers.
●
IPOS providers
    –
These companies offer software and hardware solutions that enable merchants to manage various aspects of their
    business, including payment acceptance through separate relationships between the IPOS providers and merchant acquirers.
●
ISOs –
    I
SOs typically specialize in managing a sales force that targets merchants in a specific market segment or geographic
    region. ISOs typically outsource most merchant acquiring back-office functions, including the processing and settling of transactions,
    to non-bank merchant acquirers. ISOs are contracted by a credit card member bank to procure new merchant relationships. ISOs
    also process online credit card processing transactions for small businesses for a fee or percentage of sales. Being a wholesale
    ISO, eVance assumes underwriting liability which increases its responsibility to monitor and manage merchants, thereby increasing
    its value to banks as well as the fees which it charges for each transaction.
A
typical card transaction requires a complex process involving various participants in a series of electronic messages, decisions
and flow of funds as seen below:
A
typical card transaction begins when a cardholder presents a card for payment at a merchant location and the cardholder swipes
the card's magnetic strip through, or in the case of an EMV chip inserts the card into, a point of sale (or "POS")
terminal card reader. Some merchants may also have card readers that can receive cardholder information through a contactless
connection with an enabled card or mobile phone. The card reader can be integrated either into a standalone POS terminal or a
software application the merchant uses to manage its business. For e-commerce transactions, the cardholder types in the card number
and related information into the merchant's website where it is collected by the website's payment processing software.
The POS terminal or software application electronically records sales draft information, such as the card identification number,
transaction date and value of the goods or services purchased. After the card and transaction information is captured by the POS
terminal or software, the merchant acquirer routes the authorization request through the applicable card network to the card issuer,
whose systems determine whether a transaction is "approved" or "declined" based on a variety of factors,
including a determination of whether the particular card is authentic and whether the impending transaction value will cause the
cardholder to exceed defined limits for spending or balances. This response is then returned to the merchant's POS terminal
or software application. This entire authorization and response process is referred to as the "frontend" of a purchase
transaction and typically occurs within seconds from the time the cardholder initiates the transaction.
45
Following
the purchase transaction approval, an electronic draft capture process transfers sales draft data into an electronic format. Once
in an electronic format, sales draft data is sent through the card networks for clearing and settlement, allowing the merchant
to receive payment for the goods or services sold. Card networks use a system known as "interchange" to transfer the
information and funds between the card issuer and the merchant acquirer to complete the link between the merchant and card issuer.
This portion of the payment processing cycle is referred to as the "backend settlement" and typically occurs within
48 hours following a completed purchase transaction.
The
services provided directly to merchants and associated fees to the merchant vary depending on the type of card (
e.g.
, corporate,
consumer, debit, rewards), manner in which it is used (
e.g.
, credit/debit, e-commerce, face-to-face), merchant
category, the provider's in-house technology capabilities and the services that are outsourced to other providers.
Only a few providers have the capability to provide all of these services, and even fewer can provide all of their services from
an integrated platform. We are one of these providers. Below is an example of a sample transaction:
Sales
and Marketing
We
primarily use independent agents and other smaller ISOs to market our services. We intend to increase the number of independent
agents and ISO's that sell on our behalf. We may also gain additional agents through the acquisition of merchant portfolios
or companies. We may also add to our direct sales channel for certain industry segments or customer profiles.
Growth
Strategy
Our
growth strategy consists of the following: (1) we plan to begin offering the OmniSoft suite of products and applications to our
existing eVance customers, (2) we expect to bring in-house a sales team to generate organic revenues from the suite of products
that we have and (3) we expect to make additional acquisitions of merchant portfolios that we can integrate into our applications.
Competition
The
payment processing industry is highly competitive. We compete with other ISOs for the acquisition of merchant agreements. Several
sponsor banks and processors including First National Bank of Omaha, Chase Paymentech, L.P., Bank of America Merchant Services,
First Data Corporation, Global Payments, Elavon Inc., as well as Wells Fargo, U.S. Bank and others, frequently solicit merchants
directly or through their own network of ISOs. Competition is based upon a number of factors including price, service and product
offerings. Many of these competitors are larger and have substantially greater resources than us. We believe we remain competitive
to these processors and competitive ISOs through a combination of beneficial pricing and services to our merchant customers.
Cash
Advance Business
In
addition to our business as an ISO, we may, through eVance Capital, a subsidiary of eVance, begin to provide cash advances and
loans to our merchant customers. In this capacity, we would act as a retail ISO providing alternative financing and working capital
solutions to small and medium sized businesses using a variety of third party funding sources. eVance Capital would not provide
capital directly or take credit risk, instead seeking to earn commissions from independent third parties by placing their financial
products with our merchant customers. No cash advances and/or loans were provided to our merchant customers for the years ended
December 31, 2018 and 2017 or during the three months ended March 31, 2019.
Description
of our OmniSoft Business
General
OmniSoft
operates a cloud-based business management platform that provides turnkey solutions for merchants to enable them to build and
manage their retail businesses, whether online or at a "brick and mortar" location. The OmniSoft platform, which can
be accessed by merchants through any mobile and computing device, allows merchants to, among other features, manage and track
inventory, track sales and process customer transactions and can provide interactive data analysis concerning sales of products
and need for additional inventory. Merchants generally utilize the platform by uploading to the platform information about their
inventory (description of units, number of units, price per unit, and related information). Once such information has been uploaded,
merchants, either with their own device or with hardware that we sell directly to them, are able to utilize the platform to monitor
inventory and process and track sales of their products (including coordinating shipping of their products with third party logistics
companies). We manage and maintain the OmniSoft platform through a variety of domain names or a merchant can integrate our platform
with their own domain name. Using the OmniSoft platform, merchants can "check-out" their customers at their "brick
and mortar" stores or can sell products to customers online, in both cases accepting payment via a simple credit card or
debit card transaction (either swiping the credit card or entering the credit card number), a cash payment, or by use of a QR
code or loyalty and reward points, and then print or email receipts to the customer. OmniSoft has recognized an immaterial amount
of the Company's revenue, if any, historically (including during the periods presented in the financial statements included
herein).
46
Our
Operations
OmniSoft
is a SaaS business that offers OMNI Commerce Solutions as a white label service. OmniSoft provides customized solutions to ISOs
and banks or financial institutions that processes credit or debit card payments on behalf of a merchant that operate in the payments
processing market and have the need for e-commerce and mobile commerce. We provide software that enable companies to offer similar
services as competitors such as PayPal, Intuit QuickBooks, Square, Google, Apple Pay and Amazon. Our cloud based software has
comparable features to Shopify under ShopFast. We also provide white labeled services for large ISOs. Our solutions are cloud-based
so there is no need to install any software, backup or update applications by our clients, including large Merchant Acquiring
Banks. The OmniSoft software works on web based computers & tablets, Apple IOS, Android, and Windows. Our target clients are
merchant acquiring banks, and ISOs (wholesale price) Direct to retailers. Our business model provides a sign-up integration fee,
custom features development fees, and ongoing monthly fees, per merchant per month. The pricing for a single merchant includes
an initial setup fee of $49 and approximately $100-$200 per month for use of the software as SaaS fees. Hardware costs range from
$300 to $1,000. Large white label projects have a one-time fee of $50,000.
OmniSoft
allows mobile shopping and self-checkout with credit or debit cards, reward points and Apple Pay. OmniSoft features include: a
product catalog, marketing and promotions, shipping features, payment gateways to Point-of-Sale (POS) terminals, customer service,
secure HTTPS & SSL and Payment Card Industry (PCI) Compliance.
Our
service features include: maintenance, hosting, monitoring, updates, custom solutions, software support, and service level agreement.
Retailers and merchants have access to website development tools, marketing functions and curation capabilities, mobile commerce
and social media engagement. Key back-office management functions, including statistical analysis reports and inventory management,
are available through OmniSoft's advanced API and pre-built integrations with leading accounting applications.
ShopFast
We
utilize OmniSoft software to be able to provide companies with branded web sites. We partner with clients such as traditional
marketing companies which include cataloguers, retailers, wholesalers and manufacturers, seeking to develop their Internet sales
through their own websites. Which we help develop, operate, host and market on the ShopFast platform.
Many
of our clients need to establish an Internet presence in order to effectively compete in the e-commerce marketplace, but do not
either have the resources or the expertise to effectively operate and market an e-commerce retail website. By working with the
Company, these companies are able to establish, maintain and market up-to-date, customized, commerce-enabled websites, while avoiding
high set up costs and fees such as software maintenance and upgrades.
Our
ShopFast solution is equipped with the most advanced Internet commerce technology available to help our clients provide superior
service to their customers. We provide such clients with a 24/7 global marketplace for the sale of their products, while at the
same time allowing for instant price changes, evaluation of marketing campaigns, measurement of consumer product acceptance, and
handling of customer service. Each ShopFast website is custom tailored to meet the needs of our clients. We have cultivated relationships
with our clients to be able to provide the market with turnkey online private label stores. In addition, we provide product content
from our clients to our Direct Shopping Database (DSD) of partners, which is a multi-inventory shopping services that matches
suppliers with customer traffic. While our clients are responsible for driving traffic to their own website through their own
marketing efforts, the ShopFast DSD creates an additional sales channel for the client at no additional cost.
Through
ShopFast, consumers can purchase products and services from websites of clients across variety of business sectors including:
Cafes & Delis, Retail Stores, Salons & SPAS, Restaurants, Street Vendors, and Car & Limousine.
47
Hardware
Products
To
help expand the market for our suite of OmniSoft business solutions, we also purchase hardware products from wholesalers, which
after installation of our OmniSoft proprietary software, we resell through our ShopFast website. Hardware products we sell are
merchant focused including credit card swipers, barcode scanners, cash drawers and printers. Other popular products include Apple
iPads, and payment processing hardware such as the Poynt smart terminal that facilitates payments and customer receipts for merchants
and customers.
Competition
We
compete against companies such as Shopify, Square, ShopKeep and Revel.
Description
of our CrowdPay Business
General
CrowdPay operates
a white label capital raising platform that is used mainly by small and midsized businesses seeking to raise capital and by registered
broker-dealers seeking to host capital raising campaigns for such businesses by integrating the platform onto such company's
or broker-dealer's website. Our CrowdPay platform is tailored for companies seeking to raise money through a crowdfunding
offering of between $1 million and $50 million pursuant to Regulation CF under the JOBS Act, offerings pursuant to Rule 506(b)
and Rule 506(c) under Regulation D of the Securities Act, and offerings pursuant to Regulation A+ of the Securities Act. Our platform,
which can be used for multiple offerings at once, provides companies and broker-dealers with an easy-to-use, turnkey solution
to support company offerings, allowing companies and broker-dealers to easily present online to potential investors relevant marketing
and offering materials and by aiding in the accreditation and background check processes to ensure investors meets the applicable
requirements under the rules and regulations of the SEC. CrowdPay charges a fee to each company and broker-dealer for the use
of its platform under a fee structure that is agreed to between CrowdPay and the Company and/or broker-dealer prior to the initiation
of the offering. CrowdPay also generates revenues by providing ancillary services to the companies and broker-dealers utilizing
our platform, including running background checks and providing anti-money laundering and know-your-customer compliance. CrowdPay
is not a registered funding portal or a registered broker-dealer. CrowdPay has recognized an immaterial amount of the Company's
revenue, if any, historically (including during the periods presented in the financial statements included herein).
Our
Operations
As
a SaaS company, CrowdPay offers white label Omni Channel e-commerce and content solutions for crowdfunding, while offering custom
solutions to broker dealers, merchant banks and securities law firms that have the need for platforms to market and collect offerings.
We install all software, backup, and update applications for all issuers that are customers of our platform. CrowdPay works on
web based computers, IOS and Android devices. The platform can be up and running in approximately four to six weeks after the
initial onboarding process and configurations for hardware.
Maintenance,
hosting, billing transactions and compliance are all provided for on the platform. Our pricing model for these services ranges
from $25,000 to $100,000 per month, which includes transaction fees, set up fees and platform fees. In lieu of cash fees, we also
accept, on a case by case basis, equity shares from companies that use our platform.
Any
special feature requiring development will be developed as custom work, and will be quoted prior to starting development. Per
our business model, there is a onetime upfront fee that provides for implementation and integration specified ACH and processing
credit cards for payments on the platform. ACH and wire processing are required to be processed using our other subsidiaries,
eVance and OmniSoft. Per corporate design, the portal provides processes for compliance with certain regulations, e-signatures,
accreditation and Bad Actor checks with integrated third party software. CrowdPay is also connected to reputable service bureaus
that provide us with background checks. The dashboard provides management and offering information on identity validation, custom
forms, know your customer (KYC), anti-money laundering (AML) checks, residency requirements and cool-off periods.
Our
Crowdfunding platform monitors compliance with AML and KYC laws and regulations. Our SaaP key feature integrations include: standard
delivery mechanisms, accounting management, search engine tools and cloud based tools through Microsoft Azure.
48
Examples
of Platform Offerings
The
Growth eREIT
can be offered on a platform to focus primarily on opportunistic equity ownership of commercial real estate
assets that have greater potential to appreciate in value over time.
The
Income eREIT
can be offered on a platform to focus primarily on debt investments in commercial real estate assets, which
typically generate steady cash flow throughout the life of the investment.
We
have clients in various industries including automotive, biotech and educational products that are currently utilizing the platform
to offer securities under Rule 506(c), Regulation A+ and Regulation CF.
Significantly,
we are one of the few crowdfunding platforms that can accept investments using credit cards, which we process through our eVance
business.
INVESTOR
    LIMITS
title
    II –
rule 506(b)
title
    II –
rule 506(c)
title
    III
Regulation A+
Tier 1
Regulation A+
Tier 2
Maximum
    Dollar Amounts
No
    Maximum
No
    Maximum
$1
    Million
$20
    Million
$50
    Million
Types
    of Investors Permitted
Accredited
    – up to 35
Non-Accredited
Only
    Accredited
Accredited
    and
Non-Accredited
Accredited
    and
Non-Accredited
Accredited
    and
Non-Accredited
Investment
    Limits
None
None
Yes
(the lesser of 5% or 10% of income or net worth)
Yes
    – for non-accredited
investors (10% of income, net worth)
Yes
    – for non-accredited
investors (10% of income, net worth)
Typical
    Number of Investors
<100
<100
<1000
~1500
    to ~5500
~2500
    to ~7500
Shareholder
    Limits
2,000
    accredited investors, 35 Non-Accredited friends and family investors.
2,000
    accredited investors
None
None
None
Investor
    Liquidity
12
    month hold
12
    month hold
12
    month hold
Yes
    – Transfer Agency to OTC or NASDAQ
Yes
    – Transfer Agency to OTC or NASDAQ
Offering
    LIMITS
title
    II – rule 506(b)
title
    II – rule 506(c)
title
    III
Regulation
    A+
Tier 1
Regulation A+
Tier 2
General
    Solicitation (Advertising) Allowed
No
Yes
Yes,
    but only through the portal.
Yes
Yes
Requires
    Integrated Escrow and Payment Processor
No
No
Yes
No
No
Allows
    'Test The Waters'
Yes
Yes
No
Yes
Yes
Requires
    a Funding Portal
No
No
Yes
    (register with FINRA)
No
No
Simultaneous
    Other Offerings Allowed For The Same Company
Yes
Yes
No
Yes
Yes
Average
    Time Before Launch
<2
    weeks
<2
    weeks
<4
    weeks
16-20
    weeks
16-20
    weeks
Filing
    Required
Post
    Sale
Post
    Sale
Pre
    Sale
Pre
    Sale
Pre
    Sale
Regulatory
    Approval Required Prior to Launch
No
No
CF
    Portal = Yes Individual
Deal = No
Yes
Yes
Approximate
    Legal and Accounting Fees
$5,000
    to $20,000
$5,000
    to $20,000
$5,000 to $15,000
$40,000 to $150,000
$50,000 to $200,000
Ongoing
    Reporting Requirements
None
None
Yes
None
Yes
Audited
    Financials
No
No
No
No
Yes
Social
    Sharing Allowed
No
Yes
Yes
Yes
Yes
49
Partnering
Our
partners are proven experts in their own fields. CrowdPay integrates into software or may be available as third-party enhancements
or extensions. CrowdPay constantly seeks to work with reputable partners as we continue to enhance our software and platform.
We currently partner with companies well known in the e-commerce and technology sectors, such as Profit Stars, DocuSign, Verify
Investors, Salesforce, Hub Spot, CFIRA, CFPA, Block Score, and LexisNexis.
We
are connected with our partners over APIs and have direct access to their products and services. For example, our connection to
ProfitStars allows us to offer services directly to their clients, which includes credit unions and small banks under management.
eVance and OmniSoft are integrated into the back end system to process ACH and credit card transactions.
Features
The
CrowdPay website builder enables a client to create a responsive website without coding that can be customized using desktops,
tablets, iPhones and Android mobile devices. All CrowdPay websites follow Google's SEO best practices and come with many
designs and widgets that enhance the user's overall experience and exposure. Our website builder offers an intuitive drag
and drop editor that creates efficiencies by significantly cutting down on development time. Widgets make site building faster
where a client can copy and paste any element within a site.
Almost
every element in CrowdPay's content management system, or CMS, can be customized on each device. Alternatively, CrowdPay
offers pre-arranged templates. A client can simply pick one and use our user-friendly, responsive website builder to bring the
client's vision to life. A client can pull from a library of free stock images, upload or import images from any URL to
easily express their unique concept and corporate culture. Our clients can improve their website's search engine ranking
by setting up page titles and descriptions and approximately 300 redirects. Images uploaded to CrowdPay's CMS are automatically
resized and compressed so they load seamlessly across desktop, tablet and mobile devices. Our website builder displays blogs seamlessly
across desktop, tablet, and mobile devices. ATOM and RSS feeds are automatically generated. Automatic backups are created every
time you make changes and publish them. In addition, clients can revert back to any version at any time.
50
Competition
Our
crowdfunding platform competes with companies such as Start Engine, Crowd Engine and SeedInvest.
Our
Synergies
Generally
The
success of our business model is dependent on the synergies between the business segments operated by our subsidiaries. We have
created and developed an ecosystem of e-commerce to provide a variety of clients, from online equity financing companies or merchants
selling online or in brick and mortar stores, with multiple product offerings and ancillary services from underwriting with the
banks and merchant billing from the cloud software. These synergies create additional revenue by charging transaction fees on
each service provided to clients by our partnerships with Merchant Acquiring Banks and PCI Compliance.
Competitive
Advantages
The
OLB platform of services provides the following key advantages.
●
Time to Market –
    we can create a customized website for retailers within days and have it fully operational in less than 2 weeks.
●
Cost – we
    are the only content service provider that does not charge a setup fee.
●
Flexibility –
    our platform has the flexibility to provide customized solutions for partners.
●
Pricing –
    we provide partners with a price comparison feature which they can utilize if they wish to set prices for products or run
    promotions.
●
Payment processing
    – we can provide financial service companies with the ability to have their customers' accounts directly debited
    for payment.
Customers
As
a result of our various business platforms, we service a wide array of customers, including:
●
Content sites, portals,
    Internet Service Providers (ISPs) and Fortune 1,000 companies with high traffic but no e-commerce functionality searching
    for a fully outsourced solution, or with some e-commerce in place but are seeking either an additional channel or a more effective
    market approach.
●
System integrators
    and web developers who can provide added value to their customers or generate additional revenue by including e-commerce functionality
    in their offerings.
●
Existing "brick
    & mortar" businesses that have inventory and fulfillment capability but do not wish to create and maintain an e-commerce
    website and infrastructure.
●
Startups to early-stage
    companies looking for an effective and less costly way to raise capital.
Regulations
Various
aspects of our service areas are subject to U.S. federal, state, and local regulation. Certain of our services also are subject
to rules promulgated by various card networks and banking and other authorities as more fully described below.
The
Dodd-Frank Act
In
July 2010, the Dodd-Frank Act was signed into law in the United States. The Dodd-Frank Act has resulted in significant structural
and other changes to the regulation of the financial services industry. Among other things, Title X of the Dodd-Frank Act established
a new, independent regulatory agency known as the Consumer Financial Protection Bureau (the "CFPB") to regulate consumer
financial products and services (including some offered by our customers). The CFPB may also have authority over us as a provider
of services to regulated financial institutions in connection with consumer financial products. Separately, under the Dodd-Frank
Act, debit interchange transaction fees that a card issuer receives and are established by a payment card network for an electronic
debit transaction are now regulated by the Federal Reserve and must be "reasonable and proportional" to the cost incurred
by the card issuer in authorizing, clearing, and settling the transaction. Effective October 1, 2011, the Federal Reserve
capped debit interchange rates for card issuers operating in the United States with assets of $10 billion or more at the
sum of $0.21 per transaction and an ad valorem component of 5 basis points to reflect a portion of the issuer's fraud losses
plus, for qualifying issuers, an additional $0.01 per transaction in debit interchange for fraud prevention costs. In addition,
the new regulations contain non-exclusivity provisions that ban debit card networks from prohibiting an issuer from
contracting with any other card network that may process an electronic debit transaction involving an issuer's debit cards
and prohibit card issuers and card networks from inhibiting the ability of merchants to direct the routing of debit card transactions
over any network that can process the transaction. Beginning April 1, 2012, all debit card issuers in the United States
were required to participate in at least two unaffiliated debit card networks. On April 1, 2013, the ban on network
exclusivity arrangements became effective for prepaid card and healthcare debit card issuers, with certain exceptions for prepaid
cards issued before that date.
51
Effective
July 22, 2010, merchants were allowed to set minimum dollar amounts (not to exceed $10) for the acceptance of a credit card
(while federal governmental entities and institutions of higher education may set maximum amounts for the acceptance of credit
cards). They were also allowed to provide discounts or incentives to entice consumers to pay with an alternative payment method,
such as cash, checks or debit cards.
Association
and network rules
We
are subject to the rules of credit card associations and other credit and debit networks. In order to provide processing
services, a number of our subsidiaries are registered with Visa or Mastercard as service providers for member institutions. Various
subsidiaries of ours are also processor level members of numerous debit and electronic benefits transaction networks or are otherwise
subject to various network rules in connection with processing services and other services we provide. As such, we are subject
to applicable network rules. Card networks and their member financial institutions regularly update and generally expand security
expectations and requirements related to the security of cardholder data and environments. We are also subject to network operating
rules promulgated by the National Automated Clearing House Association relating to payment transactions processed by us using
the Automated Clearing House Network and to various state federal and foreign laws regarding such operations, including laws pertaining
to electronic benefits transactions.
Privacy
and information security regulations
We
provide services that may be subject to various state, federal, and foreign privacy laws and regulations, including, among others,
the Financial Services Modernization Act of 1999 (the "Gramm-Leach-Bliley Act"). These laws and their implementing
regulations restrict certain collection, processing, storage, use, and disclosure of personal information, require notice to individuals
of privacy practices, and provide individuals with certain rights to prevent use and disclosure of protected information. These
laws also impose requirements for the safeguarding and proper destruction of personal information through the issuance of data
security standards or guidelines. Certain federal, state and foreign laws and regulations impose similar privacy obligations and,
in certain circumstances, obligations to notify affected individuals, state officers or other governmental authorities, the media,
and consumer reporting agencies, as well as businesses and governmental agencies, of security breaches affecting personal information.
In addition, there are state and foreign laws restricting the ability to collect and utilize certain types of information such
as Social Security and driver's license numbers.
Unfair
trade practice regulations
We
and our clients are subject to various federal and state laws prohibiting unfair or deceptive trade practices, such as Section 5
of the Federal Trade Commission Act. Various regulatory agencies, including the Federal Trade Commission, the Consumer Financial
Protection Bureau, and state attorneys general, have authority to take action against parties that engage in unfair or deceptive
trade practices or violate other laws, rules, and regulations, and to the extent we are processing payments for a client that
may be in violation of laws, rules, and regulations, we may be subject to enforcement actions and incur losses and liabilities
that may impact our business.
52
Anti-money
laundering, anti-bribery, sanctions, and counter-terrorist regulations
We
are subject to anti-money laundering laws and regulations, including certain sections of the USA PATRIOT Act of 2001. We are also
subject to anti-corruption laws and regulations, including the U.S. Foreign Corrupt Practices Act (the "FCPA") and
other laws, that prohibit the making or offering of improper payments to foreign government officials and political figures and
includes anti-bribery provisions enforced by the Department of Justice and accounting provisions enforced by the SEC. The FCPA
has a broad reach and requires maintenance of appropriate records and adequate internal controls to prevent and detect possible
FCPA violations. Many other jurisdictions where we conduct business also have similar anticorruption laws and regulations. We
have policies, procedures, systems, and controls designed to identify and address potentially impermissible transactions under
such laws and regulations.
We
are also subject to certain economic and trade sanctions programs that are administered by the Office of Foreign Assets Control
("OFAC") which prohibit or restrict transactions to or from or dealings with specified countries, their governments,
and in certain circumstances, their nationals, and with individuals and entities that are specially-designated nationals of those
countries, narcotics traffickers, and terrorists or terrorist organizations. Other group entities may be subject to additional
local sanctions requirements in other relevant jurisdictions.
Securities
Act
Since
the JOBS Act was passed, Crowdfunding, Regulation D offerings and Regulation A and A+ offerings rapidly became a familiar concept
among investment firms, venture capitalists, real estate developers and small to medium sized businesses as a way to facilitate
and democratize financing. We believe it has created, and continues to create, a profound shift in the world of investments. Below
is a brief overview of the rules that permit the offer and sale of securities through such platforms. This overview is in no way
intended to be a comprehensive review of all the rules and regulations associated with the above mentioned offerings and should
not be relied upon by anyone.
Regulation
D under the Securities Act is the most common regulatory exemption used small businesses to raise capital through equity financing.
It exempts private placement offerings under Rule 506(b) and 506(c) when sold to accredited investors, as defined under Rule 501
of Regulation D. Companies relying on the Rule 506 exemptions can raise an unlimited amount of money, so long as they comply with
the rule's requirements. Regulation A and Regulation A+ are more similar to a public offerings, and require filing Form
1-A with the SEC. Regulation A and Regulation A+ offer two tiers of offerings; the first tier is for offerings of up to $20 million
within any 12 month period and the second tier is for offerings of up to $50 million, within any 12 month period. Regulation CF
allows a company to raise up to $1.07 million from non-accredited investors.
Intellectual
property
Our
products and services utilize a combination of proprietary software and hardware that we own and license from third parties. Over
the last few years, we have developed a payment gateway, merchant boarding system, ecommerce platform, recurring billings and
a crowdfunding platform. We generally control access to and use of our proprietary software and other confidential information
through the use of internal and external controls, including entering into non-disclosure and confidentiality agreements
with both our employees and third parties. As of the date of this prospectus, we have a patent pending on transferable QR codes
on Omni Commerce devices.
Legal
proceedings
From
time to time we may be involved in claims and legal actions that arise in the ordinary course of business. We do not believe that
the ultimate resolution of any of these actions, individually or in the aggregate, will have a material adverse effect on our
financial position, results of operations, liquidity or capital resources.
Employees
As
of June 26, 2019, we had six key employees as part of our overall staff of 24 full-time employees. Our risk, compliance,
underwriting and analyst's accounting and customer service functions are located in Atlanta, Georgia. In addition, we
have operations in India where we retain 15 to 35 developers at any given time depending on our requirements and scope of
projects. None of our employees are represented by a labor union or covered by a collective bargaining agreement. We consider
our relationship with our employees to be good.
Description
of Property
We
currently lease 5,000 square feet of office space in Alpharetta, GA for which we currently pay rent of approximately $8,700 per
month.
53
MANAGEMENT
Executive
Officers and Directors
The
following table sets forth information concerning our executive officers and directors and their ages of the date of this prospectus:
Name
Age
Position(s)
Ronny Yakov
60
Chief Executive Officer and Chairman of the Board of Directors
Rachel Boulds
49
Chief Financial Officer
Patrick Smith
45
Vice President
Ronny
Yakov
is Chief Executive Officer, Chairman of the Board of Directors, founder and majority shareholder of the Company. Mr.
Yakov has over 25 years of experience of concept-to-print, software and e-commerce marketing experience with Fortune 500 and 1,000
companies and a proven track record of helping clients adapt their businesses to technological developments. In 1996, Mr. Yakov
entered into the electronic mail-order catalog business with Playboy Enterprises, creating and hosting two e-commerce sites: Critics'
Choice Video and Collectors' Choice Music. As founder of the Company, Mr. Yakov has since developed a number of other branded
e-commerce sites for clients, selling a variety of products including sporting goods, chocolates and cosmetics, with which the
Company now partners to provide ongoing hosting and maintenance. Other significant accomplishments of Mr. Yakov have included
establishing an AT&T wholesale e-commerce platform for 180,000 employees and working with high-profile clients such as Disney,
Cisco Systems, Pfizer, Motorola, and Microsoft, among many others. Mr. Yakov also developed and maintains a complex extranet/intranet
infrastructure that allows Doremus, an Omnicom Communication subsidiary, to provide its advertising services to 50 of the top
financial institutions on a real-time basis.
Rachel
Boulds
is Chief Financial Officer of the Company. Ms. Boulds currently works for the Company on a part-time basis (spending
approximately 80% of her time working for the Company) while also operating her sole accounting practice which she has led since
2009 and which provides all aspects of consulting and accounting services to clients, including the preparation of full disclosure
financial statements for public companies to comply with GAAP and SEC requirements. Ms. Boulds also currently provides outsourced
chief financial officer services for two other companies. From August 2004 through July 2009, she was employed as a Senior Auditor
for HJ & Associates, LLC, where she performed audits and reviews of public and private companies, including the preparation
of financial statements to comply with GAAP and SEC requirements. From 2003 through 2004, Ms. Boulds was employed as a Senior
Auditor at Mohler, Nixon and Williams. From September 2001 through July 2003, Ms. Boulds worked as an ABAS Associate for PriceWaterhouseCoopers.
From April 2000 through February 2001, Ms. Boulds was employed as an e-commerce Accountant for the Walt Disney Group's GO.com.
Ms. Boulds earned a B.S. in Accounting from San Jose University in 2001 and is licensed as a CPA in the state of Utah.
Patrick
Smith
is Vice President of the Company. Mr. Smith has over 20 years of finance, accounting and operational experience in the
merchant services industry. Mr. Smith joined eVance (Formerly Calpian Commerce) in 2014 as Director of Finance.  Prior to
eVance, Mr. Smith spent 2 years as Director of Financial Planning and Analysis at Cynergy Data, an ISO with over 75,000 merchants.
He worked with Pay by Touch, a biometric payments start-up company based in San Francisco, and was part of the financial team
that raised over $300M in its capital funding.  From 1996 to 2004, Mr. Smith worked for Concord EFS, a large merchant acquirer.
His titles at Concord included Internal Audit, Financial Analyst and Vice President/Controller.  While at Concord EFS, he
was part of the diligence team that worked on several large acquisitions, including those of Star and EPS Debit networks.
None
of our directors or officers are related to each other. There are no arrangements or understandings with any of our principal
stockholders, customers, suppliers, or any other person, pursuant to which any of our directors or executive officers were appointed.
No
officer or director has, during the past five years, been involved in (a) any bankruptcy petition filed by or against any business
of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior
to that time, (b) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic
violations and other minor offenses), (c) any order, judgment, or decree, not subsequently reversed, suspended or vacated, of
any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement
in any type of business, securities or banking activities or (d) a finding by a court of competent jurisdiction (in a civil action),
the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law,
and the judgment has not been reversed, suspended, or vacated.
54
Director
Independence
Our
Board of Directors may establish the authorized number of directors from time to time by resolution. Our Board of Directors is
currently comprised of one member. Prior to the completion of this offering, we will appoint [     ] directors
to the Board of Directors, each of whom stand for reelection annually by our stockholders.
We
have applied to list our common stock on the NASDAQ Capital Market. The listing rules of this stock exchange generally require
that a majority of the members of a listed company's board of directors, and each member of a listed company's audit,
compensation and nominating and corporate governance committees, be independent. Our Board of Directors has determined that [      
,      , and      ] do not have any relationships that would interfere with
the exercise of independent judgment in carrying out the responsibilities of a director and such directors are "independent"
as that term is defined under the rules of the stock market.
Audit
committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Exchange Act, subject to the transition
rule that is applicable to a newly public company. In order to be considered independent for purposes of Rule 10A-3, a member
of an audit committee of a listed company may not, other than in his or her capacity as a member of the audit committee, the Board
of Directors, or any other board committee accept, directly or indirectly, any consulting, advisory, or other compensatory fee
from the listed company or any of its subsidiaries; or be an affiliated person of the listed company or any of its subsidiaries.
Controlled
Company Status
After
giving effect to this offering, our Chief Executive Officer and Chairman, Ronny Yakov, will control     %
of the voting power of our outstanding common stock. As a result, Mr. Yakov will have the ability to control the outcome of matters
submitted to our stockholders for approval, including the election of our directors, as well as the overall management and direction
of our company.
Because
Mr. Yakov controls, and will continue to control following completion of this offering a majority of our outstanding voting power,
we are, and will continue to be, a "controlled company" under the corporate governance rules for NASDAQ-listed companies.
Therefore, we are not required to have a majority of our board of directors be independent, nor are we required to have a compensation
committee or an independent nominating function.
While
we have determined to have a majority of our directors be independent for NASDAQ purposes, in light of our status as a controlled
company, our board of directors has determined not to have an independent nominating function and to have the full board of directors
be directly responsible for compensation matters and for nominating members of our board.
We
expect our company will continue to qualify as a controlled company until such time as Mr. Yakov controls less than 50% of our
outstanding common stock.
Role
of the Board of Directors in Risk Oversight
The
Board of Directors is responsible for assessing the risks facing our company and considers risk in every business decision and
as part of our business strategy. The Board of Directors recognizes that it is neither possible nor prudent to eliminate all risk,
and that strategic and appropriate risk-taking is essential for us to compete in our industry and in the global market and to
achieve our growth and profitability objectives. Effective risk oversight, therefore, is an important priority of the Board of
Directors.
While
the Board of Directors oversees our risk management, management is responsible for day-to-day risk management processes. Our Board
of Directors expects management to consider risk and risk management in each business decision, to proactively develop and monitor
risk management strategies and processes for day-to-day activities and to effectively implement risk management strategies that
are adopted by the Board of Directors. The Board of Directors expects to review and adjust our risk management strategies at regular
intervals following the completion of the offering, or as needed.
55
Code
of Business Conduct
Our
Board of Directors has adopted a code of business conduct and ethics, the "Code of Business Conduct," to ensure that
our business is conducted in a consistently legal and ethical manner. Our policies and procedures cover all major areas of professional
conduct, including employee policies, conflicts of interest, protection of confidential information, and compliance with applicable
laws and regulations. The Code of Business Conduct is available at our website at http://www.olb.com/code-of-conduct/. The reference
to our website address in this prospectus does not include or incorporate by reference the information on our website into this
prospectus. We intend to disclose future amendments to certain provisions of our code of conduct, or waivers of these provisions,
on our website or in public filings.
Board
Committees
Upon
completion of the offering, our Board of Directors will appoint an Audit Committee, Compensation Committee and a Nominating and
Corporate Committee, and will adopt charters for each of these committees.
Audit
Committee
Upon
the closing of this offering, the Audit Committee will consist of [        ,          and
         , ] with [           ]
serving as Chairman. The Audit Committee will assist the Board of Directors in discharging its responsibilities relating to the
financial management of our Company and oversight of our accounting and financial reporting, our independent registered public
accounting firm and their audits, our internal financial controls and the continuous improvement of our financial policies and
practices. In addition, the Audit Committee will be responsible for reviewing and discussing with management our policies with
respect to risk assessment and risk management. The responsibilities of the Audit Committee, which will be set forth in its charter,
will include:
●
appointing, approving
    the compensation of, and assessing the independence of our independent registered public accounting firm;
●
pre-approving audit
    and permissible non-audit services, and the terms of such services, to be provided by our independent registered public accounting
    firm;
●
reviewing and discussing
    with management and the independent registered public accounting firm our annual and quarterly financial statements and related
    disclosures;
●
coordinating the
    oversight and reviewing the adequacy of our internal control over financial reporting;
●
establishing policies
    and procedures for the receipt and retention of accounting-related complaints, whistleblowers, and concerns; and
●
reviewing and approving
    any related party transactions.
The
expected composition of our Audit Committee will comply with all applicable requirements of the SEC and the listing requirements
of the Nasdaq Capital Market. We intend to comply with future requirements to the extent they become applicable to us.
56
Compensation
Committee
Upon
the closing of this offering, the Compensation Committee will consist of , and , with serving as Chairman. The Compensation Committee
will assist the Board of Directors in setting and maintaining the Company's compensation philosophy and in discharging its
responsibilities relating to executive and other human resources hiring, assessment and compensation, and succession planning.
The responsibilities of the Compensation Committee, which will be set forth in its charter, include:
●
reviewing and approving
    corporate goals and objectives relevant to compensation of our chief executive officer;
●
evaluating the performance
    of our chief executive officer in light of such corporate goals and objectives and determining the compensation of our chief
    executive officer;
●
determining the
    compensation of all our other officers and reviewing periodically the aggregate amount of compensation payable to such officers;
●
overseeing and making
    recommendations to the Board of Directors with respect to our incentive-based compensation and equity plans; and
●
reviewing and making
    recommendations to the Board of Directors with respect to director compensation.
The
expected composition of our Compensation Committee will comply with all applicable requirements of the SEC and the listing requirements
of the Nasdaq Capital Market. We intend to comply with future requirements to the extent they become applicable to us.
Nominating
and Corporate Governance Committee
Upon
the closing of this offering, the Nominating and Corporate Governance Committee will consist of      ,
and      , with           serving as Chairman. The
responsibilities of the Nominating and Corporate Governance Committee, which will be set forth in its charter, will include:
●
making recommendations
    to the Board of Directors regarding the size and composition of the Board of Directors;
●
recommending qualified
    individuals as nominees for election as directors;
●
reviewing the appropriate
    skills and characteristics required of director nominees;
●
establishing and
    administering a periodic assessment procedure relating to the performance of the Board of Directors as a whole and its individual
    members; and
●
periodically reviewing
    the corporate governance guidelines and supervising the management representative charged with implementing the Company's
    corporate governance procedures.
The
expected composition of our Nominating and Corporate Governance Committee will comply with all applicable requirements of the
SEC and the listing requirements of the Nasdaq Capital Market. We intend to comply with future requirements to the extent they
become applicable to us.
Compensation
Committee Interlocks and Insider Participation
None
of the expected members of the Compensation Committee will or was at any time been an officer or employee. None of our executive
officers serve or in the past fiscal year has served as a member of the Board of Directors or Compensation Committee of any other
entity that has one or more executive officers serving as a member of our Board of Directors or expected to serve on the Compensation
Committee.
57
EXECUTIVE
COMPENSATION
Summary
Compensation Table
The
table below summarizes all compensation awarded to, earned by, or paid to each named executive officer for our last two completed
fiscal years for all services rendered to us.
Summary
Compensation Table
Name and Principal Position
Year
Salary
($)
Bonus
($)
Stock Awards
($) (4)
Option Awards
($) (3)
Non-Equity Incentive Plan Compensation
($)
Nonqualified
Deferred
Compensation
Earnings
($)
All Other Compensation
($) (2)
Total
Ronny Yakov,
2018
$
375,000
$
0
$
0
$
66,667
$
0
$
0
$
18,000
$
459,667
CEO,
(1)
Chairman
2017
$
275,000
$
0
$
0
$
0
$
0
$
0
$
18,000
$
293,000
Patrick Smith,
2018
$
175,000
$
0
$
0
$
168,942
$
0
$
0
$
0
$
343,942
Vice President
2017
$
0
$
0
$
0
$
-
$
0
$
0
$
0
$
0
Rachel Boulds,
2018
$
27,000
$
0
$
0
$
0
$
0
$
0
$
0
$
27,000
CFO
2017
$
0
$
0
$
2,500
$
0
$
0
$
0
$
0
$
2,500
(1)
Partially
    accrued but not paid.
(2)
Car allowance
(3)
Stock based compensation
    of options grated during the year ended December 31, 2018
(4)
On December 31,
    2017, the Company issued 25,000 shares of common stock to its CFO for accounting services previously rendered. The shares
    were issued at $0.10 per share for total non-cash expense of $2,500.
Employment
Agreements
On October 20, 2017,
the Company entered into a new employment agreement with Ronny Yakov for 7 years effective January 1, 2018 through December 31,
2024. The agreement provides for an annual salary of $375,000, fringe benefits ($2,500 monthly automobile allowance, any benefit
plans of the Company and 4 weeks paid vacation), an incentive bonus of $200,000 based on the achievement of certain performance
criteria. As of December 31, 2018, no bonuses have been accrued or paid.
On
April 10, 2018, the Company entered into an employment agreement with Patrick Smith until either party terminates the agreement.
The agreement provides for an annual salary of $175,000, an annual bonus of up to $45,000. As of December 31, 2018, no bonuses
have been accrued or paid.
Outstanding
Equity Awards at Fiscal Year-End
As
of December 31, 2018, the following equity awards were outstanding:
Per the terms of Mr.
Smith's employment agreement, he was granted a stock option to purchase 7,955,168 shares of restricted stock at an exercise
price of $0.0001 per share. The grant vests at the rate of 1/5 beginning on each anniversary of the effective date of grant (April
10, 2018). The stock options will cease vesting after the termination of Mr. Smith's employment and any unvested restricted
stock shall be forfeited upon the termination of employment.
Per the terms of Mr.
Yakov's employment agreement, effective on January 1, 2018, and on each anniversary thereafter during the term of his employment
agreement, the Company will grant to him 200,000 options to purchase shares of common stock with a per share exercise price equal
$0.001 per share. Each stock option shall become exercisable in increments of one-third upon each anniversary of the date on which
it is granted.
2019
Equity Incentive Plan
On
[     ], 2019, our Board of Directors adopted a 2019 Equity Incentive Plan for our company, which plan
will be effective as of the completion of our corporate conversion and the closing of this offering. The holders of majority of
our outstanding membership units approved such plan on [     ], 2019. An aggregate number of shares of
our common stock equal to [     ]% of our issued and outstanding common stock following this offering
(including any shares issued in this offering) are reserved for issuance under our 2019 Equity Incentive Plan. No options or other
awards have been granted as of the date of this prospectus under our 2019 Equity Incentive Plan. In general, awards under the
2019 Equity Incentive Plan shall vest ratably over a period of three years (on the first, second and third anniversaries of the
agreement) subject to accelerated vesting upon a change of control of our company (although awards may be granted with different
vesting terms).
58
The
purpose of our 2019 Equity Incentive Plan is to attract and retain directors, officers, consultants, advisors and employees whose
services are considered valuable, to encourage a sense of proprietorship and to stimulate an active interest of such persons in
our development and financial achievements. The 2019 Equity Incentive Plan will be administered by the Compensation Committee
of our Board of Directors or by the full Board, which may determine, among other things, the (a) terms and conditions of any option
or stock purchase right granted, including the exercise price and the vesting schedule, (b) persons who are to receive options
and stock purchase rights and (c) the number of shares to be subject to each option and stock purchase right. The 2019 Equity
Incentive Plan will provide for the grant of (i) "incentive" options (qualified under section 422 of the Internal
Revenue Code of 1986, as amended) to employees of our company and (ii) non-qualified options to directors and consultants of our
company.
In
connection with the administration of our 2019 Equity Incentive Plan, our Compensation Committee will:
●
determine which
    employees and other persons will be granted awards under our 2019 Equity Incentive Plan;
●
grant the awards
    to those selected to participate;
●
determine the exercise
    price for options; and
●
prescribe any limitations,
    restrictions and conditions upon any awards, including the vesting conditions of awards.
Any
grant of awards to any of directors under our 2019 Equity Incentive Plan must be approved by the Compensation Committee of our
Board of Directors. In addition, our Compensation Committee will: (i) interpret our 2019 Equity Incentive Plan; and (ii) make
all other determinations and take all other action that may be necessary or advisable to implement and administer our 2019 Equity
Incentive Plan.
The
2019 Equity Incentive Plan provides that in the event of a change of control, the Compensation Committee or our Board of Directors
shall have the discretion to determine whether and to what extent to accelerate the vesting, exercise or payment of an award.
In
addition, our Board of Directors may amend our 2019 Equity Incentive Plan at any time. However, without stockholder approval,
our 2019 Equity Incentive Plan may not be amended in a manner that would:
●
increase the number
    of shares that may be issued under our 2019 Equity Incentive Plan;
●
materially modify
    the requirements for eligibility for participation in our 2019 Equity Incentive Plan;
●
materially increase
    the benefits to participants provided by our 2019 Equity Incentive Plan; or
●
otherwise disqualify
    our 2019 Equity Incentive Plan for coverage under Rule 16b-3 promulgated under the Exchange Act.
Awards
previously granted under our 2019 Equity Incentive Plan may not be impaired or affected by any amendment of our 2019 Equity Incentive
Plan, without the consent of the affected grantees.
Director
Compensation
Our
directors do not receive fixed compensation for their services as directors. Directors are reimbursed for their reasonable out-of-pocket
expenses incurred in connection with their duties.
59
PRINCIPAL
STOCKHOLDERS
Based
solely upon information made available to us, the following table sets forth information as of June 26, 2019 regarding the beneficial ownership of our common stock after giving effect to our anticipated corporate conversion by:
●
each person known
    by us to be the beneficial owner of more than 5% of our outstanding shares of common stock;
●
each of our named
    executive officers and directors; and
●
all our executive
    officers and directors as a group.
The
percentage ownership information shown in the table is based upon 162,350,364 shares of common stock outstanding. In addition,
the number of shares and percentage of shares beneficially owned after the offering gives effect to the issuance by us of [     ]
shares of common stock in this offering assuming an public offering price of $[     ] per share.
The percentage ownership information assumes no exercise of the underwriters' over-allotment option.
Beneficial
ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the securities.
Except as otherwise indicated, each person or entity named in the table has sole voting and investment power with respect to all
shares of our capital shown as beneficially owned, subject to applicable community property laws.
In
computing the number and percentage of shares beneficially owned by a person, shares that may be acquired by such person (for
example, upon the exercise of options or warrants) within 60 days of the date of this prospectus are counted as outstanding,
while these shares are not counted as outstanding for computing the percentage ownership of any other person.
The
address of each holder listed below, except as otherwise indicated, is c/o The OLB Group, Inc., 200 Park Avenue, Suite 1700, New
York, NY.
Name of Beneficial Owner
Shares of Common Beneficially Stock Owned (1)**
Percent of Common Stock Beneficially Owned Before Offering (1)**
Percent of Common Stock Beneficially Owned After Offering (1)**
5% Beneficial Owners
John Herzog (2)
16,757,602
10.6
%
%
Directors and Officers
Ronny Yakov (3)
104,407,546
64.3
%
%
Rachel Boulds
25,000
*
Patrick Smith (4)
1,591,034
1.0
%
All directors and executive officers as a group (3 persons)
106,023,580
64.7
%
%
*
Less than 1%.
**
Under SEC rules,
    beneficial ownership includes shares over which the individual or entity has voting or investment power and any shares which
    the individual or entity has the right to acquire within sixty days
(1)
Percentage ownership
    is based on 162,350,364 shares of our common stock outstanding prior to this offering and shares of our common stock outstanding
    after this offering.
(2)
Includes 1,492,501 shares of common stock owned by Herzog & Co. and 855,719 shares of common stock
held by John E Herzog TTEE John E Herzog REV Trust U/A/D 02/07/2014. John Herzog is the Chairman of Herzog & Co. and the trustee
of the trust.
(3)
Includes 66,667
    vested options.
(4)
Includes 1,591,034
    vested options.
60
CERTAIN
RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
We
are a party to certain related party transactions, as described below. Upon the consummation of offering, our policy is that all
related party transactions will be reviewed and approved by the Audit Committee of our board of directors prior to our entering
into any related party transactions.
OmniSoft
and CrowdPay
In
accordance with the requirements of the Term Loan, on May 9, 2018, we entered into separate share exchange agreements with the
shareholders of OmniSoft (the "OmniSoft Share Exchange Agreement") and CrowdPay (the "CrowdPay Share Exchange
Agreement" and together with the OmniSoft Share Exchange Agreement, the "Share Exchange Agreements"). Pursuant
to the terms of the OmniSoft Share Exchange Agreement, the shareholders of OmniSoft (Ronny Yakov, our Chief Executive Officer
and director, and Mr. Herzog, an affiliate of the Company) transferred to us all of the issued and outstanding shares of OmniSoft
common stock in exchange for an aggregate of 55,000,000 shares of our common stock. Pursuant to the terms of the CrowdPay Share
Exchange Agreement, the shareholders of CrowdPay (Mr. Yakov and Mr. Herzog) transferred to us all of the issued and outstanding
shares of CrowdPay common stock in exchange for an aggregate of 87,500,000 shares of the Company's common stock. The transactions
contemplated by the Share Exchange Agreements closed on May 9, 2018. Mr. Yakov, our sole director, determined the appropriate
valuation of each of our common stock and the common stock of OmniSoft and CrowdPay in reliance upon, among other matters, a third
party independent valuation report prepared by Corporate Valuation Advisors, Inc.
John
Herzog
During
2017, Mr. Herzog loaned $53,500 to the Company pursuant to a promissory note (which, along with a loan of $163,000 from Mr. Herzog
pursuant to a promissory note dated July 12, 2016, brought the total amount loaned from Mr. Herzog to $216,500). On November 20,
2017, the $216,500 of principal and $35,105 of accrued interest was converted into 2,516,050 shares of the Company's common
stock.
On
March 12, 2018, the Company received $30,000 from John Herzog. The advance was used for operating expenses, is unsecured, bears
interest at 18% and is due on demand. This loan was repaid in full as of September 30, 2018.
In July 2018,
the Company issued to Mr. Herzog a subordinated promissory note in the principal amount of $1,000,000 for cash proceeds of
$1,000,000. At the time of issuance, the note was to mature on March 31, 2019 (though the Company has the right to prepay the
note, in whole or in part, at any time prior to maturity) and bears interest at a rate of 12% per annum, compounding
annually. The note is secured by shares of common stock of a publicly traded company held by the Company (the "Note
Collateral Shares"). The note is subordinated to the Credit Agreement, other than the Note Collateral Shares. The
Company used the proceeds received by the Mr. Herzog to make the initial payment under the Credit Agreement.
On March 1, 2019, the
Company entered into Amendment No. 1 to the subordinated promissory note with Mr. Herzog. The purpose of the amendment was to amend
the subordinated promissory note issued in July 2018 to reflect an increase in the amount of principal due under the note from
$1,000,000 to $3,000,000 reflecting a payment made by Mr. Herzog to the Company of $2,000,000 on November 14, 2018 (the proceeds
of which were used by the Company to make a second required payment under the Credit Agreement) and to extend the maturity date
of the subordinated promissory note from March 31, 2019 to September 30, 2020. On June 25, 2019, the Company entered into Amendment
No. 2 to the subordinated promissory note with Mr. Herzog. The purpose of the amendment was to amend the maturity date of such
subordinated promissory note such that it will be extended until September 30, 2022 simultaneous to the completion of this offering.
In May 2019, Mr. Herzog committed to providing any additional financial support, if needed, to satisfy the company's
debt or other obligations through November 2020.
Total
interest expense on the two loans from Mr. Herzog for the three months ended March 31, 2019 was $88,767. Total accrued interest
as of March 31, 2019 and December 31, 2018 is $131,616 and $52,849, respectively.
Ronny
Yakov
On
August 10, 2018, Ronny Yakov, the Chief Executive Officer, Chairman and majority stockholder, loaned the Company $25,000, in order
to pay for audit services. The loan is unsecured, bears interest at 12% and is due on demand.  Mr. Yakov loaned the Company
an additional $45,000 to the Company during the three months ended March 31, 2019. The loans are unsecured, bears interest at
12% and are due on demand. As of March 31, 2019, there is $2,367 of interest accrued on these loans.
As
of March 31, 2019 and December 31, 2018, the Company has total accrued compensation due to Mr. Yakov of $568,080 and $568,292,
respectively, and advances to be repaid to Mr. Yakov of $17,684 and $17,684, respectively. The accrued compensation due to Mr.
Yakov and the advances to be repaid to Mr. Yakov do not bear any interest or have any term. The Company will not use the proceeds
of this offering to repay the amounts due to Mr. Yakov and expects to repay such amounts in due course.
61
Statement
of Policy
All
future transactions between us and our officers, directors or five percent stockholders, and respective affiliates will be on
terms no less favorable than could be obtained from unaffiliated third parties and will be approved by a majority of our independent
directors who do not have an interest in the transactions and who had access, at our expense, to our legal counsel or independent
legal counsel.
To
the best of our knowledge, during the past three fiscal years, other than as set forth above, there were no material transactions,
or series of similar transactions, or any currently proposed transactions, or series of similar transactions, to which we were
or are to be a party, in which the amount involved exceeds $120,000, and in which any director or executive officer, or any security
holder who is known by us to own of record or beneficially more than 5% of any class of our common stock, or any member of the
immediate family of any of the foregoing persons, has an interest (other than compensation to our officers and directors in the
ordinary course of business).
DESCRIPTION
OF CAPITAL STOCK
General
Our
certificate of incorporation authorizes the issuance of up to 200,000,000 shares of common stock, par value $0.0001 per share,
and 50,000,000 shares of preferred stock, par value $0.01 per share. As of the date of this prospectus, we have 162,350,364 shares of common stock issued and outstanding, and no shares of preferred stock issued and outstanding. Our shares of common
stock are held of record by approximately [     ] stockholders.
Common
Stock
Holders
of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not
have cumulative voting rights. An election of directors by our stockholders is determined by a plurality of the votes cast by
the stockholders entitled to vote on the election. Subject to the supermajority votes for some matters, other matters are decided
by the affirmative vote of our stockholders having a majority in voting power of the votes cast by the stockholders present or
represented and voting on such matter. Our amended and restated bylaws also provide that our directors may be removed only for
cause by the affirmative vote of at least sixty-six and two-thirds percent (66 2/3%) of the votes that all our stockholders would
be entitled to cast in any annual election of directors. In addition, the affirmative vote of the holders of at least sixty-six
and two-thirds percent (66 2/3%) of the votes that all of our stockholders would be entitled to cast in any annual election of
directors is required to amend or repeal or to adopt any provisions inconsistent with any of the provisions of our amended and
restated bylaws
; provided, however,
that no such change to any bylaw may alter, modify, waive, abrogate or diminish the
our obligation to provide the indemnity called for by Article 10 thereunder. Holders of common stock are entitled to receive proportionately
any dividends as may be declared by our board of directors, subject to any preferential dividend rights of outstanding preferred
stock.
In
the event of our liquidation or dissolution, the holders of common stock are entitled to receive proportionately all assets available
for distribution to stockholders after the payment of all debts and other liabilities and subject to the prior rights of any outstanding
preferred stock. Holders of common stock have no preemptive, subscription, redemption or conversion rights. The rights, preferences
and privileges of holders of common stock are subject to and may be adversely affected by the rights of the holders of shares
of any series of preferred stock that we may designate and issue in the future.
Preferred
Stock
Our
certificate of incorporation authorizes the issuance of 50,000,000 shares of blank check preferred stock with such designation,
rights and preferences as may be determined from time to time by our board of directors. No shares of preferred stock are currently
issued or outstanding. Accordingly, our board of directors is empowered, without stockholder approval, to issue preferred stock
with dividend, liquidation, redemption, voting or other rights which could adversely affect the voting power or other rights of
the holders of common stock. We may issue some or all of the preferred stock to effect a business transaction. In addition, the
preferred stock could be utilized as a method of discouraging, delaying or preventing a change in control of us.
Transfer
Agent and Registrar
The
transfer agent and registrar for our common stock is Transfer Online, Inc., 317 SW Alder Street, 2nd Floor Portland, OR 97204.
Their telephone number is (503) 227-2950.
62
Delaware
Law and Certain Charter and By-Law Provisions
Delaware
Anti-Takeover Law.
We are subject to Section 203 of the Delaware General Corporation Law. Section 203 generally
prohibits a public Delaware corporation from engaging in a "business combination" with an "interested stockholder"
for a period of three years after the date of the transaction in which the person became an interested stockholder, unless:
●
prior to the date
    of the transaction, the board of directors of the corporation approved either the business combination or the transaction
    which resulted in the stockholder becoming an interested stockholder;
●
upon consummation
    of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at
    least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding specified shares;
    or
●
at or subsequent
    to the date of the transaction, the business combination is approved by the board of directors and authorized at an annual
    or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66
2
/3% of the
    outstanding voting stock which is not owned by the interested stockholder.
Section 203
defines a "business combination" to include:
●
any merger or consolidation involving the corporation
    and the interested stockholder;
●
any sale, lease,
    exchange, mortgage, pledge, transfer or other disposition of 10% or more of the assets of the corporation to or with the interested
    stockholder;
●
subject to exceptions,
    any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested
    stockholder;
●
subject to exceptions,
    any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class
    or series of the corporation beneficially owned by the interested stockholder; or
●
the receipt by the
    interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by
    or through the corporation.
In
general, Section 203 defines an "interested stockholder" as any person that is:
●
the owner of 15% or more of the outstanding
    voting stock of the corporation;
●
an affiliate or
    associate of the corporation who was the owner of 15% or more of the outstanding voting stock of the corporation at any time
    within three years immediately prior to the relevant date; or
●
the affiliates and associates of the above.
Under
specific circumstances, Section 203 makes it more difficult for an "interested stockholder" to effect various
business combinations with a corporation for a three-year period, although the stockholders may, by adopting an amendment to the
corporation's certificate of incorporation or bylaws, elect not to be governed by this section, effective 12 months
after adoption.
Our
certificate of incorporation and bylaws do not exclude us from the restrictions of Section 203. We anticipate that the provisions
of Section 203 might encourage companies interested in acquiring us to negotiate in advance with our board of directors since
the stockholder approval requirement would be avoided if a majority of the directors then in office approve either the business
combination or the transaction that resulted in the stockholder becoming an interested stockholder.
Certificate
of Incorporation and Bylaws.
Our certificate of incorporation and bylaws contain provisions that could have the effect of
discouraging potential acquisition proposals or tender offers or delaying or preventing a change of control of our company. These
provisions are as follows:
●
authorizing the issuance of "blank check"
    preferred stock without any need for action by stockholders;
●
limiting the ability of stockholders to call
    special meetings of stockholders;
●
permitting stockholder action by written consent;
63
●
establishing advance
    notice requirements for nominations for election to the board of directors or for proposing matters that can be acted on by
    stockholders at stockholder meetings;
●
requiring a super-majority vote of our stockholders
    to remove directors of our company; and
●
providing that our stockholders may only remove
    our directors for "cause" (as defined in our bylaws).
These
provisions affect your rights as a stockholder since they permit our Board of Directors to make it more difficult for common stockholders
to replace members of the Board or undertake other significant corporate actions. Because our Board of Directors is responsible
for appointing the members of our management team, these provisions could in turn affect any attempt to replace our current management
team.
Elimination
of Monetary Liability for Officers and Directors
Our
certificate of incorporation incorporates certain provisions permitted under the Delaware General Corporation Law relating to
the liability of directors. The provisions eliminate a director's liability for monetary damages for a breach of fiduciary
duty, including gross negligence, except in circumstances involving certain wrongful acts, such as the breach of director's
duty of loyalty or acts or omissions, which involve intentional misconduct or a knowing violation of law. These provisions do
not eliminate a director's duty of care. Moreover, these provisions do not apply to claims against a director for certain
violations of law, including knowing violations of federal securities law. Our certificate of incorporation also contains provisions
to indemnify the directors, officers, employees or other agents to the fullest extent permitted by the Delaware General Corporation
Law. We believe that these provisions will assist us in attracting and retaining qualified individual to serve as directors.
Indemnification
of Officers and Directors
Our
certificate of incorporation also contains provisions to indemnify the directors, officers, employees or other agents to the fullest
extent permitted by the Delaware General Corporation Law. These provisions may have the practical effect in certain cases of eliminating
the ability of shareholders to collect monetary damages from directors. We are also a party to indemnification agreements with
each of our directors. We believe that these provisions will assist us in attracting or retaining qualified individuals to serve
as our directors.
Disclosure
of Commission Position on Indemnification for Securities Act Liabilities
Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling
persons pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against
public policy as expressed in the Securities Act and is, therefore, unenforceable.
64
SHARES
ELIGIBLE FOR FUTURE SALE
Immediately
prior to this offering, there was a limited public market for our common stock. Future sales of substantial amounts of our common
stock in the public market could adversely affect prevailing market prices. Furthermore, since only a limited number of shares
will be available for sale shortly after this offering because of contractual and legal restrictions on resale described below,
sales of substantial amounts of common stock in the public market after the restrictions lapse could adversely affect the prevailing
market price for our common stock as well as our ability to raise equity capital in the future.
After
the closing of this offering, approximately         million shares of common stock
will be outstanding, assuming a public offering price of $     per share and further assuming
no exercise of the underwriters' over-allotment option. All of the shares sold in this offering will be freely tradable
unless held by an affiliate of ours. Of the remaining shares of common stock outstanding after this offering, will be restricted
as a result of securities laws or lock-up agreements (such other outstanding shares are generally freely tradable pursuant to
various exemptions from securities laws). These remaining restricted shares will generally become available for sale in the public
market as follows: Approximately   restricted shares held by non-affiliates will be eligible for sale under Rule 144
or Rule 701 upon expiration of lock-up agreements at least 180 days after the date of this offering.
Rule 144
In
general, under Rule 144 as currently in effect, any person who is not an affiliate of ours and has held their shares for
at least six months, as measured by SEC rule, including the holding period of any prior owner other than one of our affiliates,
may sell shares without restriction, provided current public information about us is available. In addition, under Rule 144,
any person who is not an affiliate of ours and has held their shares for at least one year, as measured by SEC rule, including
the holding period of any prior owner other than one of our affiliates, would be entitled to sell an unlimited number of shares
immediately upon the closing of this offering without regard to whether current public information about us is available. Additionally,
a person who is an affiliate of ours and who has beneficially owned restricted securities for at least six months, as measured
by SEC rule, including the holding period of any prior owner other than one of our affiliates, is entitled to sell a number of
restricted shares within any three-month period that does not exceed the greater of:
●
1% of the number
    of shares of our common stock then outstanding, which will equal approximately [       ]
    shares immediately after this offering; and
●
the average weekly
    trading volume of our common stock on The NASDAQ Capital Market during the four calendar weeks preceding the filing of a notice
    on Form 144 with respect to the sale.
Sales
of restricted shares under Rule 144 held by our affiliates are also subject to requirements regarding the manner of sale,
notice and the availability of current public information about us. Rule 144 also provides that affiliates relying on Rule 144
to sell shares of our common stock that are not restricted shares must nonetheless comply with the same restrictions applicable
to restricted shares, other than the holding period requirement. Notwithstanding the availability of Rule 144, the holders
of [        ] of our restricted shares have entered into lock-up agreements as described
below and their restricted shares will become eligible for sale at the expiration of the restrictions set forth in those agreements.
65
Underwriting
ThinkEquity,
a division of Fordham Financial Management, Inc., is acting as the representative of the underwriters of the offering. We have
entered into an underwriting agreement dated         , 2019 with the representative. Subject
to the terms and conditions of the underwriting agreement, we have agreed to sell to each underwriter named below, and each underwriter
named below has severally agreed to purchase, at the public offering price less the underwriting discounts set forth on the cover
page of this prospectus, the number of shares of common stock at the public offering price, less the underwriting discounts
and commissions, as set forth on the cover page of this prospectus, the number of shares of common stock listed next to its name
in the following table:
Underwriter
Number
    of Shares
ThinkEquity, a division of Fordham Financial Management, Inc.
Total
The
underwriters are committed to purchase all the shares of common stock offered by the Company, other than those covered by the
over-allotment option to purchase additional shares of common stock described below. The obligations of the underwriters may be
terminated upon the occurrence of certain events specified in the underwriting agreement. Furthermore, the underwriting agreement
provides that the obligations of the underwriters to pay for and accept delivery of the shares offered by us in this prospectus
are subject to various representations and warranties and other customary conditions specified in the underwriting agreement,
such as receipt by the underwriters of officers' certificates and legal opinions.
We
have agreed to indemnify the underwriters against specified liabilities, including liabilities under the Securities Act, and to
contribute to payments the underwriters may be required to make in respect thereof.
The
underwriters are offering the shares of common stock subject to prior sale, when, as and if issued to and accepted by them, subject
to approval of legal matters by their counsel and other conditions specified in the underwriting agreement. The underwriters reserve
the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part.
We
have granted the underwriters an over-allotment option. This option, which is exercisable within 45 days after the date of the
closing of the Offering, permits the underwriters to purchase up to an aggregate of additional shares of common stock (equal to
15% of the total number of shares of common stock sold in this offering) at the public offering price per share, less underwriting
discounts and commissions, solely to cover over-allotments, if any. If the underwriters exercise this option in whole or in part,
then the underwriters will be severally committed, subject to the conditions described in the underwriting agreement, to purchase
the additional shares of common stock in proportion to their respective commitments set forth in the prior table.
Discounts,
Commissions and Reimbursement
The
representative has advised us that the underwriters propose to offer the shares of common stock to the public at the public
offering price per share set forth on the cover page of this prospectus. The underwriters may offer shares to securities dealers
at that price less a concession of not more than $            per
share of which up to $            per share may be reallowed to other
dealers. After the initial offering to the public, the public offering price and other selling terms may be changed by the representative.
The
following table summarizes the underwriting discounts and commissions and proceeds, before expenses, to us assuming both no exercise
and full exercise by the underwriters of their over-allotment option:
Total
Per
    Share
Without
    Option
With
    Option
Public offering price
$
$
$
Underwriting discounts and commissions (7%)
$
$
$
Non-accountable expense allowance (1%)
$
$
$
Proceeds, before expenses, to us
$
$
$
We
have agreed to pay an advance of $50,000 to the representative, which will be applied against the actual out-of-pocket accountable
expenses that will be paid by us to the underwriters in connection with this offering, and will be reimbursed to us to the extent
not incurred, of which $[___] has been paid as of the date hereof.
66
In
addition, we have also agreed to pay the following expenses of the underwriters relating to the offering: (a) all fees, expenses
and disbursements relating to background checks of our officers, directors and entities in an amount not to exceed $15,000 in
the aggregate; (b) all filing fees and communication expenses relating to the registration of the Shares to be sold in the Offering
(including the Option Shares) with the Commission (c) all filing fees and communication expenses associated with the review of
this offering by FINRA; (d) all fees and expenses relating to the listing of such Shares on The Nasdaq Capital Market, The Nasdaq
Global Market, The Nasdaq Global Select Market, the NYSE or the NYSE American and on such other stock exchanges as the Company
and the representative together determine, including any fees charged by The Depository Trust Company (DTC) for new securities;
(e) all fees, expenses and disbursements relating to the registration, qualification or exemption of securities offered under
the securities laws of foreign jurisdictions reasonably designated by the underwriter, including the reasonable fees and expenses
of the underwriter's blue sky counsel up to $20,000, but only if the offering is commenced on OTCQB; (f) $29,500 for the
underwriters' use of Ipreo's book-building, prospectus tracking and compliance software for this offering; (g) the
reasonable costs associated with bound volumes of the public offering materials as well as commemorative mementos and lucite tombstones,
(h) the fees and expenses of the representatives' legal counsel and other agents and representatives, incurred in connection
with this offering in an amount up to $125,000; (i) $10,000 for data services and communications expenses; (j) the costs of all
mailing and printing of the underwriting documents, registration statements, prospectuses and all amendments, supplements and
exhibits thereto and as many preliminary and final prospectuses as the representative may reasonably deem necessary; (k) the costs
associated with post-Closing advertising the Offering in the national editions of the Wall Street Journal and New York Times;
(l) the fees and expenses of the Company's accountants; (m) $10,000 for data services and communication expenses; and (n)
up to $20,000 of the representative's actual accountable road show expenses for the offering. In no event shall the Company's
obligation for payment of the underwriters' accountable expenses exceed $150,000 in the aggregate.
We
estimate the expenses of this offering payable by us, not including underwriting discounts and commissions, will be approximately
$             .
Representative
Warrants
Upon
the closing of this offering, we have agreed to issue to the representative warrants, or the Representative's Warrants,
to purchase a number of shares of common stock equal to 5% of the total number of shares sold in this public offering. The Representative's
Warrants will be exercisable at a per share exercise price equal to 125% of the public offering price per share of common stock
sold in this offering. The Representative's Warrants are exercisable at any time and from time to time, in whole or in part,
during the four and one-half year period commencing six months from the effective date of the registration statement related to
this offering. The Representative's Warrants also provide for one demand registration right of the shares underlying the
Representative's Warrants, and unlimited "piggyback" registration rights with respect to the registration of
the shares of common stock underlying the Representative's Warrants and customary anti-dilution provisions. The demand registration
right provided will not be greater than five years from the effective date of the registration statement related to this offering
in compliance with FINRA Rule 5110(f)(2)(G). The piggyback registration right provided will not be greater than seven years from
the effective date of the registration statement related to this offering in compliance with FINRA Rule 5110(f)(2)(G).
The
Representative's Warrants and the shares of common stock underlying the Representative's Warrants have been deemed
compensation by the Financial Industry Regulatory Authority, or FINRA, and are therefore subject to a 180-day lock-up pursuant
to Rule 5110(g)(1) of FINRA. The representative, or permitted assignees under such rule, may not sell, transfer, assign,
pledge, or hypothecate the Representative's Warrants or the securities underlying the Representative's Warrants, nor
will the representative engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective
economic disposition of the Representative's Warrants or the underlying shares for a period of 180 days from the effective
date of the registration statement. Additionally, the Representative's Warrants may not be sold transferred, assigned, pledged
or hypothecated for a 180-day period following the effective date of the registration statement except to any underwriter and
selected dealer participating in the offering and their bona fide officers or partners. The Representative's Warrants will
provide for adjustment in the number and price of the Representative's Warrants and the shares of common stock underlying
such Representative's Warrants in the event of recapitalization, merger, stock split or other structural transaction, or
a future financing undertaken by us.
Right
of First Refusal
Until
        , 2020, twelve (12) months from the effective date of the registration statement
related to this offering, the representative shall have an irrevocable right of first refusal to act as sole investment banker,
sole book-runner and/or sole placement agent, at the representative sole discretion, for each and every future public and private
equity and debt offerings for the Company, or any successor to or any subsidiary of the Company, including all equity linked financings,
on terms customary to the representative. The representative shall have the sole right to determine whether or not any other broker-dealer
shall have the right to participate in any such offering and the economic terms of any such participation. The representative
will not have more than one opportunity to waive or terminate the right of first refusal in consideration of any payment or fee.
67
Lock-Up
Agreements
The
Company, each of its directors and officers and 5% or greater holders of the Company's outstanding shares of common stock
as of the date of this prospectus, have agreed for a period of (i) six months after the date of this prospectus in the case of
directors and officers and the 5% or greater holders of the Company's outstanding common stock and (ii) three months after
the date of this prospectus in the case of the Company, without the prior written consent of the representative, not to directly
or indirectly:
●
issue (in the case
    of us), offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to
    sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of any shares of common stock
    or other capital stock or any securities convertible into or exercisable or exchangeable for our common stock or other capital
    stock; or
●
in the case of us,
    file or cause the filing of any registration statement under the Securities Act with respect to any shares of common stock
    or other capital stock or any securities convertible into or exercisable or exchangeable for our common stock or other capital
    stock; or
●
complete any offering
    of debt securities of the Company, other than entering into a line of credit, term loan arrangement or other debt instrument
    with a traditional bank; or
●
enter into any swap
    or other agreement, arrangement, hedge or transaction that transfers to another, in whole or in part, directly or indirectly,
    any of the economic consequences of ownership of our common stock or other capital stock or any securities convertible into
    or exercisable or exchangeable for our common stock or other capital stock, whether any transaction described in any of the
    foregoing bullet points is to be settled by delivery of our common stock or other capital stock, other securities, in cash
    or otherwise, or publicly announce an intention to do any of the foregoing.
Electronic
Offer, Sale and Distribution of Securities
A
prospectus in electronic format may be made available on the websites maintained by one or more of the underwriters or selling
group members. The representative may agree to allocate a number of securities to underwriters and selling group members for sale
to its online brokerage account holders. Internet distributions will be allocated by the underwriters and selling group members
that will make internet distributions on the same basis as other allocations. Other than the prospectus in electronic format,
the information on these websites is not part of, nor incorporated by reference into, this prospectus or the registration statement
of which this prospectus forms a part, has not been approved or endorsed by us, and should not be relied upon by investors.
Stabilization
In
connection with this offering, the underwriters may engage in stabilizing transactions, over-allotment transactions, syndicate-covering
transactions, penalty bids and purchases to cover positions created by short sales.
Stabilizing
transactions permit bids to purchase shares so long as the stabilizing bids do not exceed a specified maximum, and are engaged
in for the purpose of preventing or retarding a decline in the market price of the shares while the offering is in progress.
Over-allotment
transactions involve sales by the underwriters of shares in excess of the number of shares the underwriters are obligated to purchase.
This creates a syndicate short position which may be either a covered short position or a naked short position. In a covered short
position, the number of shares over-allotted by the underwriters is not greater than the number of shares that they may purchase
in the over-allotment option. In a naked short position, the number of shares involved is greater than the number of shares in
the over-allotment option. The underwriters may close out any short position by exercising their over-allotment option and/or
purchasing shares in the open market.
Syndicate
covering transactions involve purchases of shares in the open market after the distribution has been completed in order to cover
syndicate short positions. In determining the source of shares to close out the short position, the underwriters will consider,
among other things, the price of shares available for purchase in the open market as compared with the price at which they may
purchase shares through exercise of the over-allotment option. If the underwriters sell more shares than could be covered by exercise
of the over-allotment option and, therefore, have a naked short position, the position can be closed out only by buying shares
in the open market. A naked short position is more likely to be created if the underwriters are concerned that after pricing there
could be downward pressure on the price of the shares in the open market that could adversely affect investors who purchase in
the offering.
68
Penalty
bids permit the representative to reclaim a selling concession from a syndicate member when the shares originally sold by that
syndicate member are purchased in stabilizing or syndicate covering transactions to cover syndicate short positions.
These
stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market
price of our shares of common stock or preventing or retarding a decline in the market price of our shares of common stock. As
a result, the price of our common stock in the open market may be higher than it would otherwise be in the absence of these transactions.
Neither we nor the underwriters make any representation or prediction as to the effect that the transactions described above may
have on the price of our common stock. These transactions may be effected in the over-the-counter market or otherwise
and, if commenced, may be discontinued at any time.
Other
Relationships
Certain
of the underwriters and their affiliates may in the future provide various investment banking, commercial banking and other financial
services for us and our affiliates for which they may in the future receive customary fees.
Offer
restrictions outside the United States
Other
than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities
offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus
may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in
connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances
that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this
prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution
of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered
by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.
Australia
This
prospectus is not a disclosure document under Chapter 6D of the Australian Corporations Act, has not been lodged with the Australian
Securities and Investments Commission and does not purport to include the information required of a disclosure document under
Chapter 6D of the Australian Corporations Act. Accordingly, (i) the offer of the securities under this prospectus is only
made to persons to whom it is lawful to offer the securities without disclosure under Chapter 6D of the Australian Corporations
Act under one or more exemptions set out in section 708 of the Australian Corporations Act, (ii) this prospectus is made
available in Australia only to those persons as set forth in clause (i) above, and (iii) the offeree must be sent a
notice stating in substance that by accepting this offer, the offeree represents that the offeree is such a person as set forth
in clause (i) above, and, unless permitted under the Australian Corporations Act, agrees not to sell or offer for sale within
Australia any of the securities sold to the offeree within 12 months after its transfer to the offeree under this prospectus.
China
The
information in this document does not constitute a public offer of the securities, whether by way of sale or subscription, in
the People's Republic of China (excluding, for purposes of this paragraph, Hong Kong Special Administrative Region, Macau
Special Administrative Region and Taiwan). The securities may not be offered or sold directly or indirectly in the PRC to legal
or natural persons other than directly to "qualified domestic institutional investors."
European
Economic Area—Belgium, Germany, Luxembourg and Netherlands
The
information in this document has been prepared on the basis that all offers of securities will be made pursuant to an exemption
under the Directive 2003/71/EC ("Prospectus Directive"), as implemented in Member States of the European Economic
Area (each, a "Relevant Member State"), from the requirement to produce a prospectus for offers of securities.
69
An
offer to the public of securities has not been made, and may not be made, in a Relevant Member State except pursuant to one of
the following exemptions under the Prospectus Directive as implemented in that Relevant Member State:
●
to legal entities
    that are authorized or regulated to operate in the financial markets or, if not so authorized or regulated, whose corporate
    purpose is solely to invest in securities;
●
to any legal entity
    that has two or more of (i) an average of at least 250 employees during its last fiscal year; (ii) a total balance
    sheet of more than €43,000,000 (as shown on its last annual unconsolidated or consolidated financial statements) and
    (iii) an annual net turnover of more than €50,000,000 (as shown on its last annual unconsolidated or consolidated
    financial statements);
●
to fewer than 100
    natural or legal persons (other than qualified investors within the meaning of Article 2(1)(e) of the Prospectus Directive)
    subject to obtaining the prior consent of the Company or any underwriter for any such offer; or
●
in any other circumstances
    falling within Article 3(2) of the Prospectus Directive, provided that no such offer of securities shall result in a requirement
    for the publication by the Company of a prospectus pursuant to Article 3 of the Prospectus Directive.
France
This
document is not being distributed in the context of a public offering of financial securities (offre au public de titres financiers)
in France within the meaning of Article L.411-1 of the French Monetary and Financial Code (Code Monétaire et
Financier) and Articles 211-1 et seq. of the General Regulation of the French Autorité des marchés financiers
("AMF"). The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to
the public in France.
This
document and any other offering material relating to the securities have not been, and will not be, submitted to the AMF for approval
in France and, accordingly, may not be distributed or caused to distributed, directly or indirectly, to the public in France.
Such
offers, sales and distributions have been and shall only be made in France to (i) qualified investors (investisseurs qualifiés)
acting for their own account, as defined in and in accordance with Articles L.411-2-II-2° and D.411-1 to D.411-3, D.744-1,
D.754-1 ;and D.764-1 of the French Monetary and Financial Code and any implementing regulation and/or (ii) a restricted number
of non-qualified investors (cercle restreint d'investisseurs) acting for their own account, as defined in and in accordance
with Articles L.411-2-II-2° and D.411-4, D.744-1, D.754-1; and D.764-1 of the French Monetary and Financial Code and any implementing
regulation.
Pursuant
to Article 211-3 of the General Regulation of the AMF, investors in France are informed that the securities cannot be distributed
(directly or indirectly) to the public by the investors otherwise than in accordance with Articles L.411-1, L.411-2, L.412-1 and
L.621-8 to L.621-8-3 of the French Monetary and Financial Code.
Ireland
The
information in this document does not constitute a prospectus under any Irish laws or regulations and this document has not been
filed with or approved by any Irish regulatory authority as the information has not been prepared in the context of a public offering
of securities in Ireland within the meaning of the Irish Prospectus (Directive 2003/71/EC) Regulations 2005 (the "Prospectus
Regulations"). The securities have not been offered or sold, and will not be offered, sold or delivered directly or indirectly
in Ireland by way of a public offering, except to (i) qualified investors as defined in Regulation 2(l) of the Prospectus
Regulations and (ii) fewer than 100 natural or legal persons who are not qualified investors.
Israel
The
securities offered by this prospectus have not been approved or disapproved by the Israeli Securities Authority (the ISA), or
ISA, nor have such securities been registered for sale in Israel. The shares may not be offered or sold, directly or indirectly,
to the public in Israel, absent the publication of a prospectus. The ISA has not issued permits, approvals or licenses in connection
with the offering or publishing the prospectus; nor has it authenticated the details included herein, confirmed their reliability
or completeness, or rendered an opinion as to the quality of the securities being offered. Any resale in Israel, directly or indirectly,
to the public of the securities offered by this prospectus is subject to restrictions on transferability and must be effected
only in compliance with the Israeli securities laws and regulations.
70
Italy
The
offering of the securities in the Republic of Italy has not been authorized by the Italian Securities and Exchange Commission
(Commissione Nazionale per le Societ—$$—Aga e la Borsa, "CONSOB" pursuant to the Italian securities legislation
and, accordingly, no offering material relating to the securities may be distributed in Italy and such securities may not be offered
or sold in Italy in a public offer within the meaning of Article 1.1(t) of Legislative Decree No. 58 of 24 February
1998 ("Decree No. 58"), other than:
●
to Italian qualified
    investors, as defined in Article 100 of Decree no.58 by reference to Article 34-ter of CONSOB Regulation no. 11971
    of 14 May 1999 ("Regulation no. 1197l") as amended ("Qualified Investors"); and
●
in other circumstances
    that are exempt from the rules on public offer pursuant to Article 100 of Decree No. 58 and Article 34-ter of
    Regulation No. 11971 as amended.
Any
offer, sale or delivery of the securities or distribution of any offer document relating to the securities in Italy (excluding
placements where a Qualified Investor solicits an offer from the issuer) under the paragraphs above must be:
●
made by investment
    firms, banks or financial intermediaries permitted to conduct such activities in Italy in accordance with Legislative Decree
    No. 385 of 1 September 1993 (as amended), Decree No. 58, CONSOB Regulation No. 16190 of 29 October
    2007 and any other applicable laws; and
●
in compliance with
    all relevant Italian securities, tax and exchange controls and any other applicable laws.
Any
subsequent distribution of the securities in Italy must be made in compliance with the public offer and prospectus requirement
rules provided under Decree No. 58 and the Regulation No. 11971 as amended, unless an exception from those rules applies.
Failure to comply with such rules may result in the sale of such securities being declared null and void and in the liability
of the entity transferring the securities for any damages suffered by the investors.
Japan
The
securities have not been and will not be registered under Article 4, paragraph 1 of the Financial Instruments and Exchange Law
of Japan (Law No. 25 of 1948), as amended (the "FIEL") pursuant to an exemption from the registration requirements
applicable to a private placement of securities to Qualified Institutional Investors (as defined in and in accordance with Article
2, paragraph 3 of the FIEL and the regulations promulgated thereunder). Accordingly, the securities may not be offered or sold,
directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan other than Qualified Institutional Investors.
Any Qualified Institutional Investor who acquires securities may not resell them to any person in Japan that is not a Qualified
Institutional Investor, and acquisition by any such person of securities is conditional upon the execution of an agreement to
that effect.
Portugal
This
document is not being distributed in the context of a public offer of financial securities (oferta pública de valores mobiliários)
in Portugal, within the meaning of Article 109 of the Portuguese Securities Code (Código dos Valores Mobiliários).
The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in Portugal.
This document and any other offering material relating to the securities have not been, and will not be, submitted to the Portuguese
Securities Market Commission (Comissăo do Mercado de Valores Mobiliários) for approval in Portugal and, accordingly,
may not be distributed or caused to distributed, directly or indirectly, to the public in Portugal, other than under circumstances
that are deemed not to qualify as a public offer under the Portuguese Securities Code. Such offers, sales and distributions of
securities in Portugal are limited to persons who are "qualified investors" (as defined in the Portuguese Securities
Code). Only such investors may receive this document and they may not distribute it or the information contained in it to any
other person.
Sweden
This
document has not been, and will not be, registered with or approved by Finansinspektionen (the Swedish Financial Supervisory Authority).
Accordingly, this document may not be made available, nor may the securities be offered for sale in Sweden, other than under circumstances
that are deemed not to require a prospectus under the Swedish Financial Instruments Trading Act (1991:980) (Sw. lag (1991:980)
om handel med finansiella instrument). Any offering of securities in Sweden is limited to persons who are "qualified investors"
(as defined in the Financial Instruments Trading Act). Only such investors may receive this document and they may not distribute
it or the information contained in it to any other person.
Switzerland
The
securities may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or
on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the
disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure
standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange
or regulated trading facility in Switzerland. Neither this document nor any other offering material relating to the securities
may be publicly distributed or otherwise made publicly available in Switzerland.
71
Neither
this document nor any other offering material relating to the securities have been or will be filed with or approved by any Swiss
regulatory authority. In particular, this document will not be filed with, and the offer of securities will not be supervised
by, the Swiss Financial Market Supervisory Authority (FINMA).
This
document is personal to the recipient only and not for general circulation in Switzerland.
United
Arab Emirates
Neither
this document nor the securities have been approved, disapproved or passed on in any way by the Central Bank of the United Arab
Emirates or any other governmental authority in the United Arab Emirates, nor has the Company received authorization or licensing
from the Central Bank of the United Arab Emirates or any other governmental authority in the United Arab Emirates to market or
sell the securities within the United Arab Emirates. This document does not constitute and may not be used for the purpose of
an offer or invitation. No services relating to the securities, including the receipt of applications and/or the allotment or
redemption of such shares, may be rendered within the United Arab Emirates by the Company.
No
offer or invitation to subscribe for securities is valid or permitted in the Dubai International Financial Centre.
United
Kingdom
Neither
the information in this document nor any other document relating to the offer has been delivered for approval to the Financial
Services Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets
Act 2000, as amended ("FSMA") has been published or is intended to be published in respect of the securities. This
document is issued on a confidential basis to "qualified investors" (within the meaning of section 86(7) of FSMA)
in the United Kingdom, and the securities may not be offered or sold in the United Kingdom by means of this document, any accompanying
letter or any other document, except in circumstances which do not require the publication of a prospectus pursuant to section
86(1) FSMA. This document should not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed
by recipients to any other person in the United Kingdom.
Any
invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) received in connection with
the issue or sale of the securities has only been communicated or caused to be communicated and will only be communicated or caused
to be communicated in the United Kingdom in circumstances in which section 21(1) of FSMA does not apply to the Company.
In
the United Kingdom, this document is being distributed only to, and is directed at, persons (i) who have professional experience
in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Markets
Act 2000 (Financial Promotions) Order 2005 ("FPO"), (ii) who fall within the categories of persons referred to in
Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the FPO or (iii) to whom it may
otherwise be lawfully communicated (together "relevant persons"). The investments to which this document relates are
available only to, and any invitation, offer or agreement to purchase will be engaged in only with, relevant persons. Any person
who is not a relevant person should not act or rely on this document or any of its contents.
Canada
The
securities may be sold in Canada only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors,
as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario),
and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant
Obligations. Any resale of the securities must be made in accordance with an exemption from, or in a transaction not subject to,
the prospectus requirements of applicable securities laws. Securities legislation in certain provinces or territories of Canada
may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains
a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit
prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable
provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult
with a legal advisor. Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriters
are not required to comply with the disclosure requirements of NI33-105 regarding underwriter conflicts of interest in connection
with this offering.
72
EXPERTS
The
consolidated financial statements as of December 31, 2018 and for the year ended included in this prospectus have been included
herein in reliance upon the report of Marcum LLP, an independent registered public accounting firm, appearing elsewhere herein,
and upon the authority of Marcum LLP as experts in accounting and auditing.
The
financial statement as of December 31, 2017 and for the years then ended included in this prospectus have been audited by Liggett
& Webb, P.A.
, an independent registered public accounting firm, as stated in its report appearing in the registration
statement, and are included in reliance upon the report of such firm given upon its authority as experts in accounting and auditing.
LEGAL
MATTERS
Ellenoff
Grossman & Schole LLP, New York, New York, will pass upon the validity of the securities offered hereby. Certain
legal matters are being passed on for the underwriters by Loeb & Loeb LLP.
WHERE
YOU CAN FIND MORE INFORMATION
We
have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of our common
stock offered by this prospectus. This prospectus, which constitutes a part of the registration statement, does not contain all
of the information set forth in the registration statement, some of which is contained in exhibits to the registration statement
as permitted by the rules and regulations of the SEC. For further information with respect to us and our common stock, we refer
you to the registration statement, including the exhibits filed as a part of the registration statement. Statements contained
in this prospectus concerning the contents of any contract or any other document is not necessarily complete. If a contract or
document has been filed as an exhibit to the registration statement, please see the copy of the contract or document that has
been filed. Each statement is this prospectus relating to a contract or document filed as an exhibit is qualified in all respects
by the filed exhibit. The SEC maintains an Internet website that contains reports, proxy statements and other information about
issuers, like us, that file electronically with the SEC. The address of that website is
www.sec.gov
. We also maintain a
website at http://www.olb.com/. You may access these materials free of charge as soon as reasonably practicable after they are
electronically filed with, or furnished to, the SEC. Information contained on our website is not a part of this prospectus and
the inclusion of our website address in this prospectus is an inactive textual reference only.
73
INDEX
TO FINANCIAL STATEMENTS
December
    31, 2018 and 2017 Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
F-2
Reports of Independent Registered Public Accounting Firm
F-3
Consolidated Balance Sheets as of December 31, 2018 and 2017
F-6
Consolidated Statements of Operations for the Years Ended December 31, 2018 and 2017
F-7
Consolidated Statements of Stockholders' Deficit for the Years Ended December 31, 2018 and 2017
F-8
Consolidated Statements of Cash Flows for the Years Ended December 31, 2018 and 2017
F-9
Notes to the Consolidated Financial Statements
F-11
March
    31, 2019 Consolidated Financial Statements
Condensed Consolidated Balance Sheets as of March 31, 2019 (unaudited) and December 31, 2018
F-24
Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2019 and 2018 (unaudited)
F-25
Condensed Consolidated Statements of Stockholders' Deficit for the Three Months Ended March 31, 2019 and 2018 (unaudited)
F-26
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2019 and 2018 (unaudited)
F-27
Notes to the Condensed Consolidated Financial Statements (unaudited)
F-28
F-
1
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To
the Shareholders and Board of Directors of
The
OLB Group, Inc.
Opinion
on the Financial Statements
We
have audited the accompanying consolidated balance sheet of The OLB Group, Inc. (the "Company") as of December 31,
2018, and the related consolidated statements of operations, changes stockholders' deficit and cash flows the year then
ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018, and the results
of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the
United States of America.
The
financial statements of The OLB Group, Inc. as of and for the year ended December 31, 2017 were audited by other auditors whose
report dated April 13, 2018, expressed an unqualified opinion on those financial statements. As discussed in Note 8 to the financial
statements, the Company has adjusted its 2017 financial statements to retrospectively apply the effects of two common control
mergers that occurred subsequent to the year ended December 31, 2017. The other auditors reported on the financial statements
before the retrospective adjustments.
As
part of our audit of the 2018 financial statements, we also audited the adjustments to the 2017 financial statements to retroactively
apply the effects of the common control mergers that occurred subsequent to the year ended December 31, 2017 as described in Note
8. In our opinion, such adjustments are appropriate and have been properly applied. We were not engaged to audit, review, or apply
any procedures to the Company's 2017 financial statements other than with respect to these adjustments and, accordingly,
we do not express an opinion or any other form of assurance on the 2017 financial statements as whole.
Basis
for Opinion
These
financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on
the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company
Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company
in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.
We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not
for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting.
Accordingly, we express no such opinion.
Our
audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that our audit provides a reasonable basis for our opinion.
/s/
Marcum
llp
Marcum
llp
We
have served as the Company's auditor since 2019.
New
York, NY
April
18, 2019
F-
2
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To
the Board of Directors and Stockholders of
The
OLB Group, Inc.
Opinion
on the Financial Statements
We
have audited the accompanying balance sheet of The OLB Group, Inc. ("Company") as of December 31, 2017, and the related
statements of operations, stockholders' deficit, and cash flows for the year then ended, and the related notes (collectively
referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material
respects, the financial position of the Company as of December 31, 2017 and the results of its operations and its cash flows for
the year then ended, in conformity with accounting principles generally accepted in the United States of America.
The
Company's Ability to Continue as a Going Concern
The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company
has limited cash resources, recurring cash used in operations and a history of operating losses. These conditions raise substantial
doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments
that may 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
these financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight
Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not
for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting.
Accordingly, we express no such opinion.
Our
audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that our audit provides a reasonable basis for our opinion.
We
have served as the Company's auditor since 2015 until 2019.
/s/ Liggett & Webb P.A.
New
York, New York
April
13, 2018
F-
3
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To
the Stockholders and the Board of Directors of
Excel
Corporation
Opinion
on the Financial Statements
We
have audited Excel Corporation's (the "Company") consolidated statements of operations and cash flows for the
period from January 1, 2018 to April 8, 2018, and the related notes (collectively referred to as the "consolidated financial
statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated
results of its operations and its cash flows for the period from January 1, 2018 to April 8, 2018, in conformity with accounting
principles generally accepted in the United States of America.
The
Company's Ability to Continue as a Going Concern
The
accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.
The Company was also in default of its debt covenants. These conditions raise substantial doubt about the Company's ability
to continue as a going concern. The consolidated financial statements do not include any adjustments that may result from
the outcome of this uncertainty.
Basis
for Opinion
These
consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audit. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether
due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over
financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting
but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting.
Accordingly, we express no such opinion.
Our
audit included performing procedures to assess the risks of material misstatement of the consolidated 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 consolidated financial statements. Our audit also included evaluating the
accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.
Emphasis
of a Matter
As
discussed in Note 1 to the consolidated financial statements the Company was in default on its note payable. In 2018, the secured
noteholder foreclosed on the note and exercised its post-default remedies under the loan and security agreement by conducting
a public auction of all of the Company's assets on April 9, 2018, in accordance with the UCC, at which time the Company
ceased operations.
We
have served as the Company's auditor since 2018.
/s/ Liggett & Webb P.A.
New
York, New York
April
18, 2019
F-
4
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To
the Stockholders and the Board of Directors of
Excel
Corporation
Opinion
on the Financial Statements
We
have audited the accompanying consolidated balance sheet of Excel Corporation (the "Company") as of December 31, 2017,
the related consolidated statements of operations, stockholders' equity (deficit), and cash flows for the year then ended,
and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated
financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December
31, 2017, and the consolidated results of its operations and its cash flows for the year then ended, in conformity with accounting
principles generally accepted in the United States of America.
The
Company's Ability to Continue as a Going Concern
The
accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.
As discussed in Note 2 to the consolidated financial statements, the Company has an accumulated deficit of $19,018,311 at December
31, 2017, and has generated a net loss of $13,821,521 and used cash in operations of $1,001,491 for the year ended December 31,
2017. The Company is also in default of its debt covenants at December 31, 2017. These conditions raise substantial doubt about
the Company's ability to continue as a going concern. The consolidated financial statements do not include any adjustments
that may result from the outcome of this uncertainty.
Basis
for Opinion
These
consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audit. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether
due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over
financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting
but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting.
Accordingly, we express no such opinion.
Our
audit included performing procedures to assess the risks of material misstatement of the consolidated 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 consolidated financial statements. Our audit also included evaluating the
accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.
Emphasis
of a Matter
As
discussed in Note 1 to the consolidated financial statements the Company was in default on its note payable at December 31, 2017.
In 2018 the secured noteholder foreclosed on the note and exercised its post-default remedies under the loan and security agreement
by conducting a public auction of all of the Company's assets on April 9, 2018, in accordance with the UCC, at which time
the Company ceased operations.
We
have served as the Company's auditor since 2018.
/s/ Liggett & Webb P.A.
New
York, New York
October
3, 2018
F-
5
The
OLB Group, Inc. and Subsidiaries
Consolidated
Balance Sheets
As of December 31,
2018
2017
2017
(Predecessor)
ASSETS
Current Assets:
Cash
$
111,586
$
-
$
225,227
Accounts receivable, net
406,110
27,790
564,014
Note receivable
-
-
357,330
Prepaid expenses
21,135
-
69,119
Other current assets
8,278
-
85,839
Total Current Assets
547,109
27,790
1,301,529
Other Assets:
Property and equipment, net
65,945
-
118,240
Intangible assets, net
4,148,096
-
1,784,532
Goodwill
6,858,216
-
-
Other long-term assets
379,908
4,965
412,513
TOTAL ASSETS
$
11,999,274
$
32,755
$
3,616,814
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts payable
$
467,526
$
138,134
$
2,323,926
Accrued compensation – related party
640,009
416,738
-
Accrued expenses
73,625
-
-
Wages payable
-
-
472,912
Other accrued liabilities
15,152
-
381,031
Note payable – current portion
25,000
-
13,911,233
Total Current Liabilities
1,221,312
554,872
17,089,102
Long Term Liabilities:
Note payable, net
9,500,000
-
-
Notes payable – related parties
3,000,000
-
-
Other long-term liabilities
-
-
31,909
Total Liabilities
13,721,312
554,872
17,121,011
Commitments and contingencies (Note 15)
-
-
-
Stockholders' Deficit:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued and outstanding
-
-
-
Common stock, $0.0001 par value; 200,000,000 shares authorized, 162,350,364 and 162,325,364 shares issued and outstanding, respectively
16,237
16,234
-
Additional paid-in capital
15,770,192
15,576,572
5,514,114
Accumulated deficit
(17,508,467
)
(16,114,923
)
(19,018,311
)
Total Stockholders' Deficit
(1,722,038
)
(522,117
)
(13,504,197
)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
$
11,999,274
$
32,755
$
3,616,814
The
accompanying notes are an integral part of these consolidated financial statements.
F-
6
The
OLB Group, Inc. and Subsidiaries
Consolidated
Statements of Operations
For the Years Ended
December 31,
For the period ended April 8,
2018
For the Year Ended December 31, 2017
2018
2017
(Predecessor)
(Predecessor)
Revenue:
Transaction and processing fees
$
8,863,008
$
-
$
3,164,949
$
14,656,301
Merchant equipment sales and other
35,756
-
9,590
251,408
Other revenue
121,112
183,998
-
-
Total revenue
9,019,876
183,998
3,174,539
14,907,709
Operating expenses:
Processing and servicing costs, excluding merchant portfolio amortization
5,992,619
19,398
1,748,141
9,395,994
Amortization expense
541,904
-
90,739
362,956
Salaries and wages
1,401,192
525,000
374,345
2,782,079
Outside commissions
181,510
-
508,296
336,290
General and administrative expenses
1,435,717
274,996
367,524
3,969,301
Impairment of goodwill
-
-
-
7,914,269
Total operating expenses
9,552,942
819,394
3,089,045
24,760,889
Income (loss) from operations
(533,066
)
(635,396
)
85,494
(9,853,180
)
Other Income (Expense):
Interest expense
(800,467
)
-
(832,564
)
(3,836,495
)
Interest expense, related party
(82,849
)
(26,901
)
-
-
Gain on settlement of payables
16,039
-
-
-
Other
6,799
-
908
(131,846
)
Total other expense
(860,478
)
(26,901
)
(831,656
)
(3,968,341
)
Net Loss
$
(1,393,544
)
$
(662,297
)
$
(746,162
)
$
(13,821,521
)
Net loss per share, basic and diluted
$
(0.01
)
$
(0.00
)
(0.14
)
Weighted average shares outstanding, basic and diluted
162,343,378
155,996,684
100,482,497
The
accompanying notes are an integral part of these consolidated financial statements.
F-
7
The
OLB Group, Inc. and Subsidiaries
Consolidated
Statements of Stockholders' Deficit
Years
ended December 31, 2018 and 2017
Common Stock
Additional Paid
Accumulated
Shares
Amount
In Capital
Deficit
Total
Balance at January 1, 2017
155,979,297
$
15,598
$
14,942,601
$
(15,452,626
)
$
(494,427
)
Common stock issued for related party debt
2,516,050
252
251,353
-
251,605
Common stock issued for accrued
compensation
3,805,017
381
380,121
-
380,502
Common stock issued for services
25,000
3
2,497
-
2,500
Net loss for the year ended December 31, 2017
-
-
-
(662,297
)
(662,297
)
Balance at December 31, 2017
162,325,364
16,234
15,576,572
(16,114,923
)
(522,117
)
Common stock issued for services
25,000
3
3,747
-
3,750
Warrants issued as non-cash interest
-
-
7,660
-
7,660
Option expense for officers
-
-
182,213
-
182,213
Net loss for the year ended December 31, 2018
-
-
-
(1,393,544
)
(1,393,544
)
Balance at December 31, 2018
162,350,364
16,237
15,770,192
(17,508,467
)
(1,722,038
)
The
accompanying notes are an integral part of these consolidated financial statements.
F-
8
The
OLB Group, Inc. and Subsidiaries
Consolidated
Statements of Cash Flows
For the Years Ended
December 31,
For the period ended April 8,
2018
For the Year Ended December 31, 2017
2018
2017
(Predecessor)
(Predecessor)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(1,393,544
)
$
(662,297
)
$
(746,162
)
$
(13,821,521
)
Adjustments to Reconcile Net Loss to Net Cash Used in Operations:
Depreciation and amortization
582,559
-
109,225
446,525
Paid in kind interest
-
-
275,369
1,614,564
Stock based compensation
185,963
2,500
-
20,001
Non-cash interest expense
7,660
-
-
-
Gain on settlement of payables
(16,039
)
-
-
-
Bad debt expense
38,113
-
-
656,131
Loss on disposal of property and equipment
-
-
-
15,539
Gain in investment accounted for under the equity method
-
-
-
171,469
Loss on impairment of goodwill
-
-
-
7,914,269
Changes in assets and liabilities:
Accounts receivable
63,869
(27,790
)
99,190
304,519
Prepaid expenses
63,810
-
35,445
36,876
Other current assets
(8,278
)
-
(298
)
3,211
Other long-term assets
(26,576
)
-
6,775
32,523
Accounts payable
149,161
104,406
(219,888
)
1,746,706
Accrued compensation – related party
239,310
501,620
(3,156
)
87,909
Other accrued liabilities – related party
-
26,901
-
-
Other accrued liabilities
(17,100
)
-
63,905
(220,416
)
Other long-term liabilities
-
-
(2,511
)
(9,796
)
Net Cash Used in Operating Activities
(131,092
)
(54,660
)
(382,106
)
(1,001,491
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment
-
-
(6,274
)
(46,906
)
Proceeds from note receivable
174,967
-
182,362
200,000
Cash received in business combination
42,711
-
-
-
Net Cash provided by Investing Activities
217,678
-
176,088
153,094
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable – related parties
3,055,000
53,500
-
-
Payment on notes payable – related parties
(30,000
)
-
-
-
Payment on notes payable
(3,000,000
)
-
-
(512,583
)
Net Cash provided by (used in) Financing Activities
25,000
53,500
-
(512,583
)
Net Change in Cash
111,586
(1,160
)
(206,018
)
(1,360,980
)
Cash – Beginning of Period
-
1,160
225,227
1,586,207
Cash – End of Period
$
111,586
$
0
$
19,209
$
225,227
Cash Paid For:
Interest
$
728,000
$
-
$
458,812
$
2,040,338
Income taxes
$
-
$
-
$
-
$
-
Supplemental disclosure of non-cash investing and financing activities:
Stock issued in conversion of debt and related accrued interest
$
-
$
251,605
$
-
$
-
Stock issued in conversion of accrued salary
$
-
$
380,502
$
-
$
-
Forgiveness of accrued compensation credited to additional paid-in capital
$
-
$
-
$
-
$
669,529
Preferred stock converted into common stock
-
-
-
460
F-
9
The
allocation of the purchase price and the estimated fair market values of the assets acquired and liabilities assumed in the business
combination further described in Note 1 are shown below:
Consideration
Consideration issued
$
12,500,000
Identified assets and liabilities
Cash
42,711
Accounts and other receivables
480,302
Note receivable
174,967
Prepaid expenses
84,945
Long-term assets
348,367
Property and equipment
106,600
Accounts payable
(180,231
)
Accrued Expenses
(105,877
)
Merchant portfolios
2,190,000
Tradename
2,500,000
Total identified assets and liabilities
5,641,784
Excess purchase price allocated to goodwill
$
6,858,216
The
accompanying notes are an integral part of these consolidated financial statements.
F-
10
The
OLB Group, Inc. and Subsidiaries
Notes
to the Consolidated Financial Statements
For
the Years Ended December 31, 2018 and 2017
NOTE
1 – BACKGROUND AND RECENT ACQUISITIONS
Background
The
OLB Group, Inc. ("OLB" the "Company") was incorporated in the State of Delaware on November 18, 2004 and
provides services through its wholly-owned subsidiaries.
The
Company provides integrated financial and transaction processing services to businesses throughout the United States. Through
its eVance Capital, Inc. subsidiary ("eVance"), the Company provides an integrated suite of third-party merchant payment
processing services and related proprietary software enabling products that deliver credit and debit card-based internet payment
processing solutions primarily to small and mid-sized merchants operating in physical "brick and mortar" business
environments, on the internet and in retail settings requiring both wired and wireless mobile payment solutions. eVance operates
as an independent sales organization ("ISO") generating individual merchant processing contracts in exchange for future
residual payments. As a wholesale ISO, eVance has a direct contractual relationship with the merchants and takes greater responsibility
in the approval and monitoring of merchants than do retail ISOs and as a result, receives additional consideration for this service
and risk. The Company's Securus365, Inc. subsidiary operates as a retail ISO and receives residual income as commission
for merchants it places with third party processors.
CrowdPay.us,
Inc. ("CrowdPay") is a Crowdfunding platform used to facilitate a capital raise anywhere from $1,000,0000 -$50,000,000
of various types of securities under Regulation D, Regulation Crowdfunding, Regulation A and the Securities Act of 1933. To date,
the activities of this subsidiary have been insignificant.
OmniSoft.io,
Inc. ("OmniSoft") operates a software platform for small merchants The Omnicommerce applications work on an iPad,
mobile device and the web and allows you to sell a store's products in a physical, retail setting. To date, the activities
of this subsidiary have been insignificant.
We
also provide ecommerce development and consulting services on a project by project basis.
Memorandum
of Sale
On
April 9, 2018, Securus365, Inc., a Delaware corporation ("Securus"), eVance Capital, Inc., a Delaware corporation
("eVance Capital"), and eVance Inc., a Delaware corporation ("eVance", and collectively with Securus and
eVance Capital, the "Purchasers"), each of which Purchaser is a newly formed wholly-owned subsidiary of OLB, entered
into a Memorandum of Sale (the "Memorandum of Sale") by and among the Purchasers and GACP Finance Co., LLC, a Delaware
limited liability company ("GACP"), in its capacity as administrative agent and collateral agent to certain secured
lenders of the Debtors (as defined below), pursuant to which the Purchasers acquired substantially all of the assets of the Debtors
(the "Asset Acquisition") through a foreclosure sale arranged by GACP under the Uniform Commercial Code of the State
of New York ("UCC") of the collateral of Excel Corporation ("Excel") and its subsidiaries Payprotec Oregon,
LLC, Excel Business Solutions, Inc. and eVance Processing, Inc. (Excel and such subsidiaries, collectively, the "Debtors")
under the Loan and Security Agreement, dated as of November 2, 2016, by and among GACP, the lenders thereunder and the Debtors
and related loan documents, as amended (the "Excel Loan and Security Agreement").
GACP
exercised its post-default remedies and realized on the collateral securing the Debtors' obligations under the Excel Loan
and Security Agreement by conducting a public auction of certain assets of the Debtors on April 9, 2018 in accordance with the
UCC. The Purchasers submitted the Memorandum of Sale at such auction, which constituted the Purchasers' bid for substantially
all of the assets of the Debtors ("Acquired Assets"), which bid was accepted by GACP on April 9, 2018 in connection
with the simultaneous signing and closing (the "Closing") of the transactions contemplated under the Memorandum of
Sale and the Credit Agreement (defined below).
In
consideration for the sale and transfer of the Acquired Assets at the Closing, the Purchasers assumed certain post-Closing obligations
under assigned contracts and issued GACP a note payable in the amount of $12,500,000, through the deemed simultaneous financing
of such purchase price to the Purchasers under the Credit Agreement. Pursuant to the Memorandum of Sale, the Purchasers purchased
from GACP and accepted all of the Debtors' right, title and interest in and to the Acquired Assets "as is",
"where is" and "with all faults" and without any representations or warranties, express or implied, of
any nature whatsoever. Any representations made by the parties in the Memorandum of Sale did not survive the Closing, and there
is no indemnification rights for either party's breach.
Common
Control Mergers
Effective
May 9, 2018, the Company entered into a share exchange agreement with CrowdPay.US, Inc., a New York corporation for which the
Company issued 87,500,000 shares of common stock for all of the authorized stock of CrowdPay. CrowdPay became a wholly owned subsidiary
of OLB. The Company's two majority stockholders were the two stockholders of CrowdPay and as a result this transaction was
accounted for as a common control merger. See Note 8.
Effective
May 9, 2018, the Company entered into a share exchange agreement with OmniSoft, Inc., a Delaware corporation for which the Company
issued 55,000,000 shares of common stock for all of the authorized stock of OmniSoft. OmniSoft became a wholly owned subsidiary
of OLB. The Company's two majority stockholders were the two stockholders of OmniSoft and as a result this transaction was
accounted for as a common control merger. See Note 8.
F-
11
NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of Presentation
The
Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America ("U.S. GAAP").
Use
of Estimates
The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from
those estimates. The Company's accounting estimates include the collectability of receivables, useful lives of long lived
assets and recoverability of those assets, valuation allowances for income taxes, stock based compensation and estimates made
for business combinations.
Principles
of Consolidation
The
accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, eVance,
Securus, CrowdPay.US, and OMNISOFT, Inc. All significant intercompany transactions and balances have been eliminated.
Segments
Operating
segments are defined as components of an enterprise about which separate financial information is available that is evaluated
regularly by the chief operating decision maker, or decision–making group in deciding how to allocate resources and in assessing
performance. Our chief operating decision–making group is composed of the chief executive officer. We currently operate
in one segment surrounding our ISO operations.
Cash
and Cash Equivalents
The
Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and all highly liquid debt
instruments purchased with a maturity of three months or less as cash and cash equivalents. The carrying amount of financial instruments
included in cash and cash equivalents approximates fair value because of the short maturities for the instruments held. The
Company had no cash equivalents as of December 31, 2018 and 2017.
Concentration
of Credit Risk
Financial
instruments that potentially expose the Company to concentration of credit risk consist primarily of cash and accounts receivable.
The Company's cash is deposited with major financial institutions. At times, such deposits may be in excess of the Federal
Deposit Insurance Corporation insurable amount.
Accounts
Receivable
Accounts
receivable represent contractual residual payments due from the Company's processing partners or other customers. Residual
payments are determined based on transaction fees and revenues from the credit and debit card processing activity of merchants
for which the Company's processing partners pay the Company. Based on collection experience and periodic reviews of outstanding
receivables, management considers all accounts receivable for our residual payments to be fully collectible and accordingly, no
allowance for doubtful accounts is required; however, CrowdPay has a recorded an allowance of $38,113 and $0, as of December 31,
2018 and 2017, respectively.
Reserve
for Chargeback Losses
Disputes
between a cardholder and a merchant periodically arise as a result of, among other things, cardholder dissatisfaction with merchandise
quality or merchant services. Such disputes may not be resolved in the merchant's favor. In these cases, the transaction
is "charged back" to the merchant, which means the purchase price is refunded to the customer through the merchant's
bank and charged to the merchant. If the merchant has inadequate funds, the Company must bear the credit risk for the full amount
of the transaction. The Company evaluates the risk for such transactions and estimates the potential loss for chargebacks based
primarily on historical experience and records a loss reserve accordingly. For the years ended December 31, 2018 and 2017, respectively,
chargebacks were immaterial.
Property
and Equipment
Property
and equipment is stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is calculated
using the straight-line method over the estimated useful lives of the assets, which range from three to seven years. Leasehold
improvements are amortized over the lesser of the remaining term of the lease or the estimated useful life of the asset. Expenditures
for repairs and maintenance are expensed as incurred.
F-
12
Impairment
of Long–Lived Assets
The
Company periodically reviews the carrying value of its long-lived assets held and used at least annually or when events and circumstances
warrant such a review. If significant events or changes in circumstances indicate that the carrying value of an asset or asset
group may not be recoverable, the Company performs a test of recoverability by comparing the carrying value of the asset or asset
group to its undiscounted expected future cash flows. Cash flow projections are sometimes based on a group of assets, rather than
a single asset. If cash flows cannot be separately and independently identified for a single asset, the Company determines whether
impairment has occurred for the group of assets for which it can identify the projected cash flows. If the carrying values are
in excess of undiscounted expected future cash flows, it measures any impairment by comparing the fair value of the asset group
to its carrying value. If the fair value of an asset or asset group is determined to be less than the carrying amount of the asset
or asset group, impairment in the amount of the difference is recorded.
Merchant
Portfolios
Merchant
portfolios are valued at fair value of merchant customers on the date of acquisition and are amortized over their estimated useful
lives (7 years).
Goodwill
The
Company accounts for business combinations under the acquisition method of accounting in accordance with Accounting Standards
Codification ("ASC") 805, "Business Combinations," where the total purchase price is allocated to the
tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. The purchase
price is allocated using the information currently available, and may be adjusted, up to one year from acquisition date, after
obtaining more information regarding, among other things, asset valuations, liabilities assumed and revisions to preliminary estimates.
The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed
is recognized as goodwill.
The
Company tests for indefinite lived intangibles and goodwill impairment in the fourth quarter of each year and whenever events
or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable. In accordance
with its policies, the Company performed a qualitative assessment of indefinite lived intangibles and goodwill at December 31,
2018 and determined there was no impairment of indefinite lived intangibles and goodwill.  For the year ended December
31, 2017,
during the annual assessment of goodwill, management determined that goodwill
had been fully impaired. Due to this impairment the Company recorded an impairment charge of $7.9 million. The impairment charge
resulted from the default of the loan with GACP Finance Co. LLC.
Business
Combinations
Acquisitions
are accounted for using the acquisition method of accounting. The purchase price of an acquisition is allocated to the assets
acquired and liabilities assumed using the estimated fair values at the acquisition date. Transaction costs are expensed as incurred.
The
Company allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible
assets acquired and identified based on their estimated fair values. The excess of the fair value of purchase consideration over
the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make
significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain
intangible assets include, but are not limited to, future expected cash flows from acquired customer lists, acquired technology,
and trade names from a market participant perspective, useful lives and discount rates. Management's estimates of fair value
are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual
results may differ from estimates. During the measurement period, which is one year from the acquisition date, we may record adjustments
to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement
period, any subsequent adjustments are recorded to earnings.
Stock-based
Compensation
We
account for equity-based transactions with nonemployees under the provisions of ASC Topic No. 505-50,
Equity-Based Payments
to Non-Employees
("ASC 505-50"). ASC 505-50 establishes that equity-based payment transactions with nonemployees
shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever
is more reliably measurable. The fair value of common stock issued for payments to nonemployees is measured at the market price
on the date of grant. The fair value of equity instruments, other than common stock, is estimated using the Black-Scholes option
valuation model. In general, we recognize the fair value of the equity instruments issued as deferred stock compensation and amortize
the cost over the term of the contract.
We
account for employee stock-based compensation in accordance with the guidance of Financial Accounting Standards Board ("FASB")
ASC Topic 718,
Compensation—Stock Compensation,
which requires all share-based payments to employees, including
grants of employee stock options, to be recognized in the financial statements based on their fair values. The fair value of the
equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during
which services are rendered.
F-
13
Net
Loss per Share
Basic
net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding
during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of shares
of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares
for the year ended December 31, 2018 does not include warrants to acquire 1,200,000 shares of common stock because of their anti-dilutive
effect. There were no potentially dilutive shares as of December 31, 2017.
Revenue
Recognition and Cost of Revenues
The
Company will recognize revenue when it is realized or realizable and earned.  The Company considers revenue realized or realizable
and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has
been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability
is reasonably assured.
The
Company receives a percentage of recurring monthly transaction related fees comprised of credit and debit card fees charged to
merchants, net of association fees, otherwise known as Interchange, as well as certain service charges and convenience fees, for
payment processing services, including authorization, capture, clearing, settlement and information reporting of electronic transactions.
Fees are calculated on either a percentage of the dollar volume of the transaction or a fixed fee or a hybrid of the two and are
recognized at the time of the transaction. In the case of "wholesale" residual revenue in which the Company has a
direct contractual relationship with the merchant, bears risk of chargebacks and performs underwriting on the merchants, the Company
records the full discount charged to the merchant as revenue and the related interchange and other processing fees as expenses.
In cases of residual revenue where the Company is not responsible for merchant underwriting and has no chargeback liability and
has no or limited contractual relationship with the merchant, the Company records the amount it receives from the processor net
of interchange and other processing fees as revenue.
Income
Taxes
Income
taxes are provided for the tax effects of the transactions reported in the financial statements and consist of taxes currently
due plus deferred taxes related primarily to tax net operating loss carryforwards. The deferred tax assets and liabilities represent
the future tax return consequences of these differences, which will either be taxable or deductible when assets and liabilities
are recovered or settled, as well as operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted
tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that
includes the enactment date. A valuation allowance is established against deferred tax assets when in the judgment of management,
it is more likely than not that such deferred tax assets will not become available. Because the judgment about the level of future
taxable income is dependent to a great extent on matters that may, at least in part, be beyond the Company's control, it
is at least reasonably possible that management's judgment about the need for a valuation allowance for deferred taxes could
change in the near term.
Tax
benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities.
The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon
settlement. A liability for "unrecognized tax benefits" is recorded for any tax benefits claimed in the Company's
tax returns that do not meet these recognition and measurement standards. As of December 31, 2018, and 2017, no liability for
unrecognized tax benefits was required to be reported.
Fair
Value Measurements
Fair
value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in
the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on
the measurement date. ASC Topic No. 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value into three broad levels, as described below:
Level
1: Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level
2: Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable, either directly or indirectly.
Level 2 inputs include quoted prices for similar assets, quoted prices in markets that are not considered to be active, and observable
inputs other than quoted prices such as interest rates.
Level
3: Level 3 inputs are unobservable inputs.
The
following required disclosure of the estimated fair value of financial instruments has been determined by the Company using available
market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data
to develop the estimates of fair value. Accordingly, the use of different market assumptions and/or estimation methodologies may
have a material effect on the estimated fair value amounts.
F-
14
The
methods and assumptions used to estimate the fair values of each class of financial instruments are as follows: Cash and Cash
Equivalents, Accounts Receivable, and Accounts Payable. The items are generally short-term in nature, and accordingly, the carrying
amounts reported on the consolidated balance sheets are reasonable approximations of their fair values.
The
carrying amounts of Notes Receivable and Notes Payable approximate the fair value as the notes bear interest rates that are consistent
with current market rates.
Subsequent
Events
Management
evaluates events that have occurred after the balance sheet date and through the date the financial statements are issued. Based
upon the review, management did not identify any recognized or non-recognized subsequent events which would have required an adjustment
or disclosure in the financial statements, except as described in
Note 17 Subsequent Events
.
Recently
Adopted Accounting Standards
In
November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU")
No. 2015-17,
Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes
. The ASU simplifies the presentation
of deferred income taxes under U.S. GAAP by requiring that all deferred tax assets and liabilities be classified as non-current.
The guidance in ASU No. 2015-17 is effective for fiscal years beginning after December 15, 2016, including interim periods within
those fiscal years. The Company adopted this ASU and it did not have a material impact on the Company's consolidated financial
statements.
In
March 2016, the FASB issued ASU No. 2016-09,
Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based
Payment Accounting
. This ASU makes targeted amendments to the accounting for employee share-based payments. This guidance
is to be applied using various transition methods such as full retrospective, modified retrospective, and prospective based on
the criteria for the specific amendments as outlined in the guidance. The guidance is effective for annual periods, and interim
periods within those annual periods, beginning after December 15, 2016. The Company adopted this ASU and it did not have a material
impact on the Company's disclosures in the footnotes to its consolidated financial statements.
In
August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Clarification of Certain Cash Receipts and Cash Payments ("ASU
2016-15"), which eliminates the diversity in practice related to classification of certain cash receipts and payments in
the statement of cash flows, by adding or clarifying guidance on eight specific cash flow issues. This new guidance will be effective
for annual reporting periods beginning after December 15, 2017, and interim periods within those fiscal years and early adoption
is permitted, including adoption in an interim period. The adoption of this ASU has had no material impact on the Company's
consolidated financial statements and disclosures.
In
November 2016, the FASB issued ASU 2016-18,
Statement of Cash Flows (Topic 230): Restricted Cash
("ASU
2016-18"), which provides guidance that will require that a statement of cash flows explain the change during the period
in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As
a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash
equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This
new guidance will be effective for annual reporting periods beginning after December 15, 2017, and interim periods within those
fiscal years and early adoption is permitted, including adoption in an interim period. The adoption of this ASU has had no material
impact of the Company's Consolidated Statement of Cash Flows.
In
January 2017, the FASB issued ASU 2017-01,
Business Combinations (Topic 805): Clarifying the Definition of a Business.
This ASU clarifies the definition of a business when evaluating whether transactions should be accounted for as acquisitions (or
disposals) of assets or businesses. This new guidance will be effective for annual reporting periods beginning after December
15, 2017, including interim periods within those periods. The adoption of this ASU has had no material impact on the Company's
consolidated financial statements and disclosures.
In
January 2017, the FASB issued ASU 2017-04,
Intangibles—Goodwill and Other (Topic 350)
. This ASU simplifies the
subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test, which required computing the
implied fair value of goodwill. Under the amendments in this update, an entity should perform its annual, or interim, goodwill
impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized
for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should
not exceed the total amount of goodwill allocated to that reporting unit. This new guidance will be effective January 1, 2020.
The Company is currently in the process of evaluating the potential effect that the adoption of this standard will have on its
consolidated financial position and results of operations.
F-
15
In
May 2017, the FASB issued ASU 2017-09,
Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting.
This
ASU clarifies an entity's ability to modify the terms or conditions of a share-based payment award presented. An entity
should account for the effects of a modification unless all the following are met: the fair value of the modified award has not
changed from the fair value on the date of issuance; the vesting conditions of the modified award are the same as the vesting
conditions of the original award immediately before the original award is modified; and, the classification of the modified award
as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the
original award is modified. This new guidance will be effective for annual reporting periods beginning after December 15, 2017,
including interim periods within those periods. The adoption of this ASU has had no material impact on the Company's consolidated
financial statements and disclosures.
In
July 2017, the FASB issued ASU 2017-11,
Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic
480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part
II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and
Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception
. This ASU clarifies the recognition, measurement,
and effect on earnings per share of certain freestanding equity-classified financial instruments that include down round features
affect entities that present earnings per share in accordance with the guidance in Topic 260,
Earnings Per Share
.
When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round
feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity's own stock.
The amendments also clarify existing disclosure requirements for equity-classified instruments. This new guidance will be effective
for annual reporting periods beginning after December 15, 2018, including interim periods within those periods. The Company adopted
this ASU and it did not have a material impact on the Company's consolidated financial statements.
Recent
Accounting Standards
In
February 2016, the FASB issued ASU 2016-02,
Leases (Topic 842)
. The ASU requires that a lessee recognize the assets
and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability
to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the
lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class
of underlying asset not to recognize lease assets and lease liabilities. This new guidance will be effective for annual reporting
periods beginning after December 15, 2018, including interim periods within those annual reporting periods, and early adoption
is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest
period presented using a modified retrospective approach. The Company is currently in the process of evaluating the potential
effect that the adoption of this standard will have on its consolidated financial position and results of operations.
In
May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers, to establish
ASC Topic 606, (ASC 606).  ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition
and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of the guidance is
that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the entity expects to be entitled in exchange for those goods or services.  The guidance includes
a five-step framework that requires an entity to: (i) identify the contract(s) with a customer, (ii) identify the performance
obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance
obligations in the contract, and (v) recognize revenue when the entity satisfies a performance obligation.  In addition,
the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts
with customers.
In
August 2015, the FASB issued ASU 2015-14, Deferral of the Effective Date, which amended the effective date for nonpublic entities
to annual reporting periods beginning after December 15, 2018.  In March 2016, the FASB issued an update (ASU 2016-08)
to ASC 606, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the guidance on principal
versus agent considerations. In April 2016, the FASB issued an update (ASU 2016-10) to ASC 606, Identifying Performance Obligations
and Licensing, which provides clarification related to identifying performance obligations and licensing implementation guidance
under ASU 2014-09. In May 2016, the FASB issued an update (ASU 2016-12) to ASC 606, Narrow-Scope Improvements and Practical Expedients,
which amends guidance on transition, collectability, noncash consideration and the presentation of sales and other similar taxes.
In December 2016, the FASB issued an update (ASU 2016-20) to ASC 606, Technical Corrections and Improvements, which outlines technical
corrections to certain aspects of the new revenue recognition standard such as provisions for losses on construction type contracts
and disclosure of remaining performance obligations, among other aspects. The effective date and transition requirements are the
same as those in ASU 2014-09 for all subsequent clarifying guidance discussed herein.
The
guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method),
or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application
(modified retrospective method). The Company has elected to apply the modified retrospective method. Accordingly, the new revenue
standard will be applied prospectively in the Company's financial statements from January 1, 2019 forward and reported financial
information for historical comparable periods will not be revised and will continue to be reported under the accounting standards
in effect during those historical periods.
The
Company has reviewed other recently issued accounting pronouncements and plans to adopt those that are applicable to it. The Company
does not expect the adoption of any other pronouncements to have an impact on its results of operations or financial position.
F-
16
NOTE
3 – LIQUIDITY AND CAPITAL RESOURCES
At
December 31, 2018, the Company had cash of $111,586 and a working capital deficit of $649,203. For the year ended December
31, 2018, the Company's net loss and cash used in operating activities was $1,393,544 and $131,092, respectively.
T
he
Company expects to fund future liquidity and capital requirements through cash flow generated from its operating activities resulting
from increases in its merchants and revenues generated. Additionally, included in the working capital deficit as of December 31,
2018 was accrued payroll, a note payable and other expenses due to the Company's Chief Executive Officer, Mr. Ronny Yakov,
in the amount of $610,976, which he has agreed to defer receiving payment until the Company has sufficient working capital. As
a result of the recent amendments to its long-term and related party long-term debt arrangements, coupled with  its operations
acquired in the business combination and commitment from a related party and significant stockholder, that he will provide any
additional financial support, if needed, to satisfy the Company's debt or other obligations through April 2020, the Company
has alleviated its previously reported substantial doubt regarding its ability to continue as a going concern.  The Company's
future capital requirements could depend on many factors, including the need to expand its services, competing technological and
market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies
to enhance or complement the Company's product and service offerings. If the Company is unable to secure additional capital,
it may be required to curtail its future plans and take additional measures to reduce costs in order to conserve cash.
NOTE
4 – NOTE RECEIVABLE
On
November 30, 2017, the predecessor entity entered into a forbearance agreement with MoneyonMobile, Inc. (formerly Calpain, Inc)
concerning a $675,000 note payable dated April 12, 2016.  In the agreement, MoneyonMobile agreed to a periodic payment schedule
for the principal of the note with the first payment of $200,000 due and paid on December 15, 2017. The remain balance of
$475,000 was to be paid in six-monthly installments beginning January 15, 2018 with a final payment made on June 15, 2018. Due
to certain financial uncertainties with MoneyonMobile, management of the predecessor determined it necessary to reserve for the
final payments due on the note and recorded bad debt expense of $117,670 during the year ended December 31, 2017. During the period
from January 1, 2018 to April 8, 2018, the predecessor collected $182,362 and subsequent to the date the Company completed
the business combination (Note 7), the Company collected the remaining $174,967.
NOTE
5 – PROPERTY AND EQUIPMENT
Property
and equipment are summarized as follows:
December
    31
December 31,
    2017
2018
2017
Predecessor
Furniture and Fixtures
$
14,895
$
-
$
36,471
Office Equipment
73,205
-
180,576
Leasehold improvements
6,208
-
-
Computer Software
12,292
-
63,607
106,600
-
280,654
Accumulated depreciation
(40,655
)
-
(162,414
)
Property and equipment, net
$
65,945
$
-
$
118,240
Depreciation
expense was $40,655 and $0 for the years ended December 31, 2018 and 2017, respectively. As it pertains to the predecessor, for
the period from January 1, 2018 through April 8, 2018, depreciation expense was $18,486 and for the year ended December 31, 2017,
depreciation expense was $83,569.
F-
17
NOTE
6 – INTANGIBLE ASSETS
Other
assets consist of the following as of:
December 31
December 31, 2017
2018
2017
Predecessor
Merchant Portfolios
$
2,190,000
$
-
$
2,540,690
Less Accumulated Amortization
(208,571
)
-
(756,158
)
Net residual portfolios
$
1,981,429
$
-
$
1,784,532
December 31
December 31, 2017
2018
2017
Predecessor
Trade name
$
2,500,000
$
-
$
-
Less Accumulated Amortization
(333,333
)
-
-
Net trade name
$
2,166,667
$
-
$
-
Amortization
expense amounted to $541,904 for the year ended December 31, 2018. The predecessor's amortization expense for the period
from January 1, 2018 to April 8, 2018 and for the year ended December 31, 2017 was $90,739 and $362,956, respectively.
The
Company's merchant portfolios and tradename are being amortized over respective useful lives of 7 and 5
years.
The
following sets forth the estimated amortization expense related to amortizing intangible assets for the years ended December 31:
2019
$
812,857
2020
$
812,857
2021
$
812,857
2022
$
812,857
2023
$
479,524
Thereafter
$
417,144
The
weighted average remaining useful life of amortizing intangible assets was 6 years at December 31, 2018.
NOTE
7 – BUSINESS COMBINATIONS
As
disclosed in Note 1, on April 9, 2018, the Company entered into a Memorandum of Sale by and among the Purchasers and GACP. In
consideration for the sale and transfer of the Acquired Assets at the Closing, the Company assumed certain post-Closing obligations
under assigned contracts and issued GACP a note payable for $12,500,000, through the deemed simultaneous financing of such purchase
price to the Purchasers under the Credit Agreement.
The
Company accounted for the transaction as a business combination under ASC 805 and as a result, allocated the fair value of the
identifiable assets acquired and liabilities assumed as of the acquisition date as outlined in the table below. The results of
operations of the business acquired by the Company have been included in the consolidated statements of operations since the date
of acquisition. The excess of the purchase price over the estimated fair values of the underlying identifiable assets acquired
and liabilities assumed was allocated to goodwill. The amount assigned to goodwill was deemed appropriate based on several factors,
including: (i) the multiple paid by market participants for businesses in the merchant card processing business; (ii) levels of
eVance Payments, current and future projected cash flows; and (iii) the Company's strategic business plan. Goodwill is expected
to be deductible for tax purposes.
The
allocation of the purchase price and the estimated fair market values of the assets acquired and liabilities assumed are shown
below:
Consideration
Consideration issued
$
12,500,000
Identified assets and liabilities
Cash
42,711
Accounts and other receivables
480,302
Note receivable
174,967
Prepaid expenses
84,945
Long-term assets
348,367
Property and equipment
106,600
Accounts payable
(180,231
)
Accrued Expenses
(105,877
)
Merchant portfolios
2,190,000
Tradename
2,500,000
Total identified assets and liabilities
5,641,784
Excess purchase price allocated to goodwill
$
6,858,216
F-
18
Unaudited
pro forma results of operations for the years ended December 31, 2018 and 2017, as if the Company and its subsidiaries had been
combined on January 1, 2017, follow. The pro forma results include estimates and assumptions which management believes are reasonable.
The pro forma results do not include any anticipated cost savings or other effects of the planned integration of these entities,
and are not necessarily indicative of the results that would have occurred if the business combination had been in effect on the
date indicated, or which may result in the future. The unaudited pro forma results of operations are as follows:
2018
2017
Revenues
$
12,194,415
$
15,091,707
Operating loss
$
(124,442
)
$
(3,023,848
)
Net loss
$
(1,816,576
)
$
(6,979,090
)
Net loss per share – basic and diluted
$
(0.01
)
$
(0.04
)
NOTE
8 – COMMON CONTROL MERGERS
On
May 9, 2018, the Company acquired 100% of OmniSoft in exchange for the issuance of 55,000,000 shares of common stock. The acquisition
of OmniSoft., was determined to be a common control transaction as each Company has the same two shareholder with a majority ownership.
As a result, the assets and liabilities assumed were recorded on the Company's consolidated financial statements at their
respective carry-over basis. Under ASC 805, "Business Combinations," the Company recorded the common control merger
as of the earliest date presented in these consolidated financial statements, or January 1, 2017 as follows:
Accounts receivable
$
250
Accounts payable
(602
)
Accrued expenses – related party
(265,319
)
Net liabilities assumed
$
(265,671
)
The
results of operations included in the consolidated statement of operations for the year ended December 31, 2017 as a result of
the common control merger were as follows:
Revenue
$
250
Operating expenses
(134,154
)
Net loss
$
(133,904
)
On
May 9, 2018, the Company acquired 100% of CrowdPay in exchange for 87,500,000 shares of common stock. The acquisition of CrowdPay.,
as a wholly owned subsidiary is considered a common control transaction as each Company has the same shareholder with a majority
ownership. As a result, the assets and liabilities assumed were recorded on the Company's consolidated financial statements
at their respective carry-over basis. Under ASC 805, "Business Combinations," the Company recorded the common control
merger as of the earliest date presented in these consolidated financial statements, or January 1, 2017 as follows:
Accounts receivable
$
27,540
Other receivable – related party
1,705
Accounts payable and accrued expenses
(48,472
)
Accrued expenses – related party
(149,645
)
Net liabilities assumed
$
(168,872
)
The
results of operations included in the consolidated statement of operations for the year ended December 31, 2017 as a result of
the common control merger were as follows:
Revenue
$
132,205
Operating expenses
(261,860
)
Net loss
$
(129,655
)
NOTE
9 – NOTES PAYABLE
As
of December 31, 2017, the Company had a balance due on its note payable to GACP of $13,911,233.
The
Loan accrues interest of 18% per annum of which 13% is payable in cash monthly and 5% is payable in kind (PIK).
The
note was extinguished due to the foreclosure on the collateral of the note.
In
order to finance the Asset Acquisition, GACP, as administrative agent and collateral agent ("Agent"), and as the initial
sole lender thereunder, provided a term loan of $12,500,000 (the "Term Loan") to the Purchasers, OmniSoft, Inc., a
Delaware corporation and CrowdPay.us, Inc., a New York corporation, each of OmniSoft and CrowdPay being affiliates of the Company's
majority stockholder, which obligations are guaranteed by the Company (collectively with the Borrowers, the "Loan Parties"),
under the Loan and Security Agreement (the "Credit Agreement"), dated as of April 9, 2018, by and among the Loan Parties,
the lenders from time to time party thereto as lenders (the "Lenders") and the Agent.
F-
19
The
Term Loan matures in full on April 9, 2021, the third anniversary of the Closing. $1,000,000 of the principal amount under the
Term Loan must be repaid on or prior to July 15, 2018, and an additional $2,000,000 in principal due on or prior to October 31,
2018 (in each case subject to earlier repayment under certain circumstances, including if a Loan Party consummates an equity financing),
with the remaining principal due upon maturity. The Term Loan can be prepaid without penalty in part by the Loan Parties with
ten days' prior written notice to the Agent, and in full within thirty days' prior written notice. The Term Loan is
subject to an interest rate of 9.0% per annum, payable monthly in arrears.
The
obligations of the Loan Parties under the Credit Agreement are secured by all of their respective assets and the Loan Parties
pledged all of their assets as collateral for their obligations under the Credit Agreement. Additionally, the Company pledged
its ownership interests in the Purchasers and any of its other subsidiaries that it may form or acquire from time to time.
The
Credit Agreement includes customary representations, warranties and financial and other covenants of the Loan Parties for the
benefit of the Lenders and the Agent. The obligations of the Loan Parties under the Credit Agreement are subject to customary
events of default for a secured term loan. Each Loan Party is jointly and severally liable for the obligations under the Credit
Agreement.
On
July 30, 2018, the Company entered into Amendment No. 1 to the Loan and Security Agreement (the "Amendment") amending
that certain Loan and Security Agreement, dated as of April 9, 2018 (the "Original Credit Agreement," and as amended
by the Amendment, the "Credit Agreement"), by and among GACP Finance Co., LLC, as administrative agent and collateral
agent, the lenders party thereto, Securus365, Inc., eVance, Inc., eVance Capital, Inc., OMNISOFT, Inc., and CrowdPay.us, Inc.,
as borrowers, and the Company, as parent guarantor. Pursuant to the Amendment, among other things, the lenders (i) waived the
Company's existing defaults under the Original Credit Agreement for its failure to make payment of $1,000,000 (the "initial
payment") under the Original Credit Agreement on or prior to July 15, 2018 and to deliver to the lenders unaudited monthly
financial statements and compliance certificates of the Company, (ii) extended the date on which the initial payment was required
to be made to July 30, 2018 and extended the date on which the Company is required to provide audited financial statements for
the fiscal years ended December 31, 2017 and 2018, (iii) permitted the Company to enter into a subordinated loan arrangement for
the Note concurrently with the Amendment such that the Company could make the initial payment under the terms of the Credit Agreement,
and permitted the Note to be repaid either from the sale of the Note Collateral Shares or at any time after the second payment
under the Credit Agreement. The Company borrowed $1,000,000 from a related party (Note 11) in order to make its first scheduled
payment.
On
November 14, 2018, the $2,000,000 second payment due under the Original Credit Agreement that was due by October 31, 2018 was
paid. The Company borrowed $2,000,000 from a related party (Note 11) in order to make its second scheduled payment. Total interest
expense for the GACP loan incurred during the year ended December 31, 2018 was $791,625, $73,625 of which is accrued as of December
31, 2018.
On
February 5, 2019, the Company entered into Amendment No. 3 to Loan and Security Agreement (the "Amendment") amending
that certain Loan and Security Agreement, dated as of April 9, 2018 (the "Original Credit Agreement," and as amended,
including by the Amendment, the "Credit Agreement"), by and among GACP Finance Co., LLC, as administrative agent and
collateral agent, the lenders party thereto, Securus365, Inc., eVance, Inc., eVance Capital, Inc., OMNISOFT, Inc., and CrowdPay.us,
Inc., as borrowers, and the Company, as parent guarantor. Pursuant to the Amendment, among other things, the lenders waived the
Company's existing default under the Original Credit Agreement for its failure to comply with certain financial covenants
set forth in the Original Credit Agreement and the parties amended the terms of the financial covenants that the Company must
comply with.
NOTE
10 – WARRANTS
Pursuant
to and as additional consideration for the Term Loan under the Credit Agreement, on April 9, 2018 the Company issued to GACP a
Warrant to purchase 1,200,000 shares of common stock of the Company at an exercise price of $0.25 per share, subject to adjustment
as set forth in the Warrant. The Warrant is exercisable by GACP at any time from the Issuance Date until the later of (i) the
third (3
rd
) anniversary of the Issuance Date and (ii) the date on which all obligations under the Credit Agreement
have been satisfied in full. The Warrant may be redeemed for $0.0001 per Warrant Share, at the sole discretion of the Company,
at any time after the six (6) month anniversary of the Issuance Date if the closing sales price of the Company's common
stock equals or exceeds $5.00 per share on each of the 20 trading days within any 30 day trading day period ending on the third
(3
rd
) trading day prior to the date on which the Company provides a notice of redemption. GACP has certain piggy-back
registration rights as set forth in the Warrant with respect to the Warrant Shares to be issued upon exercise of the Warrant.
After the six (6) month anniversary of the Issuance Date, GACP can exercise the Warrant using a "cashless exercise"
feature to the extent that GACP exercises the Warrant for a number of Warrant Shares in excess of the number Warrant Shares that
have been registered for resale under U.S. securities laws.
F-
20
As
additional consideration for the Term Loan under the Credit Agreement, on April 9, 2018 the Company also entered into a letter
agreement (the "Additional Warrants Agreement") with GACP, pursuant to which the Company agreed that if the Company
at any time after the Closing and prior to the satisfaction of all outstanding obligations under the Credit Agreement requests
for GACP to provide debt financing for the acquisition of a company or operating business by the Company or its subsidiaries,
and GACP or its affiliates provide all of the debt financing for such acquisition, the Company will issue to GACP a warrant to
purchase 200,000 shares of the Company's common stock (an "Additional Warrant") upon the closing of such debt-financing,
with such Additional Warrant in substantially the same form as the Warrant, up to a total of four (4) Additional Warrants for
four debt-financed acquisitions under the Additional Warrants Agreement. The exercise price of the Additional Warrants, if issued,
will be $0.30 per share for the first Additional Warrant, $0.35 per share for the second Additional Warrant, $0.40 per share for
the third Additional Warrant and $0.45 per share for the fourth Additional Warrant, with the number of shares and exercise price
subject to adjustment as set forth in the Additional Warrants Agreement and the Additional Warrant.
The
warrants have an exercise price of $0.25 and expire in three years. The aggregate fair value of the warrants, which was charged
to interest expense, totaled $7,660 based on the Black Scholes Merton pricing model using the following estimates: exercise price
of $0.25, 2.28% risk free rate, 114.11% volatility and expected life of the warrants of 3 years.
A
summary of the status of the Company's outstanding stock warrants and changes during the year is presented below:
Shares available to purchase with warrants
Weighted
Average
Price
Weighted
Average
Fair Value
Aggregate Intrinsic Value
Outstanding, December 31, 2017
-
$
-
$
-
Issued
1,200,000
$
0.25
$
0.0064
Exercised
-
$
-
$
-
Forfeited
-
$
-
$
-
Expired
-
$
-
$
-
Outstanding, December 31, 2018
1,200,000
$
0.25
$0. 0064
$
-
Exercisable, December 31, 2018
1,200,000
$
0.25
$0. 0064
$
-
Range of Exercise
Prices
Number Outstanding
12/31/2018
Weighted Average
Remaining Contractual Life
Weighted Average
Exercise Price
$0.25
1,200,000
2.27 years
$0.25
The
aggregate intrinsic value represents the total pretax intrinsic value, based on warrants with an exercise price less than the
Company's stock price as of December 31, 2018, which would have been received by the warrant holder had the warrant holder
exercised their warrants as of that date.
NOTE
11 – STOCK OPTIONS
On
April 10, 2018, the Company entered into an employment agreement with its VP of Finance pursuant to which he was granted 7,955,168
common stock options. The grant shall vest at the rate of 1/5 beginning on each anniversary of the effective date of grant. The
options have an exercise price of $0.0001 and expire in three years after each vest date. The aggregate fair value of the
options totaled $1,192,535 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $0.0001,
2.43% risk free rate, 123.7% volatility and expected life of the options of 5 years. The fair value is being amortized over the
applicable vesting period and credited to additional paid in capital.
Pursuant
to the terms on the employment agreement with Mr. Yakov he was granted 200,000 common stock options. The grant shall vest at the
rate of 1/3 beginning on each anniversary of the effective date of grant. The options have an exercise price of $0.001 and expire
in three years after each vest date. The aggregate fair value of the options totaled $39,812 based on the Black Scholes Merton
pricing model using the following estimates: exercise price of $0.001, 2.13% risk free rate, 123.7% volatility and expected life
of the options of 4 years. The fair value is being amortized over the applicable vesting period and credited to additional paid
in capital.
For the year ended
December 31,
2018
Stock Options
Shares
Weighted Average Exercise Price
Options outstanding at January 1
-
$
-
Granted
8,155,168
$
0.0001
Exercised
-
$
-
Forfeited
-
$
-
Options outstanding December 31
8,155,168
$
0.0001
Shares exercisable at December 31
-
$
-
F-
21
NOTE
12 – RELATED PARTY TRANSACTIONS
On
December 31, 2017, the Company converted $380,502 of accrued salary due to the CEO into 3,805,017 shares of common stock.
On
December 31, 2017, the Company issued 25,000 shares of common stock to its CFO for accounting services previously rendered. The
shares were valued at $0.10 per shares for total non-cash expense of $2,500.
On
March 12, 2018, the Company received $30,000 from Mr. John Herzog. The advance was used for operating expenses, was unsecured,
non interest bearing and due on demand. This was repaid in full on April 19, 2018.
On
July 30, 2018, pursuant to the terms of the Amendment (Note 8), the Company issued to Mr. John Herzog, a significant stockholder
of the Company a subordinated promissory note in the principal amount of $1,000,000 (the "Note") for cash proceeds
of $1,000,000. The Note initially matured on March 31, 2019 (though the Company has the right to prepay the Note, in whole or
in part, at any time prior to maturity) and bears interest at a rate of 12% per annum, compounding annually. The Note is subordinated
to the Credit Agreement. The Company used the proceeds received to make the initial payment under the Credit Agreement.
On
November 14, 2018, the Company issued to Mr. Herzog a subordinated promissory note ("Note 2") in the principal amount
of $2,000,000 for cash proceeds of $2,000,000.
On
March 1, 2019, the Company entered into Amendment No. 1 to Subordinated Promissory Note (the "
Subordinated
Note Amendment
") with Mr. Herzog. The purpose of the Subordinated Note Amendment was
to amend that certain subordinated promissory note issued on July 26, 2018 in the principal amount of $1,000,000 to reflect an
increase in the amount of principal due under the note from $1,000,000 to $3,000,000 reflecting a payment made by the payee to
the Company of $2,000,000 on November 14, 2018 (the proceeds of which were used by the Company to make a second required payment
under the Credit Agreement) and to extend the maturity date of the Note from March 31, 2019 to September 30, 2020.
Total
interest expense on the two loans from Mr. Herzog for 2018 was $82,849, of which $52,849 is accrued as of December 31, 2018.
As
of December 31, 2018 and 2017, the Company has total accrued compensation due to Mr. Yakov of $568,292 and $394,927, respectively,
and advances to be repaid to Mr. Yakov of $17,684 and $18,366, respectively.
On
August 10, 2018, Ronny Yakov, the CEO, loaned the Company $25,000, in order to pay for audit services. The loan is unsecured,
bears interest at 12% and is due on demand. As of December 31, 2018, there is $1,184 of interest accrued on this note.
NOTE
13 – PREFERRED STOCK
Our
certificate of incorporation authorizes the issuance of 50,000,000 shares of blank check preferred stock with such designation,
rights and preferences as may be determined from time to time by our board of directors. No shares of preferred stock are currently
issued or outstanding. Accordingly, our board of directors is empowered, without stockholder approval, to issue preferred stock
with dividend, liquidation, redemption, voting or other rights which could adversely affect the voting power or other rights of
the holders of common stock. We may issue some or all of the preferred stock to effect a business transaction. In addition, the
preferred stock could be utilized as a method of discouraging, delaying or preventing a change in control of us.
NOTE
14 – COMMON STOCK
On
April 12, 2018, the Company issued 25,000 shares of common stock for services previously rendered for total non-cash expense of
$3,750.
NOTE
15 – COMMITMENTS AND CONTINGENCIES
In
the normal course of business, the Company may be involved in legal proceedings, claims and assessments arising in the ordinary
course of business. The Company records legal costs associated with loss contingencies as incurred and accrues for all probable
and estimable settlements.
On
October 20, 2017, the Company entered into a new employment agreement with its founder and president for 7 years effective January
1, 2018 through December 31, 2024. The agreement provides for an annual salary of $375,000, fringe benefits ($2,500 monthly automobile
allowance, any benefit plans of the Company and 4 weeks paid vacation), an incentive bonus of $200,000 based on the achievement
of certain performance criteria and an acquisition bonus equal to two (2%) percent of the gross purchase price paid in connection
therewith upon the closing of any acquisition directly or indirectly by the Company or its subsidiaries during the Employment
Period of any company or business (including purchases of all or substantially all of the assets of any such entity) having then
existing sales of not less than three million five hundred thousand dollars ($3,500,000). As of December 31, 2018, no bonuses
have been paid or accrued.
Office
Lease
The
Company leases its Georgia office facilities under an operating lease expiring in November 2019. Monthly lease payments range
from $8,278 to $9,046 throughout the term of the lease.
F-
22
NOTE
16 – INCOME TAX
Deferred
taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating
loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences
are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced
by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred
tax assets will not be realized.
The
income tax provision (benefit) consist of the following:
For
                                         the Years Ended
December 31,
2018
2017
Federal:
Current
$
-
$
-
Deferred
-
-
State and local:
Current
-
-
Deferred
-
-
On
December 22, 2017, the Tax Cuts and Jobs Act (TCJA) was signed into law by the President of the United States. TCJA is a tax reform
act that among other things, reduced corporate tax rates to 21 percent effective January 1, 2018. We have recorded a provisional
decrease of $701,000, with a corresponding adjustment to valuation allowance of $701,000 as of December 31, 2017. No additional
adjustments were made for the year ended December 31, 2018.
Net
deferred tax assets consist of the following components as of December 31:
2018
2017
Deferred Tax Assets:
NOL Carryover
$
944,000
$
818,000
Payroll accrual
9,000
-
Allowance for Doubtful Accounts
12,000
-
Related party accrual
213,000
-
Less valuation allowance
(1,178,000
)
(818,000
)
Net deferred tax assets
$
-
$
-
The
income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income
from continuing operations for the period ended December 31, due to the following:
2018
2017
Book loss
$
(292,600
)
$
(125,000
)
State taxes
(138,500
)
Meals and entertainment
6,800
3,800
Stock options
60,000
Other nondeductible expenses
4,300
125,000
Valuation allowance
360,000
(3,800
)
$
-
$
-
At
December 31, 2018, the Company had net federal and state net operating loss carry forwards of approximately $3,803,000 and $847,000,
respectively, which may be offset against future taxable income from the year 2019 to 2038. In accordance with Section 382 of
the Internal Revenue code, the usage of the Company's net operating loss carryforwards may be limited in the event of a
change in ownership. A full Section 382 analysis has not been prepared and NOLs could be subject to limitation under Section 382.
The
Company's policy is to record interest and penalties on uncertain tax positions as a component of income tax expense. No
interest or penalties were recorded during the years ended December 31, 2018 and 2017. The Company is currently not aware of any
issues under review that could result in significant payments, accruals or material deviation from its position in the next twelve
months.
The
Company files income tax returns in the U.S. federal jurisdiction, New York and Georgia which remain subject to examination by
the various taxing authorities beginning with the tax year ended December 31, 2015 (or the tax year ended December 31, 2001 if
the Company were to utilize its NOLs). No tax audits were commenced or were in process during the years ended December 31, 2018
and 2017.
NOTE
17 – SUBSEQUENT EVENTS
Pursuant
to the terms on the employment agreement with Mr. Yakov, he was granted 200,000 common stock options on January 1, 2019.
F-
23
The
OLB Group, Inc. and Subsidiaries
Condensed Consolidated
Balance Sheets
March 31,
2019
December 31,
2018
(Unaudited)
ASSETS
Current Assets:
Cash
$
42,845
$
111,586
Accounts receivable, net
477,140
406,110
Prepaid expenses
22,126
21,135
Other current assets
8,278
8,278
Total Current Assets
550,389
547,109
Other Assets:
Property and equipment, net
57,075
65,945
Intangible assets, net
3,920,449
4,148,096
Goodwill
6,858,216
6,858,216
Other long-term assets
385,327
379,908
TOTAL ASSETS
$
11,771,456
$
11,999,274
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts payable
$
460,155
$
467,526
Accrued expenses – related party
720,001
640,009
Accrued expenses
73,625
73,625
Other accrued liabilities
10,396
15,152
Note payable –related parties– current portion
70,000
25,000
Total Current Liabilities
1,334,177
1,221,312
Long Term Liabilities:
Note payable, net
9,500,000
9,500,000
Notes payable – related parties
3,000,000
3,000,000
Total Liabilities
13,834,177
13,721,312
Commitments and contingencies (Note 13)
-
-
Stockholders' Deficit:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued and outstanding
-
-
Common stock, $0.0001 par value; 200,000,000 shares authorized, 162,350,364 shares issued and outstanding
16,237
16,237
Additional paid-in capital
15,836,454
15,770,192
Accumulated deficit
(17,915,412
)
(17,508,467
)
Total Stockholders' Deficit
(2,062,721
)
(1,722,038
)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
$
11,771,456
$
11,999,274
The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-
24
The
OLB Group, Inc. and Subsidiaries
Condensed Consolidated
Statements of Operations
(Unaudited)
For the Three Months Ended
March 31,
For the Three Months Ended March 31,
2018
2019
2018
(Predecessor)
Revenue:
Transaction and processing fees
$
2,576,284
$
-
$
3,164,949
Merchant equipment sales and other
8,410
-
9,590
Other revenue
6,200
77,025
-
Total revenue
2,590,894
77,025
3,174,539
Operating expenses:
Processing and servicing costs, excluding merchant portfolio amortization
1,718,098
4,097
1,748,141
Amortization expense
227,647
-
90,739
Salaries and wages
434,793
156,250
374,345
Outside commissions
40,869
-
508,296
General and administrative expenses
273,022
43,012
367,524
Total operating expenses
2,694,429
203,359
3,089,045
Income (loss) from operations
(103,535
)
(126,334
)
85,494
Other Income (Expense):
Interest expense
(213,750
)
-
(832,564
)
Interest expense, related party
(90,204
)
(296
)
Other
544
-
908
Total other expense
(303,410
)
(296
)
(831,656
)
Net Loss
$
(406,945
)
$
(126,630
)
$
(746,162
)
Net loss per share, basic and diluted
$
(0.00
)
$
(0.00
)
Weighted average shares outstanding, basic and diluted
162,350,364
162,325,364
The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-
25
The
OLB Group, Inc. and Subsidiaries
Condensed Consolidated
Statements of Stockholders' Deficit
Three
Months ended March 31, 2019 and 2018
(Unaudited)
Common Stock
Additional Paid
Accumulated
Shares
Amount
In Capital
Deficit
Total
Balance at January 1, 2019
162,350,364
$
16,237
$
15,770,192
$
(17,508,467
)
$
(1,722,038
)
Stock based compensation
-
-
66,262
-
66,262
Net loss for the three months ended March 31, 2019
-
-
-
(406,945
)
(406,945
)
Balance at March 31, 2019
162,350,364
$
16,237
$
15,836,454
$
(17,915,412
)
$
(2,062,721
)
Common Stock
Additional Paid
Accumulated
Shares
Amount
In Capital
Deficit
Total
Balance at January 1, 2018
162,325,364
$
16,234
$
15,576,572
$
(16,114,923
)
$
(522,117
)
Stock based compensation
-
-
-
-
-
Net loss for the three months ended March 31, 2018
-
-
-
(126,630
)
(126,630
)
Balance at March 31, 2018
162,325,364
$
16,234
$
15,576,572
$
(16,241,553
)
$
(648,747
)
The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-
26
The
OLB Group, Inc. and Subsidiaries
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
For the Three Months Ended
March 31,
For the Three Months Ended March 31,
2018
2019
2018
(Predecessor)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(406,945
)
$
(126,630
)
$
(746,162
)
Adjustments to Reconcile Net Loss to Net Cash Used in Operations:
Depreciation and amortization
236,517
-
109,225
Stock based compensation
66,262
-
-
Paid in kind interest
-
-
275,369
Changes in assets and liabilities:
Accounts receivable
(71,030
)
(26,828
)
99,190
Prepaid expenses
(991
)
35,445
Other current assets
-
(22,851
)
(298
)
Other long-term assets
(5,419
)
6,775
Accounts payable
(7,371
)
3,631
(219,888
)
Accrued compensation
-
-
(3,156
)
Accrued expenses – related party
79,992
144,477
-
Other accrued liabilities
(4,756
)
-
63,905
Other long-term liabilities
-
-
(2,511
)
Net Cash Used in Operating Activities
(113,741
)
(28,201
)
(382,106
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment
-
-
(6,274
)
Proceeds from note receivable
-
-
182,362
Net Cash provided by Investing Activities
-
-
176,088
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable – related party
45,000
30,000
-
Net Cash provided by Financing Activities
45,000
30,000
-
Net Change in Cash
(68,741
)
1,799
(206,018
)
Cash – Beginning of Period
111,586
-
225,227
Cash – End of Period
$
42,845
$
1,799
$
19,209
Cash Paid For:
Interest
$
223,750
$
-
$
458,812
Income taxes
$
-
$
-
$
-
The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-
27
The
OLB Group, Inc. and Subsidiaries
Notes
to the Condensed Consolidated Financial Statements
March
31, 2019
(Unaudited)
NOTE
1 - BACKGROUND
Background
The
OLB Group, Inc. ("OLB" the "Company") was incorporated in the State of Delaware on November 18, 2004 and
provides services through its wholly-owned subsidiaries.
The
Company provides integrated financial and transaction processing services to businesses throughout the United States. Through
its eVance Capital, Inc. subsidiary ("eVance"), the Company provides an integrated suite of third-party merchant payment
processing services and related proprietary software enabling products that deliver credit and debit card-based internet payment
processing solutions primarily to small and mid-sized merchants operating in physical "brick and mortar" business
environments, on the internet and in retail settings requiring both wired and wireless mobile payment solutions. eVance operates
as an independent sales organization ("ISO") generating individual merchant processing contracts in exchange for future
residual payments. As a wholesale ISO, eVance has a direct contractual relationship with the merchants and takes greater responsibility
in the approval and monitoring of merchants than do retail ISOs and as a result, receives additional consideration for this service
and risk. The Company's Securus365, Inc. subsidiary operates as a retail ISO and receives residual income as commission
for merchants it places with third party processors.
CrowdPay.us,
Inc. ("CrowdPay") is a Crowdfunding platform used to facilitate a capital raise anywhere from $1,000,0000 -$50,000,000
of various types of securities under Regulation D, Regulation Crowdfunding, Regulation A and the Securities Act of 1933. To date,
the activities of this subsidiary have been insignificant.
OmniSoft.io,
Inc. ("OmniSoft") operates a software platform for small merchants The Omnicommerce applications work on an iPad,
mobile device and the web and allows you to sell a store's products in a physical, retail setting. To date, the activities
of this subsidiary have been insignificant.
We
also provide ecommerce development and consulting services on a project by project basis.
Memorandum
of Sale
On
April 9, 2018, Securus365, Inc., a Delaware corporation ("Securus"), eVance Capital, Inc., a Delaware corporation
("eVance Capital"), and eVance Inc., a Delaware corporation ("eVance", and collectively with Securus and
eVance Capital, the "Purchasers"), each of which Purchaser is a newly formed wholly-owned subsidiary of OLB, entered
into a Memorandum of Sale (the "Memorandum of Sale") by and among the Purchasers and GACP Finance Co., LLC, a Delaware
limited liability company ("GACP"), in its capacity as administrative agent and collateral agent to certain secured
lenders of the Debtors (as defined below), pursuant to which the Purchasers acquired substantially all of the assets of the Debtors
(the "Asset Acquisition") through a foreclosure sale arranged by GACP under the Uniform Commercial Code of the State
of New York ("UCC") of the collateral of Excel Corporation ("Excel") and its subsidiaries Payprotec Oregon,
LLC, Excel Business Solutions, Inc. and eVance Processing, Inc. (Excel and such subsidiaries, collectively, the "Debtors")
under the Loan and Security Agreement, dated as of November 2, 2016, by and among GACP, the lenders thereunder and the Debtors
and related loan documents, as amended (the "Excel Loan and Security Agreement").
GACP
exercised its post-default remedies and realized on the collateral securing the Debtors' obligations under the Excel Loan
and Security Agreement by conducting a public auction of certain assets of the Debtors on April 9, 2018 in accordance with the
UCC. The Purchasers submitted the Memorandum of Sale at such auction, which constituted the Purchasers' bid for substantially
all of the assets of the Debtors ("Acquired Assets"), which bid was accepted by GACP on April 9, 2018 in connection
with the simultaneous signing and closing (the "Closing") of the transactions contemplated under the Memorandum of
Sale and the Credit Agreement (defined below).
In
consideration for the sale and transfer of the Acquired Assets at the Closing, the Purchasers assumed certain post-Closing obligations
under assigned contracts and issued GACP a note payable in the amount of $12,500,000, through the deemed simultaneous financing
of such purchase price to the Purchasers under the Credit Agreement. Pursuant to the Memorandum of Sale, the Purchasers purchased
from GACP and accepted all of the Debtors' right, title and interest in and to the Acquired Assets "as is",
"where is" and "with all faults" and without any representations or warranties, express or implied, of
any nature whatsoever. Any representations made by the parties in the Memorandum of Sale did not survive the Closing, and there
is no indemnification rights for either party's breach.
F-
28
Common
Control Mergers
Effective
May 9, 2018, the Company entered into a share exchange agreement with CrowdPay.US, Inc., a New York corporation for which the
Company issued 87,500,000 shares of common stock for all of the authorized stock of CrowdPay. CrowdPay became a wholly owned subsidiary
of OLB. The Company's two majority stockholders were the two stockholders of CrowdPay and as a result this transaction was
accounted for as a common control merger. See Note 7.
Effective
May 9, 2018, the Company entered into a share exchange agreement with OmniSoft, Inc., a Delaware corporation for which the Company
issued 55,000,000 shares of common stock for all of the authorized stock of OmniSoft. OmniSoft became a wholly owned subsidiary
of OLB. The Company's two majority stockholders were the two stockholders of OmniSoft and as a result this transaction was
accounted for as a common control merger. See Note 6.
NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of Presentation
The
accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles
generally accepted in the United States of America ("U.S. GAAP"). These unaudited condensed consolidated financial
statements should be read in conjunction with the audited financial statements and footnotes for the year ended December 31, 2018
included on the Company's Form 10-K. The results of the three months ended March 31, 2019 are not necessarily indicative
of the results to be expected for the full year ending December 31, 2019.
In
the opinion of management, all adjustments necessary to present fairly the financial position as of March 31, 2019 and the results
of operations and cash flows presented herein have been included in the financial statements. All such adjustments are of a normal
and recurring nature. Interim results are not necessarily indicative of results of operations for the full year.
Use
of Estimates
The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from
those estimates. The Company's accounting estimates include the collectability of receivables, useful lives of long lived
assets and recoverability of those assets, valuation allowances for income taxes, stock based compensation and estimates made
for business combinations.
Net
Loss per Share
Basic
net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding
during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of shares
of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares
for the three months ended March 31, 2019 does not include warrants to acquire 1,200,000 shares of common stock and options to
acquire 8,355,168 shares of commons stock because of their anti-dilutive effect. There were no potentially dilutive shares for
the three months ended March 31, 2018 .
Revenue
Recognition and Cost of Revenues
The
Company will recognize revenue when it is realized or realizable and earned.  The Company considers revenue realized or realizable
and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has
been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability
is reasonably assured.
The
Company receives a percentage of recurring monthly transaction related fees comprised of credit and debit card fees charged to
merchants, net of association fees, otherwise known as Interchange, as well as certain service charges and convenience fees, for
payment processing services, including authorization, capture, clearing, settlement and information reporting of electronic transactions.
Fees are calculated on either a percentage of the dollar volume of the transaction or a fixed fee or a hybrid of the two and are
recognized at the time of the transaction. In the case of "wholesale" residual revenue in which the Company has a
direct contractual relationship with the merchant, bears risk of chargebacks and performs underwriting on the merchants, the Company
records the full discount charged to the merchant as revenue and the related interchange and other processing fees as expenses.
In cases of residual revenue where the Company is not responsible for merchant underwriting and has no chargeback liability and
has no or limited contractual relationship with the merchant, the Company records the amount it receives from the processor net
of interchange and other processing fees as revenue.
Principles
of Consolidation
The
accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, eVance,
Securus, CrowdPay.US, and OMNISOFT, Inc. All significant intercompany transactions and balances have been eliminated.
Segments
Operating
segments are defined as components of an enterprise about which separate financial information is available that is evaluated
regularly by the chief operating decision maker, or decision–making group in deciding how to allocate resources and in assessing
performance. Our chief operating decision–making group is composed of the chief executive officer. We currently operate
in one segment surrounding our ISO operations.
F-
29
Recent
Accounting Standards
In
February 2016, the FASB issued ASU 2016-02,
Leases (Topic 842)
. The ASU requires that a lessee recognize the assets
and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability
to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the
lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class
of underlying asset not to recognize lease assets and lease liabilities. This new guidance will be effective for annual reporting
periods beginning after December 15, 2019, including interim periods within those annual reporting periods, and early adoption
is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest
period presented using a modified retrospective approach. The Company is currently in the process of evaluating the potential
effect that the adoption of this standard will have on its consolidated financial position and results of operations.
In
May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers, to establish
ASC Topic 606, (ASC 606).  ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition
and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of the guidance is
that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the entity expects to be entitled in exchange for those goods or services.  The guidance includes
a five-step framework that requires an entity to: (i) identify the contract(s) with a customer, (ii) identify the performance
obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance
obligations in the contract, and (v) recognize revenue when the entity satisfies a performance obligation.  In addition,
the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts
with customers.
In
August 2015, the FASB issued ASU 2015-14, Deferral of the Effective Date, which amended the effective date for nonpublic entities
to annual reporting periods beginning after December 15, 2018.  In March 2016, the FASB issued an update (ASU 2016-08)
to ASC 606, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the guidance on principal
versus agent considerations. In April 2016, the FASB issued an update (ASU 2016-10) to ASC 606, Identifying Performance Obligations
and Licensing, which provides clarification related to identifying performance obligations and licensing implementation guidance
under ASU 2014-09. In May 2016, the FASB issued an update (ASU 2016-12) to ASC 606, Narrow-Scope Improvements and Practical Expedients,
which amends guidance on transition, collectability, noncash consideration and the presentation of sales and other similar taxes.
In December 2016, the FASB issued an update (ASU 2016-20) to ASC 606, Technical Corrections and Improvements, which outlines technical
corrections to certain aspects of the new revenue recognition standard such as provisions for losses on construction type contracts
and disclosure of remaining performance obligations, among other aspects. The effective date and transition requirements are the
same as those in ASU 2014-09 for all subsequent clarifying guidance discussed herein.
The
guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method),
or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application
(modified retrospective method). As an Emerging Growth Company, the standard is effective for the Company's 2019 annual
reporting period and for interim periods after 2019. The Company is currently in the initial phase of analyzing the potential
impact this standard will have on its consolidated financial position and results of operations. The Company expects to apply
the modified retrospective method upon adoption.
The
Company has reviewed other recently issued accounting pronouncements and plans to adopt those that are applicable to it. The Company
does not expect the adoption of any other pronouncements to have an impact on its results of operations or financial position.
NOTE
3 – LIQUIDITY AND CAPITAL RESOURCES
At
March 31, 2019, the Company had cash of $42,845 and a working capital deficit of $783,788. For the three months
ended March 31, 2019, the Company's net loss and cash used in operating activities was $406,945 and $113,741,
respectively.
T
he Company expects to fund future liquidity and capital
requirements through cash flow generated from its operating activities resulting from increases in its merchants and revenues
generated. Additionally, included in the working capital deficit as of March 31, 2019 was accrued payroll, a note payable and
other expenses due to the Company's Chief Executive Officer, Mr. Ronny Yakov, in the amount of $657,229, which he has
agreed to defer receiving payment until the Company has sufficient working capital. As a result of the recent amendments to
its long-term and related party long-term debt arrangements, coupled with  its operations acquired in the business
combination and commitment from a related party and significant stockholder that he will provide any additional financial
support, if needed, to satisfy the Company's debt or other obligations through November 2020, the Company has
alleviated its previously reported substantial doubt regarding its ability to continue as a going concern.  The
Company's future capital requirements could depend on many factors, including the need to expand its services,
competing technological and market developments, and the need to enter into collaborations with other companies or acquire
other companies or technologies to enhance or complement the Company's product and service offerings. If the Company is
unable to secure additional capital, it may be required to curtail its future plans and take additional measures to reduce
costs in order to conserve cash.
F-
30
NOTE
4 – INTANGIBLE ASSETS
Other
assets consist of the following as of:
March 31,
2019
December 31,
2018
Merchant Portfolios
$
2,190,000
$
2,190,000
Less Accumulated Amortization
(311,218
)
(208,571
)
Net residual portfolios
$
1,878,782
$
1,981,429
March 31,
2019
December 31,
2018
Trade name
$
2,500,000
$
2,500,000
Less Accumulated Amortization
(458,333
)
(333,333
)
Net trade name
$
2,041,667
$
2,166,667
Amortization
expense was $227,647 and $0 for the three months ended March 31, 2019 and $90,739 for the predecessor three months ended March
31, 2018.
The
Company's merchant portfolios and tradename are being amortized over respective useful lives of 7 and 5 years.
The
following sets forth the estimated amortization expense related to amortizing intangible assets for the years ended December 31:
2019 (remainder of year)
$
585,210
2020
$
812,857
2021
$
812,857
2022
$
812,857
2023
$
479,524
Thereafter
$
417,144
Total
$
3,920,449
The
weighted average remaining useful life of amortizing intangible assets was 5.75 years at March 31, 2019.
NOTE
5 – BUSINESS COMBINATIONS
As
disclosed in Note 1, on April 9, 2018, the Company entered into a Memorandum of Sale by and among the Purchasers and GACP. In
consideration for the sale and transfer of the Acquired Assets at the Closing, the Company assumed certain post-Closing obligations
under assigned contracts and issued GACP a note payable for $12,500,000, through the deemed simultaneous financing of such purchase
price to the Purchasers under the Credit Agreement.
The
Company accounted for the transaction as a business combination under ASC 805 and as a result, allocated the fair value of the
identifiable assets acquired and liabilities assumed as of the acquisition date as outlined in the table below. The results of
operations of the business acquired by the Company have been included in the consolidated statements of operations since the date
of acquisition. The excess of the purchase price over the estimated fair values of the underlying identifiable assets acquired
and liabilities assumed was allocated to goodwill. The amount assigned to goodwill was deemed appropriate based on several factors,
including: (i) the multiple paid by market participants for businesses in the merchant card processing business; (ii) levels of
eVance Payments, current and future projected cash flows; and (iii) the Company's strategic business plan. Goodwill is expected
to be deductible for tax purposes.
F-
31
The
allocation of the purchase price and the estimated fair market values of the assets acquired and liabilities assumed are shown
below:
Consideration
Consideration issued
$
12,500,000
Identified assets and liabilities
Cash
42,711
Accounts and other receivables
480,302
Note receivable
174,967
Prepaid expenses
84,945
Long-term assets
348,367
Property and equipment
106,600
Accounts payable
(180,231
)
Accrued Expenses
(105,877
)
Merchant portfolios
2,190,000
Tradename
2,500,000
Total identified assets and liabilities
5,641,784
Excess purchase price allocated to goodwill
$
6,858,216
Unaudited
pro forma results of operations for the three months ended March 31, 2018, as if the Company and its subsidiaries had been combined
on January 1, 2018, follow. The pro forma results include estimates and assumptions which management believes are reasonable.
The pro forma results do not include any anticipated cost savings or other effects of the planned integration of these entities,
and are not necessarily indicative of the results that would have occurred if the business combination had been in effect on the
date indicated, or which may result in the future. The unaudited pro forma results of operations are as follows:
Three Months Ended
March 31,
2018
Revenues
$
3,251,564
Operating loss
$
(153,315
)
Net loss
$
(985,267
)
Net loss per share – basic and diluted
$
(0.01
)
NOTE
6 – COMMON CONTROL MERGERS
On
May 9, 2018, the Company acquired 100% of OmniSoft in exchange for the issuance of 55,000,000 shares of common stock. The acquisition
of OmniSoft., was determined to be a common control transaction as each Company has the same two shareholder with a majority ownership.
As a result, the assets and liabilities assumed were recorded on the Company's consolidated financial statements at their
respective carry-over basis. Under ASC 805, "Business Combinations," the Company recorded the common control merger
as of the earliest date presented in these consolidated financial statements, or March 31, 2018 as follows:
The
results of operations included in the condensed consolidated statement of operations for the three months ended March 31, 2018
as a result of the common control merger were as follows:
Revenue
$
4,500
Operating expenses
(43,274
)
Net loss
$
(38,774
)
On
May 9, 2018, the Company acquired 100% of CrowdPay in exchange for 87,500,000 shares of common stock. The acquisition of CrowdPay.,
as a wholly owned subsidiary is considered a common control transaction as each Company has the same shareholder with a majority
ownership. As a result, the assets and liabilities assumed were recorded on the Company's consolidated financial statements
at their respective carry-over basis. Under ASC 805, "Business Combinations," the Company recorded the common control
merger as of the earliest date presented in these condensed consolidated financial statements, or March 31, 2018 as follows:
The
results of operations included in the condensed consolidated statement of operations for the three months ended March 31, 2018
as a result of the common control merger were as follows:
Revenue
$
62,621
Operating expenses
(42,035
)
Net income
$
20,586
F-
32
NOTE
7 – NOTE PAYABLE
In
order to finance the Asset Acquisition, GACP, as administrative agent and collateral agent ("Agent"), and as the initial
sole lender thereunder, provided a term loan of $12,500,000 (the "Term Loan") to the Purchasers, OmniSoft, Inc., a
Delaware corporation and CrowdPay.us, Inc., a New York corporation, each of OmniSoft and CrowdPay being affiliates of the Company's
majority stockholder, which obligations are guaranteed by the Company (collectively with the Borrowers, the "Loan Parties"),
under the Loan and Security Agreement (the "Credit Agreement"), dated as of April 9, 2018, by and among the Loan Parties,
the lenders from time to time party thereto as lenders (the "Lenders") and the Agent.
The
Term Loan matures in full on April 9, 2021, the third anniversary of the Closing. $1,000,000 of the principal amount under the
Term Loan must be repaid on or prior to July 15, 2018, and an additional $2,000,000 in principal due on or prior to October 31,
2018 (in each case subject to earlier repayment under certain circumstances, including if a Loan Party consummates an equity financing),
with the remaining principal due upon maturity. The Term Loan can be prepaid without penalty in part by the Loan Parties with
ten days' prior written notice to the Agent, and in full within thirty days' prior written notice. The Term Loan is
subject to an interest rate of 9.0% per annum, payable monthly in arrears.
The
obligations of the Loan Parties under the Credit Agreement are secured by all of their respective assets and the Loan Parties
pledged all of their assets as collateral for their obligations under the Credit Agreement. Additionally, the Company pledged
its ownership interests in the Purchasers and any of its other subsidiaries that it may form or acquire from time to time.
The
Credit Agreement includes customary representations, warranties and financial and other covenants of the Loan Parties for the
benefit of the Lenders and the Agent. The obligations of the Loan Parties under the Credit Agreement are subject to customary
events of default for a secured term loan. Each Loan Party is jointly and severally liable for the obligations under the Credit
Agreement.
On
July 30, 2018, the Company entered into Amendment No. 1 to the Loan and Security Agreement (the "Amendment") amending
that certain Loan and Security Agreement, dated as of April 9, 2018 (the "Original Credit Agreement," and as amended
by the Amendment, the "Credit Agreement"), by and among GACP Finance Co., LLC, as administrative agent and collateral
agent, the lenders party thereto, Securus365, Inc., eVance, Inc., eVance Capital, Inc., OMNISOFT, Inc., and CrowdPay.us, Inc.,
as borrowers, and the Company, as parent guarantor. Pursuant to the Amendment, among other things, the lenders (i) waived the
Company's existing defaults under the Original Credit Agreement for its failure to make payment of $1,000,000 (the "initial
payment") under the Original Credit Agreement on or prior to July 15, 2018 and to deliver to the lenders unaudited monthly
financial statements and compliance certificates of the Company, (ii) extended the date on which the initial payment was required
to be made to July 30, 2018 and extended the date on which the Company is required to provide audited financial statements for
the fiscal years ended December 31, 2017 and 2018, (iii) permitted the Company to enter into a subordinated loan arrangement for
the Note concurrently with the Amendment such that the Company could make the initial payment under the terms of the Credit Agreement,
and permitted the Note to be repaid either from the sale of the Note Collateral Shares or at any time after the second payment
under the Credit Agreement. The Company borrowed $1,000,000 from a related party (Note 11) in order to make its first scheduled
payment.
On
November 14, 2018, the $2,000,000 second payment due under the Original Credit Agreement that was due by October 31, 2018 was
paid. The Company borrowed $2,000,000 from a related party (Note 10) in order to make its second scheduled payment. Total interest
expense for the GACP loan incurred during the three months ended March 31, 2019 was $213,750, $73,625 of which is accrued as of
March 31, 2019. Total interest expense for the GACP loan incurred during the year ended December 31, 2018 was $791,625, $73,625
of which is accrued as of December 31, 2018.
On
February 5, 2019, the Company entered into Amendment No. 3 to Loan and Security Agreement (the "Amendment") amending
that certain Loan and Security Agreement, dated as of April 9, 2018 (the "Original Credit Agreement," and as amended,
including by the Amendment, the "Credit Agreement"), by and among GACP Finance Co., LLC, as administrative agent and
collateral agent, the lenders party thereto, Securus365, Inc., eVance, Inc., eVance Capital, Inc., OMNISOFT, Inc., and CrowdPay.us,
Inc., as borrowers, and the Company, as parent guarantor. Pursuant to the Amendment, among other things, the lenders waived the
Company's existing default under the Original Credit Agreement for its failure to comply with certain financial covenants
set forth in the Original Credit Agreement and the parties amended the terms of the financial covenants that the Company must
comply with.
NOTE
8 - WARRANTS
Pursuant
to and as additional consideration for the Term Loan under the Credit Agreement, on April 9, 2018 the Company issued to GACP a
Warrant to purchase 1,200,000 shares of common stock of the Company at an exercise price of $0.25 per share, subject to adjustment
as set forth in the Warrant. The Warrant is exercisable by GACP at any time from the Issuance Date until the later of (i) the
third (3
rd
) anniversary of the Issuance Date and (ii) the date on which all obligations under the Credit Agreement
have been satisfied in full. The Warrant may be redeemed for $0.0001 per Warrant Share, at the sole discretion of the Company,
at any time after the six (6) month anniversary of the Issuance Date if the closing sales price of the Company's common
stock equals or exceeds $5.00 per share on each of the 20 trading days within any 30 day trading day period ending on the third
(3
rd
) trading day prior to the date on which the Company provides a notice of redemption. GACP has certain piggy-back
registration rights as set forth in the Warrant with respect to the Warrant Shares to be issued upon exercise of the Warrant.
After the six (6) month anniversary of the Issuance Date, GACP can exercise the Warrant using a "cashless exercise"
feature to the extent that GACP exercises the Warrant for a number of Warrant Shares in excess of the number Warrant Shares that
have been registered for resale under U.S. securities laws.
F-
33
As
additional consideration for the Term Loan under the Credit Agreement, on April 9, 2018 the Company also entered into a letter
agreement (the "Additional Warrants Agreement") with GACP, pursuant to which the Company agreed that if the Company
at any time after the Closing and prior to the satisfaction of all outstanding obligations under the Credit Agreement requests
for GACP to provide debt financing for the acquisition of a company or operating business by the Company or its subsidiaries,
and GACP or its affiliates provide all of the debt financing for such acquisition, the Company will issue to GACP a warrant to
purchase 200,000 shares of the Company's common stock (an "Additional Warrant") upon the closing of such debt-financing,
with such Additional Warrant in substantially the same form as the Warrant, up to a total of four (4) Additional Warrants for
four debt-financed acquisitions under the Additional Warrants Agreement. The exercise price of the Additional Warrants, if issued,
will be $0.30 per share for the first Additional Warrant, $0.35 per share for the second Additional Warrant, $0.40 per share for
the third Additional Warrant and $0.45 per share for the fourth Additional Warrant, with the number of shares and exercise price
subject to adjustment as set forth in the Additional Warrants Agreement and the Additional Warrant.
The
warrants have an exercise price of $0.25 and expire in three years. The aggregate fair value of the warrants, which was charged
to interest expense, totaled $7,660 based on the Black Scholes Merton pricing model using the following estimates: exercise price
of $0.25, 2.28% risk free rate, 114.11% volatility and expected life of the warrants of 3 years.
A
summary of the status of the Company's outstanding stock warrants as of March 31, 2019 is presented below:
Range of Exercise
Prices
Number Outstanding
3/31/2019
Weighted Average
Remaining Contractual Life
Weighted Average
Exercise Price
$0.25
1,200,000
2.00 years
$0.25
The
aggregate intrinsic value represents the total pretax intrinsic value, based on warrants with an exercise price less than the
Company's stock price as of March 31, 2019, which would have been received by the warrant holder had the warrant holder
exercised their warrants as of that date.
NOTE
9 – STOCK OPTIONS
Pursuant
to the terms on the employment agreement with Mr. Yakov he was granted 200,000 common stock options on January 1, 2019. The grant
shall vest at the rate of 1/3 beginning on each anniversary of the effective date of grant. The options have an exercise price
of $0.001 and expire in three years after each vest date. The aggregate fair value of the options totaled $39,814 based on
the Black Scholes Merton pricing model using the following estimates: exercise price of $0.001, 2.47% risk free rate, 104.8% volatility
and expected life of the options of 4 years. The fair value is being amortized over the applicable vesting period and credited
to additional paid in capital.
A
summary of the status of the Company's outstanding stock options and changes during the year is presented below:
Stock Options
Shares
Weighted Average Exercise
Price
Aggregate
Intrinsic
Value
Options outstanding at January 1, 2019
8,155,168
$
0.0001
-
Granted
200,000
$
0.001
-
Exercised
-
$
-
-
Forfeited
-
$
-
-
Options outstanding March 31, 2019
8,355,168
$
0.0001
$
1,126,752
Shares exercisable at March 31, 2019
66,667
$
0.001
$
8,933
F-
34
NOTE
10 – RELATED PARTY TRANSACTIONS
On
July 30, 2018, pursuant to the terms of the Amendment (Note 7), the Company issued to Mr. John Herzog, a significant stockholder
of the Company a subordinated promissory note in the principal amount of $1,000,000 (the "Note") for cash proceeds
of $1,000,000. The Note initially matured on March 31, 2019 (though the Company has the right to prepay the Note, in whole or
in part, at any time prior to maturity) and bears interest at a rate of 12% per annum, compounding annually. The Note is subordinated
to the Credit Agreement. The Company used the proceeds received to make the initial payment under the Credit Agreement.
On
November 14, 2018, the Company issued to John Herzog, a subordinated promissory note in the principal amount of $2,000,000 for
cash proceeds of $2,000,000.
On
March 1, 2019, the Company entered into Amendment No. 1 to Subordinated Promissory Note (the "
Subordinated
Note Amendment
") with Mr. Herzog. The purpose of the Subordinated Note Amendment was
to amend that certain subordinated promissory note issued on July 26, 2018 in the principal amount of $1,000,000 to reflect an
increase in the amount of principal due under the note from $1,000,000 to $3,000,000 reflecting a payment made by the payee to
the Company of $2,000,000 on November 14, 2018 (the proceeds of which were used by the Company to make a second required payment
under the Credit Agreement) and to extend the maturity date of the Note from March 31, 2019 to September 30, 2020.
Total
interest expense on the two loans from Mr. Herzog for the three months ended March 31, 2019 was $88,767. Total accrued interest
as of March 31, 2019 and December 31, 2018 is $131,616 and $52,849, respectively.
As
of March 31, 2019 and December 31, 2018, the Company has total accrued compensation due to Mr. Yakov of $568,080 and $568,292,
respectively, and advances to be repaid to Mr. Yakov of $17,684 and $17,684, respectively.
On
August 10, 2018, Ronny Yakov, the CEO, loaned the Company $25,000, in order to pay for audit services. Mr. Yakov loaned the Company
an additional $45,000 to the Company during the three months ended March 31, 2019. The loans are unsecured, bears interest at
12% and are due on demand. As of March 31, 2019, there is $2,367 of interest accrued on these loans.
NOTE
11 – COMMITMENTS AND CONTINGENCIES
In
the normal course of business, the Company may be involved in legal proceedings, claims and assessments arising in the ordinary
course of business. The Company records legal costs associated with loss contingencies as incurred and accrues for all probable
and estimable settlements.
On
October 20, 2017, the Company entered into a new employment agreement with its founder and president for 7 years effective January
1, 2018 through December 31, 2024. The agreement provides for an annual salary of $375,000, fringe benefits ($2,500 monthly automobile
allowance, any benefit plans of the Company and 4 weeks paid vacation), an incentive bonus of $200,000 based on the achievement
of certain performance criteria and an acquisition bonus equal to two (2%) percent of the gross purchase price paid in connection
therewith upon the closing of any acquisition directly or indirectly by the Company or its subsidiaries during the Employment
Period of any company or business (including purchases of all or substantially all of the assets of any such entity) having then
existing sales of not less than three million five hundred thousand dollars ($3,500,000). As of March 31, 2019, no bonuses have
been paid or accrued.
Office
Lease
The
Company leases its Georgia office facilities under an operating lease expiring in November 2019. Monthly lease payments range
from $8,278 to $9,046 throughout the term of the lease.
F-
35
[       ]
Shares of Common Stock
PROSPECTUS
ThinkEquity
a
division of Fordham Financial Management, Inc.
Through
and including                 , 2019 (the 25th
day after the commencement of this offering), all dealers effecting transactions in these securities, whether or not participating
in this offering, may be required to deliver a prospectus.
,
2019
PART
II
INFORMATION
NOT REQUIRED IN PROSPECTUS
Item
13. Other Expenses of Issuance and Distribution
The
following table sets forth the expenses in connection with this registration statement. All of such expenses are estimates, other
than the filing fees payable to the Securities and Exchange Commission and to FINRA.
Amount
to be paid
SEC
    registration fee
$
*
FINRA
    filing fee
$
*
The
    NASDAQ Capital Market initial listing fee
$
*
Transfer
    agent and registrar fees
$
*
Accounting
    fees and expenses
$
*
Legal
    fees and expenses
$
*
Printing
    expenses
$
*
Miscellaneous
$
*
Total
$
*
*
To
be completed by amendment
Item
14. Indemnification of Directors and Officers
Section
145 of the Delaware General Corporation Law provides that a corporation may indemnify directors and officers as well as other
employees and individuals against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred by such person in connection with any threatened, pending or completed actions, suits or proceedings
in which such person is made a party by reason of such person being or having been a director, officer, employee or agent of the
corporation. Section 145 of the Delaware General Corporation Law also provides that expenses (including attorneys' fees)
incurred by a director or officer in defending an action may be paid by a corporation in advance of the final disposition of an
action if the director or officer undertakes to repay the advanced amounts if it is determined such person is not entitled to
be indemnified by the corporation. The Delaware General Corporation Law provides that Section 145 is not exclusive of other rights
to which those seeking indemnification may be entitled under any bylaw, agreement, vote of stockholders or disinterested directors
or otherwise. Our amended and restated bylaws provide that, to the fullest extent permitted by law, we shall indemnify and hold
harmless any person who was or is made or is threatened to be made a party or is otherwise involved in any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that such
person, or the person for whom he is the legally representative, is or was a director or officer of ours, against all liabilities,
losses, expenses (including attorney's fees), judgments, fines and amounts paid in settlement actually and reasonably incurred
by such person in connection with such proceeding.
Section
102(b)(7) of the Delaware General Corporation Law permits a corporation to provide in its certificate of incorporation that a
director of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach
of fiduciary duty as a director, except for liability (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) for unlawful payments of dividends or unlawful stock repurchases, redemptions or other distributions, or (iv) for
any transaction from which the director derived an improper personal benefit.
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1
Our
certificate of incorporation provides that
we shall, to the maximum extent permitted from
time to time under the law of the State of Delaware, indemnify and upon request shall advance expenses to any person who is or
was a party or is threatened to be made a party to any threatened, pending or completed action, suit, proceeding or claim, whether
civil, criminal, administrative or investigative, by reason of the fact that such person is or was or has agreed to be a director
or officer of ours or while a director or officer is or was serving at our request as a director, officer, partner, trustee, employee
or agent of any corporation, partnership, joint venture, trust or other enterprise, including service with respect to employee
benefit plans, against expenses (including attorneys' fees and expenses), judgments, fines, penalties and amounts paid in
settlement incurred in connection with the investigation, preparation to defend or defense of such action, suit, proceeding or
claim; provided, however, that the foregoing shall not require us to indemnify or advance expenses to any person in
connection with any action, suit, proceeding or claim initiated by or on behalf of such person or any counterclaim against us
initiated by or on behalf of such person. Such indemnification shall not be exclusive of other indemnification rights arising
under any by-law, agreement, vote of directors or stockholders or otherwise and shall inure to the benefit of the heirs and legal
representatives of such person. Any person seeking indemnification shall be deemed to have met the standard of conduct required
for such indemnification unless the contrary shall be established. Any repeal or modification of our certificate of incorporation
shall not adversely affect any right or protection of a director or officer of ours with respect to any acts or omissions of such
director or officer occurring prior to such repeal or modification
.
Our
bylaws provide we shall, to the fullest extent permitted under the laws of the State of Delaware, as amended and supplemented
from time to time, indemnify each person who was or is a party or is threatened to be made a party to any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that
such party is or was, or has agreed to become, a director or officer of ours, or is or was serving, or has agreed to serve, at
our request, as a director, officer or trustee of, or in a similar capacity with, another corporation, partnership, joint venture,
trust or other enterprise, including any employee benefit plan, or by reason of any action alleged to have been taken or omitted
in such capacity, against all expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually
and reasonably incurred by such party or on such party's behalf in connection with such action, suit or proceeding and any
appeal therefrom.
Expenses
incurred by such a person in defending a civil or criminal action, suit or proceeding by reason of the fact that such person is
or was, or has agreed to become, a director or officer of ours, or is or was serving, or has agreed to serve, at our request,
as a director, officer or trustee of, or in a similar capacity with, another corporation, partnership, joint venture, trust or
other enterprise, including any employee benefit plan, or by reason of any action alleged to have been taken or omitted in such
capacity shall be paid by us in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking
by or on behalf of such person to repay such amount if it shall ultimately be determined that he is not entitled to be indemnified
by us as authorized by relevant sections of the Delaware General Corporation Law. Notwithstanding the foregoing, we shall not
be required to advance such expenses to a person who is a party to an action, suit or proceeding brought by us and approved by
a majority of our Board of Directors that alleges willful misappropriation of corporate assets by such person, disclosure of confidential
information in violation of such person's fiduciary or contractual obligations to us or any other willful and deliberate
breach in bad faith of such person's duty to us or our stockholders.
We
shall not indemnify any such person seeking indemnification in connection with a proceeding (or part thereof) initiated by such
person unless the initiation thereof was approved by our Board of Directors.
The
indemnification rights provided in our amended and restated bylaws shall not be deemed exclusive of any other rights to which
those indemnified may be entitled under any by-law, agreement or vote of stockholders or disinterested directors or otherwise,
both as to action in their official capacities and as to action in another capacity while holding such office, continue as to
such person who has ceased to be a director or officer, and inure to the benefit of the heirs, executors and administrators of
such a person.
If
the Delaware General Corporation Law is amended to expand further the indemnification permitted to indemnitees, then we shall
indemnify such persons to the fullest extent permitted by the Delaware General Corporation Law, as so amended.
We
may, to the extent authorized from time to time by our Board of Directors, grant indemnification rights to other employees or
agents of ours or other persons serving us and such rights may be equivalent to, or greater or less than, those set forth in our
amended and restated bylaws.
Our
obligation to provide indemnification under our amended and restated bylaws shall be offset to the extent of any other source
of indemnification or any otherwise applicable insurance coverage under a policy maintained by us or any other person.
II-
2
To
assure indemnification under our amended and restated bylaws of all directors, officers, employees or agents who are determined
by us or otherwise to be or to have been "fiduciaries" of any employee benefit plan of ours that may exist from time
to time, Section 145 of the Delaware General Corporation Law shall, for the purposes of our amended and restated bylaws, be interpreted
as follows: an "other enterprise" shall be deemed to include such an employee benefit plan, including without limitation,
any plan of ours that is governed by the Act of Congress entitled "Employee Retirement Income Security Act of 1974,"
as amended from time to time; we shall be deemed to have requested a person to serve an employee benefit plan where the performance
by such person of his duties to us also imposes duties on, or otherwise involves services by, such person to the plan or participants
or beneficiaries of the plan; and excise taxes assessed on a person with respect to an employee benefit plan pursuant to such
Act of Congress shall be deemed "fines."
Our
bylaws shall be deemed to be a contract between us and each person who was or is a party or is threatened to be made a party to
any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by
reason of the fact that person is or was, or has agreed to become, a director or officer of ours, or is or was serving, or has
agreed to serve, at our request, as a director, officer or trustee of, or in a similar capacity with, another corporation, partnership,
joint venture, trust or other enterprise, including any employee benefit plan, or by reason of any action alleged to have been
taken or omitted in such capacity, at any time while this by-law is in effect, and any repeal or modification thereof shall not
affect any rights or obligations then existing with respect to any state of facts then or theretofore existing or any action,
suit or proceeding theretofore or thereafter brought based in whole or in part upon any such state of facts.
The
indemnification provision of our amended and restated bylaws does not affect directors' responsibilities under any other
laws, such as the federal securities laws or state or federal environmental laws.
We
may purchase and maintain insurance on behalf of any person who is or was a director, officer or employee of ours, or is or was
serving at our request as a director, officer, employee or agent of another company, partnership, joint venture, trust or other
enterprise against liability asserted against him and incurred by him in any such capacity, or arising out of his status as such,
whether or not we would have the power to indemnify him against liability under the provisions of this section. We currently maintain
such insurance.
The
right of any person to be indemnified is subject to our right, in lieu of such indemnity, to settle any such claim, action, suit
or proceeding at our expense of by the payment of the amount of such settlement and the costs and expenses incurred in connection
therewith.
Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling
our company pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the Securities and
Exchange Commission, such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.
In
the event that a claim for indemnification against such liabilities (other than the payment of expenses incurred or paid by a
director, officer or controlling person in a successful defense of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities being registered herewith, we will, unless in the opinion of our
counsel the matter has been settled by controlling precedent, submit to the court of appropriate jurisdiction the question whether
such indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication
of such issue.
Item
15. Recent Sales of Unregistered Securities
Issuances
for Services Rendered
In
May 2018, the Company approved the issuance of 25,000 shares of common stock for services rendered, the shares were issued at
$0.15, the closing stock price on the date of grant, for total non-cash expense of $3,750. All shares were privately issued
with a restrictive legend, in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities
Act.
On
December 31, 2017, the Company converted $380,502 of accrued salary due to our Chief Executive Officer into 3,805,017 shares of
common stock. All shares were privately issued with a restrictive legend, in reliance on the exemption from registration provided
by Section 4(a)(2) of the Securities Act.
II-
3
On
December 31, 2017, the Company issued 25,000 shares of common stock to a third party for accounting services. The shares were
valued at $0.10 per shares for total non-cash expense of $2,500. All shares were privately issued with a restrictive legend, in
reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act.
Issuances
related to Term Loan
Pursuant to and as
additional consideration for the Term Loan under the Credit Agreement, on April 9, 2018 (the "Issuance Date") we issued
to GACP a Warrant (the "Warrant") to purchase 1,200,000 shares of common stock ("Warrant Shares") at an
exercise price of $0.25 per share, subject to adjustment as set forth in the Warrant. The Warrant is exercisable by GACP at any
time from the Issuance Date until the later of (i) the third anniversary of the Issuance Date and (ii) the date on which all obligations
under the Credit Agreement have been satisfied in full. The Warrant may be redeemed for $0.0001 per Warrant Share, at our sole
discretion, at any time after the six (6) month anniversary of the Issuance Date if the closing sales price of our common stock
equals or exceeds $5.00 per share on each of 20 trading days within any 30 trading day period ending on the third trading day
prior to the date on which we provide a notice of redemption. GACP has certain piggy-back registration rights as set forth in
the Warrant with respect to the Warrant Shares to be issued upon exercise of the Warrant (we are seeking waivers of such rights
in connection with this offering). After the six month anniversary of the Issuance Date, GACP can exercise the Warrant using a
"cashless exercise" feature to the extent that GACP exercises the Warrant for a number of Warrant Shares in excess
of the number Warrant Shares that have been registered for resale under the Securities Act in accordance with the terms of the
Warrant. The Warrants were privately issued with a restrictive legend, in reliance on the exemption from registration provided
by Section 4(a)(2) of the Securities Act.
Issuances
related to Share Exchange
Effective
May 9, 2018, the Company entered into a share exchange agreement with CrowdPay.US, Inc., a New York corporation ("CrowdPay"),
for which the Company will issue 87,500,000 shares of common stock for all of the authorized stock of CrowdPay. CrowdPay will
become a wholly owned subsidiary of OLB. All shares were privately issued with a restrictive legend, in reliance on the exemption
from registration provided by Section 4(a)(2) of the Securities Act.
Effective
May 9, 2018, the Company entered into a share exchange agreement with OMNISOFT, Inc., a Delaware corporation ("OMNISOFT"),
for which the Company will issue 55,000,000 shares of common stock for all of the authorized stock of OMNISOFT. OMNISOFT will
become a wholly owned subsidiary of OLB. All shares were privately issued with a restrictive legend, in reliance on the exemption
from registration provided by Section 4(a)(2) of the Securities Act.
Other
Issuances
On
December 31, 2015, 848,738 shares of common stock were issued for conversion of $135,798 of accrued officer compensation. All
shares were privately issued with a restrictive legend, in reliance on the exemption from registration provided by Section 4(a)(2)
of the Securities Act.
On
December 31, 2015, 1,330,125 shares of common stock were issued for conversion of $212,820 of principle and interest. No gain
or loss was recognized on the conversion. All shares were privately issued with a restrictive legend, in reliance on the exemption
from registration provided by Section 4(a)(2) of the Securities Act.
On
December 31, 2017, the Company converted $251,605 of notes payable and accrued interest into 2,516,050 shares of common stock.
All shares were privately issued with a restrictive legend, in reliance on the exemption from registration provided by Section
4(a)(2) of the Securities Act.
II-
4
Item
16. Exhibits and Financial Statement Schedules
Exhibit No.
Description
1.1
Form
    of Underwriting Agreement (**)
2.1
Memorandum of Sale, dated as of April 9, 2018, by and among eVance, Inc., eVance Capital, Inc., Securus365, Inc. and GACP (1)
3.1
Certificate of Incorporation,
    as amended (**)
3.2
Amended and Restated
    Bylaws of the Company (**)
4.1
Warrant, dated April 9, 2018, issued by the Company to GACP (1)
5.1
Opinion of Ellenoff
    Grossman & Schole LLP (**)
10.1
Loan and Security Agreement, dated as of April 9, 2018, by and among GACP, the lenders from time to time party thereto, the Company, as parent guarantor, and the Borrowers (1)
10.2
Amendment No. 1 to Loan and Security Agreement, dated as of July 30, 2018, by and among GACP Finance Co., LLC, as administrative agent and collateral agent, the lenders party thereto, Securus365, Inc., eVance, Inc., eVance Capital, Inc., OMNISOFT, Inc., and CrowdPay.us, Inc., as borrowers, and the Company, as parent guarantor (3)
10.3
Amendment No. 3 to Loan and Security Agreement, dated as of February 5, 2019, by and among GACP Finance Co., LLC, as administrative agent and collateral agent, the lenders party thereto, Securus365, Inc., eVance, Inc., eVance Capital, Inc., OMNISOFT, Inc., and CrowdPay.us, Inc., as borrowers, and the Company, as parent guarantor (4)
10.4
Agreement Regarding Additional Warrants, dated April 9, 2018, by and between the Company and GACP (1)
10.5
Share Exchange Agreement, dated May 9, 2018, by and between The OLB Group, Inc. and the shareholders of CrowdPay.US, Inc. (2)
10.6
Share Exchange Agreement, dated May 9, 2018, by and between The OLB Group, Inc. and the shareholders of OmniSoft, Inc. (2)
10.7
Subordinated Promissory Note, dated July 30, 2018, by and between the Company and John Herzog (3)
10.8
Amendment No. 1 to Subordinated Promissory Note, dated as of November 14, 2019, by and between the Company and John Herzog (4)
10.9
Amendment No. 2 to Subordinated Promissory Note, dated June 25, 2019, by and between the Company and John
Herzog (*)
10.10
Employment Agreement with Ronny Yakov (*)
10.11
Employment Agreement with Patrick Smith (*)
21.1
Subsidiaries
    of the Registrant (*)
23.1
Consent of Marcum LLP (*)
23.2
Consent of Liggett & Webb, P.A. (*)
23.3
Consent of Liggett & Webb, P.A. (*)
23.4
Consent of Ellenoff Grossman & Schole LLP (contained in Exhibit 5.1) (**)
24.1
Power of Attorney (included on the signature page of this Registration Statement)
101.ins
XBRL Instance Document(*)
101.xsd
XBRL Taxonomy Extension
    Schema Document(*)
101.cal
XBRL Taxonomy Calculation
    Linkbase Document(*)
101.def
XBRL Taxonomy Definition
    Linkbase Document(*)
101.lab
XBRL Taxonomy Label
    Linkbase Document(*)
101.pre
XBRL Taxonomy Presentation
    Linkbase Document(*)
*
Filed herewith.
**
To be filed by amendment.
(1)
Previously filed with Current Report on Form
    8-K filed April 13, 2018
(2)
Previously filed with Current Report on Form
    8-K filed May 15, 2018
(3)
Previously filed with Current Report on Form
    8-K filed August 3, 2018
(4)
Previously filed with Current Report on Form
    8-K filed March 12, 2019
Item
17. Undertakings
The
undersigned registrant hereby undertakes:
1.
For purposes of determining any liability under the Securities Act of 1933, as amended (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.
3.
To provide to the underwriters at the closing specified in the underwriting agreement certificates in such denominations and
registered in such names as required by the underwriters to permit prompt delivery to each purchaser.
Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons
of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant
of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered,
the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities
Act and will be governed by the final adjudication of such issue.
II-
5
SIGNATURES
Pursuant
to the requirements of the Securities Act, the registrant has duly caused this registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in New York, New York on June 26, 2019.
THE OLB GROUP, INC.
By:
/s/
Ronny Yakov
Name: Ronny Yakov
Title: Chief Executive Officer
POWER
OF ATTORNEY
KNOW
ALL MEN BY THESE PRESENTS, that we, the undersigned officers and directors of The OLB Group, Inc., a corporation formed under
the laws of the State of Delaware, do hereby constitute Ronny Yakov, as his or her true and lawful attorney-in-fact and agent,
with full power of substitution and re-substitution, for him and in his name, place, and stead, in any and all capacities, to
sign any and all amendments (including post-effective amendments, exhibits thereto and other documents in connection therewith)
to this Registration Statement and any subsequent registration statement filed by the registrant pursuant to Rule 462(b)
of the Securities Act of 1933, as amended, which relates to this Registration Statement, and to file the same, with all exhibits
thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact
and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection
therewith, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said
attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant
to the requirements of the Securities Act, this registration statement has been signed below by the following persons in the capacities
and on the dates indicated.
Signature
Title
Date
/s/
    Ronny Yakov
Chief Executive
    Officer and
Chairman of the Board of Directors
June 26, 2019
Ronny Yakov
(Principal Executive Officer)
/s/
    Rachel Boulds
Chief Financial Officer
June 26, 2019
Rachel Boulds
(Principal Financial Officer and Principal
    Accounting Officer)
II-6