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<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><B>As filed with the Securities and Exchange Commission on June
17, 2019</B></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.9pt 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.85pt 0pt 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.85pt 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.9pt 0pt 0; text-align: center"><B>Form S-1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.85pt 0pt 0; text-align: center"><B>REGISTRATION STATEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.9pt 0pt 0; text-align: center"><B>Under</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.9pt 0pt 0; text-align: center"><B>The Securities Act of 1933</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.9pt 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.85pt 0pt 0; text-align: center"><B>LMP Automotive Holdings, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.85pt 0pt 0; text-align: center">(Exact name of Registrant as
specified in its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.85pt 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 32%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 32%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>5500</B></FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 32%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>82-3829328</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(State or&nbsp;other&nbsp;jurisdiction of</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Primary Standard Industrial</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(IRS Employer</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">incorporation&nbsp;or organization)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Classification Code Number)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Identification No.)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.85pt 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: center"><B>601 N. State Road 7</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.85pt 0pt 0; text-align: center"><B>Plantation, FL 33317</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.85pt 0pt 0; text-align: center"><B>(954) 895-0352</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.85pt 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.9pt 0pt 0; text-align: center"><B>Samer Tawfik</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.7pt 0pt 0; text-align: center"><B>President, Chief Executive
Officer and Chairman</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.7pt 0pt 0; text-align: center"><B>601 N. State Road 7</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2.7pt 0pt 0; text-align: center"><B>Plantation, FL 33317</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.85pt 0pt 0; text-align: center"><B>(954) 895-0352</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.85pt 0pt 0; text-align: center">(Name, address, including zip
code, and telephone number, including area code, of agent for service)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.85pt 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.85pt 0pt 0; text-align: center"><B>Please send copies of all
communications to:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0; text-align: center"><B>David C. Rose, Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0; text-align: center"><B>M. Ali Panjwani, Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0; text-align: center"><B>Pryor Cashman LLP</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0; text-align: center"><B>7 Times Square</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0; text-align: center"><B>New York, New York 10036</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0; text-align: center"><B>(212) 421-4100</B></P></TD>
    <TD STYLE="width: 1%; padding-right: 0.7pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 49%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0; text-align: center"><B>Stephen E. Older, Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0; text-align: center"><B>Rakesh Gopalan, Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0; text-align: center"><B>McGuireWoods LLP</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0; text-align: center"><B>1251 Avenue of the Americas,
        20<SUP>th</SUP> Floor</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0; text-align: center"><B>New York, New York 10020</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0; text-align: center"><B>(212) 548-2100 </B></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.85pt 0pt 0; text-align: center"><B>Approximate date of commencement
of proposed sale to the public:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.95pt 0pt 0; text-align: center"><B>As soon as practicable after
the effective date of this Registration Statement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.95pt 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">If any of the securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act, check the following
box: &#9746;</P>

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 19.7pt 0pt 7pt; text-indent: 20pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large accelerated filer &#9744;</FONT></TD>
    <TD STYLE="width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated filer&nbsp;&nbsp;&#9744;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accelerated filer &#9744;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller reporting company &#9746;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging growth company&nbsp;&nbsp; &#9746;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 19.7pt 0pt 7pt; text-indent: 20pt"><B>&nbsp;</B></P>

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

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.7pt 0pt 0; text-align: center"><B>CALCULATION OF REGISTRATION
FEE</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1.5pt solid">Title of Securities to be Registered</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">Amount<BR>
to Be<BR>
Registered(1)</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">Proposed Maximum Offering Price per Share</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">Proposed Maximum Aggregate Offering<BR>
 Price(1)</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">Amount of Registration Fee</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; font: 10pt Times New Roman, Times, Serif">Common Stock, par value $0.00001 per share (2)</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">1,466,250</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">6.00</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">8,797,500.00</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">1,066.26</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Underwriter Warrants</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt">Common Stock underlying Underwriter Warrants (3)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1.5pt solid">63,750</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-bottom: Black 1.5pt solid">$</TD><TD STYLE="font-size: 10pt; text-align: right; border-bottom: Black 1.5pt solid">7.50</TD><TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-bottom: Black 1.5pt solid">$</TD><TD STYLE="font-size: 10pt; text-align: right; border-bottom: Black 1.5pt solid">478,125.00</TD><TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-bottom: Black 1.5pt solid">$</TD><TD STYLE="font-size: 10pt; text-align: right; border-bottom: Black 1.5pt solid">57.95</TD><TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt">Total</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">1,530,000</TD><TD STYLE="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">6.63</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">9,275,625</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-size: 10pt; text-align: right">1,124.21</TD><TD STYLE="padding-bottom: 4pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify">Estimated
solely for the purpose of determining the amount of registration fee in accordance with Rule 457(a) under the Securities Act of
1933.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 7pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
accordance with Rule 416(a), the Registrant is also registering an indeterminate number of additional shares of common stock that
shall be issuable pursuant to Rule 416 to prevent dilution resulting from share splits, share dividends or similar transactions.
Includes up to 191,250 shares of common stock, subject to the underwriter&rsquo;s over-allotment option.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 7pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have agreed to issue to our underwriter warrants to purchase the number of shares of common stock (the &ldquo;Underwriter Warrants&rdquo;)
in the aggregate equal to five percent (5%) of the shares of our common stock to be issued and sold in this offering (including
shares issuable upon exercise of the over-allotment option described herein). The Underwriter Warrants are exercisable for a price
per share equal to 125% of the public offering price.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 7pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>The Registrant hereby amends this Registration
Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment
which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933, as amended, or until the Registration Statement shall become effective on such date as the Commission
acting pursuant to said Section 8(a) may determine.</B></P>

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

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

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


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="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: bottom">
    <TD STYLE="width: 37%; padding-bottom: 0"><FONT STYLE="color: Red">PRELIMINARY PROSPECTUS</FONT></TD>
    <TD STYLE="white-space: nowrap; width: 1%; padding-bottom: 0"><FONT STYLE="color: Red">&nbsp;</FONT></TD>
    <TD STYLE="width: 31%; text-align: center; padding-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Red"><B>SUBJECT
    TO COMPLETION</B></FONT></TD>
    <TD STYLE="white-space: nowrap; width: 1%; padding-bottom: 0"><FONT STYLE="color: Red">&nbsp;</FONT></TD>
    <TD STYLE="width: 30%; text-align: center; padding-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Red"><B>DATED&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2019</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 14pt"><B>1,275,000&nbsp;Shares</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 14pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 14pt"><B>Common
Stock</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0"><B>LMP Automotive Holdings,
Inc.</B></P>

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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This is the initial public offering of
our common stock. We are offering 1,275,000 shares, par value $0.00001 per share, of our common stock. We currently
estimate that the initial public offering price will be between $5.00 and $6.00 share of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Currently, no public market exists for
our common stock. We have applied to list our common stock on the Nasdaq Capital Market, or Nasdaq, under the symbol &ldquo;LMPX.&rdquo;
There is no guarantee or assurance that our common stock will be approved for listing on Nasdaq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are an &ldquo;emerging growth company&rdquo;,
as that term is used in the Jumpstart Our Business Startups Act of 2012, and as such, have elected to comply with certain reduced
public company reporting requirements for this prospectus and future filings. See &ldquo;<I>Prospectus Summary&mdash;JOBS Act</I>&rdquo;
and &ldquo;<I>Risk Factors&mdash;Risks Related to this Offering and Ownership of Our Common Stock</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Investing in our common stock is highly
speculative and involves a significant degree of risk. See &ldquo;<I>Risk Factors</I>&rdquo; beginning on page 7 of this prospectus
for a discussion of information that should be considered before making a decision to purchase our common stock.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="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-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">Per Share</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">Offering without Over-Allotment Option</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">Offering with Over-Allotment Option</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; font: 10pt Times New Roman, Times, Serif">Public offering price</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Underwriter&rsquo;s discount and commissions(1)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Proceeds to us, before expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(1) Does not include additional compensation
payable to ThinkEquity, a division of Fordham Financial Management, Inc., or the underwriter. We have agreed to reimburse the underwriter
for certain expenses incurred relating to this offering. In addition, we will issue to the underwriter a warrant to purchase the
number of shares of our common stock equal to five percent (5%) of the number of shares issued at the initial closing of this offering.
The registration statement of which this prospectus forms a part also registers the issuance of the shares of common stock issuable
upon exercise of the underwriter&rsquo;s warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Samer Tawfik, our founder, Chairman, President
and Chief Executive Officer, has indicated an interest in purchasing up to $1,000,000 of shares of common stock in this offering,
at the offering price to the public and on the same terms and conditions as other investors. However, because indications of interest
are not binding agreements or commitments to purchase, the underwriter could determine to sell or not sell shares to Mr. Tawfik,
and Mr. Tawfik could determine to purchase or not purchase shares in this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This offering is being underwritten on
a firm commitment basis. We have granted the underwriter an option for a period of 45 days from the date of this prospectus to
purchase up to an additional 191,250 shares of our common stock at the public offering price less the underwriting discount and
commissions, or the over-allotment option.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The delivery of the shares of common stock
is expected to be made on or about&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ThinkEquity</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: red"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>


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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_003.jpg" ALT=""></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_004.jpg" ALT=""></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_005.jpg" ALT=""></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><IMG SRC="image_006.jpg" ALT=""></P>

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

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 93%; text-align: right"><B>&nbsp;</B></TD>
    <TD STYLE="width: 7%; border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Page</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_001">Prospectus Summary</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">1</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#b_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Summary Consolidated Financial
Data</FONT></A></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">6</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_002">Risk Factors</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">7</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_003">Cautionary Statement Regarding Forward-Looking Statements</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">28</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_004">Industry and Market Data</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">29</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_005">Use of Proceeds</A></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">30</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_006">Dividend Policy</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">30</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_007">Capitalization</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">31</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_008">Dilution</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">32</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_009">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">34</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_010">Business</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">43</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_011">Management</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">53</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_012">Executive Compensation</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">58</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_013">Certain Relationships and Related Party Transactions</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">65</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_014">Principal Stockholders</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">66</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_015">Description of Capital Stock</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">67</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_016">Shares Eligible for Future Sale</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">70</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_017">Certain U.S. Federal Income and Estate Tax Considerations to Non-U.S. Holders</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">71</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_018">Underwriting</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">74</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_019">Legal Matters</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">81</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_020">Experts</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">81</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_021">Where You Can Find More Information</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">81</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 6.55pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_022">Index to Consolidated Financial Statements</A></FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">F-1</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We own or have rights to trademarks or
trade names that we use in connection with the operation of our business, including our corporate names, logos and website names.
In addition, we own or have the rights to copyrights, trade secrets and other proprietary rights that protect the services that
we offer. This prospectus may also contain trademarks, service marks and trade names of other companies, which are the property
of their respective owners. Our use or display of third parties&rsquo; trademarks, service marks, trade names or products in this
prospectus is not intended to, and should not be read to, imply a relationship with or endorsement or sponsorship of us. Solely
for convenience, some of the copyrights, trade names and trademarks referred to in this prospectus are listed without their <SUP>&copy;</SUP>,
<SUP>&reg;</SUP> and &trade; symbols, but we will assert, to the fullest extent under applicable law, our rights to our copyrights,
trade names and trademarks. All other trademarks, service marks and trade names are the property of their respective owners.</P>

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


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<DIV STYLE="padding: 6pt; border: Black 1.5pt solid">

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>In this prospectus,
&ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;the Company&rdquo; and similar references refer to LMP Automotive
Holdings, Inc. and, unless otherwise stated, all of its subsidiaries. </I></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-align: center"><B>Our Mission</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our goal is to provide an e-commerce and
facilities-based retail platform for consumers who desire to buy, sell, rent, subscribe for or finance pre-owned and new automobiles.
We seek to provide our customers with a simple, convenient, flexible, transparent and pleasant retail experience. In addition to
our current operations launched in 2017, we intend to seek strategic acquisitions of pre-owned and new automobile dealerships and
car rental companies in order to facilitate efficient growth.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">LMP, through its wholly owned subsidiaries,
currently offers our customers the opportunity to buy, sell, rent and subscribe for, and obtain financing for automobiles both
online and in person.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We describe our business model as &ldquo;Buy,
Rent or Subscribe, Sell and Repeat.&rdquo; This means that we &ldquo;Buy&rdquo; pre-owned automobiles primarily through auctions
or directly from other automobile dealers, and new automobiles from manufacturers and manufacturer distributors at fleet rates.
We &ldquo;Rent or Subscribe&rdquo; by either renting automobiles to our customers or allowing them to enter into our subscription
plan for automobiles in which customers have use of an automobile for a minimum of thirty (30) days. We &ldquo;Sell&rdquo; our
inventory, including automobiles previously included in our rental and subscription programs, to customers, and then we hope to
&ldquo;Repeat&rdquo; the whole process.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: Red"><IMG SRC="image_007.jpg" ALT=""></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe we offer a stress-free and user-friendly
experience, either directly or through arrangements with third parties, that enables consumers to efficiently:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="width: 45%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Browse and purchase a vehicle</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="width: 46%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subscribe for a vehicle</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rent a vehicle</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sell or trade-in vehicle</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Obtain pre-approval for financing (through third parties)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Buy extended warranties (through third parties)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule deliveries and pick-ups (typically through third parties)</FONT></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-indent: 0.5in">&nbsp;</P></DIV>


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

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

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<DIV STYLE="padding: 6pt; border: Black 1.5pt solid">

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our platform is designed to streamline
the automobile transaction value chain by digitizing a substantial part of the sales and transaction process. We believe this will
enhance the consumer experience by creating operational efficiencies that are designed to improve our financial and business performance.
We also intend to centralize sales, title, tag, finance, insurance and logistics operations, in order to create additional financial
and operational benefits, as well as a positive consumer experience. We believe that bringing more of the vehicle shopping and
transaction experience online will provide consumers with a broader range of purchase, rental and subscription options while eliminating
time spent in negotiation and haggling.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We commenced our operations in the first
quarter of 2017. Currently, we only offer sales of pre-owned automobiles, and rentals and subscriptions for both pre-owned and
new automobiles. Our fleet consists of 215 automobiles in total. Of those, 118 are offered for subscription, eight are offered
for rental, 40 are available to drivers for rideshare applications, including Uber and Lyft, and 49 are held for sale. Our current
facility is approximately 8,771 square feet on 1.25 acres of land. Our facility contains storage for ten vehicles on the interior
and up to 90 on the exterior. We expect that we can facilitate over 1,000 subscribers in our current facility.</P>

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


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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
limited operating history makes it difficult for us to evaluate our future business prospects and make decisions based on those
estimates of our future performance.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
depend on key personnel to operate our business, and if we are unable to retain, attract and integrate qualified personnel, our
ability to develop and successfully grow our business could be harmed.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to acquire other companies and/or technologies, which could divert our management&rsquo;s attention, result in additional
dilution to our stockholders and otherwise disrupt our operations and harm our operating results.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
expect that we will require additional debt and equity capital to pursue our business objectives and respond to business opportunities,
challenges and/or unforeseen circumstances. If such capital is not available to us, or is not available on favorable terms, our
business, operating results and financial condition may be harmed.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
business is subject to risks related to the larger automotive ecosystem, including consumer demand, global supply chain challenges
and other macroeconomic issues.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Implications of Being an &ldquo;Emerging
Growth Company&rdquo;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a public reporting company with less
than $1.07 billion in revenue during our last fiscal year, we qualify as an &ldquo;emerging growth company&rdquo; under the Jumpstart
Our Business Startups (JOBS) Act. An emerging growth company may take advantage of certain reduced reporting requirements and is
relieved of certain other significant requirements that are otherwise generally applicable to public companies. In particular,
as an emerging growth company we:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">are
not required to obtain an attestation and report from our auditors on our management&rsquo;s assessment of our internal control
over financial reporting pursuant to the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">are
not required to provide a detailed narrative disclosure discussing our compensation principles, objectives and elements and analyzing
how those elements fit with our principles and objectives (commonly referred to as &ldquo;compensation discussion and analysis&rdquo;);</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">are
not required to obtain a non-binding advisory vote from our stockholders on executive compensation or golden parachute arrangements
(commonly referred to as the &ldquo;say-on-pay,&rdquo; &ldquo;say-on-frequency&rdquo; and &ldquo;say-on-golden-parachute&rdquo;
votes);</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

</DIV>

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

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<DIV STYLE="padding: 6pt; border: Black 1.5pt solid">

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">are
exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">may
present only two years of audited financial statements and only two years of related Management&rsquo;s Discussion &amp; Analysis
of Financial Condition and Results of Operations, or MD&amp;A; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">are
eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards under &sect;107 of
the JOBS Act.</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">We intend to take advantage of all of these
reduced reporting requirements and exemptions, including the longer phase-in periods for the adoption of new or revised financial
accounting standards under &sect;107 of the JOBS Act. Our election to use the phase-in periods may make it difficult to compare
our financial statements to those of non-emerging growth companies and other emerging growth companies that have opted out of the
phase-in periods under &sect;107 of the JOBS Act.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain of these reduced reporting requirements
and exemptions are also available to us due to the fact that we also qualify as a &ldquo;smaller reporting company&rdquo; under
the SEC&rsquo;s rules. For instance, smaller reporting companies are not required to obtain an auditor attestation and report regarding
management&rsquo;s assessment of internal control over financial reporting; are not required to provide a compensation discussion
and analysis; are not required to provide a pay-for-performance graph or CEO pay ratio disclosure; and may present only two years
of audited financial statements and related MD&amp;A disclosure.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the JOBS Act, we may take advantage
of the above-described reduced reporting requirements and exemptions for up to five years after our initial sale of common equity
pursuant to a registration statement declared effective under the Securities Act of 1933, as amended, or the Securities Act, or
such earlier time that we no longer meet the definition of an emerging growth company. In this regard, the JOBS Act provides that
we would cease to be an &ldquo;emerging growth company&rdquo; if we have more than $1.07 billion in annual revenues, have more
than $700 million in market value of our common stock held by non-affiliates, or issue more than $1 billion in principal amount
of non-convertible debt over a three-year period. Furthermore, under current Commission rules, we will continue to qualify as a
&ldquo;smaller reporting company&rdquo; for so long as we have (i) a public float (i.e., the market value of common equity held
by non-affiliates) of less than $250 million as of the last business day of our most recently completed second fiscal quarter or
(ii) (A) if we have no public float or a public float of less than $700 million and (B) annual revenues of less than $100 million
during our most recently completed fiscal year.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company was incorporated under the
laws of Delaware in December 2017.&nbsp;Samer Tawfik, our founder, Chairman, President and Chief Executive Officer, contributed
one hundred percent (100%) of the equity interests in each of LMP Motors.com, LLC and LMP Finance, LLC to the Company in December
2017, and in January 2018, 601 NSR, LLC and LMP Automotive Holdings, LLC made the Company their sole member. We refer to these
transactions as the reorganization. As a result of the reorganization, the Company now owns one hundred percent (100%) of the equity
in each of these four entities. LMP Motors.com, LLC currently operates our automobile sales business. LMP Finance, LLC currently
operates our rental and subscription business. 601 NSR, LLC and LMP Automotive Holdings, LLC were formed to enter into future potential
strategic acquisitions, but are currently inactive. As a result of the reorganization, Mr. Tawfik was issued 15,750,000 shares
of common stock and ST RXR Investments, LLC, or ST RXR, a company wholly owned and controlled by Mr. Tawfik, was issued 5,250,000
shares of common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2018, we completed an offering
exempt from the registration requirements of the Securities Act, or a private placement offering,&nbsp;pursuant to which we sold
2,858,030 shares of our common stock, at a purchase price of $3.33 per share, for an aggregate purchase price of $9,517,239.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From June 2018 through October 2018, we
sold an aggregate of 787,264 shares of our common stock, in a private placement offering, at a purchase price of $4.75 per share,
for an aggregate purchase price of $3,739,505.</P>

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

</DIV>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the second and third quarters of
2018, we issued convertible promissory notes in an aggregate principal amount of $1,448,965, or the 6-month notes, pursuant to
a private placement offering. The 6-month notes bear interest at 4%&nbsp;per annum and mature six (6) months from the date of issuance,&nbsp;at
which time the principal and any accrued but unpaid interest shall be due and payable. The holders of the 6-month notes may, at
any time prior to the maturity date, convert the 6-month notes (and accrued interest) into shares of our common stock by dividing
(a) the outstanding principal balance and unpaid accrued interest under the applicable 6-month note on the date of conversion by
(b) $4.75 (subject to adjustment as provided in the 6-month notes). Based on the terms of the conversion rights, we did not recognize
a beneficial conversion discount.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the fourth quarter of 2018, we repaid
one of the 6-month notes in the principal amount of approximately $285,015, leaving a balance on the remaining 6-month notes of
approximately $1,164,000, plus accrued interest, at December 31, 2018.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the first quarter of 2019, we repaid
two of the 6-month notes in the aggregate principal amount of $365,000, leaving a balance on the remaining 6-month notes of $798,950,
plus accrued interest, at March 31, 2019.&nbsp;&nbsp;In April 2019, we repaid seven of the 6-month notes in the principal amount
of $497,000.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subsequent to March 31, 2019, we extended
certain of the 6-month notes that became due.&nbsp;&nbsp;Two of the 6-month notes in the amount of approximately $121,000 were
extended to June 15, 2019, two of the 6-month notes in the amount of approximately $45,000 were extended to August 14, 2019, and
another two in the amount of approximately $135,950 were extended to September 17, 2019.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The total outstanding principal balance
on the remaining 6-month notes as of May 31, 2019 was $301,950.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Company was incorporated in the State
of Delaware in December 2017. Our principal executive office is located at 601 N. State Road 7, Plantation FL, 33317. Our telephone
number is (954) 895-0352. Our main Internet address is www.lmpmotors.com. We do not incorporate the information on or accessible
through our website into this prospectus, and you should not consider any information on, or that can be accessed through, our
website as a part of this prospectus.</P>

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

</DIV>


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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25%; padding-right: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares being offered:</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 74%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,275,000 shares of common stock. (1)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 9pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Number of shares of common stock outstanding after this offering: (2)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,281,694 shares of common stock (7,472,944 shares of common stock, if the underwriter exercises the over-allotment option in full).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 9pt; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gross proceeds to us, net of underwriting discount but before expenses:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$6,316,500 ($7,284,225, assuming that the underwriter exercises the over-allotment option in full), based on an assumed public offering price of $5.50 per share, which is the midpoint of the estimated offering range set forth on the cover page of this prospectus.</FONT></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25%; padding-right: 9pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 74%; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use of Proceeds:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We plan to use the net proceeds of this offering primarily for our strategic acquisitions, to build our vehicle inventory, for working capital and other general corporate purposes. For more information on the anticipated use of proceeds of this offering, see &ldquo;<I>Use of Proceeds</I>&rdquo; on page 30 of this prospectus.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25%; padding-right: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lock-up</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 74%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We, all of our directors and officers and substantially all of our shareholders have agreed with the underwriter, subject to certain exceptions, not to sell, transfer or dispose of, directly or indirectly, any of our common stock or securities convertible into or exercisable or exchangeable for our common stock for a period of 180 days after the date of the final closing of this offering. See &ldquo;<I>Shares Eligible for Future Sale</I>&rdquo; and &ldquo;<I>Underwriting</I>&rdquo; for more information. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 9pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Proposed NASDAQ Symbol:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">LMPX</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 9pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Underwriter&rsquo;s Warrants:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have agreed to
    issue to the underwriter a warrant to purchase a number of shares of common stock equal to 5% of the total number of shares
    issued at the initial closing of this offering. The underwriter&rsquo;s warrant 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
    underwriter&rsquo;s warrant     is     exercisable at     any time and from time to time, in whole or in part, during the
    four-and-a-half-year period     commencing six     months after the     effective date of the registration statement of which
    this prospectus forms a     part.&nbsp;&nbsp;The     registration statement of     which this prospectus forms a part also
    registers the issuance of the     shares of common stock     issuable upon exercise of the     underwriter&rsquo;s warrant.
    See     &ldquo;<I>Underwriting</I>&rdquo; for more     information.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 9pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk factors:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investing in our common stock involves a high degree of risk. As an investor, you should be able to bear a complete loss of your investment. You should carefully consider the information set forth in the &ldquo;<I>Risk Factors</I>&rdquo; section beginning on page.</FONT></TD></TR>
</TABLE>


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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(1)</TD><TD STYLE="text-align: justify">In addition, the underwriter has been granted an over-allotment option pursuant to which it may
purchase an additional 191,250 shares of common stock.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">The number of shares of common stock outstanding immediately
following this offering is based on 24,506,693 shares outstanding as of May 31, 2019 and excludes:</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,500,000
shares of common stock reserved for issuance under our 2018 Equity Incentive Plan;</FONT></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">331,750
shares of common stock issuable upon the exercise of options (of which 236,853 have vested) outstanding as of March 31, 2019;</FONT></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Up to 63,750 shares of common stock issuable
upon exercise of the underwriter&rsquo;s warrants issued in connection with this offering; and</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Approximately 63,570 shares of common
stock that may be issued by us upon conversion of the 6-month note (assuming no interest is paid on the 6-month notes).</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">In addition, unless we specifically state
otherwise, the information in this prospectus assumes:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">an initial public offering price of $5.50
per share, the midpoint of the estimated offering range set forth on the cover page of this prospectus; and</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">with respect to the post-offering
                                                                     share counts, the cancellation of 18,500,000 shares held by Samer Tawfik, our founder, Chairman and Chief Executive
                                                                     Officer.</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Samer Tawfik, our founder, Chairman, President
and Chief Executive Officer, has indicated an interest in purchasing up to $1,000,000 of shares of common stock in this offering, at the
offering price to the public and on the same terms and conditions as other investors. However, because indications of interest
are not binding agreements or commitments to purchase, the underwriter could determine to sell or not sell shares to Mr. Tawfik,
and Mr. Tawfik could determine to purchase or not purchase shares in this offering.</P>

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

</DIV>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="b_001"></A>SUMMARY CONSOLIDATED FINANCIAL DATA</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The following tables present the summary
historical consolidated financial and other data for LMP Automotive Holdings, Inc. The summary consolidated statement of operations
data for the years ended December 31, 2018 and 2017 and the summary balance sheet data at December 31, 2018 and 2017 were derived
from the audited consolidated financial statements of LMP Automotive Holdings, Inc. included elsewhere in this prospectus. The
summary consolidated statement of operations data for the three months ended March 31, 2019 and 2018 and the summary balance sheet
data at March&nbsp;31, 2019 were derived from the unaudited consolidated interim financial statements of LMP Automotive Holdings,
Inc. included elsewhere in this prospectus. The unaudited consolidated interim financial statements have been prepared on the same
basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only
of normal recurring adjustments, that we consider necessary for a fair statement of the financial information set forth in those
statements. The results of operations for the periods presented below are not necessarily indicative of the results to be expected
for any future period and the results for any interim period are not necessarily indicative of the results that may be expected
for a full year. The following summary consolidated financial and other data should be read in conjunction with the section titled
&ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations&rdquo; and the consolidated
financial statements and related notes of LMP Automotive Holdings, Inc. included elsewhere in this prospectus.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Three Months Ended </B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>March 31,</B></P></TD><TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Year Ended</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>December 31,</B></P></TD><TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">(unaudited)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><U>Statement of Operations Data</U>:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: -12pt; padding-left: 12pt">Total Revenues</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">4,937,747</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">2,384,595</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">16,610,786</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">3,759,031</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Gross loss</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(110,826</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(174,099</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,956,989</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(235,048</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Total cost of revenues</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,048,573</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,558,694</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">18,567,775</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3,994,079</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Loss from operations</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,396,202</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(761,571</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(6,458,916</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,409,306</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Other expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(4,409</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(4,919</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">31,377</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">14,356</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: -12pt; padding-left: 12pt">Net loss</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,400,611</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(766,490</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(6,490,293</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,423,662</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
</TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 0">March&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">(unaudited)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><U>Balance Sheet Data</U>:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; font: 10pt Times New Roman, Times, Serif">Cash</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">472,199</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">424,152</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">217,360</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Accounts receivable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">117,253</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">286,982</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">85,851</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Automobile inventory, net</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">8,511,159</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">11,558,160</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3,696,802</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Other current assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">220,075</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">380,712</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">71,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Total current assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">9,320,686</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">12,650,006</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,071,013</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Property, equipment and leasehold improvements, net</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">528,088</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">539,475</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">158,659</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Intangible assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">45,994</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">39,997</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Deferred offering costs</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,022,855</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">987,094</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Right-of-use asset</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,347,701</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Total assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">12,265,324</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">14,216,571</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,256,672</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Total current liabilities</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3,247,009</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,462,474</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,724,465</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Total liabilities</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,295,805</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,462,474</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,724,465</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Total shareholders&rsquo; equity</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">7,969,519</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">9,754,097</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,532,207</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Total liabilities and shareholders&rsquo; equity</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">12,265,324</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">14,216,571</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,256,672</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

</DIV>


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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Our limited
operating history makes it difficult for us to evaluate our future business prospects and make decisions based on those estimates
of our future performance.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We are a recently
formed holding company with a limited operating history. The Company was incorporated under the laws of Delaware in December 2017.
Samer Tawfik, our founder, Chairman, President and Chief Executive Officer, contributed one hundred percent (100%) of the equity
interests in each of LMP Motors.com, LLC and LMP Finance, LLC into the Company in December 2017, and in January 2018, 601 NSR,
LLC and LMP Automotive Holdings, LLC made the Company their sole member. Currently, LMP Motors.com, LLC, which operates our automobile
sales business, and LMP Finance, LLC, which operates our rental and subscription business, are the only subsidiaries that generate
revenues. 601 NSR, LLC and LMP Automotive Holdings, LLC were formed to enter into future potential strategic acquisitions, but
are currently inactive. Because of the uncertainties related to our limited historical operations, including the limited historical
operations of LMP Motors.com, LLC, we may be hindered in our ability to anticipate and timely adapt to increases or decreases in
revenues or expenses, which may materially and adversely affect our business, financial condition, results of operations and the
value of an investment in our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>We have a history
of net losses.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We expect to continue
to incur losses at least in the near term as we invest in and strive to grow our business. We may incur significant losses in the
future for a number of reasons, including a decrease in demand for automobiles and our related products and services, losses associated
with our strategic acquisitions, increased competition, weakness in the automotive industry generally, as well as other risks described
in this prospectus, and we may encounter unforeseen expenses, difficulties, complications and delays in generating revenue or profitability.
If our revenues decrease, we may not be able to reduce costs in a timely manner because many of our costs are fixed at least, in
the short term. In addition, if we reduce variable costs to respond to losses, this may limit our ability to acquire customers
and grow our revenues. Accordingly, we may not achieve or maintain profitability and we may continue to incur significant losses
in the future, which may materially and adversely affect our business, financial condition, results of operations and the value
of an investment in our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>We depend on
key personnel to operate our business, and if we are unable to retain, attract and integrate qualified personnel, our ability to
develop and successfully grow our business could be harmed.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We believe our
initial success has depended, and continues to depend, on the efforts and talents of our executives and employees. Our future success
depends on our continuing ability to attract, develop, motivate and retain highly qualified and skilled employees. Qualified individuals
are in high demand, and we may incur significant costs to attract and retain them. In addition, the loss of any of our key employees
or senior management, including our founder, Chairman, President and Chief Executive Officer, Samer Tawfik, could have a materially
adverse effect on our ability to execute our business plan and strategy, and we may not be able to find adequate replacements on
a timely basis, or at all. Our executive officers and other employees are at-will employees, which means they may terminate their
employment relationship with us at any time, and their knowledge of our business and industry would be extremely difficult to replace.
We may not be able to retain the services of any members of our senior management or other key employees. If we do not succeed
in attracting well-qualified employees or retaining and motivating existing employees, our business could be materially and adversely
affected.&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>We intend to
acquire other companies and/or technologies, which could divert our management&rsquo;s attention, result in additional dilution
to our stockholders and otherwise disrupt our operations and harm our operating results.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our success will
depend, in part, on our ability to grow our business in response to the demands of consumers and other constituents within the
automotive industry, as well as our ability to respond to competitive pressures. Part of our strategy is to do so through the strategic
acquisition of complementary businesses, such as independent and franchised dealerships and car rental companies clustered in key
metropolitan areas, and technologies, in addition to our own internal development efforts. The identification of suitable acquisition
candidates can be difficult, time-consuming and costly, and we may not be able to successfully complete identified acquisitions.
The risks we face in connection with acquisitions include:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">diversion
of management time and focus from operating our business to addressing acquisition integration challenges;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">coordination
of technology, research and development, and sales and marketing functions;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">transition
of the acquired company&rsquo;s users to our website and mobile applications;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">retention
of employees from the acquired company;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">cultural
challenges associated with integrating employees from the acquired company into our organization;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">integration
of the acquired company&rsquo;s accounting, management information, human resources and other administrative systems;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
need to implement or improve controls, policies and procedures at a business that, prior to the acquisition, may have lacked effective
controls, policies and procedures;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">potential
write-offs of intangibles or other assets acquired in such transactions that may have an adverse effect on our operating results;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">liability
for activities of the acquired company before the acquisition, including patent and trademark infringement claims, violations
of laws, commercial disputes, tax liabilities, and other known and unknown liabilities; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">litigation
or other claims in connection with the acquired company, including claims from terminated employees, consumers, former stockholders,
or other third parties.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our failure to
address these risks or other problems encountered in connection with our planned acquisitions and investments could cause us to
fail to realize the anticipated benefits of these acquisitions or investments, cause us to incur unanticipated liabilities and
otherwise harm our business. Future acquisitions could also result in dilutive issuances of our equity securities, the incurrence
of debt, contingent liabilities, amortization expenses, or the write-off of goodwill, any of which could harm our financial condition.
Also, the anticipated benefits of any acquisitions may not materialize. Any of these risks, if realized, could materially and adversely
affect our business and results of operations.</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"><B>We expect that
we will require additional capital to pursue our business objectives and respond to business opportunities, challenges and/or unforeseen
circumstances. If such capital is not available to us, or is not available on favorable terms, our business, operating results
and financial condition may be harmed.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">While we intend
to use the proceeds from this offering for our strategic acquisitions, to build our vehicle inventory, for working capital and
other general corporate purposes, we expect that we will require additional capital to pursue our business objectives and respond
to business opportunities, challenges and/or unforeseen circumstances, including to increase our marketing expenditures in order
to improve our brand awareness, build and maintain our inventory of quality pre-owned vehicles, develop new products or services
or further improve existing services, enhance our operating infrastructure and acquire complementary businesses and technologies.
Accordingly, we may need to engage in equity, debt or other types of financings to secure additional funds. Additional funds may
not be available when we need them on terms that are acceptable to us, or at all. In addition, any debt financing that we secure
in the future could involve restrictive covenants which may make it more difficult for us to obtain additional capital and to pursue
business opportunities.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Volatility in
the credit markets may also have an adverse effect on our ability to obtain debt financing. If we raise additional funds through
further issuances of equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any
new equity securities we issue could have rights, preferences and privileges superior to those of our common stock. If we are unable
to obtain adequate financing or financing on terms satisfactory to us when we require it, our ability to continue to pursue our
business objectives and to respond to business opportunities, challenges or unforeseen circumstances could be significantly limited,
and our business, operating results, financial condition and prospects could be adversely affected.</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"><B>Our business
is subject to risks related to the larger automotive ecosystem, including consumer demand, global supply chain challenges and other
macroeconomic issues.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Decreases in consumer
demand could adversely affect the market for vehicle purchases and, as a result, reduce the number of consumers using our platform.
Consumer purchases of vehicles generally decline during recessionary periods and other periods in which disposable income is adversely
affected. Purchases of vehicles are typically discretionary for consumers and have been, and may continue to be, affected by negative
trends in the economy and other factors, including rising interest rates, the cost of energy and gasoline, the availability and
cost of credit, reductions in business and consumer confidence, stock market volatility, increased regulation and increased unemployment.
Increased environmental regulation has made, and may in the future make, used cars more expensive and less desirable for consumers.
In addition, our business may be negatively affected by challenges to the larger automotive ecosystem, including urbanization,
global supply chain challenges and other macroeconomic issues. For example, car rideshare services, such as Uber, Juno, Lyft, and
Via, car sharing, and other services that allow people to supplement transit trips and share vehicles are becoming increasingly
popular as a means of transportation and may decrease consumer demand for the pre-owned vehicles we sell, particularly as urbanization
increases. Additionally, new technologies such as autonomous or self-driving vehicles have the potential to change the dynamics
of car ownership in the future. Any of the foregoing could have a material adverse effect on our business, results of operations
and financial condition.</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"><B>We participate
in a highly competitive industry, and pressure from existing and new companies may adversely affect our business and operating
results.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We face significant
competition from existing and new companies that provide, among other things, automobile listings, information, lead generation,
and car buying, rental and subscription services.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our current and
future competitors may include:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">traditional
car dealerships that could increase investment in technology and infrastructure to compete directly with our online platform;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Internet
and online automotive sites that could change their models to directly compete with us, such as Google, Amazon, AutoTrader.com,
eBay Motors, Edmunds.com, KBB.com, Autobytel.com, TrueCar.com and Cars.com;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">providers
of offline, membership-based car buying services such as the Costco Auto Program;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">used
car dealers or marketplaces with e-commerce business or online platforms such as Carvana, Vroom and Shift;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">national
rental car companies such as Sixt Rent A Car, Hertz, Avis, Budget and Enterprise, as well as local and regional car rental services;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">vehicle
subscription services, and other pay-as-you-go services, such as ZipCar and Flexdrive, and similar services offered by large automobile
manufacturers such as Volvo and BMW;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">other
automobile manufacturers that could change their sales models through technology and infrastructure investment; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Peer-to-peer
ride-sharing companies.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We also expect
that new competitors will continue to enter the online and traditional automotive retail, rental and subscription market with competing
brands, business models, products and services, which could have an adverse effect on our revenue, business and financial results.
Some of these companies have significantly greater resources than we do and may be able to provide consumers access to a greater
inventory of vehicles at lower prices while delivering a competitive online experience.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Our current
and potential competitors may also develop and market new technologies that may adversely affect our business and operating results.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our current and
potential competitors may also develop and market new technologies that render our existing or future business model, products
and services less competitive, unmarketable or obsolete. For example, manufacturers are beginning to develop automated, driverless
vehicles that could eventually reduce the demand for, or replace, traditional vehicles, including the vehicles that we currently
sell. Additionally, car rideshare services, such as Uber, Juno, Lyft, and Via, car sharing, and other services that allow people
to supplement transit trips and share vehicles, are becoming increasingly popular as a means of transportation and may decrease
consumer demand for vehicle ownership. In addition, if our competitors develop business models, products or services with similar
or superior functionality to our solutions, it may adversely impact our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our competitors
may also impede our ability to reach consumers or commence operations in certain jurisdictions. For example, our competitors may
increase their search engine optimization efforts and outbid us for search terms on various search engines. Additionally, our competitors
could use their political influence and increase lobbying efforts resulting in new regulations or interpretations of existing regulations
that could prevent us from operating in certain jurisdictions.</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"><B>Our current
and potential competitors may have significantly greater resources than we do.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our current and
potential competitors may have significantly greater financial, technical, marketing and other resources than we have, and the
ability to devote greater resources to the development, promotion and support of their business. Additionally, they may have more
extensive automotive industry relationships, longer operating histories and greater name recognition than we have. As a result,
these competitors may be able to respond to changes in the automotive industry more quickly with new technologies and undertake
more extensive marketing or promotional campaigns. If we are unable to compete with these companies, the demand for our automobiles,
products and services could substantially decline.</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">In addition, if
one or more of our competitors were to merge or partner with another one of our competitors, the change in the competitive landscape
could adversely affect our ability to compete effectively. Our competitors may also establish or strengthen cooperative relationships
with our current or future providers and suppliers, or other parties with whom we have relationships, thereby limiting our ability
to develop, improve and grow our business. We may not be able to compete successfully against current or future competitors, and
competitive pressures may harm our revenue, business and financial results.</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"><B>Our business
is dependent upon access to a desirable vehicle inventory. Obstacles to acquiring attractive inventory, whether because of supply,
competition, or other factors, may have a material adverse effect on our business, sales and results of operations.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our business requires
that we have access to a large number of quality vehicles. We acquire vehicles for sale through numerous sources, including wholesale
auction, agreements with manufacturers, independent and franchise dealerships, trade-ins and directly from consumers. The sources
from which we can acquire vehicles of a quality and in a quantity acceptable to us are limited, and there is substantial competition
to acquire the vehicles we purchase. There can be no assurance that the supply of desirable vehicles will be sufficient to meet
our needs. A reduction in the availability of or access to sources of inventory, including an increase in competition for quality
vehicles, could diminish our ability to obtain sufficient inventory at a price that we can reflect in retail market prices and
would have a material adverse effect on our business, sales and results of operations.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Additionally,
we evaluate potential vehicles regularly using third-party systems to predict mechanical soundness, consumer desirability and relative
value of prospective inventory. If we fail to adjust appraisal offers to stay in line with broader market trade-in offer trends,
or fail to recognize those trends, it could adversely affect our ability to acquire inventory effectively. Our ability to source
vehicles through our appraisal process could also be affected by competition, both from new and used car dealers directly and through
third party websites driving appraisal traffic to those dealers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Our business
is dependent upon our ability to expeditiously sell inventory. Failure to expeditiously sell our inventory could have a material
adverse effect on our business, sales and results of operations.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our purchases
of vehicles are based in large part on projected demand. If actual sales are materially less than our forecasts, we would experience
an over-supply of vehicle inventory. An over-supply of vehicle inventory will generally cause downward pressure on our product
sales prices and margins and increase our average days to sale.</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">Pre-owned vehicle
inventory has typically represented, and will continue to represent, a significant portion of our total assets. Having such a large
portion of our total assets in the form of pre-owned vehicle inventory for an extended period of time subjects us to depreciation
and other risks that may affect our results of operations. Accordingly, if we have excess inventory or our average days-to-sale
increases, we may be unable to liquidate such inventory in a timely manner, or do so at prices that would allow us to meet margin
targets or to recover our costs, which could have a material adverse effect on our results of operations.</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"><B>Our business
is sensitive to changes in the prices of new and pre-owned vehicles.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Any significant
changes in retail prices for new or pre-owned vehicles could have a material adverse effect on our revenues and results of operations.
For example, if retail prices for pre-owned vehicles rise relative to retail prices for new vehicles, it could make buying a new
vehicle more attractive to consumers than buying a used vehicle, which could have a material adverse effect on our results of operations
and could result in reduced used car sales and lower revenue. Additionally, manufacturer incentives could contribute to narrowing
the price gap between new and pre-owned vehicles. Pre-owned vehicle prices may also decline due to an increased number of new vehicle
lease returns over the next several years. While lower prices of pre-owned vehicles reduce our cost of acquiring new inventory,
lower prices could also lead to reductions in the value of inventory that we currently hold, which could have a negative impact
on gross profit. Furthermore, any significant changes in wholesale prices for pre-owned vehicles could have a material adverse
effect on our results of operations by reducing our profit margins.</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"><B>If our inventory
or other costs of operations increase and we are unable to pass along these costs to our customers, we may be unable to maintain
or grow our sales margins.&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our inventory
and other costs are variable and dependent upon various factors, many of which are outside of our control. A rise in vehicle acquisition
costs could erode our sales margins and negatively affect our results of operations. If we incur cost increases, we may seek to
pass those increases along to our customers. However, our consumers typically have limits on the maximum amount they can afford,
and we may be unable to pass these costs along to them in the form of higher sales prices, which would adversely affect our ability
to maintain or increase margins.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We rely heavily
on logistics in transporting vehicles for delivery from point of purchase to our facilities, and finally to the customers, via
third parties. Our ability to manage this process both internally and through our network of transportation partners could cause
a rise in inventory costs and a disruption in our inventory supply chain and distribution. Further, any disruption in the vehicle
transport industry or an increase in the cost of transport could adversely affect our results of operations.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>We could be negatively affected if losses
for which we do not have third-party insurance coverage increase or our insurance coverages prove to be inadequate.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have third-party insurance coverage,
subject to limits, for bodily injury and property damage resulting from accidents involving our vehicles that are rented or subscribed
for. We self-insure (that is, we do not have third-party insurance coverage) for other risks, such as theft and damages to vehicles
that are rented or subscribed for and are not otherwise covered by renters&rsquo; or subscribers&rsquo; insurance, and theft and
damage to vehicles in our inventory. We account for vehicle damage or total loss at the time such damage or loss is incurred. As
a result, we are responsible for damage to our vehicles. A deterioration in claims management, whether by our management or by
a third-party claims administrator, could lead to delays in settling claims, thereby increasing claim costs. In the future, we
may be exposed to liability for which we self-insure at levels in excess of our historical levels and to liabilities for which
we are insured that exceed the level of our insurance. Claims filed against us in excess of insurance limits, or for which we are
otherwise self-insured, or the inability of our insurance carriers to pay otherwise-insured claims, could have an adverse effect
on our financial condition. For example, damages resulting from a significant natural disaster, such as a hurricane, fire or flood,
or judgment against us for liability for damages resulting from our rental program could have a material adverse impact on our
business, operating results and financial condition, and our insurance coverage may be insufficient to compensate us for losses
that may occur. Should we be unable to renew our commercial insurance policies at competitive rates, this loss could have an adverse
effect on our financial condition and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>The success
of our business relies heavily on our marketing and branding efforts and these efforts may not be successful.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We believe that
an important component of our growth will be to successfully attract new visitors to our physical locations and our online platform.
Because we are a consumer brand, we rely heavily on marketing and advertising to increase brand visibility with potential customers.
We intend to execute our sales and marketing efforts by utilizing a multi-channel approach that utilizes brand building, as well
as direct response channels in order to efficiently establish and grow both locally and nationally and to increase the strength,
recognition and trust in the LMP brand.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our business model
relies on our ability to scale rapidly and to decrease incremental customer acquisition costs as we grow. If we are unable to recover
our marketing costs through increases in customer traffic and in the number of transactions by users of our platform, or if our
broad marketing campaigns are not successful or are terminated, it could have a material adverse effect on our growth, results
of operations and financial condition.</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"><B>We rely on
Internet search engines and social networking sites to help drive traffic to our website and our facilities, and if we fail to
appear prominently in the search results or fail to drive traffic through paid advertising, our traffic would decline and our business
would be adversely affected.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We depend in part
on Internet search engines, such as Google, Bing and Yahoo!, and social networking sites, such as Facebook, to drive traffic to
our website and our facilities. Our ability to maintain and increase the number of visitors directed to our website is not entirely
within our control. Our competitors may increase their search engine optimization efforts and outbid us for search terms on various
search engines, resulting in their websites receiving a higher search result page ranking than ours. Additionally, Internet search
engines could revise their methodologies in a way that would adversely affect our search result rankings. If Internet search engines
modify their search algorithms in ways that are detrimental to us, or if our competitors&rsquo; efforts are more successful than
ours, overall growth in our customer base could decrease or our customer base could decline. Further, Internet search engine providers
could provide automotive dealer and pricing information directly in search results, align with our competitors or choose to develop
competing services. Any reduction in the number of users directed to our website and/or our facilities through Internet search
engines could harm our business and operating results.</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"><B>The traffic
to our websites and mobile applications may decline and our business may be adversely affected if other companies copy information
from our websites and publish or aggregate it with other information for their own benefit.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">From time to time,
other companies copy information from our websites through website scraping, robots or other means, and publish, or aggregate it
with other information for their own benefit. When third parties copy, publish, or aggregate content from our websites, it makes
them more competitive, and decreases the likelihood that consumers will visit our websites or use our mobile applications to find
the information they seek. While we may try to prevent or limit these activities, we cannot guarantee that we will be successful
in preventing or properly detecting such activities in the future. We may not be able to detect such third-party conduct in a timely
manner and, even if we could, we may not be able to prevent it. In some cases, particularly in the case of third parties that operate
outside of the United States, our available remedies may be inadequate to protect us against such activities. In addition, we may
be required to expend significant financial or other resources to successfully enforce our rights. If any of these activities were
to occur, it could adversely affect our business, results of operations and financial condition.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>We depend on our e-commerce business
and failure to successfully manage this business and deliver a seamless&nbsp;online experience to our customers could have an adverse
effect on our growth strategy, business, financial condition, operating results and prospects.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that sales from our e-commerce
platform will account for a meaningful portion of our revenues. Our business, financial condition, operating results and prospects
are, and we believe will continue to be, dependent on maintaining our e-commerce business. Dependence on our e-commerce business
and the continued growth of our direct and retail channels subjects us to certain risks, including:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
failure to successfully implement new systems, system enhancements and Internet platforms;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
failure of our technology infrastructure or the computer systems that operate our website and their related support systems, causing,
among other things, website downtimes, telecommunications issues or other technical failures;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
reliance on third-party computer hardware/software providers;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">liability
for online content;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">violations
of federal, state, foreign or other applicable laws, including those relating to data protection;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">cyber
security and vulnerability to electronic break-ins and other similar disruptions; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">diversion
of traffic and sales from our stores.</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; background-color: white">Our failure to
successfully address and respond to these risks and uncertainties could negatively impact sales, increase costs, diminish our growth
prospects and damage the reputation of our brand, each of which could have a material adverse effect on our business, financial
condition, operating results and prospects.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Vehicle subscription is a relatively
new business model, and may not be widely adopted.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We expect to derive a portion of our revenue
from our vehicle subscription service, which is a relatively new and rapidly evolving market. If the market for vehicle subscription
fails to grow or grows more slowly than we currently anticipate, our business could be negatively affected. We currently only offer
vehicle subscription services in Florida. We intend to expand into markets that we believe are the most likely to adopt vehicle
subscription services. However, our efforts to expand within and beyond our existing market may not be successful.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>We face risks
related to liabilities resulting from the use of our vehicles by our rental and subscription customers.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our business can
expose us to claims for personal injury, death and property damage resulting from the use of vehicles by our rental and subscription
customers. For example, a rental or subscription customer may be using a vehicle that has worn tires, a mechanical issue or some
other problem, including a manufacturing defect, which could contribute to a motor vehicle accident resulting in serious bodily
injury, death or significant property damage for which we may be liable. In addition, since we cannot physically inspect our vehicles
after they are delivered to our customers, we depend on our rental and subscription customers and third-party service providers
to inspect the vehicles prior to driving in order to identify any potential damage or safety concern with the vehicle. To the extent
that we are found at fault or otherwise responsible for an accident, our insurance coverage would only cover losses up to a maximum
amount.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In addition, in
certain jurisdictions, as the owner of the vehicle, there is the potential that we may have vicarious liability for any damages
caused by our renters or subscribers, even if we are not found to be negligent. Any such liability may have a material adverse
impact on our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>We anticipate
that our business will be highly seasonal and any occurrence that disrupts our activity during our peak periods could materially
adversely affect our results of operations, financial condition, liquidity and cash flows.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Certain significant
components of our expenses are fixed, including real estate taxes, rent, insurance, utilities, maintenance and other facility-related
expenses, the costs of operating our information technology systems and staffing costs. We anticipate that seasonal changes in
our revenues will not affect those fixed expenses, which typically result in higher profitability in periods when our revenues
are higher, and lower profitability in periods when our revenues are lower. Any circumstance, occurrence or situation that disrupts
our activity during these periods could have a disproportionately material adverse effect on our results of operations, financial
condition, liquidity and cash flows due to a significant change in revenue.</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-align: justify; background-color: white"><B>We operate
in a highly regulated industry and are subject to a wide range of federal, state and local laws and regulations. Failure to comply
with these laws and regulations could have a material adverse effect on our business, results of operations and financial condition.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We are subject
to a wide range of federal, state and local laws and regulations. Our sales, rental and subscription services, and related activities,
including the sale of complementary products and services, are, or may potentially be, subject to state and local licensing requirements,
federal and state (or local) laws regulating vehicle advertising, state or local laws related to sales tax, title and registration,
state or local laws regulating vehicle sales and service, and state laws regulating vehicle rentals and subscriptions. For example,
a number of state legislatures are proposing to regulate vehicle subscription programs, and in August 2018, the State of Indiana
issued a moratorium on vehicle subscription programs until May 1, 2019.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our facilities
and business operations are subject to laws and regulations relating to environmental protection and health and safety. In addition
to these laws and regulations that apply specifically to our business, upon the completion of this offering, we will also be subject
to laws and regulations affecting public companies, including securities laws and Nasdaq listing rules. The violation of any of
these laws or regulations could result in administrative, civil or criminal penalties or in a cease-and-desist order against our
business operations, any of which could damage our reputation and have a material adverse effect on our business, sales and results
of operations. We have incurred and will continue to incur capital and operating expenses and other costs in order to comply with
these laws and regulations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our business is
subject to the state and local licensing requirements of the jurisdictions in which we operate and in which our customers reside.
Regulators of jurisdictions in which our customers reside, but for which we do not have an applicable dealer license, could require
that we obtain a license or otherwise comply with various state regulations. Regulators may seek to impose punitive fines for operating
without a license or demand we seek a license in those jurisdictions, any of which may inhibit our ability to do business in those
jurisdictions, increase our operating expenses and adversely affect our financial condition and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">With respect to
our advertising, private plaintiffs, as well as federal, state and local regulatory and law enforcement authorities, continue to
scrutinize advertising, sales, financing and insurance activities in the sale and leasing of pre-owned vehicles. If, as a result,
other automotive retailers adopt more transparent, consumer-oriented business practices, it may be difficult for us to differentiate
ourselves from other retailers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The foregoing
description of laws and regulations to which we are or may be subject is not exhaustive, and the regulatory framework governing
our operations is subject to continuous change.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Changes in
government regulation affecting the communications industry could harm our prospects and operating results.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Federal Communications
Commission, or the FCC, has jurisdiction over the U.S. communications industry. Under current rules, the FCC regulates broadband
Internet service providers as telecommunications service carriers under Title II of the Telecommunications Act and enforces net
neutrality regulations that prohibit blocking, degrading or prioritizing certain types of internet traffic.</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">On February 26,
2015, the FCC reclassified broadband Internet access services in the United States as a telecommunications service subject to some
elements of common carrier regulation, including the obligation to provide service on just and reasonable terms, and adopted specific
net neutrality rules prohibiting the blocking, throttling or &ldquo;paid prioritization&rdquo; of content or services. However,
in May 2017, the FCC issued a notice of proposed rulemaking to roll back net neutrality rules and return to a &ldquo;light touch&rdquo;
regulatory framework. Consistent with this notice, on December 14, 2017, the FCC once again classified broadband Internet access
service as an unregulated information service and repealed the specific rules against blocking, throttling or &ldquo;paid prioritization&rdquo;
of content or services. It retained a rule requiring Internet service providers to disclose their practices to consumers, entrepreneurs
and the FCC. A number of parties have already stated they would appeal this order and it is possible Congress may adopt legislation
restoring some net neutrality requirements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The elimination
of net neutrality rules and any changes to the rules could affect the market for broadband Internet access service in a way that
affects our business. For example, any actions taken by Internet access providers to provide better Internet access to our competitors&rsquo;
websites or limit the bandwidth and speed for the transmission of data from our websites, could adversely affect our business,
operating results, and financial condition.</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"><B>We are subject
to environmental laws and may be subject to environmental liabilities that could have a material adverse effect on us in the future.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We are subject
to various federal, state and local environmental laws and governmental regulations relating to the operation of our business,
including those governing the handling, storage and disposal of hazardous substances such as motor oil, gasoline, solvents, lubricants,
paints and other substances at our facilities. We face potentially significant costs relating to claims, penalties and remediation
efforts in the event of non-compliance with existing and future laws and regulations. A failure by us to comply with environmental
laws and regulations could have a material adverse effect on our business financial condition and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Changes in
the laws and regulations to which our business and industry is subject could have a material adverse effect on our business, sales,
results of operations and financial condition.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Recent federal
legislative and regulatory initiatives and reforms may result in an increase in expenses or a decrease in revenues, which could
have a material adverse effect on our results of operations. For example, the Dodd-Frank Wall Street Reform and Consumer Protection
Act of 2010, or the Dodd-Frank Act, regulates, among other things, the provision of consumer financing. The Dodd-Frank Act established
the Consumer Financial Protection Bureau, or the CFPB, a consumer financial protection agency with broad regulatory powers. The
CFPB is responsible for administering and enforcing laws and regulations related to consumer financial products and services, including
our provision of vehicle financing and our receivables sale facilities. The evolving regulatory environment in the wake of the
Dodd-Frank Act and the creation of the CFPB may increase the cost of regulatory compliance or result in changes to business practices
that could have a material adverse effect on our results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The enactment
of new laws and regulations or the interpretation of existing laws and regulations in an unfavorable way may affect the operation
of our business, directly or indirectly, which could result in substantial regulatory compliance costs, civil or criminal penalties,
including fines, adverse publicity, decreased revenues and increased expenses.</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"><B>If we fail
to comply with the Telephone Consumer Protection Act, or the TCPA, we may face significant damages, which could harm our business,
financial condition, results of operations and cash flows.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We utilize telephone
calls and intend to utilize text messaging as a means of responding to customer interest in purchasing, renting or subscribing
for vehicles. We generate leads from our website by prompting potential customers to provide their phone numbers so that we may
contact them in response to their interest in specific vehicles. We also intend to engage and pay third parties to provide us with
leads. A portion of our revenue comes from sales that involve calls made by our internal call centers to these potential customers.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The TCPA, as interpreted
and implemented by the FCC, imposes significant restrictions on utilization of telephone calls and text messages to residential
and mobile telephone numbers as a means of communication, when the prior consent of the person being contacted has not been obtained.
Violations of the TCPA may be enforced by the FCC or by individuals through litigation, including class actions and statutory penalties
for TCPA violations ranging from $500 to $1,500 per violation, which is often interpreted to mean per phone call.</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">While we intend
to implement processes and procedures to comply with the TCPA, any failure by us or the third parties on which we rely for data
to adhere to, or successfully implement, appropriate processes and procedures in response to existing or future regulations could
result in legal and monetary liability, fines and penalties, or damage to our reputation in the marketplace, any of which could
have a material adverse effect on our business, financial condition and results of operations. Additionally, any changes to the
TCPA or its interpretation that further restrict the way we contact and communicate with our potential customers or generate leads,
or any governmental or private enforcement actions related thereto, could adversely affect our ability to attract customers and
harm our business, financial condition, results of operations and cash flows.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Government regulation of the Internet
and e-commerce is evolving, and unfavorable changes or failure by us to comply with these regulations could substantially harm
our business and results of operations.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to general business regulations
and laws as well as regulations and laws specifically governing the Internet and e-commerce. Existing and future regulations and
laws could impede the growth of the Internet, e-commerce or mobile commerce. These regulations and laws may involve taxes, tariffs,
privacy and data security, anti-spam, content protection, electronic contracts and communications, consumer protection, Internet
neutrality and gift cards. It is not clear how existing laws governing issues such as property ownership, sales and other taxes
and consumer privacy apply to the Internet as the vast majority of these laws were adopted prior to the advent of the Internet
and do not contemplate or address the unique issues raised by the Internet or e-commerce. It is possible that general business
regulations and laws, or those specifically governing the Internet or e-commerce, may be interpreted and applied in a manner that
is inconsistent from one jurisdiction to another and may conflict with other rules or our practices.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Though we seek
at all times to be in full compliance with all such laws, we cannot be sure that our practices have complied, comply or will comply
fully with all such laws and regulations. Any failure, or perceived failure, by us to comply with any of these laws or regulations
could result in damage to our reputation, a loss in business and proceedings or actions against us by governmental entities or
others. Any such proceeding or action could damage our reputation and brand, force us to spend significant amounts in defense of
these proceedings, distract our management, increase our costs of doing business, decrease the use of our website by consumers
and result in the imposition of monetary liability. We may also be contractually liable to indemnify and hold harmless third parties
from the costs or consequences of non-compliance with any such laws or regulations.</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"><B>We collect,
process, store, share, disclose and use personal information and other data, and our actual or perceived failure to protect such
information and data could damage our reputation and brand and harm our business and operating results.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We collect, process,
store, share, disclose and use personal information and other data provided by consumers. We rely on encryption and authentication
technology licensed from third parties to effect secure transmission of such information. We may need to expend significant resources
to protect against security breaches or to address problems caused by breaches. Any failure or perceived failure to maintain the
security of personal and other data that is provided to us by consumers and vendors could harm our reputation and brand and expose
us to a risk of loss or litigation and possible liability, any of which could adversely affect our business and operating results.</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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Additionally,
concerns about our practices with regard to the collection, use or disclosure of personal information or other privacy related
matters, even if unfounded, could harm our business and operating results. There are numerous federal, state and local laws regarding
privacy and the collection, processing, storing, sharing, disclosing, using and protecting of personal information and other data,
the scope of which are changing, subject to differing interpretations, and which may be costly to comply with and may be inconsistent
between jurisdictions or conflict with other rules. We generally comply with industry standards and are subject to the terms of
our privacy policies and privacy-related obligations to third parties. We strive to comply with applicable laws, policies, legal
obligations and industry codes of conduct relating to privacy and data protection, to the extent possible. However, it is possible
that these obligations may be interpreted and applied in new ways or in a manner that is inconsistent from one jurisdiction to
another and may conflict with other rules, our practices, or new regulations that could be enacted. Any failure or perceived failure
by us to comply with our privacy policies, our privacy-related obligations to consumers or other third parties, or our privacy-related
legal obligations, or any compromise of security that results in the unauthorized release or transfer of sensitive information,
which may include personally identifiable information or other customer data, may result in governmental enforcement actions, litigation
or public statements against us by consumer advocacy groups or others. This also could cause consumers and vendors to lose trust
in us, which could have an adverse effect on our business. Additionally, if vendors, developers or other third parties that we
work with violate applicable laws or our policies, such violations may also put consumer and vendor information at risk and could
in turn harm our reputation, business and operating results.</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"><B>A significant
disruption in service on our website could damage our reputation and result in a loss of consumers, which could harm our business,
brand, operating results and financial condition.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our brand, reputation
and ability to attract customers depend on the reliable performance of our website and the supporting systems, technology and infrastructure.
We may experience significant interruptions with our systems in the future. Interruptions in these systems, whether due to system
failures, programming or configuration errors, computer viruses, or physical or electronic break-ins, could affect the availability
of our inventory on our website and prevent or inhibit the ability of customers to access our website. Problems with the reliability
or security of our systems could harm our reputation, result in a loss of customers and result in additional costs.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We utilize cloud
computing, or the practice of using shared processing resources at third party locations, to operate our website and e-commerce
platform. We do not own or control the operation of these third party locations. These third party systems, software and operations
are vulnerable to damage or interruption from fire, flood, power loss, telecommunications failure, terrorist attacks, acts of war,
electronic and physical break-ins, computer viruses, earthquakes, and similar events. The occurrence of any of these events could
damage our systems and hardware or could cause them to fail.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Problems faced
by our third party web hosting providers could adversely affect the experience of our customers. For example, our third party web
hosting providers could close their facilities without adequate notice. Any financial difficulties, up to and including bankruptcy,
faced by our third party web hosting providers or any of the service providers with whom they contract may have negative effects
on our business, the nature and extent of which are difficult to predict. If our third party web hosting providers are unable to
keep up with our growing capacity needs, our business could be harmed.</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">Any errors, defects,
disruptions, or other performance or reliability problems with our network operations could interrupt our customers&rsquo; access
to our inventory and our access to data that drives our inventory purchase operations as well as cause delays and additional expenses
in arranging access to new facilities and services, any of which could harm our reputation, business, operating results and financial
condition.</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"><B>We rely on
internal and external logistics to transport our vehicle inventory throughout the United States. Thus, we are subject to business
risks and costs associated with the transportation industry. Many of these risks and costs are out of our control, and any of them
could have a material adverse effect on our business, financial condition and results of operations.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We rely on a combination
of internal and external logistics for third parties to transport vehicles from point of purchase to our facilities, and finally
to the customers. As a result, we are exposed to risks associated with the transportation industry such as weather, traffic patterns,
gasoline prices, recalls affecting our vehicle fleet, local and federal regulations, vehicular crashes, insufficient internal capacity,
rising prices of external transportation vendors, fuel prices and taxes, license and registration fees, insurance premiums, self-insurance
levels, difficulty in recruiting and retaining qualified drivers, disruption of our technology systems, and increasing equipment
and operational costs. Failure to successfully manage our logistics and fulfillment process could cause a disruption in our inventory
supply chain and distribution, which may adversely affect our operating results and financial condition.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Our failure
to maintain a reputation of integrity and to otherwise maintain and enhance our brand could adversely affect our business, sales
and results of operations.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our business model
is based on our ability to provide customers with a transparent and simplified solution to vehicle buying, renting and subscribing
that we believe will save them time and money. If we fail to build and maintain a positive reputation, or if an event occurs that
damages this reputation, it could adversely affect consumer demand and have a material adverse effect on our business, sales and
results of operations. Even the perception of a decrease in the quality of our brand could negatively impact results.</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">Complaints or
negative publicity about our business practices, marketing and advertising campaigns, compliance with applicable laws and regulations,
the integrity of the data that we provide to users, data privacy and security issues, and other aspects of our business, especially
on industry-specific blogs and social media websites, and irrespective of their validity, could diminish consumer confidence in
our platform and adversely affect our brand. The growing use of social media increases the speed with which information and opinions
can be shared and, thus, the speed with which reputation can be affected. If we fail to correct or mitigate misinformation or negative
information, including information spread through social media or traditional media channels, about us, the vehicles we offer,
our customer experience, or any aspect of our brand, it could have a material adverse effect on our business, sales and results
of operations.</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"><B>Our ability
to grow our complementary product and service offerings may be limited, which could negatively impact our growth rate, revenues
and financial performance.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">If we introduce
or expand additional product and service offerings for our platform, such as services or products involving other vehicles, sales
of new cars, or vehicle trade-ins, we may incur losses or otherwise fail to enter these markets successfully. Our expansion into
these markets would place us in competitive and regulatory environments with which we are unfamiliar and involve various risks,
including the need to invest significant resources and the possibility that returns on such investments will not be achieved for
several years, if at all. In attempting to establish new service or product offerings, we expect to incur significant expenses
and face various other challenges, such as expanding our customer service personnel and management personnel to cover these markets
and complying with complicated regulations that apply to these markets. In addition, we may not successfully demonstrate the value
of these complementary products and services to consumers, and failure to do so would compromise our ability to successfully expand
into these additional revenue streams. Any of these risks, if realized, could adversely affect our business and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>If we do not
adequately address our customers&rsquo; shift to mobile device technology, operating results could be harmed and our growth could
be negatively affected.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our future success
depends in part on our ability to provide adequate functionality for visitors who use mobile devices to shop for vehicles and the
number of transactions with us that are completed by those users. The shift to mobile technology by our users may harm our business
in the following ways:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">consumers visiting our website from a mobile device may not accept mobile technology as a viable long-term platform to buy or sell a vehicle. This may occur for a number of reasons, including our ability to provide the same level of website functionality to a mobile device that we provide on a desktop computer, the actual or perceived lack of security of information on a mobile device and possible disruptions of service or connectivity;</FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">we may not continue to innovate and introduce enhanced products that can be suitably conveyed on mobile platforms;</FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">consumers using mobile devices may believe that our competitors offer superior products and features based in part on our inability to provide sufficient website functionality to convince a mobile device user to transact with us; or</FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">regulations related to consumer finance disclosures, including the Truth in Lending Act, may be interpreted, in the context of mobile devices, in a manner which could expose us to legal liability in the event we are found to have violated applicable laws.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">If we do not develop,
upgrade and maintain suitable functionality for users who visit our website using a mobile device, our business and operating results
could be harmed.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Our business
is sensitive to conditions affecting automotive manufacturers, including manufacturer recalls.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Adverse conditions
affecting one or more automotive manufacturers could have a material adverse effect on our sales and results of operations, which
could impact the supply of vehicles.&nbsp;In addition, manufacturer recalls are a common occurrence that have accelerated in frequency
and scope in recent years.&nbsp;Recalls and the increased regulatory scrutiny surrounding selling pre-owned vehicles with open
safety recalls could (i) adversely affect pre-owned vehicle sales or valuations, (ii) cause us to temporarily remove vehicles from
inventory, (iii) cause us to sell affected vehicles at a loss, (iv) force us to incur increased costs and (v) expose us to litigation
and adverse publicity related to the sale of recalled vehicles, which could have a material adverse effect on our business, financial
condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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"><B>The current
geographic concentration where we provide services creates an exposure to local economies, regional downturns or severe weather
or catastrophic occurrences that may materially adversely affect our financial condition and results of operations.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We currently conduct
business through our corporate and fulfillment, rental and subscription center located in Plantation, Florida. We currently hold
all of our inventory at our Plantation location. While we have insurance to cover certain losses on those vehicles, events such
as theft, fire, flood, or hail could adversely impact our business. In addition, our business is currently more susceptible to
regional conditions than the operations of more geographically diversified competitors, and we are vulnerable to economic downturns
in those regions. Any unforeseen events or circumstances that negatively affect these areas could materially adversely affect our
revenues and profitability. These factors include, among other things, changes in demographics and population. In addition, severe
weather conditions, acts of God and other catastrophic occurrences in the area in which we operate or from which we obtain inventory
may materially adversely affect our financial condition and results of operations. Such conditions may result in physical damage
to our properties and loss of inventory. Any of these factors may disrupt our business and materially adversely affect our financial
condition and result of operations. Furthermore, there can be no assurance that we will be able to successfully replicate our business
model and achieve levels of success as we enter new geographic markets.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>We may rely
on agreements with third parties to finance our vehicle inventory purchases. If we fail to maintain adequate relationships with
third parties to finance our vehicle inventory purchases, we may be unable to maintain sufficient inventory, which would adversely
affect our business and results of operations.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We may rely on
agreements with third party lenders to finance our vehicle inventory purchases. If we are unable to enter into agreements on favorable
terms or at all, or if the agreements expire and are not renewed, our inventory supply may decline, resulting in fewer vehicles
available for sale. New funding arrangements may be at higher interest rates or other less favorable terms. These financing risks,
in addition to rising interest rates and changes in market conditions, if realized, could negatively impact our results of operations
and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Our business
is affected by the availability of financing to its customers.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Many of our customers
finance their vehicle purchases. Although consumer credit markets have improved, consumer credit market conditions continue to
influence demand and may continue to do so. There continue to be fewer lenders, more stringent underwriting and loan approval criteria,
and greater down payment requirements than in the past. If credit conditions or the credit worthiness of our customers worsen,
and adversely affect the ability of consumers to finance potential purchases at acceptable terms and interest rates, it could result
in a decrease in the sales of our products and have a material adverse effect on our business, financial condition and results
of operations.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Failure to
adequately protect our intellectual property, technology and confidential information could harm our business and operating results.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our business depends
on our intellectual property, technology and confidential information, the protection of which is crucial to the success of our
business. We attempt to protect our intellectual property, technology and confidential information by requiring certain of our
employees and consultants to enter into confidentiality agreements and certain third parties to enter into nondisclosure agreements.
These agreements may not effectively prevent unauthorized use or disclosure of our confidential information, intellectual property
or technology and may not provide an adequate remedy in the event of unauthorized use or disclosure of our confidential information,
intellectual property or technology. Despite our efforts to protect our intellectual property, unauthorized parties may attempt
to copy aspects of our website features, software and functionality or obtain and use information that we consider proprietary.
Changes in the law or adverse court rulings may also negatively affect our ability to prevent others from using our technology.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We currently hold
rights to the &ldquo;lmpmotors.com,&rdquo; &ldquo;lmprentals.com&rdquo; and &ldquo;lmpsubscriptions.com&rdquo; Internet domain
names and various other related domain names. The regulation of domain names in the United States is subject to change. Regulatory
bodies could establish additional top-level domains, appoint additional domain name registrars, or modify the requirements for
holding domain names. As a result, we may not be able to acquire or maintain all domain names that we believe are important for
our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>We may be subject
to claims asserting that our employees, consultants or advisors have wrongfully used or disclosed alleged trade secrets of their
current or former employees or claims asserting ownership of what we regard as our own intellectual property.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Although we try
to ensure that our employees, consultants and advisors do not use the proprietary information or know-how of others in their work
for us, we may be subject to claims that these individuals or we have used or disclosed intellectual property, including trade
secrets or other proprietary information, of any such individual&rsquo;s current or former employer. Litigation may be necessary
to defend against these claims. If we fail in defending any such claims, in addition to paying monetary damages, we may lose valuable
intellectual property rights or personnel. Even if we are successful in defending against such claims, litigation could result
in substantial costs and be a distraction to management.</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">In addition, while
we intend to require our employees and contractors who may be involved in the conception or development of intellectual property
to execute agreements assigning such intellectual property to us, we may be unsuccessful in executing such an agreement with each
party who, in fact, conceives or develops intellectual property that we regard as our own. The assignment of intellectual property
may not be self-executing or the assignment agreement may be breached, and we may be forced to bring claims against third parties,
or defend claims that they may bring against us, to determine the ownership of what we regard as our intellectual property.</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"><B>We may in the
future be subject to intellectual property disputes, which are costly to defend and could harm our business and operating results.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We may, from time
to time, face allegations that we have infringed the trademarks, copyrights, patents and other intellectual property rights of
third parties. We may be unaware of the intellectual property rights that others may claim cover some or all of our technology
or services. Patent and other intellectual property litigation may be protracted and expensive, the results are difficult to predict
and may require us to stop offering some features, purchase licenses or modify our products and features while we develop non-infringing
substitutes or may result in significant settlement costs.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Even if these
matters that do not result in litigation are resolved in our favor or without significant cash settlements, these matters, and
the time and resources necessary to litigate or resolve them, could harm our business, our operating results and our reputation.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Our platform
utilizes open source software, and any failure to comply with the terms of one or more of these open source licenses could negatively
affect our business.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We use open source
software in our platform and expect to use open source software in the future. The terms of various open source licenses have not
been interpreted by United States courts, and there is a risk that such licenses could be construed in a manner that imposes unanticipated
conditions or restrictions on our ability to market our platform. By the terms of certain open source licenses, if we combine our
proprietary software with open source software in a certain manner, we could be required to release the source code of our proprietary
software and to make our proprietary software available under open source licenses. In the event that portions of our proprietary
software are determined to be subject to an open source license, we could be required to publicly release the affected portions
of our source code, or to re-engineer all or a portion of our technologies or otherwise be limited in the licensing of our technologies,
each of which could reduce or eliminate the value of our technologies and services. In addition to risks related to license requirements,
usage of open source software can lead to greater risks than use of third-party commercial software, as open source licensors generally
do not provide warranties or controls on the origin of the software. Many of the risks associated with usage of open source software
cannot be eliminated and could negatively affect our business and operating results.</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"><B>We rely on
third party technology to complete critical business functions. If that technology fails to adequately serve our needs and we cannot
find alternatives, it may negatively impact our operating results.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We rely on third
party technology for certain of our critical business functions, including vehicle telemetry, network infrastructure for hosting
the website and inventory data, software libraries and development environments and tools, services that allow customers to digitally
sign contracts, and customer service call center management software. If these technologies fail or we cannot maintain our relationships
with the technology providers and we cannot find suitable alternatives, our financial condition and operation results may be adversely
affected.</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"><B>The obligations
associated with being a public company will require significant resources and management attention, and we will incur increased
costs as a result of becoming a public company.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">As a public company,
we will face increased legal, accounting, administrative and other costs and expenses that we have not incurred as a private company,
and we expect to incur additional costs related to operating as a public company. After the completion of this offering, we will
be subject to the reporting requirements of the Exchange Act, which requires that we file annual, quarterly and current reports
with respect to our business and financial condition, and proxy and other information statements, as well as the rules and regulations
implemented by the SEC, the Sarbanes-Oxley Act, the Dodd-Frank Act and the Public Company Accounting Oversight Board, or the PCAOB,
and the listing requirements of&nbsp;Nasdaq (if our common stock is approved for listing), each of which imposes additional reporting
and other obligations on public companies. As a public company, we will be required to, among other things:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">prepare
and distribute periodic reports, proxy statements and other stockholder communications in compliance with the federal securities
laws and rules and Nasdaq rules;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">expand
the roles and duties of our board of directors and committees thereof and management;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">hire
additional financial and accounting personnel and other experienced accounting and finance staff with the expertise to address
complex accounting matters applicable to public companies;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">institute
more comprehensive financial reporting and disclosure compliance procedures;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">involve
and retain, to a greater degree, outside counsel and accountants to assist us with the activities listed above;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">build
and maintain an investor relations function;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">establish
new internal policies, including those relating to trading in our securities and disclosure controls and procedures;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">comply
with the initial listing and maintenance requirements of Nasdaq; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">comply
with the Sarbanes-Oxley Act.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We expect these
rules and regulations, and any future changes in laws, regulations and standards relating to corporate governance and public disclosure,
which have created uncertainty for public companies, to increase legal and financial compliance costs and make some activities
more time consuming and costly. These laws, regulations and standards are subject to varying interpretations, in many cases, due
to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance is provided
by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated
by ongoing revisions to disclosure and governance practices. Our investment in compliance with existing and evolving regulatory
requirements will result in increased administrative expenses and a diversion of management&rsquo;s time and attention from revenue-generating
activities to compliance activities, which could have a material adverse effect on our business, financial condition and results
of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We also expect
that being a public company will make it more expensive for us to obtain director and officer liability insurance, and we may be
required to accept reduced coverage or incur substantially higher costs to obtain coverage. These increased costs may require us
to divert a significant amount of money that we could otherwise use to expand our business and achieve our strategic objectives.</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"><B>We may be subject
to legal proceedings in the ordinary course of our business. If the outcomes of these proceedings are adverse to us, they could
have a material adverse effect on our business, results of operations and financial condition.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We may be subject
to various litigation matters from time to time, which could have a material adverse effect on our business, results of operations
and financial condition. Claims arising out of actual or alleged violations of law could be asserted against us by individuals,
either individually or through class actions, by governmental entities in civil or criminal investigations, and proceedings or
by other entities. These claims could be asserted under a variety of laws, including but not limited to consumer finance laws,
consumer protection laws, intellectual property laws, privacy laws, labor and employment laws, securities laws and employee benefit
laws. These actions could expose us to adverse publicity and to substantial monetary damages and legal defense costs, injunctive
relief and criminal and civil fines and penalties, including but not limited to suspension or revocation of licenses to conduct
business.</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"><B>Unanticipated
changes in effective tax rates or adverse outcomes resulting from examination of our income or other tax returns could adversely
affect our operating results and financial condition.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We are subject
to income taxes in the United States, and our tax liabilities will be subject to the allocation of expenses in differing jurisdictions.
Our future effective tax rates could be subject to volatility or adversely affected by a number of factors, including:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in the valuation of our deferred tax assets and liabilities;</FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">expected timing and amount of the release of any tax valuation allowances; or</FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in tax laws, regulations or interpretations thereof.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In addition, we
may be subject to audits of our income, sales and other transaction taxes by U.S. federal and state authorities. Outcomes from
these audits could have an adverse effect on our operating results and financial condition.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>The wording,
interpretation and enforcement of existing and future sales, use and excise tax laws by state and local governments could impact
sales and income from operations.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We are subject
to state and local sales, use and excise tax laws of those states and localities in which we have a sufficient tax nexus. As we
expand our operations we will likely be subject to more taxing jurisdictions. In that regard, the wording, interpretation and enforcement
of those tax laws by such state or local governments could negatively impact our income and sales in such jurisdictions. Because
a state or locality&rsquo;s wording, interpretation or enforcement of its tax laws may change over time, such as through new legislation,
the issuance of new rules, regulations or by court or administrative decisions, or merely from new administrative or audit policies
or positions, it cannot be predicted whether or to what extent these changes will be negative to our operations and sales in any
such jurisdiction.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An increasing number of states and foreign
jurisdictions have considered or adopted laws or administrative practices, with or without notice, that impose new taxes on all
or a portion of gross revenue or other similar amounts or impose additional obligations on remote sellers and online marketplaces
to collect transaction taxes such as sales, consumption, value added, or similar taxes. In June 2018, the U.S. Supreme Court in
<I>South Dakota v. Wayfair, Inc. et al.</I> held that states can require remote sellers to collect state and local sales taxes,
which, given the scope of our anticipated operations, could increase the complexity and risks for us to comply with such laws.
We may not have sufficient lead time to build systems and processes to collect these taxes properly, or at all. Failure to comply
with such laws or administrative practices, or a successful assertion by such states or foreign jurisdictions requiring us to collect
taxes where we do not, could result in substantial tax liabilities and could have a material adverse effect on our business, financial
condition, operating results and prospects.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are also subject to U.S. (federal and
state) and foreign laws, regulations and administrative practices that require us to collect information from our customers, vendors
merchants, and other third parties for tax reporting purposes and report such information to various government agencies. The scope
of such requirements continues to expand, requiring us to develop and implement new compliance systems. Failure to comply with
such laws and regulations could result in significant penalties and could have a material adverse effect on our business, financial
condition, operating results and prospects.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Risks Related
to This Offering and Ownership of our Common Stock</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Prior to this
offering, there has been no public market for our common stock. We cannot predict the extent to which an active market for our
common stock will develop or be sustained after this offering, or how the development of such a market might affect the market
price of our common stock. The initial offering price of our shares in this offering has been agreed to between us and the underwriter
based on a number of factors, including market conditions in effect around the time of this offering, and it may not be in any
way indicative of the price at which the shares our common stock will trade following the completion of this offering. Investors
may not be able to resell their shares of our common stock at or above the initial offering price.</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"><B>Our founder,
Chief Executive Officer, President, and Chairman of the board of directors, Samer Tawfik, beneficially owns a majority of our outstanding
common stock. As a result, he has substantial voting power in all matters submitted to our stockholders.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our founder, Chief
Executive Officer, President, and Chairman of the board of directors, Samer Tawfik, beneficially owns approximately 85.69% of our
outstanding common stock prior to this offering, and will own approximately 34.33% of our outstanding common stock following this
offering, assuming he does not purchase any shares in this offering. However, Mr. Tawfik has indicated an interest
in purchasing up to $1,000,000 of additional shares of common stock in this offering, although indications of interest are not
binding agreements or commitments to purchase, the underwriter could determine to not sell shares to Mr. Tawfik, or Mr. Tawfik
could determine not to purchase shares in this offering. In any case, he has substantial voting power in all matters submitted to our stockholders for approval including:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">election of our board of directors;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">removal of any of our directors;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any amendments to our certificate of incorporation or our Bylaws; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">adoption of measures that could delay or prevent a change in control or impede a merger, takeover or other business combination involving us.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In addition, Mr.
Tawfik&rsquo;s beneficial stock ownership may discourage a potential acquirer from making a tender offer or otherwise attempting
to obtain control of us, which in turn could reduce our stock price or prevent our stockholders from realizing a premium over our
stock price.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our management
will have broad discretion in the application of the net proceeds. Accordingly, you will have to rely upon the judgment of our
management with respect to the use of these 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. Our management
not applying 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. Please see &ldquo;<I>Use of Proceeds</I>&rdquo; below for
more information.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Anti-takeover
provisions in our charter documents and under Delaware law could make an acquisition of our Company more difficult, and limit attempts
by our stockholders to replace or remove our current management.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Provisions in
our Certificate of Incorporation and Bylaws may have the effect of delaying or preventing a change of control or changes in our
management. Our Certificate of Incorporation and Bylaws include provisions that:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">permit the board of directors to establish the number of directors and fill any vacancies and newly created directorships by the affirmative vote of a majority of the directors or stockholders holding at least 66 <SUP>2/3</SUP> % of the issued and outstanding shares of common stock;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">provide that directors may only be removed by the majority of the shares of voting stock then outstanding;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">require a two-thirds majority of all directors who constitute the board of directors or a 75% majority voting of all holders of common stock to adopt, amend or repeal any and all provisions of our Bylaws;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">provide different term limits to the directors of the Company according to their classification;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">require 66 <SUP>2/3</SUP> % of the voting power of all then-outstanding shares of capital stock of the Company entitled to vote generally in election of directors to amend, alter or repeal, or adopt any provision inconsistent with certain sections of our Certificate of Incorporation;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">eliminate the ability of our stockholders to call special meetings of stockholders;&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">restrict the forum for certain litigation against us to Delaware; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">establish advance notice requirements for nominations for election to our board of directors or for proposing matters that can be acted upon by stockholders at annual stockholder meetings.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">These provisions
may frustrate or prevent any attempts by our stockholders to replace or remove our current management by making it more difficult
for stockholders to replace members of our board of directors, which is responsible for appointing the members of our management.
In addition, because we are incorporated in Delaware, we are governed by the provisions of Section&nbsp;203 of the Delaware General
Corporation Law, or Section 203. Section&nbsp;203 generally prohibits a Delaware corporation from engaging in any of a broad range
of business combinations with any holder of at least 15% of our capital stock for a period of three years following the date on
which the stockholder became a 15% stockholder unless the business combination is, or the transaction in which the person became
an interested stockholder was, approved in a prescribed manner or another prescribed exception applies.</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"><B>The market
price of our common stock may fluctuate, and you could lose all or part of your investment.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The price of our
common stock may decline below the initial offering price our common stock following this offering. The stock market in general,
and the market price of our common stock, will likely be subject to fluctuation, whether due to, or irrespective of, our operating
results, financial condition and prospects.&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our financial
performance, our industry&rsquo;s overall performance, changing consumer preferences, technologies, government regulatory action,
tax laws and market conditions in general could have a significant negative impact on the future market price of our common stock.
Some of the other factors that could negatively affect our share price or result in fluctuations in our share price include:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">actual or anticipated variations in our periodic operating results;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">increases in market interest rates that lead investors of our common stock to demand a higher investment return;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in earnings estimates;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in market valuations of similar companies;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">actions or announcements by our competitors;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">adverse market reaction to any increased indebtedness we may incur in the future;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">additions or departures of key personnel;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">actions by stockholders;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">speculation in the media, online forums, or investment community; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our intentions and ability to list our common stock on Nasdaq and our subsequent ability to maintain such listing.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Upon the completion of this offering,
we will become a public reporting company under the Exchange Act, and thereafter publicly report on an ongoing basis as an &ldquo;emerging
growth company&rdquo; under the reporting rules set forth under the Exchange Act.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">Upon the completion of this offering, we
will become a public reporting company under the Exchange Act. We may elect to publicly report on an ongoing basis as an &ldquo;emerging
growth company&rdquo; under the reporting rules set forth under the Exchange Act. For so long as we remain an emerging growth company,
we intend to take advantage of certain exemptions from various reporting requirements that are applicable to other Exchange Act
reporting companies that are not emerging growth companies which may make our common stock less attractive to investors, including
but not limited to:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><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(b) of the Sarbanes-Oxley Act;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">taking advantage of extensions of time to comply with certain new or revised financial accounting standards;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">being permitted to comply with reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">being exempt from the requirement to hold a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">We expect to take advantage of these reporting
exemptions until we are no longer an emerging growth company. We would remain an emerging growth company for up to five years;
although, we would cease to be an emerging growth company if we have more than $1.07 billion in annual revenues, have more than
$700 million in market value of our common stock held by non-affiliates, or issue more than $1 billion in principal amount of non-convertible
debt over a three-year period.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>You will experience immediate and substantial
dilution as a result of this offering.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">As of March
31, 2019, our net tangible book value was approximately $6,900,000, or $0.28 per share. Since the effective price per share
of our common stock being offered in this offering is substantially higher than the net tangible book value per share of our
common stock, you will suffer substantial dilution with respect to the net tangible book value of the common stock you
purchase in this offering. Based on the assumed public offering price of&thinsp;$5.50 per share of common stock being sold in
this offering, which is the midpoint of the estimated offering range set forth on the cover page of this prospectus, and our
net tangible book value per share as of March 31, 2019, if you purchase shares of common stock in this offering, you will
suffer immediate and substantial dilution of $3.72 per share (or $3.64 per share if the underwriter exercises the over-allotment option in full)
with respect to the net tangible book value of the common stock. See the section titled &ldquo;<I>Dilution</I>&rdquo; for a
more detailed discussion of the dilution you will incur if you purchase securities in this offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>We may not
complete our analysis of our internal control over financial reporting in a timely manner, or these internal controls may not be
determined to be effective.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We will be required,
pursuant to Section 404 of the Sarbanes-Oxley Act, to furnish a report by management on, among other things, the effectiveness
of our internal control over financial reporting in the second annual report we file with the SEC. This assessment will need to
include disclosure of any material weaknesses identified by our management in our internal control over financial reporting. However,
our auditors will not be required to formally attest to the effectiveness of our internal control over financial reporting pursuant
to Section 404 until we are no longer a non-accelerated filer or no longer an emerging growth company if we take advantage of the
exemptions available to us through the JOBS Act.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are in the very early stages of the
costly and challenging process of compiling the system and process documentation necessary to perform the evaluation needed to
comply with Section 404. In this regard, we will need to continue to dedicate internal resources, engage outside consultants and
adopt a detailed work plan to assess and document the adequacy of internal control over financial reporting, continue steps to
improve control processes as appropriate, validate through testing that controls are functioning as documented and implement a
continuous reporting and improvement process for internal control over financial reporting. As we transition to the requirements
of reporting as a public company, we may need to add additional finance staff. We may not be able to remediate any future material
weaknesses, or to complete our evaluation, testing and any required remediation in a timely fashion. During the evaluation and
testing process, if we identify one or more material weaknesses in our internal control over financial reporting, we will be unable
to assert that our internal controls are effective. If we are unable to assert that our internal control over financial reporting
is effective, or if our auditors are unable to express an opinion on the effectiveness of our internal controls when they are required
to issue such opinion, investors could lose confidence in the accuracy and completeness of our financial reports, which could harm
our stock price.</P>

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The preparation of our financial statements
involves the use of estimates, judgments and assumptions, and our financial statements may be materially affected if such estimates,
judgments or assumptions prove to be inaccurate.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Financial statements prepared in accordance
with accounting principles generally accepted in the United States of America typically require the use of estimates, judgments
and assumptions that affect the reported amounts. Often, different estimates, judgments, and assumptions could reasonably be used
that would have a material effect on such financial statements, and changes in these estimates, judgments and assumptions may occur
from period to period over time. Significant areas of accounting requiring the application of management&rsquo;s judgment include,
but are not limited to, determining the fair value of assets and the timing and amount of cash flows from assets. These estimates,
judgments and assumptions are inherently uncertain and, if our estimates were to prove to be wrong, we would face the risk that
charges to income or other financial statement changes or adjustments would be required. Any such charges or changes could harm
our business, including our financial condition and results of operations and the price of our securities. See &ldquo;<I>Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations</I>&rdquo; for a discussion of the accounting estimates,
judgments and assumptions that we believe are the most critical to an understanding of our financial statements and our business.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Future issuances
of our common stock or securities convertible into, or exercisable or exchangeable for, our common stock, or, together, our securities,
or the expiration of lock-up agreements that restrict the issuance of new common stock or the trading of outstanding common stock,
could cause the market price of our common stock to decline and would result in the dilution of your holdings.</B></P>

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

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

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

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_003"></A>CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Some of the statements under &ldquo;Prospectus
Summary,&rdquo; &ldquo;Risk Factors,&rdquo; &ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial Condition and Results
of Operations</I>,&rdquo; &ldquo;<I>Business</I>&rdquo; and elsewhere in this prospectus constitute forward-looking statements.
Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends
and similar matters that are not historical facts. In some cases, you can identify forward-looking statements by terms such as
&ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo; &ldquo;could,&rdquo; &ldquo;estimate,&rdquo; &ldquo;expect,&rdquo; &ldquo;intend,&rdquo;
&ldquo;may,&rdquo; &ldquo;plan,&rdquo; &ldquo;potential,&rdquo; &ldquo;should,&rdquo; &ldquo;will&rdquo; and &ldquo;would&rdquo;
or the negatives of these terms or other comparable terminology.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You should not place undue reliance on
forward-looking statements. The events and circumstances reflected in our forward-looking statements may not be achieved or occur
and actual results could materially differ from those projected in, or implied by, the forward-looking statements due to a variety
of factors, including, but not limited to:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our dependence upon external sources for the financing of our operations ;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to effectively execute our business plan;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to maintain and grow our reputation and to achieve and maintain the market acceptance of our services and platform;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to manage the growth of our operations over time;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to maintain adequate protection of our intellectual property and to avoid violation of the intellectual property rights of others;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to maintain relationships with existing customers and automobile suppliers, and develop relationships; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to compete and succeed in a highly competitive and evolving industry.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Although the forward-looking statements
in this prospectus are based on our beliefs, assumptions and expectations, taking into account all information currently available
to us, we cannot guarantee future transactions, results, performance, achievements or outcomes. No assurance can be made to any
investor by anyone that the expectations reflected in our forward-looking statements will be attained, or that deviations from
them will not be material and adverse. We undertake no obligation, other than as may be required by law, to re-issue this prospectus
or otherwise make public statements updating our forward-looking statements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to rounding, numbers presented throughout
this prospectus may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_004"></A>INDUSTRY AND MARKET DATA</B></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-align: justify">Certain market and industry data included
in this prospectus, including data concerning the automobile market, is derived from information provided by third-party market
research firms, third-party financial or analytics firms, or public sources that we believe to be reliable. Market estimates are
calculated by using independent industry publications, government publications and third-party forecasts in conjunction with our
assumptions about our markets. We have not independently verified such third-party information. The market data used in this prospectus
involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. While we are
not aware of any misstatements regarding any market, industry or similar data presented herein, such data involves risks and uncertainties
and are subject to change based on various factors, including those discussed under the headings &ldquo;<I>Cautionary Statement
Regarding Forward-Looking Statements</I>&rdquo; and &ldquo;<I>Risk Factors</I>&rdquo; in this prospectus. These and other factors
could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain data are also based on our good
faith estimates, which are derived from management&rsquo;s knowledge of the industry and independent sources. Industry publications,
surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable,
but there can be no assurance as to the accuracy or completeness of included information. We have not independently verified any
of the data from third-party sources nor have we ascertained the underlying economic assumptions relied upon therein. Statements
as to our market position are based on market data currently available to us. While we are not aware of any misstatements regarding
the industry data presented herein, our estimates involve risks and uncertainties and are subject to change based on various factors,
including those discussed under the heading &ldquo;<I>Risk Factors</I>&rdquo; in this prospectus. Similarly, we believe our internal
research is reliable, even though such research has not been verified by any independent sources.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_005"></A>USE OF PROCEEDS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">After deducting the estimated underwriter&rsquo;s
commissions and offering expenses payable by us, we expect to receive net proceeds of approximately $6,316,500 from this offering
(or approximately $7,284,225 if the underwriter exercises the over-allotment option in full), based on an assumed public offering
price of $5.50 per share, which is the midpoint of the estimated offering range set forth on the cover page of this prospectus.
We intend to use these net proceeds for our strategic acquisitions, to build our vehicle inventory, for working capital and other
general corporate purposes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each $1.00 increase or decrease
in the assumed initial public offering price of $5.50 per share, which is the midpoint of the estimated offering price range
set forth on the cover page of this prospectus, would increase or decrease the net proceeds that we receive from this
offering by approximately $1,173,000, assuming that the number of shares offered by us, as set forth on the cover page of
this prospectus, remains the same and after deducting the estimated underwriting discounts and commissions payable by
us. Similarly, each increase or decrease of 1,000,000 shares of common stock offered by us in this offering would increase or
decrease the net proceeds that we receive from this offering by approximately $5,060,000, assuming the assumed initial public
offering price remains the same and after deducting the estimated underwriting discounts and commissions payable by us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The precise amounts that we will devote
to each of the foregoing items, and the timing of expenditures, will vary depending on numerous factors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth a breakdown
of our estimated use of our net proceeds as we currently expect to use them.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">Strategic acquisitions</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">1,263,300</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Vehicle inventory</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">947,475</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt">Working capital</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1.5pt solid">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1.5pt solid">4,105,725</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 4pt">Total use of proceeds</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">6,316,500</TD><TD STYLE="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event that the underwriter exercises
the over-allotment option, we intend to use such net proceeds (up to $7,284,225) for our strategic acquisitions, to build our vehicle
inventory, for working capital and other general corporate purposes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The expected use of net proceeds from this
offering represents our intentions based upon our current plans and business conditions, which could change in the future as our
plans and business conditions evolve and change. The amounts and timing of our actual expenditures, specifically with respect to
working capital, may vary significantly depending on numerous factors. As a result, our management will retain broad discretion
over the allocation of the net proceeds from this offering.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_006"></A>DIVIDEND POLICY</B></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-align: justify">Since our inception, we have not paid any
dividends on our common stock, and we currently expect that, for the foreseeable future, all earnings (if any) will be retained
for the development of our business and no dividends will be declared or paid. In the future, our board of directors may decide,
at its discretion, whether dividends may be declared and paid, taking into consideration, among other things, our earnings (if
any), operating results, financial condition and capital requirements, general business conditions and other pertinent facts.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_007"></A>CAPITALIZATION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth our
capitalization as of March 31, 2019:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on an actual basis;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">on a pro forma basis to reflect the sale of 1,275,000 shares
by us in this offering at an assumed price to the public of $5.50 per share, which is the midpoint of the estimated offering range
set forth on the cover page of this prospectus, resulting in net proceeds to us of $6,316,500 after deducting (i) Underwriter
commissions of $ 490,875 and (ii) our estimated other offering expenses of $205,125; and</TD>
</TR></TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on
a pro forma basis to reflect the sale of 1,466,250 shares by us in this offering, assuming the underwriter elects to exercise
the over-allotment option in full, at an assumed price to the public of $5.50 per share, which is the midpoint of the estimated
offering range set forth on the cover page of this prospectus, resulting in net proceeds to us of $7,284,225 after deducting (i)
Underwriter commissions of $ 564,506 and (ii) our estimated other offering expenses of $215,644.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The pro forma information below is illustrative only and our
capitalization following the completion of this offering is subject to adjustment based on the initial public offering price of
our common stock and other terms of this offering determined at pricing. You should read this table together with our consolidated
financial statements and the related notes included elsewhere in this prospectus and the information under &ldquo;<I>Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations</I>&rdquo;.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Offering (1,275,000 Shares)</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Actual<SUP>(1)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Pro Forma</B></FONT><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Offering</B></FONT><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Amount</B></FONT><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(Unaudited)<SUP>(3)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Pro Forma</B></FONT><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Offering</B></FONT><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Amount</B></FONT><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>including</B></FONT><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Over-Allotment<SUP>(3)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt">Cash and Cash Equivalents</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">472,199</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">6,534,099</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">7,501,824</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Stockholders (deficit) equity:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-indent: -5pt; padding-left: 5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Common Stock, $0.00001 par value per share, 100,000,000 shares authorized<SUP>(1)</SUP></B></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">246</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">78</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">80</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Additional Paid-in Capital</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">16,344,141</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">21,637,954</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">22,605,677</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Treasury Stock</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">(403,750</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">(658,350</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)<SUP>(2)</SUP></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">(658,350</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Accumulated deficit</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">(7,971,118</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">(7,971,118</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">(7,971,118</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt">Total Stockholders&rsquo; Equity</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">7,969,519</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">13,008,564</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">13,976,289</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 4pt">Total Capitalization</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">8,441,718</TD><TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">19,542,663</TD><TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">21,478,113</TD><TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>



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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">24,560,294 shares of common stock issued and outstanding actual as of March 31, 2019.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">Subsequent to quarter-end, the Company purchased 53,600
shares of its common stock from one (1) shareholder at an aggregate price of $4.75 per share, or $254,600. These shares are currently
held in treasury; the transaction reduced cash and reduced common shares outstanding to 24,506,694 as of May 31, 2019.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: justify">The outstanding number of shares of common stock after
the completion of the offering was derived from 24,506,694 shares of common stock outstanding as of May 31, 2019, less 18,500,000
shares previously beneficially owned by Samer Tawfik that were cancelled for no consideration.</TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each $1.00 increase (decrease) in the assumed offering price
per share of $5.50, assuming no change in the number of shares to be sold, would increase (decrease) the net proceeds that we receive
in this offering and each of total stockholders&rsquo; equity and total capitalization by approximately $1,173,000 (or $1,348,950
if the underwriter exercises the over-allotment option in full), after deducting (i) estimated underwriter commissions and (ii)
offering expenses, in each case, payable by us. Similarly, an increase (decrease) of one million shares of our common stock offered
by us in this offering, assuming no change in the offering price, would increase (decrease) the new proceeds that we receive in
this offering and each of total stockholders&rsquo; equity and total capitalization by approximately $5,060,000, after deducting
(i) estimated underwriter commissions and (ii) offering expenses, in each case, payable by us.</P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The table above excludes the following shares:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,500,000 shares of common stock reserved
for future issuance under our 2018 Equity Incentive Plan as of May 31, 2019;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">331,750 shares of common stock issuable
upon the exercise of options (of which 236,853 have vested) outstanding as of March 31, 2019;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Up to 63,750 shares of common stock issuable
upon exercise of the underwriter&rsquo;s warrants in connection with this offering, assuming the Maximum Amount is sold, with a
full exercise by the underwriter of the over-allotment option; and</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Approximately 63,570 shares of common
stock that may be issued by us upon conversion of the 6-month notes (assuming no interest is paid on the 6-month notes).</FONT></TD></TR></TABLE>




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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_008"></A>DILUTION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dilution in net tangible book value per
share to new investors is the amount by which the offering price paid by the purchasers of the shares of our common stock sold
in this offering exceeds the pro forma net tangible book value per share of common stock after this offering. Net tangible book
value per share is determined at any date by subtracting our total liabilities from the total book value of our tangible assets
and dividing the difference by the number of shares of common stock deemed to be outstanding at that date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The net tangible book value of our common
stock as of March 31, 2019 was approximately $6.9 million, or approximately $0.28 per share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pro forma as adjusted net tangible book
value dilution per share to new investors represents the difference between the amount per share paid by purchasers of our common
stock in this offering and the pro forma as adjusted net tangible book value per share of our common stock immediately after completion
of this offering. Investors participating in this offering will incur immediate, substantial dilution. After giving effect to our
sale of 1,275,000 shares of our common stock in this offering at an assumed initial public offering
price of $5.50 per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus,
and after deducting the estimated underwriting discounts and commissions and estimated offering expenses, our pro forma as adjusted
net tangible book value as of March 31, 2019 would have been approximately $13.0 million or approximately $1.78 per share. This
amount represents an immediate increase in pro forma net tangible book value of $1.50 per share to existing stockholders and an
immediate dilution in pro forma net tangible book value of $3.72 per share to purchasers of our common stock in this offering,
as illustrated in the following table.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table illustrates the estimated dilution on a
per Share basis:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; font: 10pt Times New Roman, Times, Serif">Assumed initial public offering price per Share</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">5.50</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Net tangible book value per Share as of March 31, 2019</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.28</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Increase in net tangible book value per Share after this offering</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.50</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Pro forma net tangible book value per Share after this offering</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.78</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Dilution in net tangible book value per Share to new investors</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(3.72</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
</TABLE>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">If the underwriter&rsquo;s option to purchase additional shares of our common stock from us is exercised in full, the pro
forma as adjusted net tangible book value per share of our common stock, as adjusted to give effect to this offering, would
be $1.78 per share, and the dilution in pro forma net tangible book value per share to new investors purchasing shares of
common stock in this offering would be $3.72 per share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth, assuming
the sale of 1,275,000 shares of our common stock in this offering, as of March 31, 2019, the total number
of shares of common stock previously issued and sold to existing investors, the total consideration paid for the foregoing and
the average price per share of common stock, before deducting estimated underwriter commissions, offering expenses and the repayment
of the amount outstanding under the revolving credit facility, in each case payable by us. As the table shows, new investors purchasing
shares of our common stock in this offering may in certain circumstances pay an average price per Share substantially higher than
the average price per share paid by our existing stockholders.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: justify; border-bottom: Black 1.5pt solid">March 31, 2019</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">Number of Shares</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Purchased Percentage</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total Consideration Amount</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total Consideration Percent</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Average Price Per Share</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><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: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: justify">Existing Stockholders</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">6,006,694</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">82.5</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">15,940,637</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">69.4</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2.65</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">New Investors</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">1,275,000</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">17.5</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">%</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">7,012,500</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">30.6</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">%</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">$</TD><TD STYLE="text-align: right; padding-bottom: 1.5pt">5.50</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 4pt">Total:</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 4pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 4pt double">7,281,693</TD><TD STYLE="text-align: left; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 4pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 4pt double">100</TD><TD STYLE="text-align: left; padding-bottom: 4pt">%</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 4pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 4pt double">22,953,137</TD><TD STYLE="text-align: left; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 4pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 4pt double">100</TD><TD STYLE="text-align: left; padding-bottom: 4pt">%</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="text-align: right; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 4pt">&nbsp;</TD></TR>
</TABLE>



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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A $1.00 increase (decrease) in the assumed
public offering price of $5.50 per Share would increase (decrease) our pro forma net tangible book value (deficit), as adjusted
to give effect to this offering, to $1.94 per share ($2.04, if the underwriter exercises the over-allotment option in full), the
increase (decrease) attributable to this offering by $0.16 per share ($0.18, if the underwriter exercises the over-allotment option
in full), and the dilution in pro forma net tangible book value (deficit) per Share to new investors in this offering by ($0.84)
per Share ($0.82, if the underwriter exercises the over-allotment option in full), assuming the number of shares of our common
stock offered by us remains the same and after deducting estimated underwriter commissions and offering expenses payable by us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Similarly, an increase (decrease) of one
million shares of our common stock offered by us would increase (decrease) our pro forma net tangible book value (deficit), as
adjusted to give effect to this offering, to $2.18 per share ($2.24, if the underwriter exercises the over-allotment option in
full), the increase (decrease) attributable to this offering by $0.40 per share ($0.38, if the underwriter exercises the over-allotment
option in full), and the dilution in pro forma as adjusted net tangible book value (deficit) per Share to new investors in this
offering by $0.40 per share ($0.38, if the underwriter exercises the over-allotment option in full), assuming the public offering
price remains the same and after deducting estimated underwriter commissions and offering expenses payable by us.</P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The tables above exclude the following shares:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,500,000 shares of common stock reserved
for future issuance under our 2018 Equity Incentive Plan as of May 31, 2019;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">331,750 shares of common stock issuable
upon the exercise of options (of which 236,853 have vested) outstanding as of March 31, 2019;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Up to 63,750 shares of common stock issuable
upon exercise of the underwriter&rsquo;s warrants in connection with this offering, assuming the Maximum Amount is sold, with the
full exercise by the underwriter of the over-allotment option; and</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Approximately 63,570 shares of common
stock that may be issued by us upon conversion of the 6-month notes (assuming no interest is paid on the 6-month notes).</FONT></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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_009"></A>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>The following discussion and analysis
summarizes the significant factors affecting the consolidated operating results, financial condition, liquidity and cash flows
of our Company as of and for the periods presented below. The following discussion and analysis should be read in conjunction with
our consolidated financial statements and the related notes thereto included elsewhere in this prospectus. The discussion contains
forward-looking statements that are based on the beliefs of management, as well as assumptions made by, and information currently
available to, our management. Actual results could differ materially from those discussed in or implied by forward-looking statements
as a result of various factors, including those discussed below and elsewhere in this prospectus, particularly in the sections
titled &ldquo;Risk Factors&rdquo; and &ldquo;Cautionary Statement Regarding Forward-Looking Statements&rdquo;.</I></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">LMP Automotive Holdings, Inc., through
its subsidiaries, currently offers our customers the opportunity to buy, sell, rent, and subscribe for, and obtain financing for
automobiles both online and in person.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We describe our business model as &ldquo;Buy,
Rent or Subscribe, Sell and Repeat.&rdquo; This means that we &ldquo;Buy&rdquo; pre-owned automobiles primarily through auctions
or directly from other automobile dealers, and new automobiles from manufacturers and manufacturer distributors at fleet rates.
We &ldquo;Rent or Subscribe&rdquo; by either renting automobiles to our customers or allowing them to enter into our subscription
plan for automobiles in which customers have use of an automobile for a minimum of thirty (30) days. We &ldquo;Sell&rdquo; our
inventory, including automobiles previously included in our rental and subscription programs, to customers as well, and then we
hope to &ldquo;Repeat&rdquo; the whole process.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company was incorporated under the
laws of Delaware in December 2017. Samer Tawfik, our founder, Chairman, President and Chief Executive Officer, contributed one
hundred percent (100%) of the equity interests in each of LMP Motors.com, LLC and LMP Finance, LLC into the Company in December
2017, and in January 2018, 601 NSR, LLC and LMP Automotive Holdings, LLC made the Company their sole member. As a result of the
reorganization, the Company now owns one hundred percent (100%) of the equity in each of these four entities. LMP Motors.com, LLC
currently operates our automobile sales business. LMP Finance, LLC currently operates our rental and subscription business. 601
NSR, LLC and LMP Automotive Holdings, LLC were formed to enter into future potential strategic acquisitions, but are currently
inactive. As a result of the reorganization, Mr. Tawfik received 15,750,000 shares of common stock and ST RXR Investments, Inc.,
a company wholly owned and controlled by Mr. Tawfik, received 5,250,000 shares of common stock.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2018, we completed a private
placement offering,&nbsp;pursuant to which we sold 2,858,030 shares of our common stock, at a purchase price of $3.33 per share,
for an aggregate purchase price of $9,517,239.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From June 2018 through October 2018, we
sold an aggregate of 787,264 shares of our common stock, in a private placement offering, at a purchase price of $4.75 per share,
for an aggregate purchase price of $3,739,505. We intend to continue to offer and sell additional shares of our common stock until
the consummation of this offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the second and third quarters of
2018, we issued the 6-month notes in an aggregate principal amount of $1,448,965, pursuant to a private placement offering. The
6-month notes bear interest at 4%&nbsp;per annum and mature six (6) months from the date of issuance,&nbsp;at which time the principal
and any accrued but unpaid interest shall be due and payable. The holders of the 6-month notes may, at any time prior to the maturity
date, convert the 6-month notes (and accrued interest) into shares of our common stock by dividing (a) the outstanding principal
balance and unpaid accrued interest under the applicable 6-month note on the date of conversion by (b) $4.75 (subject to adjustment
as provided in the 6-month notes). Based on the terms of the conversion rights, we did not recognize a beneficial conversion discount.&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the fourth quarter of 2018, we repaid
one of the 6-month notes in the principal amount of approximately $285,015, leaving a balance on the remaining 6-month notes of
approximately $1,164,000, plus accrued interest, at December 31, 2018.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the first quarter of 2019, we repaid
two of the 6-month notes in the aggregate principal amount of $365,000, leaving a balance on the remaining 6-month notes of $798,950,
plus accrued interest, at March 31, 2019.&nbsp;&nbsp;In April 2019, we repaid seven of the 6-month notes in the principal amount
of $497,000.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subsequent to March 31, 2019, we extended
certain of the 6-month notes that became due.&nbsp;&nbsp;Two of the 6-month notes in the amount of approximately $121,000 were
extended to June 15, 2019, two of the 6-month notes in the amount of approximately $45,000 were extended to August 14, 2019, and
another two in the amount of approximately $135,950 were extended to September 17, 2019.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The total outstanding principal balance
on the remaining 6-month notes as of May 31, 2019 was $301,950.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the private placement
offerings, each of the investors executed a stockholders&rsquo; agreement. The stockholders&rsquo; agreement contains, among other
things, certain restrictions on the ability of such investors to freely transfer shares of our common stock, as well as customary
drag-along rights and tag-along rights, and such agreement terminates upon the consummation of this offering. In connection with
this offering, we are soliciting lock-up agreements from all of our current shareholders whereby they will agree, for a period
of 180 days after the date of this prospectus, not to directly or indirectly:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">offer, pledge, assign, encumber, announce the intention to sell, sell, contract to sell, sell any
option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend,
or otherwise transfer or dispose of, directly or indirectly, any shares of our capital stock or any securities convertible into
or exercisable or exchangeable for shares of our capital stock; or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">enter into any swap or other agreement that transfers, in whole or in part, any of the economic
consequences of ownership of our securities, whether any such transaction is to be settled by delivery of shares of our common
stock or such other securities, in cash or otherwise; or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">sell, agree to sell, offer or sell, solicit offers to purchase, grant any call option, warrant
or other right to purchase, purchase any put option or other right to sell, pledge, borrow or otherwise dispose of our securities;
or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">establish or increase any &ldquo;put equivalent position&rdquo; or liquidate or decrease any &ldquo;call
equivalent position&rdquo; (in each case within the meaning of Section 16 of the Exchange Act) with respect to any of our securities;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">make any demand for or exercise any right with respect to, the registration of any of our securities;
or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">otherwise enter into any swap, derivative or other transaction or arrangement that transfers to
another, in whole or in part, any economic consequence of ownership of securities, whether or not such transaction is to be settled
by delivery of our securities, other securities, cash or other consideration; or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">publicly announce an intention to do any of the foregoing.</TD></TR></TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of financial statements
in conformity with accounting principles generally accepted in the United States requires our management to make assumptions, estimates
and judgments that affect the amounts reported in the financial statements, including the notes thereto, and related disclosures
of commitments and contingencies, if any. We consider our critical accounting policies to be those that require the more significant
judgments and estimates in the preparation of financial statements, including the following:</P>

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s business consists of
retail and wholesale sales of used vehicles to customers. Sales are based on the network of physical showrooms and efficient online
showrooms on the Company&rsquo;s websites. The Company offers a home delivery service so that the Company delivers the car to the
place agreed upon with the client. The Company also sells used vehicles in auctions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company recognizes revenue when it
satisfies a performance obligation by transferring control of a vehicle to a customer. The prices of the vehicles are stated in
its contracts at stand-alone selling prices which are agreed upon with its customer prior to delivery. The Company satisfies its
performance obligation for used vehicle sales upon delivery when the transfer of title, risks and rewards of ownership and control
pass to the customer. The Company recognizes revenue at the agreed-upon price stated in the contract, including any delivery charges.
In addition, any noncash consideration received from a customer (i.e., trade-in vehicles) are recognized at fair value. Customer
payment is received or 3<SUP>rd</SUP>-party financing has been confirmed prior to vehicle transfer. The Company collects sales
taxes and other taxes from customers on behalf of governmental authorities at the time of sale. These taxes are accounted for on
a net basis and are not included in sales or cost of sales.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company offers a vehicle subscription
plan where a customer will pay a monthly fee in exchange for access to a car. The Company&rsquo;s subscriptions include monthly
swaps, scheduled maintenance and upkeep, and even insurance in some cases. Customers have the flexibility to up-or-downgrade a
vehicle monthly with the vehicle payment adjusted accordingly. There is $575 annual subscription activation fee and the monthly
payments are dependent upon the vehicle selected by the customer.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company recognizes revenue when it
satisfies a performance obligation by transferring control of a vehicle to a customer under a subscription contract. The prices
of the vehicles are stated in its contracts at stand-alone subscription prices which are agreed upon with the customer prior to
delivery. The Company satisfies its performance obligation for monthly subscription payments upon delivery to the customer and
in each subsequent month the customer retains possession of the vehicle. The Company recognizes revenue at the agreed-upon price
stated in the contract in the month earned.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company also receives an upfront customer
payment as an annual membership fee to its vehicle subscription program. This fee is deferred and amortized to income monthly over
the period of membership.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Customer payment has been received prior
to initial vehicle transfer and on each monthly recurring anniversary date.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company recognizes vehicle rental income
over the period the vehicle is rented. Performance obligations associated with vehicle rental transactions are satisfied over the
rental period. Rental periods are short term in nature. Performance obligations associated with rental related activities, such
as charges to the customer for the fueling of vehicles and value-added services such as loss damage waivers, navigation units,
and other ancillary products, are also satisfied over the rental period.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Payments are due from customers at the
time of reservation. Additional charges incurred by the customers are collected at the time of vehicle return. The Company collects
sales taxes and other taxes from customers on behalf of governmental authorities at the time of sale. These taxes are accounted
for on a net basis and are not included in sales or cost of sales.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We carry our accounts receivable at cost.
The terms of our accounts receivable require payment upon receipt. We establish an allowance based on our management&rsquo;s assessment
of the creditworthiness of the customers, the aged basis of the receivables, as well as current economic conditions and historical
information. Management has determined that no allowance for uncollectible accounts for accounts receivable were necessary at December
31, 2018 and 2017.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We recognize the cost of services received
in exchange for awards of stock options in accordance with ASC 718 &ldquo;Stock Compensation&rdquo;, based on the fair value of
those awards at the date of grant over the requisite service period, which generally is the vesting period of the award. We use
the Black-Scholes option pricing model to determine the fair value of stock option awards.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We account for income taxes under ASC 740
&ldquo;Income Taxes&rdquo; which codified SFAS 109, &ldquo;Accounting for Income Taxes&rdquo; and FIN 48 &ldquo;Accounting for
Uncertainty in Income Taxes &ndash; an Interpretation of the Financial Accounting Standards Board, or the FASB, Statement No. 109.&rdquo;
Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective
tax bases. 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. Under ASC 740, the effect on deferred tax assets
and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided
for certain deferred tax assets if it is more likely than not that we will not realize tax assets through future operations.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We compute net loss per share accordance
with FASB ASC 205 &ldquo;Earnings per Share.&rdquo; FASB ASC 205 requires presentation of both basic and diluted earnings per share
(EPS) on the face of the income statement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Basic EPS is computed by dividing net loss
available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period.
Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period. Diluted EPS excludes all potentially
dilutive shares if their effect is anti-dilutive.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Fair Value of Financial Instruments</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our financial instruments consist of cash,
prepaid expenses, payables, accrued expenses and notes payable. Fair value estimates are made at a specific point in time, based
on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties
and matters of significant judgment and therefore cannot be determined with precision. We consider the carrying values of our financial
instruments in the consolidated financial statements to approximate fair value, due to their short-term nature.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s inventory consists
of automobiles. Inventories are valued at the lower of cost or market, with cost determined by specific identification and with
market defined as net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business,
less reasonably predictable costs of completion, disposal, and transportation. Inventories at March 31, 2019 and December 31, 2018
are recorded based on perpetual inventory records.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company depreciates its fleet inventory
monthly based on 1% of initial cost starting in 2018 when the subscriptions and rentals were launched. &nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We periodically review our automobile inventory
to determine whether any inventories have become obsolete or have declined in value, and record a charge to operations for known
and estimated inventory obsolescence.&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property and equipment are recorded at
cost, less accumulated depreciation. Depreciation is provided for using straight-line methods over the estimated useful lives of
the respective assets, ranging from 5 to 7 years.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We periodically evaluate long-lived assets
for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable.
If the estimated future cash flows (undiscounted and without interest charges) from the use of an asset were less than the carrying
value, a write-down would be recorded to reduce the related asset to its estimated fair value.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2016, the FASB issued ASU 2016-02,
&ldquo;Leases&rdquo; which, for operating leases, requires a lessee to recognize a right-of-use asset and a lease liability, initially
measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single
lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The
ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption
of ASU 2016-02 resulted in the recognition of right of use assets and related obligations on our balance sheets. The provisions
of ASU 2016-02 also conforms lessor accounting to the new revenue recognition guidance in ASU 2014-09. We are assessing the provisions
of our vehicle rental contracts that convey the right to control the use of identified assets to determine whether these contracts
are within the scope of the accounting guidance contained in ASU 2016-02.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In July 2018, the FASB issued additional
guidance on the accounting for leases. The guidance provides companies with another transition method that allows entities to recognize
a cumulative-effect adjustment to the opening balance of retained earnings as of the date of adoption. Under this method, previously
presented years&rsquo; financial positions and results are not adjusted. The Company adopted this alternative transition method.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The provisions of ASU 2016-02 also conforms
lessor accounting to the new revenue recognition guidance in ASU 2014-09. We recognize our rental revenue contracts, which are
short-term in nature, in accordance with the guidance provided by ASU 2014-09.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Quarter Ended March 31, 2019 Compared
to Quarter Ended March 31, 2018</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We generated revenues of $4,937,747 for
the three month period ended March 31, 2019 from the sales of pre-owned vehicles from our website and Plantation, Florida location,
in addition to rental and subscription revenue, as compared with revenues of $2,384,595, during the comparative three-month period
ended March 31, 2018, an increase of $2,553,152. The increase was mainly due to the Company having to sell vehicle inventory earlier
than anticipated to satisfy short-term convertible note obligations that matured and to accept additional vehicle inventory ordered
earlier in the year. We do not expect revenues from vehicle sales to remain at these heightened levels in 2019. Revenues in 2019
include $172,433 from our rental program and $292,422 from our subscription program, which commenced subsequent to the first quarter
of 2018.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cost of vehicles sold was $5,048,573 for
the three months ended March 31, 2019, resulting in a negative gross margin of $110,826. Cost of vehicles sold for the comparative
three months ended March 31, 2018 was $2,558,694, resulting in a negative gross margin of $174,099 due to test marketing and incentive
pricing.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Selling, General and Administrative
Expenses</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We incurred SG&amp;A expenses of
$1,041,728 during the three months ended March 31, 2019, an increase of $614,059 as compared with the balance for the three
months ended March 31, 2018 of $427,669. The significant increase in SG&amp;A expenses is a result of increases in payroll
expenses of $213,225 from the three-month period ended March 31, 2018 to the same period in 2019, in addition to increases in
the use of outside services for legal and consulting fees of $97,477 comparing the three-month periods, and increases in rent
expenses of $97,313, which were related to the implementation of our business plan.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In 2019, we discontinued our Miami Beach,
FL rental operations and consolidated them with our Plantation, FL operation.&nbsp; As a result, two leases that approximated $415,000
per year were terminated and we reduced staff by eight employees whose salaries approximated $356,000 in an effort to reduce overhead
expenses. &nbsp;&nbsp;</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We incurred depreciation expenses of $314,008
during the three months ended March 31, 2019 including $290,919 included in cost of revenues for depreciation of inventory, as
compared to $8,373 during the three months ended March 31, 2018, an increase of $305,636. This increase was primarily due to depreciation
on vehicles held in inventory.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We sustained net losses of $1,400,611 and
$766,490 for the three months ended March 31, 2019 and 2018, respectively, for the reasons described above.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2019, we had an accumulated
deficit of $7,971,118. We have incurred net losses since inception, and have funded operations primarily through sales of our common
stock and issuance of debt. As of March 31, 2019 we had $472,199 in cash. The net increase in cash of $48,047 during the three
month period ended March 31, 2019 and net increase in cash of $354,990 during the three month period ended March 31, 2018 is due
to the following activities:</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash provided by operating activities
was $1,145,261 as compared to net cash used of $7,740,184 for the three months ended March 31, 2019 and 2018, respectively. The
$8,885,445 increase in net cash generated by operating activities was primarily due to a decrease in inventory of $2,756,083 during
the three month period ended March 31, 2019, reduced by the net loss for the period of $1,400,611, as compared to an increase in
inventory of $6,209,235 during the three month period ended March 31, 2018, in addition to the net loss of $766,490 for the period.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in investing activities was
$17,703 as compared to $51,741 for the three months ended March 31, 2019 and 2018, respectively. The $34,038 decrease in net cash
used in investing activities was primarily due to fewer purchases of property and equipment in 2019, with $7,484 of property and
equipment purchased in the three month period ended March 31, 2019, as compared to $49,491 purchased during the same period in
2018.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in financing activities was
$1,079,511 as compared to net cash generated of $8,146,915 for the three months ended March 31, 2019 and 2018, respectively. The
$9,226,426 decrease in net cash from financing activities was primarily due to cash received from the issuance of common stock
of $9,513,415 during the three month period ended March 31, 2018, as compared to cash used to pay down certain Convertible Notes
Payable of $365,000 and repurchase shares recorded to Treasury Stock of $403,750 during the three month period ended March 31,
2019.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Use of Cash and Cash Requirements</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the fourth quarter of 2018 and in
the first quarter of 2019, we sold certain fleet vehicles to make payments on convertible notes and fund our common stock repurchases,
as well as to purchase additional fleet vehicles and fund our monthly recurring overhead.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the first quarter of 2019 we purchased
an aggregate of 85,000 shares of our common stock from three (3) shareholders at an aggregate price of $4.75 per share, or $403,750.
In April 2019, we purchased 53,600 shares of our common stock from one (1) shareholder at an aggregate price of $4.75 per share,
or $254,600. These shares are currently held in treasury.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In 2019, we discontinued our Miami Beach,
FL rental operations and consolidated them with our Plantation, FL operation.&nbsp; As a result, two leases that approximated $415,000
per year were terminated and we reduced staff by eight employees whose salaries approximated $356,000 in effort to reduce overhead
expenses. &nbsp;&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From inception to December 31, 2017 we
have funded our activities through capital contributions from Mr. Tawfik and issuances of notes payable to related parties.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In January 2018, we entered into the
$1,500,000 revolving credit facility with ST RXR, which is owned and controlled by our founder, Chairman, President and Chief
Executive Officer, pursuant to a Revolving Line of Credit Agreement, or the LOC agreement. At March 31, 2019,
approximately $1,500,000 was outstanding under the revolving credit facility. The LOC agreement expires on the earlier
of written demand by the lender or May 21, 2020.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From January 1 through March 31, 2018,
we received an aggregate of $9,517,239 through the issue and sale of our common stock, at purchase price of $3.33 per share pursuant
to a private placement offering to accredited investors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the fourth quarter of 2018, we repaid
one of the 6-month notes in the principal amount of approximately $285,015, leaving a balance of approximately $1,164,000, plus
accrued interest, at December 31, 2018. During the first quarter of 2019, we repaid two of the 6-month notes in the principal amount
of $365,000, leaving a balance of $798,950, plus accrued interest, at March 31, 2019. In April 2019 we repaid seven of the 6-month
notes in the principal amount of $497,000 leaving a balance of $301,950, plus accrued interest, at April 30, 2019.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In 2019 we extended certain of the 6-month notes that became
due. Two of the 6-month notes were extended to June 15, 2019 for approximately $121,000, two of the 6-month notes were extended
to August 14, 2019 for approximately $45,000, and another two were extended to September 17, 2019 for approximately $135,950.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In 2018, we have entered into a letter
agreement with an importer of new BMW and MINI automobiles which has expired and the remaining balance for vehicles to be delivered
is approximately $530,000 as of April 30, 2019.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the second quarter of 2019, Mercedes-Benz
Financial has approved $3.5 million leasing credit line for our subscription and rental fleet inventory purchases.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not have any off-balance sheet arrangements
as defined in Regulation S-K Item 303(a)(4).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Year Ended December 31, 2018 Compared
to the Year Ended December 31, 2017</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We generated revenues of $16,610,786 for
the year ended December 31, 2018 from the sales of pre-owned vehicles from our website and Plantation, Florida location, in addition
to rental and subscription revenue, as compared with revenues of $3,759,031, during the comparative year ended December 31, 2017,
an increase of $11,955,480. The increase was mainly due to our ability to fulfill more transactions that come from greater brand
acceptance of our platform due to continuing expenditures in marketing and sales. Revenues in 2018 include $539,952 from our rental
program and $356,323 from our subscription program, which commenced in 2018.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Costs of revenues were $18,567,775 for
the year ended December 31, 2018, resulting in a negative gross margin of $1,956,989. These costs included $889,388 of costs of
revenues for rental revenues and subscription fees in 2018. Costs of revenues for the comparative year ended December 31, 2017
were $3,994,079, resulting in a negative gross margin of $235,048 due to test marketing and incentive pricing.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Selling, General and Administrative
Expenses</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We incurred SG&amp;A expenses of $3,278,051
during the year ended December 31, 2018, an increase of $2,163,942 as compared with the amount incurred during the year ended December
31, 2017 of $1,114,109. The increase in SG&amp;A expenses is a result of increases in payroll and other administrative costs to
support our increase in revenues and overall business activity during 2018.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We incurred depreciation expenses of $45,505
during the year ended December 31, 2018, as compared to $29,291 during the year ended December 31, 2017, an increase of $16,214.
This increase is due to the purchase of significant fixed assets during the year, especially in furniture and leasehold improvements
as we moved locations in March, 2018 and performed remodels for both the Plantation, FL and the Miami Beach, FL locations.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We sustained net losses of $6,490,293 and
$1,423,662 for the years ended December 31, 2018 and 2017, respectively, for the reasons described above.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2018, we had an accumulated
deficit of $6,552,886. We have incurred net losses since inception, and have funded operations primarily through sales of our common
stock, issuance of debt and a related party line of credit. As of December 31, 2018 we had $424,152 in cash.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth the primary
sources and uses of cash for the years ended December 31, 2018 and 2017:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; padding-left: 0">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">Years Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; padding-left: 0">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0">Net cash used in operating activities</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">(13,472,142</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">(4,617,347</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0">Net cash used in investing activities</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(437,957</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(214,950</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0">Net cash provided by financing activities</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">14,116,891</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,728,755</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0">Net increase (decrease) in cash</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">206,792</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(103,452</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
</TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in operating activities was
$13,472,142 as compared to $4,617,347 for the years ended December 31, 2018 and 2017, respectively. The $8,854,795 increase in
net cash used in operating activities was primarily due to an increase in purchases of vehicles in inventory and a larger net loss
for the year ended December 31, 2018, as compared to December 31, 2017.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in investing activities was
$437,957 as compared to $214,950 for the years ended December 31, 2018 and 2017, respectively. The $223,007 increase in net cash
used in investing activities was due to larger purchases of property and equipment in 2018, two location remodels and purchases
of software included in intangible assets.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash provided by financing activities
was $14,116,891 as compared to $4,728,755 for the years ended December 31, 2018 and 2017, respectively. The $9,388,136 increase
in net cash provided by financing activities was primarily due to cash received from the issuance of common stock of $13,256,534
during the year ended December 31, 2018, as compared to cash contributed from shareholders of $3,637,255 during the year ended
December 31, 2017. In 2018 the Company also issued $1,448,965 in 6 month, 4% convertible notes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Use of Cash and Cash Requirements</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During 2018 and in the first quarter of
2019, we sold certain fleet vehicles to make payments on convertible notes and fund our common stock repurchases, as well as to
purchase additional fleet vehicles and fund our monthly recurring overhead.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the first quarter of 2019, we purchased
an aggregate of 85,000 shares of our common stock from three shareholders at an aggregate price of $4.75 per share, or $403,750.
In April 2019, we purchased 53,600 shares of our common stock from one shareholder at an aggregate price of $4.75 per share, or
$254,600. These shares are currently held in treasury.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From inception to December 31, 2018 we
have funded our activities through capital contributions from Mr. Tawfik, issuances of common stock, and issuances of notes payable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In January 2018, we entered into the $1,500,000
revolving credit facility with ST RXR, a company owned and controlled by Mr. Tawfik, pursuant to the LOC agreement.&nbsp; At December
31, 2018, approximately $1,775,000 was outstanding under the revolving credit facility.&nbsp; The LOC agreement expires on the
earlier of written demand by the lender or May 21, 2020.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From January 1 through December 31, 2018,
we received an aggregate of $13,256,534 through the issue and sale of our common stock, at a purchase price of $3.33 per share
pursuant to a private placement offering to accredited investors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the fourth quarter of 2018, we repaid
one of the 6-month notes in the principal amount of approximately $285,015, leaving a balance of approximately $1,164,000, plus
accrued interest, at December 31, 2018.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subsequent to December 31, 2018, we repaid
two of the 6-month notes in the principal amount of $365,000, leaving a balance of $798,950, plus accrued interest, at March 31,
2019. In April 2019 we repaid seven of the 6-month notes in the principal amount of $497,000 leaving a balance of $301,950, plus
accrued interest, at April 30, 2019.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subsequent to December 31, 2018, we extended
certain of the 6-month notes that became due. Two of the 6-month notes were extended to June 15, 2019 for approximately $121,000,
two of the 6-month notes were extended to August 14, 2019 for approximately $45,000, and another two were extended to September
17, 2019 for approximately $135,950.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In 2018, we entered into a letter agreement
with an importer of new BMW and MINI automobiles which has expired and the remaining balance for vehicles to be delivered is approximately
$530,000 as of April 30, 2019.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subsequent to year-end, Mercedes-Benz Financial
approved $3.5 million for our subscription and rental fleet inventory purchases.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not have any off-balance sheet arrangements
as defined in Regulation S-K Item 303(a)(4).</P>



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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_010"></A>BUSINESS</B></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-align: center"><B>Our Mission</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our goal is to provide an e-commerce and
facilities-based retail platform for consumers who desire to buy, sell, rent, subscribe for or finance pre-owned and new automobiles.
We seek to provide our customers with a simple, convenient, transparent and pleasant retail experience. In addition to our current
operations launched in 2017, we intend to seek strategic acquisitions of pre-owned and new automobile dealerships and car rental
companies in order to facilitate efficient growth.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">LMP Automotive Holdings, Inc., through
its wholly owned subsidiaries, currently offers our customers the opportunity to buy, sell, rent and subscribe for, and obtain
financing for automobiles both online and in person.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We describe our business model as &ldquo;Buy,
Rent or Subscribe, Sell and Repeat.&rdquo; This means that we &ldquo;Buy&rdquo; pre-owned automobiles primarily through auctions
or directly from other automobile dealers, and new automobiles from manufacturers and manufacturer distributors at fleet rates.
We &ldquo;Rent or Subscribe&rdquo; by either renting automobiles to our customers or allowing them to enter into our subscription
plan for automobiles in which customers have use of an automobile for a minimum of thirty (30) days. We &ldquo;Sell&rdquo; our
inventory, including automobiles previously included in our rental and subscription programs, to customers as well, and then we
hope to &ldquo;Repeat&rdquo; the whole process.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_008.jpg" ALT="">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe we offer a stress-free and user-friendly
experience, either directly or through arrangements with third parties, that enables consumers to efficiently:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 2%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="width: 51%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Browse and purchase a vehicle</FONT></TD>
    <TD STYLE="width: 2%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 2%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="width: 41%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subscribe for a vehicle(s)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rent a vehicle</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sell or trade-in vehicles</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Obtain pre-approval for financing (through third parties)</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Buy extended warranties (through third parties)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule deliveries and pick-ups (typically through third parties)</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our platform is designed to streamline
the automobile transaction value chain by digitizing a substantial part of the sales and transaction process. We believe this will
enhance the consumer experience by creating operational efficiencies designed to improve our financial and business performance.
We also intend to centralize sales, title, tag, finance, insurance and logistics operations in order to create additional financial
and operational benefits, as well as a positive consumer experience. We believe that bringing more of the vehicle shopping and
transaction experience online will provide consumers with a broader range of purchase, rental and subscription options while eliminating
time spent in negotiation and haggling.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We commenced our operations in the first
quarter of 2017. Currently we only offer sales of pre-owned automobiles, and rentals and subscriptions for both pre-owned and new
automobiles. Our fleet consists of 215 automobiles in total. Of those, 118 are offered for subscription, eight are offered for
rental, 40 are available to drivers for rideshare applications, including Uber and Lyft, and 49 are held for sale. Our current
facility is approximately 8,771 square feet on 1.25 acres of land. Our facility contains storage for ten vehicles on the interior
and up to 90 on the exterior. We expect that we can facilitate over 1,000 subscribers in our current facility.</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company was incorporated under the
laws of Delaware in December 2017. Samer Tawfik, our founder, Chairman, President and Chief Executive Officer, contributed one
hundred percent (100%) of the equity interests in each of LMP Motors.com, LLC and LMP Finance, LLC into the Company in December
2017, and in January 2018, 601 NSR, LLC and LMP Automotive Holdings, LLC made the Company their sole member. As a result of the
reorganization, the Company now owns 100% of the equity in each of these four entities. LMP Motors.com, LLC currently operates
our automobile sales business. LMP Finance, LLC currently operates our rental and subscription business. 601 NSR, LLC and LMP Automotive
Holdings, LLC were formed to enter into future potential strategic acquisitions, but are currently inactive.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that the following are the current
key drivers of growth for the automobile industry:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Economic Drivers</B>. Consumer confidence and employment are currently at a 17-year high, which we believe will lead to continued growth in consumer spending, including increased spending on automobiles.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Emerging Technologies and Disruptive Business Models</B>. We believe the U.S. automobile industry is rapidly evolving through the adoption of new technologies and disruptive business models, which we believe is driven primarily by consumer expectations and demands for a better purchasing experience.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Off-Lease Vehicles</B><I>.</I> Sales of &ldquo;off-lease vehicles,&rdquo; or automobiles that are resold after being leased, have increased steadily from 17% growth in 2010 to nearly 25% in 2017. We believe that the off-lease vehicle market can provide a steady supply of high-quality automobiles that will offer consumers a viable alternative to the new-vehicle market. We expect that this will result in increased competition with the new vehicle market.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Subscription Market</B>. The subscription model has been widely adopted in several different sectors, such as consumer goods, streaming media and data cloud services. Driven by consumer demand, the automobile industry has begun adopting a subscription model as an alternative to ownership and leasing. Although we believe that car ownership will continue to dominate the industry, we expect that the auto subscription segment will grow steadily.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Pre-Owned Automobile Sales Market</B><I>.</I> In 2017, the U.S. automotive industry generated approximately&nbsp;$1.2 trillion in sales, which represented approximately 21% of the U.S. retail economy. According to the Cox Automotive 2018 Used Car Market Report &amp; Outlook, in 2018, approximately 39.5 million pre-owned vehicles are expected to be sold, up from 39.3 million pre-owned vehicles sold in 2017, with an average price, according to Edmund.com, of approximately $19,500. New vehicle sales fell by approximately 2% from 2017.</FONT></TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><IMG SRC="image_009.jpg" ALT=""></P>
<P STYLE="font: 10pt Times New Roman, Times, 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: 1.25in">Source: Edmunds.com</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The pre-owned automobile retail industry
is highly fragmented. Currently, there are approximately 43,000 used car dealerships in the U.S., with the largest dealer compromising
approximately 1.7% of the market in the United States. The top 100 pre-owned auto dealers collectively account for approximately
7.0% of the U.S. market according to Edmunds.com and Automotive News.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that the traditional pre-owned
auto dealership model is cost intensive, operationally challenging and difficult to scale. In general, providing full service to
a customer requires inspection, repair, reconditioning and showroom facilities, as well as inventory sourcing and financing capabilities,
substantially all of which are done at each dealership location. All of these services require a substantial initial investment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Historically, consumers would research
and shop for automobiles using a combination of print and broadcast media, or by visiting local dealerships. However, we believe
this paradigm is shifting, as consumers are now increasingly relying on the Internet to research automobiles, compare pricing and
financing options, estimate trade-in values, and even complete transactions. According to the 2018 Cox Automotive Car Buyer Journey,
today&rsquo;s average car buyer spends 60% of their time online researching and shopping for an automobile, or almost nine hours.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that consumers have also become
comfortable conducting their retail purchases of higher-priced products such as consumer electronics and home furnishings through
the Internet. According to the U.S. Census Bureau, 10.5% of total retail sales in the U.S. in the fourth quarter of 2017 were completed
online. We believe that similar trends are emerging in the automobile industry, as consumers are interested in e-commerce solutions
for their pre-owned automobile purchasing needs. According to Capgemini&rsquo;s 2017 Cars Online Trend Study, 80% of U.S. car buyers
would consider completing their entire automobile purchase online if given the opportunity.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Traditionally, the process of purchasing
an automobile has been lengthy and involved. On average, consumers spend three hours in the dealership to purchase a vehicle, with
more than half of that time spent negotiating and completing paperwork. Through our e-commerce and facilities based platform, we
believe that we broaden the consumer&rsquo;s access to the pre-owned automobile market, boost transaction efficiency, more effectively
facilitate supply and demand matching, and modernize traditional transaction processes.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Automobile-related companies that operate
through an Internet-based business model are demonstrating significant growth.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><IMG SRC="image_010.jpg" ALT=""></P>
<P STYLE="font: 10pt Times New Roman, Times, 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: 1.5in">Source: Public filings.</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: center"><B>Our Solution</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our hybrid business model combines an e-commerce
platform for those wishing to purchase online with the option for a traditional in-person transaction at our physical location.
We intend to eventually carry significant inventory at multiple locations throughout the United States, expanding the selection
available to consumers. We also offer multiple alternatives for automobile acquisition, including sale (with or without financing),
rental and subscription. Management is not aware of any other company currently offering this unique suite of options for consumers.
Currently, we operate from one location in Plantation, Florida. We believe that by providing these alternatives, we can be more
attractive to potential customers and compete favorably in the marketplace.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are able to effect sales nationwide,
subject to local regulation, whereas existing non-Internet based car dealers are generally limited to their local region. Through
our platform, either directly or through third parties, consumers can research and identify an automobile, obtain financing and
warranty coverage, purchase, rent or subscribe for an automobile, and schedule and arrange for delivery or pick-up, all from their
desktop or mobile device or in person at our location.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our business model can be characterized
as &ldquo;Buy, Rent or Subscribe, Sell, and Repeat.&rdquo; We believe that a key differentiator to our business will be how this
combination of services will enable us to maximize revenue and profits per automobile.</P>

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

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    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Buying</B>. We purchase pre-owned automobiles primarily through auctions or directly from other automobile dealers. We purchase new automobiles from manufacturers and manufacturer distributors at fleet rates.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.25in">&nbsp;</P>

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    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Rentals</B>. We believe that renting automobiles in our fleet will enable us to capture incremental revenues from our inventory. In addition, we believe that the average amount of time an automobile remains on a lot prior to its sale ranges from approximately thirty (30) to one hundred and twenty (120) days. By placing a fraction of our automobiles into the rental fleet, we believe we can collect rental fees, as well as ancillary and insurance fees, which enhance our revenue and profit per automobile. We believe that there is growing demand for rental vehicles from drivers utilizing ride sharing services, including Uber and Lyft.</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify; text-indent: 0">&nbsp;</P>

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    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Subscriptions</B>. Offering a subscription service is another key component of our business model. Our subscription service will provide consumers with the ability to access, use and switch automobiles offered in accordance with the terms of the specific subscription package, which includes, in many cases, insurance, registration, and maintenance. We believe that a subscription model will create a recurring stream of revenue consisting of monthly subscription fees, and other ancillary fees, which we believe will enhance our profit per automobile. We believe that there is growing demand for subscription vehicles from ride-sharing service drivers, including Uber and Lyft drivers.</FONT></TD></TR>
</TABLE>

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

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    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Sales</B>. Sales of pre-owned automobiles are expected to remain the primary driver of our business, and currently represents a significant portion of our revenues. In connection with the sales process, we assist customers with obtaining financing and extended warranty coverage through third-party providers.</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">Keys to our business strategy:</P>

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

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    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Automobile sourcing and acquisition</B>. We plan to build and rebuild our inventories through fleet purchases, wholesale auctions, off-lease acquisitions and strategic acquisitions. Acquired automobiles are inspected and detailed, and reconditioned if necessary. Automobiles are then placed into our inventory, and descriptive information is uploaded to our e-commerce platform. We then determine which automobiles will be offered for rental and subscription, and which will be offered for sale.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.25in">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Automobiles</B>. We offer our consumers the opportunity to buy, rent or subscribe for automobiles built by foreign and domestic manufacturers. Consumers are able to select among sedans, sport utility vehicles, pick-up trucks, convertibles and sports cars from brands such as BMW, Mercedes-Benz, Land Rover, Toyota, Nissan, Jeep, Chevrolet, Ford, and GMC.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.25in">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Building large, centralized and clustered points-of-presence in key metropolitan areas throughout the United States</B>. Our plan is to establish large, centralized brick and mortar points-of-presence through organic development and/or strategic acquisitions of independent and franchised dealerships and car rental companies clustered in key metropolitan areas in order to expand our business. By integrating our platform and services with acquired entities, we seek to quickly and efficiently grow our inventory of automobiles, gain access to new facilities, expand our back-office capabilities and expand our business into new locations.</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">As illustrated below, we intend to establish
large, centralized brick and mortar points-of-presence in key strategic regions in the Southeast, Northeast, Midwest and West regions
of the United States.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: Red"><IMG SRC="image_011.jpg" ALT=""></P>

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

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    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Additional Revenue.</B> In addition to revenues from our automobile sales, rental and subscription services, we generate revenue from our customers through the sale of optional ancillary products and services, such as insurance, warranties, fuel charges and toll-passes. In addition, we arrange for our customers to obtain financing and warranty coverage through third parties for the automobiles they purchase. We may receive discounts and commissions for such services.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Photography and merchandising</B>. We photograph the interior and exterior of each automobile featured on our website and provide consumers with a virtual tour and relevant information about the automobile, including a vehicle history report. By providing consumers with detailed information about the automobile, we believe we can generate confidence and trust in our e-commerce platform.</FONT></TD></TR>
</TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In our various business segments, we compete
with online automotive marketplaces, dealers&rsquo; websites, dealers&rsquo; physical locations, car rental and subscription companies,
and ride-hailing and ride-sharing services. We believe that consumers are focused primarily on the quality of their experience,
price and selection. We believe that we compete favorably in each of these areas.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We compete for consumer visits with other
online automotive marketplaces and dealers&rsquo; physical locations and websites. We believe we compete for consumers primarily
on the basis of the quality of the consumer experience, price and selection. In addition, we are able to access inventory from
vehicles previously utilized in our rental and subscription platforms and subsequently offered for sale as pre-owned vehicles on
our platforms.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have also negotiated arrangements to
obtain new vehicles directly from certain manufacturers and manufacturer distributors at wholesale, fleet prices. These vehicles
initially will be offered in our rental and subscription platforms, and then offered for sale as pre-owned vehicles when the vehicle
is ready to be transitioned off of our rental and subscription platforms. We believe this strategy allows us to capture greater
total revenue per vehicle than most of our competitors.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to Auto Rental News, 2017 vehicle
rentals in the United States generated approximately $29 billion in revenues. Monthly revenue per unit in 2017 was approximately
$1,091, which was an improvement of 6.5% over 2016. We believe that the luxury vehicles offered under our rental program will likely
generate revenues at a higher level than this amount, since consumers are willing to pay more to rent these vehicles. In addition
to our current locations, we plan to open additional rental locations in close proximity to airports, popular tourist locations,
and business centers. We believe this will maximize our opportunity to attract business and leisure travelers who are seeking to
rent a luxury vehicle.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that the U.S. vehicle rental
industry is characterized by intense price and service competition among global, regional and local players. Competition is based
primarily on price, customer service quality, including the usability of booking systems and ease of rental and return, vehicle
availability, reliability, rental locations, and product innovation. In addition, we believe that competition is also strongly
influenced by advertising, marketing, loyalty programs and brand reputation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The use of online technology has increased
pricing transparency among vehicle rental companies by enabling cost-conscious consumers to more easily price-compare on the Internet.
We believe this transparency has further increased the prevalence and intensity of price competition in the industry. We believe
we will be able to offer competitive pricing for luxury vehicle rentals because our multiple platforms share overhead synergistically
in many cases. We also believe that there exists latent demand for luxury vehicle rentals in the U.S., and that this segment of
the rental market has strong growth potential.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our vehicle rental operations compete primarily
with Turo, Sixt Rent a Car; Enterprise Holdings, Inc. which operates the Enterprise, National and Alamo Car rental brands; Hertz
Global Holdings, Inc. which operates the Hertz, Dollar and Thrifty brands; Avis Budget Group, Inc., which operates the Avis, Budget
and Zipcar brands; and Europcar Group. In addition, there are smaller local and regional vehicle rental companies and ride-hailing
and ride-sharing companies that we compete with largely in urban areas.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The automotive industry has started to
adopt a subscription model that offers an alternative to the traditional automotive purchase or lease. Our subscription model enables
consumers to avoid the upfront capital requirements, financing costs and long-term contracts associated with buying or leasing.
In addition, the subscription model offers the convenience and flexibility of switching vehicles with a monthly fee, which includes,
in many cases, insurance, maintenance, servicing and roadside assistance, with a short-term commitment.</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our subscription model is intended to attract
consumers that have short-term and frequently changing vehicle needs, desire to switch vehicles regularly, and/or are seeking a
convenient alternative to a traditional purchase or lease arrangement. We believe that the subscription market is growing with
entrants including vehicle manufacturers such as Hyundai and Ford, and luxury manufacturer and brands including Audi, Volvo, Porsche
and BMW. We also compete with companies such as Fair, Clutch, Wyler FastLane, Drive Germain, Mobiliti, and Borrow.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that, as in our rental platform,
our shared overhead strategy allows us to offer vehicle subscriptions at competitive rates. We also believe that vehicle subscriptions
generally are poised for meaningful growth.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe our multi-pronged business model
is disruptive to the automobile industry, and creates operational efficiencies, multiple revenue streams and scalability, while
creating a better consumer experience.</P>

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

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    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Multi-Pronged Business Approach</B><I>.</I> We intend to combine our rental, subscription and sales operations in most of our planned facilities. As a result, we expect to achieve operational efficiencies and cost savings.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.25in"><I>&nbsp;</I></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cycle of &ldquo;Buy, Rent or Subscribe, Sell and Repeat&rdquo;</B>. We believe that a key differentiator to our business will be how offering sales, rentals and subscriptions will enable us to maximize revenue and profits per vehicle. We intend for rentals and subscriptions to be product extensions to our core pre-owned vehicle sales platform and believe this will be a powerful differentiator and advantage in the market.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Centralized Back-Office Operations</B>. A significant portion of overhead for vehicle sales and rentals are back-office operations, including finance, titling, administration and data processing. We intend to further develop our technology platform to centralize and automate many of these functions both in our current facilities and any new facilities that we acquire, which we believe will reduce our costs.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Centralized Facilities in Strategic Regions</B>. Our plan is to establish large, centralized brick and mortar points-of-presence through organic development and/or strategic acquisitions of independent and franchised dealerships and car rental companies clustered in key metropolitan areas in order to expand our business. By integrating our platform and services with acquired entities, we seek to quickly and efficiently grow our inventory of automobiles, gain access to new facilities, expand our back-office capabilities, expand our business into new locations and increase market share.</FONT></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-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Marketing</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe our consumer base is similar
to the overall market for pre-owned vehicle sales, rentals and subscriptions. We intend to execute our sales and marketing efforts
utilizing a multi-channel approach that utilizes brand building, as well as direct response channels to efficiently establish and
grow both locally and nationally. Our advertising efforts currently include Internet and online automotive sales sites and search
engines such as Google, eBay Motors, CarGurus, CarFax and Cars.com, as well as social media sites such as Facebook, Instagram and
Twitter. We also intend to advertise through local television, search engine marketing, inventory site listing, retargeting, organic
referral, display, digital radio, direct mail and branded pay-per-click channels. We believe a strong consumer focused approach
ensures customer loyalty which will drive both repeat purchases and referrals. In addition to our paid channels, we intend to attract
new customers through enhancing our earned media and public relations efforts.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our primary revenue drivers are intended
to be pre-owned vehicle sales, rentals and subscriptions. We plan to generate ancillary revenues from related services, including
sale of third-party finance contracts, services and parts and rental insurance.</P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that our ability to generate
pre-owned vehicle sales, rentals and subscriptions is a function of the size of our inventory and ability to offer competitive
prices and a pleasant consumer experience. Our expansion plan is to establish a small number of large clustered inventory and sales
facilities throughout the U.S., some with service and reconditioning capabilities and state-of-the-art photo studios. We intend
to establish large, centralized brick and mortar points-of-presence in key-strategic locations in the Southeast, Northeast, Midwest
and West regions of the United States. We believe this plan will enable us to service the largest demand regions and provide us
with cost-efficient distribution and logistics capabilities. Moreover, we believe our ability to increase staffing across regions,
acquire additional inventory and third-party companies, and centralize our back office will allow us to take advantage of economies
of scale and enhance our foundational platform.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We plan to grow sales by executing the
following elements of our growth strategy:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Increase Sales By Growing our Inventory</B>. We believe that sales growth is directly correlated with depth and breadth of inventory, and we are focused on aggressively building our inventory through auctions, off-lease and fleet purchases, and strategic acquisitions of dealerships.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Strategic Acquisitions</B><I>.</I> Our plan is to establish large, centralized brick and mortar points-of-presence through organic development and/or strategic acquisitions of independent and franchised dealerships and car rental companies clustered in key metropolitan areas in order to expand our business. By integrating our platform and services with acquired entities, we seek to quickly and efficiently grow our inventory of automobiles, gain access to new facilities, expand our back-office capabilities, and expand our business into new locations.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Increase Sales Through Offering Value</B>. We believe that value for the consumer is a combination of price, selection and transaction experience. As our business model is designed to maximize revenue per vehicle unit, we believe we will be competitive on price. We intend to maximize selection by offering consumers access to our centralized database of nationally pooled inventory of vehicles via our platform. In addition, our goal is that our integrated model combines the best of offline retail and rental and subscription services, with the best of e-commerce features in order to provide our consumers with an unparalleled experience.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#9679;</B></FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Develop Broader Brand Awareness</B>. We believe our marketing and brand development efforts will meaningfully impact our ability to acquire new consumers, and ultimately grow our business. We intend to attract new consumers, and retain existing customers, through advertising, loyalty programs, public relations and referrals. We believe these efforts will be further enhanced once we are able to economically launch national advertising campaigns.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Increase Rentals Through Building A Well-Stocked Inventory Featuring a Wide Variety Of Vehicles, With a Focus On Luxury Vehicles</B>. We believe that consumers want to drive a vehicle similar to the one they have at home when they travel, and we believe that there exists latent demand for luxury vehicle rentals in the U.S., and that this segment of the rental market has strong growth potential.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Establishing Facilities in Key Areas</B>. We plan to establish facilities in key areas, including locations that are in close proximity to airports, popular tourist locations, and business centers. In particular, we believe this will maximize our opportunity to attract business and leisure travelers who are seeking to rent a vehicle.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Growing Our Subscription Program</B>. As in our rental business, we believe that having a well-stocked inventory is key to building our subscription service. Our subscription service offers customers an alternative to buying, renting or leasing.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="width: 55%; border-bottom: black 1.5pt solid; padding-left: 10pt; text-align: justify; text-indent: -10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Comparison</B></FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 11%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Subscription</B></FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 10%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Renting</B></FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 10%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Leasing</B></FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 10%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Purchasing</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 10pt; text-align: justify; text-indent: -10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Flexible term lengths.</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&uuml;</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&uuml;</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&uuml;</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&uuml;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 10pt; text-align: justify; text-indent: -10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ability to switch vehicles.</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&uuml;</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&ucirc;</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&ucirc;</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&ucirc;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Included insurance, maintenance, service and roadside assistance.*</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&uuml;</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&ucirc;</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&ucirc;</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&ucirc;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 10pt; text-align: justify; text-indent: -10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No Down Payment.</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&uuml;</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&uuml;</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&uuml;</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt"><B>&uuml;</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="width: 97%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Availability based on the specific subscription plan.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We expect our quarterly results of operations,
including our revenue, gross profit, profitability, if any, and cash flow to vary significantly in the future, based in part on,
among other things, consumers&rsquo; car buying patterns. We are a growing company. As we grow, we expect revenues may decrease
in the second half of the calendar year. We believe our future results will be subject to seasonal buying patterns driven in part
by the timing of income tax refunds, which we believe are a primary source of our customers&rsquo; down payments on pre-owned automobiles.
Due to our limited operating history and the overall growth of our business, these seasonal trends have not yet been pronounced,
but we expect that, in the future, our revenues may be affected by these seasonal trends as well as cyclical trends affecting the
overall economy, specifically the automotive retail industry.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We lease our headquarters and fulfillment,
sales, rental and subscription center in Plantation, Florida, pursuant to the ST RXR lease agreement (as defined below) that expires
in 2023. We believe that our current location is adequate to facilitate our current and near-term growth plans.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Various aspects of our business are or
may be subject to U.S. federal and state regulation. In particular, the advertising, sale, rental, subscription, financing, transport
of vehicles, and employment practices are highly regulated by states in which we do business and by the U.S. federal government.
The regulatory bodies that regulate our business include the Consumer Financial Protection Bureau, the Federal Trade Commission,
the United States Department of Transportation, the Occupational Health and Safety Administration, the Department of Justice, the
Federal Communications Commission, various state dealer licensing authorities, various state consumer protection agencies and various
state financial regulatory agencies. We are subject to compliance audits of our operations by many of these authorities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain states may conclude that our activities
are subject to vehicle dealer licensing laws, requiring us to maintain a used vehicle dealer license in order to conduct business
in that state. Currently, we have at least one licensed facility in Florida, and as we expand to other states, we may be subject
to applicable vehicle dealer licensing laws in those states.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Most states regulate retail installment
sales, including setting a maximum interest rate, caps on certain fees, or maximum amounts financed. In addition, certain states
require that finance companies in general and the Company in particular, file a notice of intent or have a sales finance license
or an installment seller&rsquo;s license in order to solicit or originate installment sales in that state. We currently have a
sales finance license and an installment seller&rsquo;s license in Florida.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For a discussion of the various risks we
face from regulation and compliance matters, see &ldquo;<I>Risk Factors&nbsp;&mdash; Risks Related to Our Business</I>.&rdquo;
We operate in a highly regulated industry and are subject to a wide range of federal, state and local laws and regulations. Failure
to comply with these laws and regulations could have a material adverse effect on our business, sales, results of operations and
financial condition.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Environmental, Health, and Safety Laws
and Regulations</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our operations involve the use, handling,
storage and contracting for recycling and/or disposal of materials such as motor oil and filters, transmission fluids, antifreeze,
refrigerants, paints, thinners, batteries, cleaning products, lubricants, degreasing agents, tires and fuel. Consequently, our
business is subject to a complex variety of federal, state and local requirements that regulate the environment and public health
and safety.</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our planned facilities may use above ground
storage tanks, and, to a lesser extent, underground storage tanks, primarily for petroleum-based products. Storage tanks are subject
to periodic testing, containment, upgrading and removal under the Resource Conservation and Recovery Act and its state law counterparts.
Clean-up or other remedial action may be necessary in the event of leaks or other discharges from storage tanks or other sources.
In addition, water quality protection programs under the federal Water Pollution Control Act (commonly known as the Clean Water
Act), the Safe Drinking Water Act and comparable state and local programs govern certain discharges from our operations. Similarly,
certain air emissions from operations, such as auto body painting, may be subject to the federal Clean Air Act and related state
and local laws. Health and safety standards promulgated by the Occupational Safety and Health Administration of the United States
Department of Labor and related state agencies also apply.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain of our facilities may also become
a party to proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act, or CERCLA, typically in
connection with materials that were sent to former recycling, treatment and/or disposal facilities owned and operated by independent
businesses. The remediation or clean-up of facilities where the release of a regulated hazardous substance occurred is required
under CERCLA and other laws.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We incur certain costs to comply with environmental,
health and safety laws and regulations in the ordinary course of our business. We do not anticipate, however, that the costs of
such compliance will have a material adverse effect on our business, results of operations, cash flows or financial condition,
although such outcome is possible given the nature of our operations and the extensive environmental, public health and safety
regulatory framework. We may become aware of minor contamination at certain of our facilities, and we conduct investigations and
remediation at properties as needed. As we acquire additional facilities, the current or prior property owner may conduct the investigation
and/or remediation, or we may be indemnified by either the current or prior property owner for such contamination. In general,
we do not currently expect to incur significant costs for remediation. However, no assurances can be given that material environmental
commitments or contingencies will not arise in the future, or that they do not already exist but are unknown to us.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of&nbsp;May 18, 2019, we employed approximately
11 full-time employees. Certain employees are subject to contractual agreements that specify requirements for confidentiality,
ownership of newly developed intellectual property and restrictions on working for competitors, as well as other matters. None
of our employees are represented by a labor union or covered by a collective bargaining agreement.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our intellectual property consists of websites,
domain names, algorithms, trade secrets and contractual provisions and restrictions on access and use of our proprietary information
and technology.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are the registered holder of a variety
of domain names, including &ldquo;lmpmotors.com,&rdquo; &ldquo;lmprentals.com&rdquo; and &ldquo;lmpsubscriptions.com.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to the protection provided
by our intellectual property rights, we enter into confidentiality and proprietary rights agreements with certain of our employees,
consultants, contractors and business partners.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are no legal proceedings material
to our business or financial condition pending and, to the best of our knowledge, there are no such legal proceedings contemplated
or threatened. We may from time to time be subject to various legal claims arising in the ordinary course of business.</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_011"></A>MANAGEMENT</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Set forth below is information regarding our directors and executive
officers as of the date of this prospectus.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 22%; border-bottom: black 1.5pt solid; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name</B></FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; text-align: center"><B>&nbsp;</B></TD>
    <TD STYLE="width: 8%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Age</B></FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; text-align: center"><B>&nbsp;</B></TD>
    <TD STYLE="width: 68%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Samer Tawfik</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">53</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">President, Chief Executive Officer and Chairman of the Board of Directors</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">William &ldquo;Billy&rdquo; Cohen</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">62</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lead Independent Director</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Robert &ldquo;Bob&rdquo; J. Morris, Jr.</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">72</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Elias Nader</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">55</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</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"><B><I>Samer &ldquo;Sam&rdquo; Tawfik</I></B>
is the founder of LMP Automotive Holdings, Inc. and has served as our President, Chief Executive Officer and Chairman of the board
of directors since January 2018. Prior to founding LMP Automotive Holdings, Inc., Mr. Tawfik was the founder and Managing Partner
of ST RXR Investments, LLC. Mr. Tawfik was also the founder and Chief Executive Officer of Telco Group, Inc. which was acquired
by Leucadia National Corp in 2007 and was the founder and Chief Executive Officer of PT-1 Communications, Inc., which was acquired
by Star Telecommunications Inc. in 1998. From February 1999 through March 2000, Mr. Tawfik served as a Director of Star Telecommunications,
Inc. Mr. Tawfik has extensive experience in technology, finance, banking and statistical science.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that Mr.&nbsp;Tawfik should
continue to serve as a member of our board of directors due to his executive experience, and his financial, investment, and management
experience, which will provide the requisite qualifications, skills, perspectives, and experience that make him well qualified.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>William &ldquo;Billy&rdquo; Cohen</I></B>
has served as a member of our board of directors and the Lead Independent Director since March 2018. He is currently the Vice Chairman
at Newmark Knight Frank, a global commercial real estate advisory firm. Mr. Cohen has over 38 years&rsquo; of experience with commercial
real estate acquisitions, conflict management, negotiation, fund raising, tenant representation, owner representation, leasing
advisory services, property and asset management, and corporate advisory services. Mr. Cohen holds a B.A. in Finance from the University
of Miami.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that Mr.&nbsp;Cohen should continue
to serve as a member of our board of directors due to his executive experience, management experience and substantive experience
working with companies in the real estate industry which will provide the requisite qualifications, skills, perspectives, and experience
that make him well qualified.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Robert &ldquo;Bob&rdquo; J. Morris,
Jr.</I></B> has served as a member of our board of directors since May 2019. He is currently <I>Director of The Southeast region
for the Tim Lamb Group and Former Chairman of the Pontiac-GMC National Dealer Council. </I>Mr. Morris has represented AutoNation,
Hendrick Automotive Group, AMSI (Terry Taylor) and many others in buy-sell transactions of franchised dealerships. Mr. Morris brings
over three decades of retail automotive experience that encompasses franchise dealer acquisitions and operations, pre-owned dealer
operations, as well as leasing, finance and sales expertise. We believe that Mr. Morris should continue to serve as a member of
our board of directors because he brings the necessary leadership experience to the LMP Board of Directors. Prior to joining the
Tim Lamb Group, he led and owned franchise dealerships for over two decades and always exceeded factory goals.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Elias Nader</I></B> has served as
a member of our board of directors since May 2019. Mr. Nader has over 25 years of experience in Finance and Accounting. He is a
versatile, high-energy finance executive who leads companies through change and challenge to profitable growth. He is skilled in
negotiating partnerships and alliances with a keen ability to forecast industry trends and capture opportunities as well as experienced
in transforming and growing technology start-ups to global businesses. We believe that Mr. Nader should continue to serve as a
member of our board of directors because Mr. Nader has built financially sophisticated teams as well as ERP systems, creating transparent
communication from the management level to the boardroom and shareholders. Prior to joining LMP&rsquo;s Board, Mr. Nader was the
interim President and CEO of Sigma Designs, Inc., a Nasdaq-listed Company, as well as its Chief Financial Officer. He has also
served as a Board Member of the company from 2012 to 2019. Mr. Nader also serves as an Advisory Board member of Bottles Waiting,
a private company, and served as an Audit&nbsp;Committee Member of the Board of Directors of YuMe, Inc., a Nasdaq-listed company
from 2016 to 2018.&nbsp; Prior to that, Mr. Nader was the Chief Financial Officer for Imperial Holding, based in Europe and the
Middle East, and held numerous senior executive roles in a number of Fortune 500 public companies. Mr. Nader is a graduate of San
Jose State University.</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Involvement in Certain Legal Proceedings</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None of our directors or executive officers
have been involved in any of the following events during the past ten years:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">being subject to 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 or her involvement in any type of business, securities or banking activities; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 91%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">being found by a court of competent jurisdiction (in a civil action), the SEC 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></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our board of directors currently consists
of four (4) members and is authorized to have up to seven (7) members. Our board of directors is authorized to appoint persons
to the offices of President, Secretary and such other offices as may be determined by the board of directors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have no formal policy regarding board
diversity. In selecting board candidates, we seek individuals who will further the interests of our stockholders through an established
record of professional accomplishment, the ability to contribute positively to our collaborative culture, knowledge of our business
and understanding of our prospective markets. We plan to recruit additional independent directors who can bring specific expertise
and experience that is relevant to the Company&rsquo;s business and our future direction.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the terms of our Certificate
of Incorporation and Bylaws upon the consummation of this offering, our board of directors will be divided into three classes,
Class I, Class II and Class III, with each class serving staggered three-year terms. Upon the expiration of the term of a class
of directors, directors in that class will be eligible to be elected for a new three-year term at the annual meeting of stockholders
in the year in which their term expires. Set forth below is information regarding the membership of each class of directors.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="width: 52%; border-bottom: black 1.5pt solid; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Director:</B></FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 47%; border-bottom: black 1.5pt solid; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Initial Term Expires:</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Class I Directors:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At the 2022 annual meeting of stockholders</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Robert &ldquo;Bob&rdquo; J. Morris, Jr.</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Elias Nader</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Class II Directors:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At the 2020 annual meeting of stockholders</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">William &ldquo;Billy&rdquo; Cohen</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Class III Directors:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At the 2021 annual meeting of stockholders</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Samer Tawfik</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231F20">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Certificate of Incorporation and Bylaws
provide that the authorized number of directors may be changed only by resolution of the board of directors. Any additional directorships
resulting from an increase in the number of directors will be distributed among the three classes so that, as nearly as possible,
each class shall consist of one third of the board of directors.</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The division of
our board of directors into three (3) classes with staggered three-year terms may delay or prevent stockholder efforts to effect
a change of our management or a change in control.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The board of directors has determined that
Messrs. Cohen, Morris, and Nader satisfy the requirement for independence set out in Nasdaq rules and that each of these directors
has no material relationship with us (other than being a director and/or a stockholder). In making its independence determinations,
the board of directors sought to identify and analyze all of the facts and circumstances relating to any relationship between a
director, his or her immediate family or affiliates and our Company and our affiliates and did not rely on categorical standards
other than those contained in Nasdaq rule referenced above.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our board of directors has established
three standing committees &mdash; audit, compensation, and nominating and corporate governance &mdash; each of which operates under
a charter that has been approved by our board of directors. We have appointed persons to the board of directors and committees
of the board of directors as required to satisfy the corporate governance requirements of Nasdaq. We currently have a majority
of independent directors on our board of directors.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have a separately designated standing
audit committee of our board of directors, as defined in Section&nbsp;3(a)(58)(A) of the Exchange Act. The audit committee is currently
comprised of our three independent directors: Messrs. Cohen, Morris and Nader. Mr. Cohen is the Chair of our audit committee. Our
board of directors has determined that each of the members of our audit committee is &ldquo;independent&rdquo; within the meaning
of Nasdaq Listing Rules and the SEC, and that each of the members of our audit committee is financially literate and has accounting
or related financial management expertise, as such qualifications are defined under Nasdaq Listing Rules. In addition, our board
of directors has determined that Mr. Cohen is an &ldquo;audit committee financial expert,&rdquo; as defined by the SEC. Our audit
committee operates under a written charter that was adopted in 2018. A copy of the charter may be found on our website at www.lmpmotors.com
and will be provided in print, free of charge, to any stockholder who requests a copy by submitting a written request to our Secretary
at LMP Automotive Holdings, Inc., 601 N. State Road 7, Plantation, Florida, 33317.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our audit committee assists our board of directors in its oversight
of our accounting and financial reporting process and the audits of our financial statements. Our audit committee&rsquo;s responsibilities
include:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">appointing, approving the compensation of, and assessing the independence of, our registered public accounting firm;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">overseeing the work of our registered public accounting firm, including through the receipt and consideration of reports from such firm;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and discussing with management and the 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; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">monitoring our internal control over financial reporting, disclosure controls and procedures and code of business conduct and ethics;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">overseeing our internal accounting function;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">discussing our risk management policies;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">establishing policies regarding hiring employees from our registered public accounting firm and procedures for the receipt and retention of accounting-related complaints and concerns;</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">meeting independently with our internal accounting staff, registered public accounting firm and management;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and approving or ratifying related party transactions; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">preparing the audit committee reports required by SEC rules.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The members of the compensation committee
are Messrs. Cohen, Morris and Nader. Mr.&nbsp;Cohen is the Chair of the compensation committee. Our board of directors has determined
that each of the members of the Compensation Committee is &ldquo;independent&rdquo; within the meaning of the rules of Nasdaq.
Our compensation committee assists our board of directors in the discharge of its responsibilities relating to the compensation
of our executive officers. Our compensation committee operates under a written charter that was adopted in 2018. A copy of the
charter may be found on our website at www.lmpmotors.com and will be provided in print, free of charge, to any stockholder who
requests a copy by submitting a written request to our Secretary at LMP Automotive Holdings, Inc., 601 N. State Road 7, Plantation,
Florida, 33317.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The compensation committee&rsquo;s responsibilities include:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and approving corporate goals and objectives with respect to Chief Executive Officer compensation;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">making recommendations to our board of directors with respect to the compensation of our Chief Executive Officer and our other executive officers;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">overseeing evaluations of our senior executives;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and assessing the independence of compensation advisers;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">overseeing and administering our 2018 Plan; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and making recommendations to our board of directors with respect to director compensation.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Nominating and Corporate Governance Committee</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The members of the nominating and corporate
governance committee are Messrs. Cohen, Morris and Nader. Mr.&nbsp;Cohen is the Chair of the nominating and corporate governance
committee. Our board of directors has determined that each of the members of the nominating and corporate governance committee
is &ldquo;independent&rdquo; within the meaning of the rules of Nasdaq. Our nominating and corporate governance committee operates
under a written charter that was adopted in 2018. A copy of the charter may be found on our website at www.lmpmotors.com and will
be provided in print, free of charge, to any stockholder who requests a copy by submitting a written request to our Secretary at
LMP Automotive Holdings, Inc., 601 N. State Road 7, Plantation, Florida, 33317.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The nominating and corporate governance committee&rsquo;s responsibilities
include:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">identifying individuals qualified to become board members;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">recommending to our board the persons to be nominated for election as directors and to be appointed to each committee of our board of directors;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and making recommendations to the board of directors with respect to management succession planning;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">developing and recommending corporate governance principles to the board of directors; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">overseeing periodic evaluations of board members.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Board Leadership Structure and Risk Oversight</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our board of directors currently believes
that our Company is best served by combining the roles of Chairman, President and Chief Executive Officer. Our board of directors
believes that as Chief Executive Officer, Mr. Tawfik is the director most familiar with our business and industry and most capable
of effectively identifying strategic priorities and leading discussion and execution of strategy. Our independent directors bring
experience, oversight and expertise from outside our Company, while our Chief Executive Officer brings company-specific experience
and expertise. Our board of directors believes that the combined role of Chairman, President and Chief Executive Officer is the
best leadership structure for us at the current time as it promotes the efficient and effective development and execution of our
strategy and facilitates information flow between management and our board of directors. The board of directors recognizes, however,
that no single leadership model is right for all companies at all times. Our corporate governance guidelines provide that the board
of directors should be free to choose a chairperson of the board of directors based upon the board&rsquo;s view of what is in the
best interest of our Company. Accordingly, the board of directors intends to periodically review its leadership structure.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The board of directors oversees our business
and considers the risks associated with our business strategy and decisions. The board of directors currently implements its risk
oversight function as a whole. Each of the board committees also provides risk oversight in respect to its areas of concentration
and reports material risks to the board of directors for further consideration.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our independent directors have designated
William Cohen as our lead independent director. The lead independent director coordinates the activities of our other independent
directors. In addition to the duties of all members of the board of directors, the lead independent director has the following
additional responsibilities and authority:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">presiding at meetings of the board of directors in the absence of, or upon the request of, the Chairman;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">scheduling, developing the agenda for, and presiding at executive sessions of the independent directors;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">advising the Chairman and/or the board of directors as to the decisions reached, if any, at each executive session;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">serving as the principal liaison between the independent directors and the Chairman/Chief Executive Officer;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">advising the Chairman as to the quality, quantity and timeliness of the information submitted by the Company&rsquo;s management that is necessary or appropriate for the independent directors to effectively and responsibly perform their duties;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">assisting the board of directors and the nominating and corporate governance committee in better ensuring compliance with and implementation of our corporate governance guidelines; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">recommending to the Chairman, at the direction of the independent directors, the retention of outside advisors and consultants who report directly to the board of directors on board-wide issues.</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"><B>Code of Business Conduct and Ethics</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have adopted a written code of business
conduct and ethics that applies to our directors, officers and employees, including our principal executive officer, principal
financial officer and principal accounting officer or controller, or persons performing similar functions. Upon the listing of
our common stock on Nasdaq, we will post on our website a current copy of the code and all disclosures that are required by law
or Nasdaq rules in regard to any amendments to, or waivers from, any provision of the code.</P>




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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are no family relationships among
any of our directors or executive officers. There are no family relationships between any director, executive officer or significant
employee of the Company.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_012"></A>EXECUTIVE COMPENSATION</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The following table
sets forth information regarding compensation earned during 2018 and 2017 by our principal executive officer and our other most
highly compensated executive officers, or the named executive officers, as of the end of the 2018 fiscal year.</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Name and Principal Position</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year</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">Salary<BR>
($)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Bonus<BR>
($)</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>Stock<BR>
 Awards<BR>
($)<SUP>(1)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Option<BR>
 Awards<BR>
($)<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">All Other Compensation<BR>
 ($)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total<BR>
($)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&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>&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>&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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 23%; text-align: left">Samer Tawfik, Chairman,</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: center">2018</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">120,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">120,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt">President and CEO</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2017<SUP>(2)</SUP></FONT></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></TR>
</TABLE>



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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1%; padding-right: 3pt; padding-left: 3pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 6%; padding-right: 3pt; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="width: 93%; padding-right: 3pt; padding-bottom: 6pt; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents the aggregate grant date fair value of the award computed in accordance with the provisions of FASB ASC Topic 718. The assumptions used in calculating the aggregate grant date fair value of the awards reported in this column are set forth in Note 1 to our consolidated financial statements included in this prospectus. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="padding-right: 3pt; padding-bottom: 0pt; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Tawfik did not receive compensation for his role as Chairman, President and Chief Executive Officer of our company for fiscal year 2017.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Narrative Disclosures Regarding Compensation; Employment
Agreements </B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 20, 2018, our wholly owned
subsidiary, LMPMotors.com, LLC, and our Chairman, President and Chief Executive Officer, Samer Tawfik, entered into an employment
agreement, or the Tawfik agreement, pursuant to which Mr. Tawfik shall serve as Chief Executive Officer of LMPMotors.com, LLC.
Pursuant to the Tawfik agreement, his annual salary is equal to one hundred and twenty thousand dollars ($120,000).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>2018 Equity Incentive Plan </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have reserved one million five hundred
thousand (1,500,000) shares of our common stock for issuance under the 2018 Equity Incentive Plan, or the 2018 Plan. Participation
in the 2018 Plan will continue until all of the benefits to which the participants are entitled have been paid in full.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Description of Awards under the 2018
Plan</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Awards to Company Employees</U>.</I>&nbsp;Under
the 2018 Plan, the compensation committee, or the committee, which will administer the plan, may award to eligible employees incentive
and nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance
shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Awards to Non-Employees</U>.</I>&nbsp;The
Committee may award to non-employees, including non-employee directors, non-qualified stock options, stock appreciation rights,
or SARs, restricted stock and restricted stock units.</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Stock Options</I></B></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-align: justify">The Committee has discretion to award incentive
stock options, or ISOs, which are intended to comply with Section 422 of the Code, or nonqualified stock options, or NQSOs, which
are not intended to comply with Section 422 of the Code. The exercise price of an option may not be less than the fair market value
of the underlying shares of common stock on the date of grant. The 2018 Plan defines &ldquo;fair market value&rdquo; as the closing
sale price at which shares of our common stock have been sold regular way on the principal securities exchange on which the shares
are traded.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Options granted to employees under the
2018 Plan will expire at such times as the Committee determines at the time of the grant; provided, however, that no option will
be exercisable later than ten years after the date of grant. Each option award agreement will set forth the extent to which the
participant will have the right to exercise the option following termination of the participant&rsquo;s employment with the Company.
The termination provisions, which will be determined within the discretion of the Committee, might not be uniform among all participants
and might reflect distinctions based on the reasons for termination of employment. Notwithstanding the preceding sentences, unless
the terms of the award agreement otherwise provide for a shorter exercise period, ISOs must be exercised within three (3) months
after an employee&rsquo;s termination of employment. However, if the termination is due to death or disability (as defined under
Code Section 22(e)(3)), the ISOs must be exercised within one (1) year after an employee&rsquo;s termination of employment. Subject
to the specific terms of the 2018 Plan, the Committee will have discretion to set such additional limitations on such grants as
it deems appropriate. The award agreement will reflect these limitations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the exercise of an option granted
under the 2018 Plan, the option price is payable in full to the Company, either: (a) in cash or its equivalent, (b) if permitted
in the award agreement, by tendering shares having a fair market value at the time of exercise equal to the total option price
(provided that such shares have been held by the optionee for at least six months prior to their tender) or (c) by any combination
of the foregoing methods of payment. The Committee may also allow options granted under the 2018 Plan to be exercised by a cashless
exercise through a broker, as permitted under Federal Reserve Board Regulation T, or any other means the Committee determines to
be consistent with the 2018 Plan&rsquo;s purpose and applicable law, including by cashless exercise directly with the Company whereby
the Company, following its receipt of the participant&rsquo;s notice of exercise, would withhold the proper number of Company shares
which would have a fair market value on the date of exercise equal to the option exercise price.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Stock Appreciation Rights</I></B></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-align: justify">The Committee may award SARs under the 2018 Plan upon such terms
and conditions as it may establish. At the discretion of the Committee, the payment upon SAR exercise may be in cash, in shares
of Company common stock of equivalent value, or in some combination thereof. The Committee&rsquo;s determination regarding the
form of payment for the exercised SAR will be set forth in the award agreement. The Committee may award either (i) freestanding
SARs, which are SARs granted as an independent instrument and are not granted in conjunction with any stock options, or (ii) SARs
in tandem with stock options, or tandem SARs. A tandem SAR entitles the participant to exercise it as an option or as an SAR. The
election of one type of exercise prevents it from being exercised as the other type. A tandem SAR may not be granted to a non-employee
Director unless the related option is a NQSO. The exercise price of a freestanding SAR will equal the fair market value of a share
of common stock on the date of grant, whereas the exercise price of a tandem SAR issued in connection with a stock option will
equal the option price of the related option.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Committee will determine in its discretion
the term of an SAR granted under the 2018 Plan. Each award agreement will set forth the extent to which the participant will have
the right to exercise the SAR following termination of the participant&rsquo;s employment with the Company. The termination provisions
will be determined by the Committee in its sole discretion, need not be uniform among all participants and may reflect distinctions
based on the reasons for termination of employment. The term of an SAR may not exceed ten years from the date of grant. Therefore,
no SAR may be exercisable later than ten years after the date of award.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Except as otherwise limited by the 2018
Plan, freestanding SARs may be exercised upon whatever terms and conditions the Committee, in its sole discretion, imposes upon
them. The Committee will determine the number of shares of common stock covered by and the exercise period of the SAR. Upon exercise
of a freestanding SAR, the participant will receive an amount equal to the excess of the fair market value of one share of common
stock on the date of exercise over the grant price, multiplied by the number of shares of stock exercised under the SAR.</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the case of a tandem SAR, the Committee
may determine the exercise period of the SAR, except that the exercise period may not exceed that of the related option. The participant
may exercise the tandem SAR when the option is exercisable and receive on exercise an amount equal to the excess of the fair market
value of one share of common stock on the date of exercise over the option purchase price, multiplied by the number of shares of
common stock covered by the surrendered option. Upon exercise of an SAR awarded in tandem with a stock option, the number of shares
of our common stock for which the related option was exercisable will be reduced by the number of shares for which the SAR was
exercised.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Notwithstanding any other provision of
this 2018 Plan to the contrary, with respect to a tandem SAR granted in connection with an ISO, (i) the tandem SAR will expire
no later than the expiration of the underlying ISO; (ii) the value of the payout with respect to the tandem SAR may be for no more
than 100% of the difference between the option price of the underlying ISO and the fair market value of the shares of common stock
subject to the underlying ISO at the time the tandem SAR is exercised; and (iii) the tandem SAR may be exercised only when the
fair market value of the shares subject to the ISO exceeds the option price of the ISO.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Committee may impose restrictions and
conditions as to awards of shares of restricted stock as it deems advisable. As specified in the relevant award agreement, restrictions
may include a requirement that participants pay a stipulated purchase price for each share of restricted stock, restrictions based
upon the achievement of specific performance goals (Company-wide, divisional and/or individual), time-based restrictions on vesting
following the attainment of the performance goals and/or restrictions under applicable federal or state securities laws.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may retain in our possession the certificates
representing shares of restricted stock until the time when all conditions and/or restrictions applicable to those shares awarded
under the 2018 Plan have been satisfied. Generally, shares of restricted stock covered by each restricted stock grant made under
the 2018 Plan will become freely transferable by the participant following the last day of the applicable period of restriction.
However, even after the satisfaction of the restrictions and conditions imposed by the 2018 Plan and the particular award agreement,
shares owned by an affiliate of the Company will be subject to restrictions on transfer under the Securities Act.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Awards to Employees</U>.</I>&nbsp;The Committee may choose
to award shares of restricted stock under the 2018 Plan upon such terms and conditions as it may establish. The award agreement
will specify the period(s) of restriction, the number of shares of restricted stock granted, the requirement that a participant
pay a stipulated purchase price for each share, restrictions based upon the achievement of specific performance objectives, other
restrictions governing the subject award and/or restrictions under applicable federal or state securities laws. Recipients may
have the right to vote these shares from the date of grant, as determined by the Committee on the date of award. As determined
by the Committee on the date of award, participants may receive dividends on their shares of restricted stock. Dividends accrued
on restricted stock will be paid only if the restricted stock vests.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each award agreement for restricted stock
will specify the extent to which the participant will have the right, if any, to retain unvested restricted stock following termination
of the participant&rsquo;s employment with the Company. In its sole discretion, the Committee will make these determinations; these
provisions need not be uniform among all awards of restricted stock issued under the 2018 Plan and may reflect distinctions based
on reasons for termination of employment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Awards to Non-Employee Directors</U>.</I>&nbsp;Restricted
stock awards to non-employee Directors will be subject to the restrictions for a period, which will commence upon the date when
the restricted stock is awarded and will end on the earliest of the first to occur of the following:</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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the retirement of the non-employee Director from the board of directors in compliance with the board&rsquo;s retirement policy as then in effect;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the termination of the non-employee Director&rsquo;s service on the board of directors as a result of the non-employee Director&rsquo;s not being nominated for reelection by the board of directors;</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the termination of the non-employee Director&rsquo;s service on the board of directors because of the non-employee Director&rsquo;s resignation or failure to stand for reelection with the consent of the board (which means approval by at least 80% of the Directors voting, with the affected non-employee Director abstaining);</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the termination of the non-employee Director&rsquo;s service on the board of directors because the non-employee Director, although nominated for reelection by the board of directors, is not reelected by the stockholders;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the termination of the non-employee Director&rsquo;s service on the board of directors because of (i) the non-employee Director&rsquo;s resignation at the request of the nominating and corporate governance of the board of directors, (ii) the non-employee Director&rsquo;s removal by action of the stockholders or by the board of directors, or (iii) a&nbsp;change in control of the Company, as defined in the 2018 Plan;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the termination of the non-employee Director&rsquo;s service on the board of directors because of disability or death; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the vesting of the award in accordance with its terms.</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">As of the date specified by the Committee,
each non-employee Director will be awarded that number of shares of restricted stock as determined by the board of directors, after
consideration of the recommendations of the Committee. A non-employee Director who is first elected to the board of directors on
a date subsequent to the date so specified will be awarded that number of shares of restricted stock as determined by the board
of directors, after consideration of the recommendations of the Committee. The amount of the award for the upcoming 2018 Plan year
will be disclosed in the Company&rsquo;s proxy statement for the Company&rsquo;s annual meeting of stockholders. The 2018 Plan
provides that non-employee Directors receiving restricted stock may have, subject to the provisions of the 2018 Plan, all of the
rights of a stockholder with respect to the shares of restricted stock, including the right to vote the shares and receive cash
dividends and other cash distributions thereon. If a non-employee Director ceases to be a member of the board of directors for
any other reason, including removal or resignation for &ldquo;Cause,&rdquo; as defined in the 2018 Plan, the non-employee Director
will forfeit to the Company all restricted stock awarded to him or her for which the restricted period has not ended.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Committee may award restricted stock
units, or RSUs. Each RSU will have a value equal to the fair market value of a share of the Company&rsquo;s common stock on the
date of grant. In its discretion, the Committee may impose conditions and restrictions on RSUs, as specified in the RSU award agreement,
including restrictions based upon the achievement of specific performance goals and time-based restrictions on vesting. As determined
by the Committee at the time of the award, settlement of vested RSUs may be made in the form of cash, shares of Company stock,
or a combination of cash and Company stock. Settlement of vested RSUs will be in a lump sum as soon as practicable after the vesting
date but in no event later than two and one-half (2&frac12;) months following the vesting date. The amount of the settlement will
equal the fair market value of the RSUs on the vesting date. Each RSU will be credited with an amount equal to the dividends paid
on a share of Company stock between the date of award and the date the RSU is paid to the participant, if at all. Dividend equivalents
will vest, if at all, upon the same terms and conditions governing the vesting of the RSUs under the 2018 Plan. Payment of the
dividend equivalent will be paid at the same time as payment of the RSU. The holders of RSUs will have no voting rights.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each award agreement for RSUs will specify
the extent to which the participant will have the right, if any, to retain unvested RSUs following termination of the participant&rsquo;s
employment with the Company or, in the case of a non-employee Director, service with the board of directors. In its sole discretion,
the Committee will make these determinations; these provisions need not be uniform among all awards of RSUs issued under the 2018
Plan and may reflect distinctions based on reasons for termination of employment or, in the case of a non-employee Director, service
with the board of directors.</P>


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Committee has the discretion to award
performance units and performance shares under the 2018 Plan upon such terms and conditions as it may establish, as evidenced in
the relevant award agreement. Performance units will have an initial value as determined by the Committee, whereas performance
shares will have an initial value equal to one share of common stock on the date of award. At the time of the award of the performance
units or shares, the Committee in its discretion will establish performance goals which, depending on the extent to which they
are met, will determine the number and/or value of performance units or shares that will be paid out to the participant. Under
the terms of the 2018 Plan, after the applicable performance period has ended, the holder of performance units or shares will be
entitled to receive payout on the number and value of performance units or shares earned by the participant over the performance
period. The payout on the number and value of the performance units and performance shares will be a function of the extent to
which corresponding performance goals are met.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Payment of performance shares and performance
units will be made in a single lump sum following the close of the applicable performance period. Upon satisfaction of the specified
performance goals, but in no event later than two and one-half (2&frac12;) months following the close of the performance period,
the Committee in its discretion, may pay earned performance units and earned performance shares in cash, in shares of Company stock
or in a combination of cash and stock, which will have an aggregate fair market value equal to the value of the earned performance
share or performance unit at the close of the applicable performance period. Participants will not be entitled to dividend or voting
rights with respect to any performance shares or performance units earned but not yet distributed to a participant. Unless otherwise
determined by the Committee in the case of a separation of service during the performance period, the participant, or his or her
estate, will not be entitled to receive any payout of the performance shares or performance units.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 2018 Plan provides for appropriate
adjustments in the number of shares of Company stock subject to awards and available for future awards in the event of changes
in outstanding common stock by reason of a merger, stock split, stock dividend, or certain other events.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 2018 Plan may be modified or amended
by the board of directors at any time and for any purpose which the board deems appropriate. However, no such amendment may adversely
affect any outstanding awards without the affected holder&rsquo;s consent. No amendment may, without stockholder approval, (i)
materially increase the benefits earned by participants under the 2018 Plan, (ii) materially increase the number of shares which
may be issued under the 2018 Plan or (iii) materially modify the requirements for participation in the 2018 Plan.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event of a change in control, as
defined in the 2018 Plan, generally all options and SARs granted under the 2018 Plan will vest and become immediately exercisable;
and restriction periods and other restrictions imposed on restricted stock and RSUs will lapse.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">No award under the 2018 Plan may be sold,
transferred, pledged, assigned or otherwise transferred in any manner by a participant except by will or by the laws of descent
and distribution; and any award will be exercisable during a participant&rsquo;s lifetime only by the participant or by the participant&rsquo;s
guardian or legal representative. These limitations may be waived by the Committee, subject to restrictions imposed under the SEC&rsquo;s
short-swing trading rules and federal tax requirements relating to incentive stock options.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Duration of the 2018 Plan</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 2018 Plan will remain in effect until
all shares subject to the 2018 Plan have been purchased or acquired under the terms of the 2018 Plan, and all performance periods
for performance-based awards granted under the 2018 Plan have been completed. However, no award is permitted to be granted under
the 2018 Plan on or after the day prior to the tenth anniversary of the date the board of directors approved the 2018 Plan. The
board of directors, upon recommendation of the Committee, may at any time amend, suspend or terminate the 2018 Plan in whole or
in part for any purpose the Committee deems appropriate, subject, however, to the limitations referenced in &ldquo;Adjustment and
Amendments&rdquo; above.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Outstanding Equity Awards at Fiscal Year End</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2018 Outstanding Equity Awards at Fiscal
Year-end Table </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The following table
sets forth information regarding the outstanding equity awards held by our Named Executive Officers as of the end of our 2018 fiscal
year:</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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="10" STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Option
    Awards</B></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="10" STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Stock
    Awards</B></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; width: 19%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number
    of</B><BR>
    <B>Securities</B><BR>
    <B>Underlying</B><BR>
    <B>Unexercised</B><BR>
    <B>Options</B><BR>
    <B>(#)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number
    of</B><BR>
    <B>Securities</B><BR>
    <B>Underlying</B><BR>
    <B>Unexercised</B><BR>
    <B>Options</B><BR>
    <B>(#)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Equity</B><BR>
    <B>Incentive</B><BR>
    <B>Plan</B><BR>
    <B>Awards:</B><BR>
    <B>Number of</B><BR>
    <B>Securities</B><BR>
    <B>Underlying</B><BR>
    <B>Unexercised</B><BR>
    <B>Unearned</B><BR>
    <B>Options</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Option</B><BR>
    <B>Exercise</B><BR>
    <B>Price</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Option</B><BR>
    <B>Expiration</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number
    of</B></FONT><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Shares or</B></FONT><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Units
    of</B></FONT><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Stock That Have Not
    Vested</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Market</B><BR>
    <B>Value of</B><BR>
    <B>Shares or</B><BR>
    <B>Units of</B><BR>
    <B>Stock</B><BR>
    <B>That</B><BR>
    <B>Have Not</B><BR>
    <B>Vested</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Equity</B><BR>
    <B>Incentive</B><BR>
    <B>Plan</B><BR>
    <B>Awards: </B><BR>
    <B>Number</B><BR>
    <B>of</B><BR>
    <B>Unearned</B><BR>
    <B>Shares,</B><BR>
    <B>Units</B><BR>
    <B>or Other</B><BR>
    <B>Rights</B><BR>
    <B>That</B><BR>
    <B>Have Not</B><BR>
    <B>Vested</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Equity</B><BR>
    <B>Incentive</B><BR>
    <B>Plan</B><BR>
    <B>Awards:</B><BR>
    <B>Market</B><BR>
    <B>or Payout</B><BR>
    <B>Value of</B><BR>
    <B>Unearned</B><BR>
    <B>Shares,</B><BR>
    <B>Units or</B><BR>
    <B>Other</B><BR>
    <B>Rights</B><BR>
    <B>That</B><BR>
    <B>Have Not</B><BR>
    <B>Vested</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name</B></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exercisable</B></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Unexercisable</B></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(#)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>($)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Date</B></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(#)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>($)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(#)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>($)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Samer
    Tawfik</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom; background-color: #CCEEFF"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have not engaged in any option re-pricings
or other modifications to any of our outstanding equity awards to our Named Executive Officers during fiscal year 2018.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2018 Director Compensation Table </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following Director Compensation Table
sets forth information concerning compensation for services rendered by our independent directors for fiscal year 2018.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Name</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">Fees Earned<BR> or<BR> Paid in Cash<BR> ($)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Stock<BR> Awards<BR> ($)</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>Option</B></FONT><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Awards</B></FONT><BR> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>($)<SUP>(1)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">All Other<BR> Compensation<BR> ($)</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<BR> ($)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: left; padding-left: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">William Cohen <SUP>(2)</SUP></FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">20,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">63,650</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&mdash;</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">83,650</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: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tarang Gupta <SUP>(3)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,150</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60,150</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: 0pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Derek Goodman <SUP>(4)</SUP></FONT></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">12,000</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">49,000</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">61,000</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt; padding-left: 0pt">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">52,000</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">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</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">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">152,800</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">204,800</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
the aggregate grant date fair value under FASB ASC Topic 718 of options to purchase shares of our common stock granted during
2018.</FONT></TD>
</TR></TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>


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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify; width: 0"></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Cohen was appointed to serve as a member of the Board in March 2018. As of December 31, 2018, Mr. Cohen held options to purchase up to 40,000 shares of our common stock.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Gupta was appointed to serve as a member of the Board in March 2018. Mr. Gupta&rsquo;s term expired on February 28, 2019 and he did not stand for reelection to the Board.&nbsp;&nbsp;As of December 31, 2018, Mr. Gupta held options to purchase up to 25,000 shares of our common stock.&nbsp;&nbsp;Such options were terminated upon the expiration of Mr. Gupta&rsquo;s term on the Board. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Goodman was appointed to serve as a member of the Board in June 2018.&nbsp;&nbsp;Mr. Goodman resigned from the Board effective February 28, 2019.&nbsp;&nbsp;As of December 31, 2018, Mr. Goodman held options to purchase up to 25,000 shares of our common stock.&nbsp;&nbsp;Such options were terminated upon Mr. Goodman&rsquo;s resignation from the Board. </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">Mr. Tawfik, who served as a director and
as an executive officer of our company during our 2018 fiscal year, has not been included in the Director Compensation Table because
he is a Named Executive Officer of our company, and all compensation paid to him during 2018 is reflected in the Summary Compensation
Table above.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Securities Authorized for Issuance under Equity Compensation
Plans</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In January 2018, the board of directors
approved the 2018 Plan and our stockholders approved its adoption. Upon effectiveness of the 2018 Plan, no additional awards will
be granted under our prior equity incentive plans. We have reserved one million five hundred thousand (1,500,000) shares of our
common stock for issuance under the 2018 Plan. Participation in the 2018 Plan will continue until all of the benefits to which
the participants are entitled have been paid in full.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of June 10, 2019, we issued a total
of 595,500 options to purchase shares of our common stock under the 2018 Plan, including 90,000 options to purchase shares of our
common stock to our directors and officers. See &ldquo;<I>Security Ownership of Certain Beneficial Owners and Management</I>.&rdquo;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Plan Category</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">Number of securities to be issued upon exercise of outstanding options, warrants and rights</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">Weighted-average exercise price of outstanding options, warrants and rights(1)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of securities remaining available for future issuance under equity compensation plans (excluding securities to be issued upon exercise of outstanding options, warrants and rights)</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: 64%; text-align: left">Equity compensation plans approved by security holders</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">595,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3.91</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">905,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Equity compensation plans not approved by security holders</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">&mdash;</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt">Total:</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">595,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3.91</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">905,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Calculated
as of March 31, 2019.</FONT></TD>
</TR></TABLE>


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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_013"></A>CERTAIN RELATIONSHIPS AND RELATED PARTY
TRANSACTIONS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following are summaries of certain
provisions of our related party agreements and are qualified in their entirety by reference to all of the provisions of such agreements.
Because these descriptions are only summaries of the applicable agreements, they do not necessarily contain all of the information
that you may find useful. We therefore urge you to review the agreements in their entirety. To the extent required, copies of the
agreements (or forms of the agreements) have been filed as exhibits to the Registration Statement of which this prospectus is a
part, and are available electronically on the website of the SEC at www.sec.gov.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company was incorporated under the
laws of Delaware in December 2017. Samer Tawfik, our founder, President, Chief Executive Officer and Chairman, contributed one
hundred percent (100%) of the equity interests in each of LMP Motors.com, LLC and LMP Finance, LLC into the Company in December
2017, and in January 2018, 601 NSR, LLC and LMP Automotive Holdings, LLC made the Company their sole member. As a result of the
Reorganization, the Company now owns one hundred percent (100%) of the equity in each of these four entities. LMP Motors.com, LLC
currently operates our automobile sales business. LMP Finance, LLC currently operates our rental and subscription business. 601
NSR, LLC and LMP Automotive Holdings, LLC were formed to enter into future potential strategic acquisitions, but are currently
inactive. As a result of the reorganization, our founder, President, Chief Executive Officer and Chairman, Samer Tawfik received
15,750,000 shares of common stock and ST RXR received 5,250,000 shares of common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Lease Agreement with ST RXR Investment,
Inc.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 1, 2018, our wholly owned subsidiary,
LMPMotors.com, LLC, entered into a lease agreement with ST RXR, or the ST RXR lease agreement, for our principal executive office
located in Plantation, Florida. Pursuant to the ST RXR lease agreement, the term of the lease will run from March 1, 2018 to March&nbsp;1,
2023, with an option to extend the lease for one additional five (5) year period, at a rental amount equal to $28,500 per month,
subject to increase, as fully in the ST RXR lease agreement. Under the terms of the ST RXR lease agreement, the rental amount shall
increase each year by an amount equal to three percent (3%) over the previous year on the 1<SUP>st</SUP> day. Our Chairman, President
and Chief Executive Officer, Samer Tawfik, owns all membership interests of, and is sole manager of ST RXR. We believe the terms
of the ST RXR lease agreement are similar to lease terms the Company would have obtained in an arm&rsquo;s-length transaction not
involving Company related parties.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Line of Credit Agreement with ST RXR</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In January 2018, we entered into the
$1,500,000 revolving credit facility with ST RXR pursuant to the LOC agreement. Under the LOC agreement, the revolving credit
facility shall mature on the earlier of written demand by the lender or May 21, 2020. Upon completion of this offering, the
revolving credit facility may be repaid, in part or in full, with other credit facilities in the normal course of business or
cash generated from our business.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the year ended December 31, 2017,
we received cash of $1,091,500 from the issuance of notes payable to certain related parties. In addition, we received $3,637,255
from contributions of capital from Mr. Tawfik. The capital contributions made by Mr. Tawfik are not debt, and Mr. Tawfik did not
receive any additional equity in connection with his contributions. Accordingly, we are not obligated to repay Mr. Tawfik the amounts
contributed or any interest on his contribution.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Indications of Interest to Participate
in this Offering</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Samer Tawfik, our founder, Chairman,
President and Chief Executive Officer, has indicated an interest in purchasing up to $1,000,000 of shares of common stock in
this offering, at the offering price to the public and on the same terms and conditions as other investors. However, because
indications of interest are not binding agreements or commitments to purchase, the underwriter could determine to sell or not
sell shares to Mr. Tawfik, and Mr. Tawfik could determine to purchase or not purchase shares in this offering.</P>




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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with this offering, we will
adopt a policy with respect to the review, approval and ratification of related party transactions. Under the policy, the audit
committee will be responsible for reviewing and approving related party transactions. The policy will apply to transactions, arrangements
and relationships (including any indebtedness or guarantee of indebtedness) or any series of similar transactions, arrangements
or relationships in which the aggregate amount involved will, or may be expected to, exceed $120,000 with respect to any fiscal
year, and where we (or one of our subsidiaries) are a participant and in which a related party has or will have a direct or indirect
material interest. In the course of reviewing potential related party transactions, the audit committee will consider the nature
of the related party&rsquo;s interest in the transaction; the presence of standard prices, rates or charges or terms otherwise
consistent with arms-length dealings with unrelated third parties; the materiality of the transaction to each party; the reasons
for the Company entering into the transaction with the related party; the potential effect of the transaction on the status of
a director as an independent, outside or disinterested director or committee member; and any other factors the audit committee
may deem relevant.&nbsp;</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_014"></A>PRINCIPAL STOCKHOLDERS</B></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-align: justify">&nbsp;The following table sets forth the
total number and percentage of our shares of common stock beneficially owned on June 6, 2019 by: (1) each holder of more than 5%
of our common stock; (2) each director; (3) each Named Executive Officer; and (4) all executive officers and directors as a group.
In addition, the following table assumes that the underwriter has not exercised the over-allotment option.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Beneficial ownership is determined in accordance
with SEC rules and generally includes voting or investment power with respect to securities. For purposes of this table, a person
or group of persons is deemed to have &ldquo;beneficial ownership&rdquo; of any shares of common stock that such person or any
member of such group has the right to acquire within sixty (60) days of June 6, 2019. For purposes of computing the percentage
of outstanding shares of our common stock held by each person or group of persons named above, any shares that such person or persons
has the right to acquire within sixty (60) days of June 6, 2019 are deemed to be outstanding for such person, but not deemed to
be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion herein of any shares listed
as beneficially owned does not constitute an admission of beneficial ownership by any person.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Unless otherwise indicated, the business
address of each person listed is c/o LMP Automotive Holdings, Inc. 601 N. State Road 7, Plantation FL, 33317 and each person set
forth below has sole investment and dispositive power with respect to the shares listed.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" 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; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name
of Beneficial Owners</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1.5pt solid; padding-right: 5.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Common Stock</B></FONT><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Beneficially&nbsp;Owned</B></FONT><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Prior to This<BR>
Offering <SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1.5pt solid; padding-right: 5.8pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Common Stock</B></FONT><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Beneficially&nbsp;Owned After</B></FONT><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>This&nbsp;Offering</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 5pt; text-align: center; text-indent: -5pt; background-color: White; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; background-color: White; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 1.8pt; text-align: center; background-color: White; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt; background-color: White; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; background-color: White; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 1.8pt; text-align: center; background-color: White; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>%</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt; background-color: White; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; background-color: White; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 1.8pt; text-align: center; background-color: White; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt; background-color: White; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; background-color: White; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 1.8pt; text-align: center; background-color: White; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>%</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt; background-color: White; padding-bottom: 1.5pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 5pt; text-indent: -5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Directors and Executive Officers**:</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 1.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 1.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 1.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 1.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 52%; padding-left: 5pt; text-indent: -5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Samer Tawfik(2)</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 9%; padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">21,000,000</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 9%; padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">85.69</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 9%; padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,500,000</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 9%; padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">34.33</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 5pt; text-indent: -5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">William &ldquo;Billy&rdquo; Cohen(3)</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">150,150</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">150,150</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 5pt; text-indent: -5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Elias Nader</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 5pt; text-indent: -5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Robert &ldquo;Bob&rdquo; J. Morris, Jr.</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 5pt; text-indent: -5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All directors and executive officers as a group (two individuals)</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">21,150,150</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">86.30</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,650,150</FONT></TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">36.39</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><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">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="width: 97%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less than 1%</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">**</FONT></TD>
    <TD STYLE="width: 97%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The address of those listed is c/o LMP Automotive Holdings, Inc., 601 N. State Road 7, Plantation FL, 33317.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="width: 97%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based on 24,506,693 shares of common stock issued and outstanding as of June 6, 2019.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="width: 97%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The number of shares beneficially owned by Mr. Tawfik includes: (i) 15,750,000 shares of common stock issued pursuant to the reorganization and (ii) 5,250,000 shares of common stock issued pursuant to the reorganization to ST RXR Investments, LLC, a company wholly owned and controlled by Mr. Tawfik, but does not include any shares that Mr. Tawfik may purchase in this offering pursuant to the indication
of interest he has made <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">because indications of interest
are not binding agreements or commitments to purchase, the underwriter could determine to not sell shares to Mr. Tawfik, and Mr.
Tawfik could determine to not purchase shares in this offering.</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The number of shares beneficially owned by Mr. Cohen includes: (i) 150,150 shares of common stock purchased in a private placement offering, (ii) an option to acquire up to 25,000 shares of common stock pursuant to the 2018 Plan at $3.33 per share and (iii) an option to acquire up to 15,000 shares of common stock pursuant to the 2018 Plan at $4.75 per share.</FONT></TD></TR>
</TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are unaware of any contract or other arrangement the operation
of which may, at a subsequent date, result in a change of control of our Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_015"></A>DESCRIPTION OF CAPITAL STOCK</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>The following description summarizes
the most important terms of our capital stock, as they are expected to be in effect upon the closing of this offering. Because
it is only a summary, it does not contain all of the information that may be important to you. For a complete description of the
matters set forth in &ldquo;Description of Capital Stock,&rdquo; you should refer to our Certificate of Incorporation and Bylaws,
which are or will be included as exhibits to the Registration Statement of which this prospectus forms a part, and to the applicable
provisions of Delaware law. Immediately following the closing of this offering, our authorized capital stock will consist of 100,000,000
shares of common stock, $0.00001 par value per share, and 20,000,000 shares of undesignated preferred stock, $0.00001 par value
per share.</I></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of June 6, 2019, we had 24,506,693 shares
of common stock outstanding held by 158 stockholders of record.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Immediately following the closing of this offering, and giving effect to the cancellation of 18,500,000 shares currently held
by Samer Tawfik, our founder, Chairman and Chief Executive Officer, we will have 7,281,694 shares of common stock issued and
outstanding. In the event the underwriter exercises the over-allotment option in full, we will have 7,472,944 shares of common
stock issued and outstanding.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The holders of our common stock are entitled
to one vote for each share of common stock held of record on all matters submitted to a vote of the stockholders, including the
election of directors, and do not have cumulative voting rights. Accordingly, the holders of a majority of the outstanding shares
of common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they so
choose, other than any directors that holders of any preferred stock we may issue may be entitled to elect.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to limitations under Delaware law
and preferences that may be applicable to any then outstanding preferred stock, holders of common stock are entitled to receive
ratably those dividends, if any, as may be declared by our board of directors out of legally available funds.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event of any voluntary or involuntary
liquidation, dissolution or winding up of our affairs, the holders of our common stock will be entitled to share ratably in the
net assets legally available for distribution to stockholders after the payment of or provision for all of our debts and other
liabilities, subject to the prior rights of any preferred stock then outstanding.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Holders of common stock have no preemptive
or conversion rights or other subscription rights, and there are no redemption or sinking funds provisions applicable to the common
stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Fully Paid and Non-assessable</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All outstanding shares of common stock
are, and the common stock to be outstanding upon completion of this offering will be, duly authorized, validly issued, fully paid
and non-assessable.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The transfer agent and registrar for our
common stock will be Securities Transfer Corporation upon consummation of this offering.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Preferred Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have no shares of preferred stock outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;<I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the closing of this offering, there
will be up to 63,750 shares of common stock issuable upon exercise of the underwriter&rsquo;s warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Anti-Takeover Effects of Provisions
of Our Certificate of Incorporation, Our Bylaws and Delaware Law</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the consummation of this offering,
some provisions of Delaware law, our Certificate of Incorporation and our Bylaws will contain provisions that could make the following
transactions more difficult: an acquisition of us by means of a tender offer; an acquisition of us by means of a proxy contest
or otherwise; or the removal of our incumbent officers and directors. It is possible that these provisions could make it more difficult
to accomplish or could deter transactions that stockholders may otherwise consider to be in their best interest or in our best
interests, including transactions which provide for payment of a premium over the market price for our shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These provisions, summarized below, are
intended to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage
persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of the increased
protection of our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure
us outweigh the disadvantages of discouraging these proposals because negotiation of these proposals could result in an improvement
of their terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Classified Board</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Certificate of Incorporation and our
Bylaws will provide that our board of directors will be divided into three classes of directors, with the classes as nearly equal
in number as possible. As a result, approximately one-third of our board of directors will be elected each year. The classification
of directors will have the effect of making it more difficult for stockholders to change the composition of our board of directors.
Our Certificate of Incorporation and our Bylaws will also provide that, subject to any rights of holders of preferred stock to
elect additional directors under specified circumstances, the number of directors will be fixed exclusively pursuant to a resolution
adopted by our board of directors. Upon the closing of this offering, we expect that our board of directors will consist of four
(4) members.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Undesignated Preferred Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The ability of our board of directors,
without action by the stockholders, to issue up to 20,000,000 shares of undesignated preferred stock with voting or other rights
or preferences as designated by our board of directors could impede the success of any attempt to change control of us. These and
other provisions may have the effect of deferring hostile takeovers or delaying changes in control or management of our Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Appointment and Removal of Directors</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Certificate of Incorporation and our
Bylaws will provide that the number of directors constituting our board of directors is set only by resolution adopted by a majority
vote of our entire board of directors. These provisions restricting the filling of vacancies will prevent a stockholder from increasing
the size of our board of directors and gaining control of our board of directors by filling the resulting vacancies with its own
nominees. In addition, our Certificate of Incorporation and our Bylaws will provide that no member of our board of directors may
be removed from office by our stockholders without cause and, in addition to any other vote required by law, upon the approval
of not less than the majority of the total voting power of all of our outstanding voting stock then entitled to vote in the election
of directors.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Advance
Notice Procedures</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our Certificate
of Incorporation and our Bylaws will establish an advance notice procedure for stockholder proposals to be brought before an annual
meeting of our stockholders, including proposed nominations of persons for election to the board of directors. Stockholders at
an annual meeting will only be able to consider proposals or nominations specified in the notice of meeting or brought before the
meeting by or at the direction of the board of directors or by a stockholder who was a stockholder of record on the record date
for the meeting, who is entitled to vote at the meeting and who has given our Secretary timely written notice, in proper form,
of the stockholder&rsquo;s intention to bring that business before the meeting. Although our Bylaws will not give the board of
directors the power to approve or disapprove stockholder nominations of candidates or proposals regarding other business to be
conducted at a special or annual meeting, our Bylaws may have the effect of precluding the conduct of certain business at a meeting
if the proper procedures are not followed or may discourage or deter a potential acquirer from conducting a solicitation of proxies
to elect its own slate of directors or otherwise attempting to obtain control of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;<I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Delaware Anti-Takeover Statute</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to Section 203 of the DGCL,
which prohibits persons deemed to be &ldquo;interested stockholders&rdquo; from engaging in a &ldquo;business combination&rdquo;
with a publicly held Delaware corporation for three years following the date these persons become interested stockholders unless
the business combination is, or the transaction in which the person became an interested stockholder was, approved in a prescribed
manner or another prescribed exception applies. Generally, an &ldquo;interested stockholder&rdquo; is a person who, together with
affiliates and associates, owns, or within three years prior to the determination of interested stockholder status did own, 15%
or more of a corporation&rsquo;s voting stock. Generally, a &ldquo;business combination&rdquo; includes a merger, asset or stock
sale, or other transaction resulting in a financial benefit to the interested stockholder. The existence of this provision may
have an anti-takeover effect with respect to transactions not approved in advance by the board of directors. A Delaware corporation
may &ldquo;opt out&rdquo; of these provisions with an express provision in its original certificate of incorporation or an express
provision in its certificate of incorporation or bylaws resulting from a stockholders&rsquo; amendment approved by at least a majority
of the outstanding voting shares. We have not opted out of these provisions. As a result, mergers or other takeover or change in
control attempts of us may be discouraged or prevented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Amendment of Charter and Bylaw Provisions</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The amendment of our Bylaws requires approval
by a stockholder vote by the holders of at least three-quarters of the voting power of the then outstanding voting stock. In addition,
upon at least a two-thirds vote, our directors are expressly authorized to amend our Bylaws. The amendment of our Certificate of
Incorporation would require approval by a stockholder vote by the holders of at least two-thirds of the voting power of the then
outstanding voting stock to the extent such amendment is inconsistent with the purpose and intent of the provisions therein relating
to the composition and election of the board of directors, amending our Bylaws, amending our Certificate of Incorporation, liability
and indemnification of directors and stockholder actions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Authorized but Unissued Shares</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our authorized but unissued shares of common
stock and preferred stock will be available for future issuance without stockholder approval. These additional shares may be utilized
for a variety of corporate purposes, including future public offerings to raise additional capital and corporate acquisitions.
The existence of authorized but unissued shares of common stock and preferred stock could render more difficult or discourage an
attempt to obtain control of a majority of our common stock by means of a proxy contest, tender offer, merger or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The provisions of Delaware law, our Certificate
of Incorporation and our Bylaws could have the effect of discouraging others from attempting hostile takeovers and, as a consequence,
they may also inhibit temporary fluctuations in the market price of our common stock that often result from actual or rumored hostile
takeover attempts. These provisions may also have the effect of preventing changes in the composition of our board of directors
and management. It is possible that these provisions could make it more difficult to accomplish transactions that stockholders
may otherwise deem to be in their best interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_016"></A>SHARES ELIGIBLE FOR FUTURE SALE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Before this offering, there has not been
a public market for shares of our common stock. Future sales of substantial amounts of shares of our common stock, including shares
issued upon the conversion of convertible notes, the exercise of outstanding options and warrants, in the public market after this
offering, or the possibility of these sales occurring, could cause the prevailing market price for our common stock to fall or
impair our ability to raise equity capital in the future.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Immediately following the closing of this
offering, we will have 7,281,693 shares of common stock issued and outstanding. In the event the underwriter exercises the over-allotment
option in full, we will have 7,472,943 shares of common stock issued and outstanding. The common stock sold in this offering will
be freely tradable without restriction or further registration or qualification under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Previously issued shares of common stock
that were not offered and sold in this offering, as well as shares issuable upon the exercise of warrants and subject to employee
stock options, are or will be upon issuance, &ldquo;restricted securities,&rdquo; as that term is defined in Rule 144 under the
Securities Act. These restricted securities are eligible for public sale only if such public resale is registered under the Securities
Act or if the resale qualifies for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, which are
summarized below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Rule 144</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In general, a person who has beneficially
owned restricted shares of our common stock for at least twelve months, or at least six months in the event we have been a reporting
company under the Exchange Act for at least ninety (90) days before the sale, would be entitled to sell such securities, provided
that such person is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time
during the ninety (90) days preceding the sale. A person who is an affiliate of ours at such time would be subject to additional
restrictions, by which such person would be entitled to sell within any three-month period only a number of shares that does not
exceed the greater of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1% of the number of shares of our common stock then outstanding; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1% of the average weekly trading volume of our common stock during the four calendar weeks preceding the filing by such person of a notice on Form 144 with respect to the sale;</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">provided that, in each case, we are subject
to the periodic reporting requirements of the Exchange Act for at least 90 days before the sale. Rule 144 trades must also comply
with the manner of sale, notice and other provisions of Rule 144, to the extent applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Rule 701</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In general, Rule 701 allows a stockholder
who purchased shares of our capital stock pursuant to a written compensatory plan or contract and who is not deemed to have been
an affiliate of ours during the immediately preceding 90 days to sell those shares in reliance upon Rule 144, but without being
required to comply with the public information, holding period, volume limitation or notice provisions of Rule 144. All holders
of Rule 701 shares, however, are required to wait until ninety (90) days after the date of this prospectus before selling shares
pursuant to Rule 701.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Lock-Up Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We and our officers, directors, and all
or substantially all holders of our common stock, as of the effective date of the Registration Statement of which this prospectus
forms a part, and investors in our recent private placements have agreed, or will agree, with the underwriter, subject to certain
exceptions, that, without the prior written consent of the underwriter, we and they will not, directly or indirectly, during the
period ending one hundred and eighty (180) days after the date of the final closing of this offering (See &ldquo;<I>Underwriting&mdash;
Lock-Up Agreements</I>&rdquo;):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 for the sale of, or otherwise dispose of or transfer any shares of the common stock or any securities convertible into or exchangeable or exercisable for the common stock, whether now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or hereafter acquires the power of disposition; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">enter into any swap or any other agreement or any transaction that transfers, in whole or in part, the economic consequence of ownership of the common stock, whether any such swap or transaction is to be settled by delivery of the common stock or other securities, in cash or otherwise.</FONT></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">This agreement does not apply, in our case,
to securities issued pursuant to existing employee benefit plans or securities issued upon exercise of options, and other exceptions.</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="a_017"></A>CERTAIN U.S. FEDERAL INCOME AND ESTATE
TAX CONSIDERATIONS TO NON-U.S. HOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following is a summary of certain U.S.
federal income and estate tax consequences of the purchase, ownership and disposition of shares of our common stock as of the date
hereof. Except where noted, this summary deals only with common stock that is held as a capital asset by a non-U.S. holder (as
defined below).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A &ldquo;non-U.S. holder&rdquo; means a
beneficial owner of shares of our common stock (other than an entity treated as a partnership for U.S. federal income tax purposes)
that is not, for U.S. federal income tax purposes, any of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="padding-right: 0pt; padding-left: 0pt; text-align: justify; width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0pt; padding-left: 0pt; text-align: justify; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0pt; padding-left: 0pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">an individual citizen or resident of the
        United States;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P></TD></TR>
<TR>
    <TD STYLE="padding-right: 0pt; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0pt; padding-left: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0pt; padding-left: 0pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">a corporation (or any other entity treated
        as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state
        thereof or the District of Columbia;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P></TD></TR>
<TR>
    <TD STYLE="padding-right: 0pt; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0pt; padding-left: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0pt; padding-left: 0pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">an estate the income of which is subject
        to U.S. federal income taxation regardless of its source; or</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P></TD></TR>
<TR>
    <TD STYLE="padding-right: 0pt; padding-left: 0pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0pt; padding-left: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0pt; padding-left: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a trust if it (1) is subject to the primary supervision of a court within the United States and one or more United States persons have the authority to control all substantial decisions of the trust or (2) has a valid election in effect under applicable U.S. Treasury regulations to be treated as a United States person. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This summary is based upon provisions of
the Code, and regulations, rulings and judicial decisions as of the date hereof. Those authorities may be changed, perhaps retroactively,
so as to result in U.S. federal income and estate tax consequences different from those summarized below. This summary does not
address all aspects of U.S. federal income and estate taxes and does not deal with foreign, state, local or other tax considerations
that may be relevant to non-U.S. holders in light of their particular circumstances. In addition, it does not represent a detailed
description of the U.S. federal income and estate tax consequences applicable to you if you are subject to special treatment under
the U.S. federal income tax laws (including if you are a United States expatriate, foreign pension fund, &ldquo;controlled foreign
corporation,&rdquo; &ldquo;passive foreign investment company&rdquo; or a partnership or other pass-through entity for U.S. federal
income tax purposes). We cannot assure you that a change in law will not alter significantly the tax considerations that we describe
in this summary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If a partnership (or other entity treated
as a partnership for U.S. federal income tax purposes) holds shares of our common stock, the tax treatment of a partner will generally
depend upon the status of the partner and the activities of the partnership. If you are a partner of a partnership holding our
common stock, you should consult your tax advisors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>If you are considering the purchase
of our common stock, you should consult your own tax advisors concerning the particular U.S. federal income and estate tax consequences
to you of the purchase, ownership and disposition of our common stock, as well as the consequences to you arising under other U.S.
federal tax laws and the laws of any other taxing jurisdiction. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Dividends </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event that we make a distribution
of cash or other property (other than certain pro rata distributions of our stock) in respect of shares of our common stock, the
distribution generally will be treated as a dividend for U.S. federal income tax purposes to the extent it is paid from our current
or accumulated earnings and profits, as determined under U.S. federal income tax principles. Any portion of a distribution that
exceeds our current and accumulated earnings and profits generally will be treated first as a tax-free return of capital, causing
a reduction in the adjusted tax basis of a non-U.S. holder&rsquo;s common stock, and to the extent the amount of the distribution
exceeds a non-U.S. holder&rsquo;s adjusted tax basis in shares of our common stock, the excess will be treated as gain from the
disposition of shares of our common stock (the tax treatment of which is discussed below under &ldquo;<I>&mdash;Gain on Disposition
of Common Stock</I>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dividends paid to a non-U.S. holder generally
will be subject to withholding of U.S. federal income tax at a 30% rate or such lower rate as may be specified by an applicable
income tax treaty. However, dividends that are effectively connected with the conduct of a trade or business by the non-U.S. holder
within the United States (and, if required by an applicable income tax treaty, are attributable to a U.S. permanent establishment)
are not subject to the withholding tax, provided certain certification and disclosure requirements are satisfied. Instead, such
dividends are subject to U.S. federal income tax on a net income basis in the same manner as if the non-U.S. holder were a United
States person as defined under the Code. Any such effectively connected dividends received by a foreign corporation may be subject
to an additional &ldquo;branch profits tax&rdquo; at a 30% rate or such lower rate as may be specified by an applicable income
tax treaty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A non-U.S. holder who wishes to claim the
benefit of an applicable treaty rate and avoid backup withholding, as discussed below, for dividends will be required (a) to provide
the applicable withholding agent with a properly executed U.S. Internal Revenue Service, or the IRS Form W-8BEN or Form W-8BEN-E
(or other applicable form) certifying under penalty of perjury that such holder is not a United States person as defined under
the Code and is eligible for treaty benefits or (b) if our common stock is held through certain foreign intermediaries, to satisfy
the relevant certification requirements of applicable U.S. Treasury regulations. Special certification and other requirements apply
to certain non-U.S. holders that are pass-through entities rather than corporations or individuals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A non-U.S. holder eligible for a reduced
rate of U.S. federal withholding tax pursuant to an income tax treaty may obtain a refund of any excess amounts withheld by timely
filing an appropriate claim for refund with the IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Gain on Disposition of Common Stock
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the discussion of backup withholding
below, any gain realized by a non-U.S. holder on the sale or other disposition of our common stock generally will not be subject
to U.S. federal income tax unless:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the gain is effectively connected with a trade or business of the non-U.S. holder in the United
States (and, if required by an applicable income tax treaty, is attributable to a U.S. permanent establishment of the non-U.S.
holder);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the non-U.S. holder is an individual who is present in the United States for 183 days or more in
the taxable year of that disposition, and certain other conditions are met; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">we are or have been a &ldquo;United States real property holding corporation&rdquo; for U.S. federal
income tax purposes and certain other conditions are met.</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">A non-U.S. holder described in the first
bullet point immediately above will be subject to tax on the gain derived from the sale or other disposition in the same manner
as if the non-U.S. holder were a United States person as defined under the Code. In addition, if any non-U.S. holder described
in the first bullet point immediately above is a foreign corporation, the gain realized by such non-U.S. holder may be subject
to an additional &ldquo;branch profits tax&rdquo; at a 30% rate or such lower rate as may be specified by an applicable income
tax treaty. An individual non-U.S. holder described in the second bullet point immediately above will be subject to a 30% (or such
lower rate as may be specified by an applicable income tax treaty) tax on the gain derived from the sale or other disposition,
which gain may be offset by U.S. source capital losses even though the individual is not considered a resident of the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Generally, a corporation is a &ldquo;United
States real property holding corporation&rdquo; if the fair market value of its United States real property interests equals or
exceeds 50% of the sum of the fair market value of its worldwide real property interests and its other assets used or held for
use in a trade or business (all as determined for U.S. federal income tax purposes). We believe we are not and do not anticipate
becoming a &ldquo;United States real property holding corporation&rdquo; for U.S. federal income tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Federal Estate Tax</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Common stock held by an individual non-U.S.
holder at the time of death will be included in such holder&rsquo;s gross estate for U.S. federal estate tax purposes, unless an
applicable estate tax treaty provides otherwise.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Information Reporting and Backup Withholding</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Distributions paid to a non-U.S. holder
and the amount of any tax withheld with respect to such distributions generally will be reported to the IRS. Copies of the information
returns reporting such distributions and any withholding may also be made available to the tax authorities in the country in which
the non-U.S. holder resides under the provisions of an applicable income tax treaty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A non-U.S. holder will not be subject to
backup withholding on dividends received if such holder certifies under penalty of perjury that it is a non-U.S. holder (and the
payor does not have actual knowledge or reason to know that such holder is a United States person as defined under the Code), or
such holder otherwise establishes an exemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Information reporting and, depending on
the circumstances, backup withholding will apply to the proceeds of a sale or other disposition of our common stock made within
the United States or conducted through certain U.S.-related financial intermediaries, unless the beneficial owner certifies under
penalty of perjury that it is a non-U.S. holder (and the payor does not have actual knowledge or reason to know that the beneficial
owner is a United States person as defined under the Code), or such owner otherwise establishes an exemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Backup withholding is not an additional
tax and any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against a non-U.S. holder&rsquo;s
U.S. federal income tax liability provided the required information is timely furnished to the IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Additional Withholding Requirements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under Sections 1471 through 1474 of the
Code (such Sections commonly referred to as FATCA), a 30% U.S. federal withholding tax may apply to any dividends paid on our common
stock to (i) a &ldquo;foreign financial institution&rdquo; (as specifically defined in the Code) which does not provide sufficient
documentation, typically on IRS Form W-8BEN-E, evidencing either (x) an exemption from FATCA or (y) its compliance (or deemed compliance)
with FATCA (which may alternatively be in the form of compliance with an intergovernmental agreement with the United States) in
a manner which avoids withholding, or (ii) a &ldquo;non-financial foreign entity&rdquo; (as specifically defined in the Code) which
does not provide sufficient documentation, typically on IRS Form W-8BEN-E, evidencing either (x) an exemption from FATCA or (y)
adequate information regarding certain substantial United States beneficial owners of such entity (if any). If a dividend payment
is both subject to withholding under FATCA and subject to the withholding tax discussed above under &ldquo;<I>&mdash;Dividends</I>,&rdquo;
the withholding under FATCA may be credited against, and therefore reduce, such other withholding tax. You should consult your
own tax advisors regarding these requirements and whether they may be relevant to your ownership and disposition of our common
stock.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_018"></A>UNDERWRITING</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ThinkEquity, a division of Fordham Financial
Management, Inc., is underwriter of this offering. We have entered into an underwriting agreement dated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2019 with the underwriter.
Subject to the terms and conditions of the underwriting agreement, we have agreed to sell to the underwriter, and the underwriter
has 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 initial 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:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Underwriter</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">Number of <BR> Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left; text-indent: -10pt; padding-left: 10pt; padding-bottom: 1.5pt">ThinkEquity, a division of Fordham Financial Management, Inc.</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="width: 9%; text-align: right; border-bottom: Black 1.5pt solid">1,275,0000</TD><TD STYLE="width: 1%; text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt; padding-bottom: 4pt">Total</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 4pt double">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 4pt double">1,275,000</TD><TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The underwriting agreement provides that
the obligations of the underwriter 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 underwriter of officers&rsquo; certificates and legal opinions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed to indemnify the underwriter
against specified liabilities, including liabilities under the Securities Act, and to contribute to payments the underwriter may
be required to make in respect thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The underwriter is offering the shares
of common stock subject to prior sale, when, as and if issued to and accepted by it, subject to approval of legal matters by its
counsel and other conditions specified in the underwriting agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have granted the underwriter an over-allotment
option. This option, which is exercisable for up to 45 days after the date of this prospectus, permits the underwriter s to purchase
up to an aggregate of 191,250 additional shares of common stock (equal to 15% of the 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 underwriter
exercises this option in whole or in part, then the underwriter will be committed, subject to the conditions described in the underwriting
agreement, to purchase the additional shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Samer Tawfik, our founder, Chairman, President
and Chief Executive Officer, has indicated an interest in purchasing up to $1,000,000 of shares of common stock in this offering, at the
offering price to the public and on the same terms and conditions as other investors. However, because indications of interest
are not binding agreements or commitments to purchase, the underwriter could determine to sell or not sell shares to Mr. Tawfik,
and Mr. Tawfik could determine to purchase or not purchase shares in this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Discounts, Commissions and Reimbursement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The underwriter has advised us that the
underwriter proposes to offer the shares of common stock to the public at the initial public offering price per share set forth
on the cover page of this prospectus. The underwriter 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;&nbsp;&nbsp; per share of which up to $&nbsp;&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 underwriter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table summarizes the underwriting
discounts and commissions and proceeds, before expenses, to us assuming both no exercise and full exercise by the underwriter of
its over-allotment option:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="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">Without<BR> Option</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">With Option</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: 64%">Public offering price</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Underwriting discounts and commissions (7%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">Proceeds, before expenses, to us</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accountable expense allowance (1%)<SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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 0pt 24pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">The non-accountable expense allowance of 1% is not payable
with respect to shares sold upon exercise of the underwriter&rsquo;s over-allotment option.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have paid an expense deposit of $35,000
to (or on behalf of) the underwriter, which will be applied against the out-of-pocket accountable expenses that will be paid by
us to the underwriter in connection with this offering, and will be reimbursed to us to the extent not incurred. We have also agreed
to pay a non-accountable expense allowance to the underwriter equal to 1.0% of the gross proceeds received in this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, we have also agreed to reimburse
certain expenses of the underwriter relating to this offering as set forth in the underwriting agreement, including the fees and
expenses of the underwriter&rsquo;s legal counsel, not to exceed $110,000, and all filing fees and expenses associated with the
review of this offering by FINRA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We estimate the expenses of this offering
payable by us, not including underwriting discounts, commissions and expense allowance, will be approximately $135,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Underwriter Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the closing of this offering, we
have agreed to issue to the underwriter warrants, or the underwriter&rsquo;s warrants, to purchase a number of shares of
common stock equal to 5% of the total shares sold in the initial closing of this public offering. The underwriter&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 underwriter&rsquo;s warrants are exercisable at any time and from time to time, in whole or
in part, during the four-and-&frac12;-year period commencing six months after the effective date of the registration
statement related to this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The underwriter&rsquo;s warrants and the
shares of common stock underlying the underwriter&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 5110(g)(1) of FINRA. The underwriter, or permitted
assignees under such rule, may not sell, transfer, assign, pledge, or hypothecate the underwriter&rsquo;s warrants or the securities
underlying the underwriter&rsquo;s warrants, nor will the underwriter engage in any hedging, short sale, derivative, put, or call
transaction that would result in the effective economic disposition of the underwriter&rsquo;s warrants or the underlying shares
for a period of 180 days from the effective date of the registration statement. Additionally, the underwriter&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 this offering and their bona fide officers or partners.
The underwriter&rsquo;s warrants will provide for adjustment in the number and price of the underwriter&rsquo;s warrants and the
shares of common stock underlying such underwriter&rsquo;s warrants in the event of recapitalization, merger, stock split or other
structural transaction, or a future financing undertaken by us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Right of First Refusal</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Until twelve (12) months from the closing
of this offering, the underwriter shall have an irrevocable right of first refusal to act as sole investment banker, sole book-runner
and/or sole placement agent, at the underwriter&rsquo;s sole discretion, for each and every future public and private equity offerings
for the Company, or any successor to or any subsidiary of the Company, including all equity linked financings, on terms customary
to the underwriter. The underwriter 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 underwriter will not have more
than one opportunity to waive or terminate the right of first refusal in consideration of any payment or fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Discretionary Accounts</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The underwriter does not intend to confirm
sales of the securities offered hereby to any accounts over which they have discretionary authority.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Lock-Up Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We, each of our directors, officers and
our stockholders, have agreed for a period of (i) 180 days after the date of this prospectus in the case of our directors and officers
and (ii) 180 days after the date of this prospectus in the case of the Company, without the prior written consent of the underwriter,
not to directly or indirectly:</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">issue (in the case of us), offer, pledge, assign, encumber, announce the intention to sell, sell,
contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or
warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of capital stock of the Company
or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; or</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">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</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">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</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">enter into any swap or other agreement that transfers, in whole or in part, any of the economic
consequences of ownership of the Company&rsquo;s securities, whether any such transaction is to be settled by delivery of shares
of our common stock or such other securities, in cash or otherwise;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">sell, agree to sell, offer or sell, solicit offers to purchase, grant any call option, warrant
or other right to purchase, purchase any put option or other right to sell, pledge, borrow or otherwise dispose of Company&rsquo;s
securities</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">establish or increase any &ldquo;put equivalent position&rdquo; or liquidate or decrease any &ldquo;call
equivalent position&rdquo; (in each case within the meaning of Section 16 of the Exchange Act) with respect to any Company security;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">make any demand for or exercise any right with respect to, the registration of any Company security;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">otherwise enter into any swap, derivative or other transaction or arrangement that transfers to
another, in whole or in part, any economic consequence of ownership of a Company security, whether or not such transaction is to
be settled by delivery of Company securities, other securities, cash or other consideration; or</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">publicly announce an intention to do any of the foregoing.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Electronic Offer, Sale and Distribution
of Securities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A prospectus in electronic format may be
made available on the websites maintained by the underwriter or selling group members. The underwriter may agree to allocate a
number of securities to selling group members for sale to its online brokerage account holders. Internet distributions will be
allocated by the underwriter 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Stabilization</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with this offering, the underwriter
may engage in stabilizing transactions, over-allotment transactions, syndicate-covering transactions, penalty bids and purchases
to cover positions created by short sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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 this offering is in progress.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Over-allotment transactions involve sales
by the underwriter of shares in excess of the number of shares the underwriter is 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 underwriter 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 underwriter may close out any short position by exercising its over-allotment option and/or purchasing shares in the open market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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 underwriter will consider, among other things, the price
of shares available for purchase in the open market as compared with the price at which it may purchase shares through exercise
of the over-allotment option. If the underwriter sells more shares than could be covered by exercise of the over-allotment option
and, therefore, has 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 underwriter is 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 this offering.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Penalty bids permit the underwriter 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These 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 underwriter
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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Other Relationships</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The underwriter 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Offer restrictions outside the United
States</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other than in the United States, no action
has been taken by us or the underwriter that would permit a public offering of the securities offered by this prospectus in any
jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly
or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of
any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance
with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised
to inform themselves about and to observe any restrictions relating to this offering and the distribution of this prospectus. This
prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus
in any jurisdiction in which such an offer or a solicitation is unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Australia</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This prospectus 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&nbsp;months after
its transfer to the offeree under this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>China</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 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;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>European Economic Area - Belgium, Germany,
Luxembourg and Netherlands</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 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.</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"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">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;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">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 &euro;43,000,000 (as shown on its
last annual unconsolidated or consolidated financial statements) and (iii) an annual net turnover of more than &euro;50,000,000
(as shown on its last annual unconsolidated or consolidated financial statements);</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">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</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">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.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>France</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This 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 mon&eacute;taire et financier) and Articles 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Ireland</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 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) 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.</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"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Israel</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 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 this 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Italy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 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, &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. 58 of 24 February 1998 (&ldquo;Decree No. 58&rdquo;), other than:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">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 (&ldquo;Regulation no. 1197l&rdquo;)
as amended (&ldquo;Qualified Investors&rdquo;); and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">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.</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">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:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">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.&nbsp;58, CONSOB Regulation No. 16190 of 29 October 2007 and any other applicable laws; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">in compliance with all relevant Italian securities, tax
and exchange controls and any other applicable laws.</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">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Japan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The securities have not been and will not
be registered under Article&nbsp;4, paragraph 1 of the Financial Instruments and Exchange Law of Japan (Law No. 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&nbsp;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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Portugal</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This 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.</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"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Sweden</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Switzerland</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This document is personal to the recipient
only and not for general circulation in Switzerland.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>United Arab Emirates</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">No offer or invitation to subscribe for
securities is valid or permitted in the Dubai International Financial Centre.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>United Kingdom</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the 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 (&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) 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.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Canada</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 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&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 underwriter is not required to comply with the disclosure requirements of NI33-105
regarding underwriter conflicts of interest in connection with this offering.</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-align: center"><B><A NAME="a_019"></A>LEGAL MATTERS</B></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-align: justify">Certain legal matters with respect to the
shares of common stock offered hereby will be passed upon by Pryor Cashman LLP. McGuireWoods LLP, New York, New York, is acting
as counsel to the underwriter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_020"></A>EXPERTS</B></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-align: justify">The financial statements of the Company
appearing elsewhere in this prospectus have been included herein in reliance upon the report of Grassi &amp; Co., CPAs, P.C., an
independent registered public accounting firm, appearing elsewhere herein, and upon the authority of Grassi &amp; Co., CPAs, P.C.,
as experts in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_021"></A>WHERE YOU CAN FIND MORE INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have filed with the SEC a registration
statement on Form S-1 under the Securities Act with respect to the shares of our common stock offered hereby. This prospectus,
which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement
or the exhibits filed therewith. For further information about us and the common stock offered hereby, we refer you to the registration
statement and the exhibits filed therewith. Statements contained in this prospectus regarding the contents of any contract or any
other document that is filed as an exhibit to the registration statement are not necessarily complete, and each such statement
is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the registration
statement. We currently do not file periodic reports with the SEC. Upon closing of our initial public offering, we will be required
to file periodic reports, proxy statements and other information with the SEC pursuant to the Exchange Act. The SEC also maintains
a website that contains reports, proxy and other information statements about issuers, including us, that file electronically with
the SEC. The address of the website is <I>www.sec.gov</I>.</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="a_022"></A>FINANCIAL
STATEMENTS</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>LMP
AUTOMOTIVE HOLDINGS, 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>INDEX
TO CONSOLIDATED FINANCIAL STATEMENTS</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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; width: 94%; 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="vertical-align: bottom; width: 6%; 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="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; 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="vertical-align: bottom; 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="background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated
    Financial Statements</FONT></TD>
    <TD STYLE="vertical-align: bottom; 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="background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0in"><A HREF="#f_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Condensed Consolidated Balance Sheets at March 31, 2019 and December 31, 2018</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-align: center">F-2</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0in"><A HREF="#f_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</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-align: center">F-3</TD></TR>
<TR STYLE="background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0in"><A HREF="#f_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Condensed Consolidated Statements of Shareholders&rsquo; Equity for the Three-Months Ended March 31,&nbsp;2019</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-align: center">F-4</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0in"><A HREF="#f_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Condensed Consolidated Statements of Cash Flows&nbsp;for the Three-Months Ended March 31, 2019, and 2018</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-align: center">F-5</TD></TR>
<TR STYLE="background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0in"><A HREF="#f_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Report of Independent Registered Public Accounting Firm</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-align: center">F-17</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0in"><A HREF="#f_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Balance Sheets at December 31, 2018 and 2017</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-align: center">F-18</TD></TR>
<TR STYLE="background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0in"><A HREF="#f_007"><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="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-align: center">F-19</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; padding-left: 0in"><A HREF="#f_008"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of Shareholders&rsquo; Equity for the Years Ended December 31,&nbsp;2018 and 2017</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-align: center">F-20</TD></TR>
<TR STYLE="background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-left: 0in"><A HREF="#f_009"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of Cash Flows&nbsp;for the Years Ended December 31, 2018, and 2017</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-align: center">F-21</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: justify"><A HREF="#f_010"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes to Consolidated Financial Statements</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; text-align: center">F-22</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>


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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-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="f_001"></A><B>LMP AUTOMOTIVE HOLDINGS,
INC. </B></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>CONDENSED
CONSOLIDATED BALANCE SHEETS </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>AT
MARCH 31, 2019 (UNAUDITED) AND DECEMBER 31, 2018</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>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>March 31,</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>2019</B></FONT></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31, <BR>
2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD></TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">(unaudited)</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">
    <TD>&nbsp;</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">
    <TD>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%">&nbsp;&nbsp;&nbsp;Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">472,199</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">424,152</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">117,253</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">286,982</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">&nbsp;&nbsp;&nbsp;Automotive inventory, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,511,159</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,558,160</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">&nbsp;&nbsp;&nbsp;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">220,075</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">380,712</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">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,320,686</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,650,006</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Property, equipment and leasehold improvements, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">528,088</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">539,475</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Intangible assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45,994</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,997</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">Deferred offering costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,022,855</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">987,093</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">Right-of-use asset</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">1,347,701</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">TOTAL ASSETS</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">12,265,324</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">14,216,571</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; 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>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">&nbsp;&nbsp;&nbsp;Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">181,336</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">934,409</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;Line of credit - related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,775,000</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">&nbsp;&nbsp;&nbsp;Convertible notes payable and accrued interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">816,816</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,184,707</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;Other current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">427,901</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">568,358</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">&nbsp;&nbsp;&nbsp;Operating lease liability, 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">320,956</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">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,247,009</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,462,474</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; padding-bottom: 1.5pt">Operating lease liability, net of 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">1,048,796</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="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">4,295,805</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">4,462,474</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">COMMITMENTS AND CONTINGENCIES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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">SHAREHOLDERS&rsquo; EQUITY:</TD><TD>&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; text-indent: -0.125in">Preferred Stock, $0.00001 par value, 20,000,000 shares authorized, nil shares&nbsp;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: White">
    <TD STYLE="text-align: left; padding-left: 0.25in; text-indent: -10pt">Common Stock, $0.00001 par value; 100,000,000 shares authorized; 24,560,294 and 24,645,294 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">246</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">246</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">&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,344,141</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,306,737</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(403,750</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;&nbsp;&nbsp;&nbsp;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">(7,971,118</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,552,886</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">Total shareholders&rsquo; equity</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">7,969,519</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">9,754,097</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">TOTAL LIABILITIES AND SHAREHOLDERS&rsquo; EQUITY</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">12,265,324</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">14,216,571</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times 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">The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.</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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    <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: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="f_002"></A><B>LMP
AUTOMOTIVE HOLDINGS, INC. </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>CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS </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>FOR
THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 (UNAUDITED)</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>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</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">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Revenues</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; text-indent: 0; padding-left: 10pt">Vehicle sales</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,472,892</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,383,639</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: 10pt">Subscription fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">292,422</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: 10pt">Rental revenues</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">172,433</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">956</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 revenues</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">4,937,747</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,384,595</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Cost of revenues</TD><TD>&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: 10pt">Vehicle sales</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,569,067</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,558,694</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: 10pt">Subscription and rental</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">479,506</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: 1.5pt">Total cost of revenues</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,048,573</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,558,694</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Gross loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(110,826</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(174,099</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Selling, general and administrative expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,041,728</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">427,669</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Share-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,404</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">Acquisition, consulting and legal expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">183,155</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">151,430</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">Fixed asset 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">23,089</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">8,373</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,396,202</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(761,571</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;&nbsp;&nbsp;&nbsp;Interest</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">(4,409</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4,919</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(1,400,611</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(766,490</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss per share attributable to stockholders, basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.06</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">(0.03</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Weighted average shares of common stock 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">24,592,516</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">22,206,729</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">The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.</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"></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"><A NAME="f_003"></A><B>LMP
AUTOMOTIVE HOLDINGS, INC. </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>CONDENSED
CONSOLIDATED STATEMENTS OF SHAREHOLDERS&rsquo; EQUITY </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>FOR
THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 (UNAUDITED)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-left: 10pt; text-indent: -10pt">&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">Common Shares Outstanding</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">Preferred<BR>
 Stock</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">Common <BR> Stock</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">Additional Paid-in Capital</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">Treasury Stock</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>Accumulated Deficit</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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: 23%; font-weight: bold; padding-left: 10pt; text-indent: -10pt">Balance at December&nbsp;31, 2017</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">21,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">210</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">2,594,590</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 8%; font-weight: bold; text-align: right">-</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">(62,593</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">2,532,207</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt; text-indent: -10pt">Issuance of stock for cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,858,042</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">29</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,513,386</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; 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">9,513,415</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 10pt; text-indent: -10pt">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&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">(766,490</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">(766,490</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt; padding-left: 10pt; text-indent: -10pt">Balance at March&nbsp;31, 2018 (unaudited)</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">23,858,042</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">239</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">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">12,107,976</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</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">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(829,083</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">11,279,132</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-left: 10pt; text-indent: -10pt">Balance at December&nbsp;31, 2018</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,645,294</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">246</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">16,306,737</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(6,552,886</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9,754,097</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt; text-indent: -10pt">Common stock repurchased</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(85,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(403,750</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>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(403,750</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt; text-indent: -10pt">Share-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">37,404</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">37,404</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt; text-indent: -10pt">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</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">(1,400,611</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,400,611</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt; text-indent: -10pt">Impact of adoption of ASU 2016-02 related to leases</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</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">(17,621</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">(17,621</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt; padding-left: 10pt; text-indent: -10pt">Balance at March&nbsp;31, 2019 (unaudited)</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">24,560,294</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">246</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">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">16,344,141</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(403,750</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">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(7,971,118</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">7,969,519</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">The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.</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"></P>


<!-- Field: Page; Sequence: 93; Value: 1 -->
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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"><A NAME="f_004"></A><B>LMP
AUTOMOTIVE HOLDINGS, INC.</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>CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS</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>FOR
THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 (UNAUDITED)</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>&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">2019</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">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; padding-left: 10pt">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,400,611</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(766,490</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: 10pt">Adjustment to reconcile net loss to net cash provided by (used in) operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">314,008</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,373</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Share-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,404</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: 10pt">(Increase) Decrease in assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">169,729</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(237,596</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: 20pt">Automotive inventory, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,756,083</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,209,235</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Prepaid expenses and other assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">160,637</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(270,341</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: 20pt">Right-of-use asset</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">81,440</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: 10pt">(Decrease) Increase in liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(753,073</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(319,301</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Other current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(143,347</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">54,406</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: 20pt">Operating lease liability</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">(77,009</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 30pt">NET CASH PROVIDED BY (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">1,145,261</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">(7,740,184</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">CASH FLOWS FROM INVESTING ACTIVITIES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Purchases of property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,484</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(49,491</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: 20pt">Purchases to intangible 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">(10,219</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">(2,250</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 30pt">NET CASH USED IN INVESTING&nbsp;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">(17,703</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">(51,741</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">CASH FLOWS FROM FINANCING ACTIVITIES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Cash received from line of credit &ndash; related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">250,000</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: 10pt">Principal reduction on line of credit &ndash; related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(525,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Principal advances of notes and advances payable &ndash; related parties</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">39,000</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-left: 10pt">Principal repayment of notes and advances payable &ndash; related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,130,500</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Principal repayments on convertible notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(365,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Repurchase of treasury stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(403,750</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Net cash received from issuance of common stock</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">9,513,415</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: 10pt">Deferred stock offering costs</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(35,761</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">(275,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 30pt">NET CASH (USED IN) PROVIDED BY FINANCING&nbsp;&nbsp;ACTIVITIES</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,079,511</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">8,146,915</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 30pt">NET INCREASE IN CASH</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,047</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">354,990</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 30pt">CASH, 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">424,152</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">217,360</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; padding-left: 30pt">CASH, END OF PERIOD</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">472,199</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">572,350</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><U>SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION</U></TD><TD>&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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 10pt">Cash paid during the period for interest</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">7,300</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">4,845</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; padding-left: 10pt">Noncash payment on note payable</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">160,000</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: 10pt">Right-of-use asset obtained in exchange for operating lease liability</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,697,027</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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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">The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</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; text-transform: uppercase">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note
1 - <U>Nature of Operations and Principles of Consolidation</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Business
Activity</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">LMP
Motors.com, LLC (&ldquo;LMP Motors&rdquo;) is engaged in the buying, selling and sales of subscriptions of vehicles in the automotive
industry and operates in the state of Florida. LMP Motors is a limited liability company and was organized in the state of Delaware.
The owner of LMP Motors is designated as a member and is not liable for the debts of LMP Motors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">601
NSR, LLC (&ldquo;NSR&rdquo;) was formed to enter into future potential strategic acquisitions and is currently inactive. NSR is
a limited liability company and was organized in the state of Delaware. The owner of NSR is designated as a member and is not
liable for the debts of NSR.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">LMP
Finance, LLC (&ldquo;LMP Finance&rdquo;) is engaged in the purchasing, subscribing and renting of vehicles. LMP Finance operates
in the state of Florida. LMP Finance is a limited liability company and was organized in the state of Delaware. The owner of LMP
Finance is designated as a member and is not liable for the debts of LMP Finance.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">LMP
Automotive Holdings, LLC (&ldquo;LMP Automotive&rdquo;) was formed to acquire the assets from LMP Motors.com LLC and LMP Finance,
LLC and other subsidiary companies. LMP Automotive operates in the state of Florida. LMP Automotive is a limited liability company
and was organized in the state of Delaware. The owner of LMP Automotive is designated as a member and is not liable for the debts
of LMP Automotive.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">LMP
Automotive Holdings, Inc. (&ldquo;Automotive&rdquo;) is a holding company incorporated in the state of Delaware on December 15,
2017. On December 15, 2017, the common ownership contributed 100% of its interest in LMP Motors, NSR, LMP Finance and LMP Automotive
to Automotive.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Principles
of Consolidation</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
condensed consolidated financial statements include the amounts of Automotive and its wholly-owned subsidiaries, LMP Motors, NSR,
LMP Finance, and LMP Automotive, collectively referred to as the &ldquo;Company.&rdquo; All significant intercompany balances
and transactions are eliminated in the consolidation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prior
to the transfer of interest of LMP Motors, NSR, LMP Finance and LMP Automotive to Automotive on December 15, 2017, LMP
Motors, NSR, LMP Finance and LMP Automotive were affiliates under common control and as such have been recorded at carry over
basis.&nbsp; Equity of LMP Motors, NSR, LMP Finance and LMP Automotive in the amount of approximately $2.6 million, which was
net of an accumulated deficit of approximately $1.4 million, was transferred to additional paid-in capital at the December
15, 2017 transaction date.&nbsp; Accumulated deficit of the Company at December 31, 2018 represents only the sixteen (16)
days of operations subsequent to its incorporation in 2017.&nbsp; With respect to the consolidated statements of
operations and cash flows, the Company was treated as the continuation of LMP Motors, NSR, LMP Finance and LMP Automotive
and, accordingly, their financial position and results of operations have been presented on a combined basis with the
historical financial statements of LMP Motors, NSR, LMP Finance and LMP Automotive for all periods prior to the
transfer.</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>

<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">Note
2 - <U>Summary of Significant Accounting Policies</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Liquidity</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company has sustained net losses and an accumulated deficit of $7,971,118 to date. Its management plans to make strategic acquisitions
of pre-owned and new automobile dealerships and car rental companies to expedite the Company&rsquo;s growth and produce positive
margins.&nbsp; The Company also has raised capital during 2018 through private placement offerings of its common stock and convertible
debt securities to help facilitate business growth and execute its management&rsquo;s plans to become profitable through acquisitions.&nbsp;
Management plans to either continue obtaining funding through 2019 or until it has secured a capital market transaction.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Basis
of Presentation</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accompanying condensed consolidated financial statements are unaudited. These unaudited interim financial statements have been
prepared in accordance with accounting principles generally accepted in the United States (&ldquo;U.S. GAAP&rdquo;) and pursuant
to the rules and regulations of the SEC. Certain information and note disclosures, which are included in annual financial statements,
have been omitted pursuant to these rules and regulations. Management believes the disclosures made in these interim unaudited
financial statements are adequate to make the information not misleading.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although
these interim financial statements for the three months ended March 31, 2019 and 2018 are unaudited, in the opinion of management,
such statements include all adjustments (consisting of normal recurring entries) necessary to present fairly the Company&rsquo;s
financial position, results of operations and cash flows for the periods presented. The results for the three months ended March
31, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 or for any future
period. For more complete information, these unaudited condensed consolidated financial statements should be read in conjunction
with the audited financial statements for the year ended December 31, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><U>Use of Estimates</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
preparation of the consolidated 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Accounts
Receivable</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company carries its accounts receivable at cost. Accounts receivable are due upon receipt. Such estimates are based on management&rsquo;s
assessments of the creditworthiness of its customers, the aged basis of its receivables, as well as current economic conditions
and historical information. Management has determined that no allowance for uncollectible accounts for accounts receivable is
necessary at March 31, 2019 and 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 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Inventory</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s inventory consists of automobiles. Inventories are valued at the lower of cost or market, with cost determined
by specific identification and with market defined as net realizable value. Net realizable value is the estimated selling prices
in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventories
at March 31, 2019 and December 31, 2018 are recorded based on perpetual inventory records.</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"></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">Note
2 - <U>Summary of Significant Accounting Policies (cont&rsquo;d.)</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Inventory
(cont&rsquo;d.)</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company depreciates its fleet inventory monthly based on 1% of initial cost starting in 2018 when the subscriptions and rentals
were launched. For the three months ended March 31, 2019 and 2018, fleet vehicle depreciation approximated $291,000 and $0 and
was recorded to Cost of revenues - subscription and rental.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Company
management periodically reviews its inventories to determine whether any inventories have declined in value. The Company wrote
down approximately $90,000 and $530,000 of inventory to its net realizable value for the three months ended March 31, 2019 and
year ended December 31, 2018, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">March&nbsp;31,<BR>
 2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31, <BR>
2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Automotive Inventory</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">9,104,108</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">12,270,478</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Inventory Impairment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(150,307</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(529,983</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Inventory Accumulated Depreciation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(517,010</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(478,718</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">Inventory In-transit Deposits</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">74,368</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">296,383</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 Automotive Inventory, net</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">8,511,159</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">11,558,160</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 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Property,
Equipment and Leasehold Improvements</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property,
equipment and leasehold improvements are stated at cost. The costs of additions and betterments are capitalized and expenditures
for repairs and maintenance are expensed in the period incurred. When items property and equipment are sold or retired, the related
costs and accumulated depreciation are removed from the accounts and any gain or loss is included in 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 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vehicles
and equipment are depreciated utilizing the straight-line method over the estimated useful lives of the respective assets 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" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: justify">Vehicles</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5 years</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Furniture and fixtures</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10 years</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7 years</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Leasehold
improvements are amortized over the shorter of the remaining term of the lease or the useful life of the improvement utilizing
the straight-line method.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; 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 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Intangible
Assets</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intangible
assets are stated at their historical cost and amortized on a straight-line basis over their expected useful lives.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Long-lived
Assets</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company reviews long-lived assets and certain identifiable intangibles held and used for possible impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In evaluating the fair value and
future benefits of its intangible assets, management performs an analysis of the anticipated undiscounted future net cash flow
of the individual assets over the remaining amortization period. The Company recognizes an impairment loss if the carrying value
of the asset exceeds the expected future cash flows. There were no deemed impairments of long-lived assets at March 31, 2019 and
December 31, 2018.</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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    <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; 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">Note
2 - <U>Summary of Significant Accounting Policies (cont&rsquo;d.)</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Fair
Value of Financial Instruments </U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fair
value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.&nbsp; To increase the comparability of fair value measurements, a three-tier
fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
1 - Valuations based on quoted prices for identical assets and liabilities in active markets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
2 - Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets
or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active,
or other inputs that are observable or can be corroborated by observable market data.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
3 - Valuations based on unobservable inputs reflecting the Company&rsquo;s own assumptions, consistent with reasonably available
assumptions made by other market participants.&nbsp; These valuations require significant judgment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
March 31, 2019 and December 31, 2018, the fair value of these financial instruments, including cash, accounts receivable, and
accounts payable, approximated book value due to the short maturity of these instruments. Notes payable &ndash; related parties
and convertible notes payable with accrued interest estimate fair value due to market interest rates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Convertible
Notes</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
Company records a discount to convertible notes for the intrinsic value of conversion options embedded in debt instruments based
upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and
the effective conversion price embedded in the note. Debt discounts, if any, under these arrangements are amortized to noncash
interest expense using the effective interest rate method over the term of the related debt to their date of maturity. Based on
the terms of the embedded conversion rights, the Company has not recognized any discounts to date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Share-Based
Compensation</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company recognizes the cost of employee services received in exchange for awards of stock options, based on the fair value of
those awards at the date of grant over the requisite service period, which generally is the vesting period of the award. The Company
uses the Black-Scholes option pricing model to determine the fair value of stock option awards.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
June 2018, the Financial Accounting Standards Board (&ldquo;FASB&rdquo;) issued ASU No. 2018-07, Improvements to Share-Based Payment
Accounting (Topic 718). This ASU was issued to simplify the accounting for share-based payments to nonemployees by aligning much
of the guidance on measurement and classification with the accounting for share-based payments to employees. The Company has elected
early adoption of this ASU to conform the accounting for share-based compensation to employees and nonemployees.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Share-based
compensation plans, related expenses, and assumptions used in the Black-Scholes option pricing model are more fully described
in Note 12.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times 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"></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">Note
2 - <U>Summary of Significant Accounting Policies (cont&rsquo;d.)</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Revenue
Recognition</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is the result of a joint
project of the FASB and the IASB to clarify the principles for recognizing revenue and to develop a common revenue standard for
U.S. GAAP and IFRS, and provides 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company adopted FASB ASC 606, Revenue from Contracts with Customers (&quot;ASC 606&quot;) on January 1, 2018 using the modified
retrospective method. ASC 606 prescribes a five-step model that includes: (1) identify the contract; (2) identify the performance
obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize
revenue when (or as) performance obligations are satisfied. The adoption of ASC 606 did not have a material impact on the amount
or timing of the revenue recognition, and the Company recognized no cumulative effect adjustment 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 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Used
Vehicle Sales Revenue</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s business consists of retail and wholesale sales of used vehicles to customers. Sales are based on the network
of physical showrooms and efficient online showrooms on the Company&rsquo;s websites. The Company offers a home delivery service
so that they deliver the car to the place agreed with the client. The Company also sells used vehicles in auctions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company recognizes revenue when it satisfies a performance obligation by transferring control of a vehicle to a customer. The
prices of the vehicles are stated in its contracts at stand-alone selling prices which are agreed upon with its customer prior
to delivery. The Company satisfies its performance obligation for used vehicle sales upon delivery when the transfer of title,
risks and rewards of ownership and control pass to the customer. The Company recognizes revenue at the agreed-upon price stated
in the contract, including any delivery charges. In addition, any noncash consideration received from a customer (i.e., trade-in
vehicles) are recognized at fair value. Customer payment has been received or third-party financing has been confirmed prior to
vehicle transfer. The Company collects sales taxes and other taxes from customers on behalf of governmental authorities at the
time of sale. These taxes are accounted for on a net basis and are not included in sales or cost of 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 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subscription
Revenue</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company offers a vehicle subscription plan where a customer will pay a monthly fee in exchange for access to a car. The Company&rsquo;s
subscriptions include monthly swaps, scheduled maintenance and upkeep, and even insurance in some cases. Customers have the flexibility
to up-or-downgrade a vehicle monthly with the vehicle payment adjusted accordingly. There is a $575 annual subscription activation
fee and the monthly payments are dependent upon the vehicle selected by the customer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company recognizes revenue when it satisfies a performance obligation by transferring control of a vehicle to a customer under
a subscription contract. The prices of the vehicles are stated in its contracts at stand-alone subscription prices which are agreed
upon with the customer prior to delivery. The Company satisfies its performance obligation for monthly subscription payments upon
delivery to the customer and in each subsequent month the customer retains possession of the vehicle. The Company recognizes revenue
at the agreed-upon price stated in the contract in the month earned.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company also receives an upfront customer payment as an annual membership fee to its vehicle subscription program. This fee is
deferred and amortized to income monthly over the period of membership.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Customer
payment has been received prior to initial vehicle transfer and on each monthly recurring anniversary date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times 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"></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">Note
2 - <U>Summary of Significant Accounting Policies (cont&rsquo;d.)</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Revenue
Recognition (cont&rsquo;d.)</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rental
Revenue</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company recognizes vehicle rental income over the period the vehicle is rented. Performance obligations associated with vehicle
rental transactions are satisfied over the rental period. Rental periods are short term in nature. Performance obligations associated
with rental related activities, such as charges to the customer for the fueling of vehicles and value-added services such as loss
damage waivers, navigation units, and other ancillary products, are also satisfied over the rental period.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payments
are due from customers at the time of reservation. Additional charges incurred by the customers are collected at the time of vehicle
return. The Company collects sales taxes and other taxes from customers on behalf of governmental authorities at the time of sale.
These taxes are accounted for on a net basis and are not included in sales or cost of 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 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Income
Taxes</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Income
tax expense includes federal and state taxes currently payable and deferred taxes arising from temporary differences between income
for financial reporting and income tax purposes. Deferred tax assets and liabilities are determined based on the difference between
the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the difference
is expected to reverse. The effect of a change in the tax rate on the deferred tax asset and liabilities is recognized in income
in the period that includes the enactment date. The Company establishes a valuation allowance when necessary to reduce its deferred
tax assets to an amount that is expected to be realized.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; 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 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">LMP
Motors, NSR, LMP Finance, LMP Automotive are a limited liability companies, which are treated as partnerships for income tax purposes.
The income or loss and credits from limited liability companies are passed through to their members and reported on the members&rsquo;
income tax returns. As such, there is no provision for income taxes. If applicable, the Company would recognize interest and penalties
associated with tax matters as part of operating expenses and include accrued interest and penalties with the related tax liability
in its condensed consolidated financial statements. There are no unrecognized tax benefits at March 31, 2019 and December 31,
2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Advertising</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company expenses advertising costs in the period incurred. Advertising expense was approximately $65,900 and $30,200 for the three
months ended March 31, 2019 and 2018, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Leases</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company adopted ASU No. 2016-02,&nbsp;Leases (&ldquo;Topic 842&rdquo;)&nbsp;using the modified&nbsp;retrospective adoption method&nbsp;with
an effective date of&nbsp;January 1, 2019. The condensed consolidated&nbsp;financial statements for 2019 are presented under the
new standard, while the comparative periods presented are not adjusted and continue to be reported in accordance with the Company&rsquo;s
historical accounting policy and Topic 840. This standard requires all lessees to recognize a right-of-use asset and a lease liability,
initially measured at the present value of the lease payments.&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
Topic 842,&nbsp;the Company applied&nbsp;a dual approach to all leases whereby&nbsp;the Company is&nbsp;a lessee and classifies
leases as either finance or operating&nbsp;leases&nbsp;based on the principle of whether or not the lease is effectively a financed
purchase by the Company. Lease classification is evaluated at the inception of the lease agreement. Regardless of classification,
the Company records&nbsp;a right-of-use asset and a lease liability for all leases with a term greater&nbsp;than 12 months. The
lease for the premises occupied&nbsp;in Plantation, Florida, was&nbsp;classified as an operating lease as of March 31, 2019. Operating
lease expense is recognized on a straight-line basis over the term of the lease.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note
2 - <U>Summary of Significant Accounting Policies (cont&rsquo;d.)</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Leases
(cont&rsquo;d.)</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
adoption of the new lease standard had a significant impact on the&nbsp;Consolidated&nbsp;Balance&nbsp;Sheets&nbsp;resulting in&nbsp;the
recognition of&nbsp;$1.4 million of right-of-use assets, $0.3&nbsp;million of current lease liabilities,&nbsp;and&nbsp;$1.1 million
of&nbsp;long-term lease liabilities. In addition, the Company recognized an approximately&nbsp;$17,000 cumulative effect adjustment
to accumulated deficit on the Consolidated Balance Sheet&nbsp;related&nbsp;to&nbsp;the&nbsp;unamortized deferred lease costs incurred
in prior periods which do not meet the definition of initial direct costs under Topic&nbsp;842. The adoption of Topic 842 did
not have a significant impact on the lease classification or a material impact on the&nbsp;Consolidated Statements of&nbsp;Operations
and liquidity.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
components of the right-of-use asset and lease liabilities as of&nbsp;March 31, 2019&nbsp;are as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: justify">Operating lease right-of-use asset</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,347,701</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Operating lease liability, current portion</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">320,956</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 4pt">Operating lease liability, net of current portion</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,048,796</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operating
Leases</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
2018, the Company entered into a lease with an entity related through common ownership for its facilities in Plantation, Florida.
The five-year, triple-net lease provides for monthly payments of $28,500 plus CAM and sales taxes, with annual escalations of
three-percent (3%). The Company has an option to extend the lease for an additional five-year term, with annual escalations of
three-percent (3%). The option to extend the lease is not recognized in the right-of-use asset or operating lease liability.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Discount
Rate</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">When
available, the Company uses the rate implicit in the lease or a borrowing rate based on similar debt to discount lease payments
to present value. However, the lease generally does not provide a readily determinable implicit rate, and the Company&rsquo;s
existing debt does not have similar terms. Therefore, the Company used the 5-year Treasury constant maturity at the lease commencement
date to discount lease payments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lease
Cost</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operating
lease cost related to right-of-use assets for the three months ended March 31, 2019 and 2018 is $96,572 and $28,500, respectively.
The weighted average remaining term on the lease is 3.92 years. The weighted average discount rate is 2.63%.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-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">Note
3 - <U>Concentration of Credit Risk</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company maintains its cash balances in several financial institutions which are insured by the Federal Deposit Insurance Corporation
(&ldquo;FDIC&rdquo;) for up to $250,000 per institution. From time to time, its balances may exceed these limits.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times 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"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note
4 - <U>Property, Equipment and Leasehold Improvements</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property,
equipment and leasehold improvements, net are summarized as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid; white-space: nowrap"><B>March 31,<BR>
 2019</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid; white-space: nowrap"><B>December&nbsp;31, <BR>
2018</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">Vehicles</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">91,547</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">91,547</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Furniture, fixtures and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">282,588</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">273,024</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">240,981</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">238,287</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Signage</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">4,777</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">615,116</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">607,635</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less: Accumulated depreciation and 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">(87,028</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">(68,160</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">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">528,088</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">539,475</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 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Depreciation
and amortization expense related to vehicles, equipment, and leasehold improvements amounted to $18,868 and $8,373 for the three
months ended March 31, 2019 and 2018, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note
5 - <U>Related Party Transactions</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company entered into debt agreements with a related party employee, with interest accruing at rate of 9.0% per annum. At December
31, 2017, $50,000 was outstanding, which was repaid on February 15, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company entered into debt agreements with a shareholder, with interest accruing at a rate of 2% interest per annum. At December
31, 2017, $1,019,000 was outstanding, which was repaid on February 15, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
2018, the Company entered into a non-interest bearing revolving line of credit agreement with an entity related to the majority
shareholder. Amounts drawn on the line of credit become due and payable on the earlier of written demand by the lender or May
21, 2020, as defined in the agreement. At March 31, 2019 and December 31, 2018, the outstanding amount was $1,500,000 and $1,775,000,
respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note
6 - <U>Convertible Notes Payable </U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the second and third quarters of 2018, the Company issued convertible promissory notes (&ldquo;6-Month Notes&rdquo;) in an aggregate
principal amount of $1,448,965, pursuant to a private placement offering. The 6-Month Notes bear interest at 4%&nbsp;per annum
and mature six (6) months from the date of issuance,&nbsp;at which time the principal and any accrued but unpaid interest shall
be due and payable. Accrued interest at March 31, 2019 and December 31, 2018 was $17,866 and $20,757, respectively. The holders
of the 6-Month Notes may, at any time prior to the maturity date, convert the 6-Month Notes (and accrued interest) into shares
of the Company&rsquo;s Common Stock by dividing (a) the outstanding principal balance and unpaid accrued interest under this Note
on the date of conversion by (b) $4.75 (subject to adjustment as provided in the 6-Month Notes). Based on the terms of the conversion
rights, the Company did not recognize a beneficial conversion discount.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the fourth quarter of 2018, the Company repaid one of the 6-Month Notes in the principal amount of approximately $285,015, leaving
a balance of approximately $1,164,000, plus accrued interest, at December 31, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the first quarter of 2019, the Company repaid two of the 6-Month Notes in the principal amount of $365,000, leaving a balance
of $798,950, plus accrued interest, at March 31, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note
7 - <U>Accounts Payable and Other Current Liabilities </U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounts
payable and other current liabilities are summarized as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounts
Payable:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid; white-space: nowrap">March 31,<BR>
 2019</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; white-space: nowrap">December 31, <BR>
2018</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">Accounts Payable</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">127,302</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">884,927</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Credit Card Payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,976</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,424</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">Vehicle 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">21,058</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">21,058</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">Total Accounts Payable</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">181,336</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">934,409</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 0pt 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
Current 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>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid; white-space: nowrap">March 31,<BR>
 2019</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; white-space: nowrap">December 31, <BR>
2018</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">Accrued Payroll</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">126,440</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">137,041</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Subscription Security Deposits</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">52,596</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,254</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">Subscription Membership Fees on Hand</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">49,874</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,746</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Rental Deposits on Hand</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,458</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,930</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">Vehicle Sales Deposits on Hand</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Property Tax Accrual</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,222</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65,509</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">Sales &amp; Other Taxes Payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31,550</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,284</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">Other Accruals</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">129,761</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">205,594</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 Other Current Liabilities</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">427,901</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">568,358</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note
8 - <U>Lease Commitments</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
annual minimum lease payments, including fixed rate escalations, on the Company&rsquo;s operating lease liability as of March
31, 2019 are as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">Years Ending December 31:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&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: 88%; text-align: left; padding-left: 10pt">2019 (nine months)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">264,195</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: 10pt">2020</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">361,067</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: 10pt">2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">371,898</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">383,055</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: 10pt">2023</TD><TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">64,154</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Total minimum lease payments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,444,369</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Less: amount representing interest</TD><TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(74,617</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Present value of future payments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,369,752</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Less: current obligations</TD><TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(320,956</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Long-term obligations</TD><TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,048,796</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operating
Leases</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
2018, the Company entered into a third-party lease for its Miami Beach, Florida operations. The 1-year lease provides for monthly
payments of $3,800, with a renewal option for an additional 12-months at $4,000 monthly. The lease expired April 30, 2019 and
was not renewed.</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"></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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note
8 - <U>Lease Commitments (cont&rsquo;d.)</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
2018, the Company entered into an agreement for the licensed right to use 201 garage parking spaces in Miami Beach, Florida. The
27-month agreement provides for monthly payments of $140 per space ($28,140 per month total), with annual escalations of two-percent
(2%). In April 2019, the Company terminated the license to use the parking spaces.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rent
expense charged to operations for the three months ended March 31, 2019 and 2018 was $200,258 and $102,946, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-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">Note
9 - <U>Commitments and Contingencies </U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company is subject to asserted claims and liabilities that arise in the ordinary course of business. The Company maintains third-party
insurance to mitigate potential losses from these actions. In the opinion of management, the amount of the ultimate liability
with respect to those actions will not materially affect the Company's financial position of results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -4.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note
10 - <U>Equity </U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
February 2018, the Company commenced a private placement equity offering, pursuant to which it sold 2,858,030 shares of its Common
Stock at a price of $3.33 per share, for aggregate consideration of approximately $9,517,200.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the second and third quarters of 2018, the Company commenced a private placement equity offering, pursuant to which it sold 787,264
shares of its Common Stock through September 30, 2018 at a price of $4.75 per share, for aggregate consideration of approximately
$3,739,500.</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; text-indent: -4.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note
11 - <U>Treasury Stock </U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the first quarter of 2019, the Company purchased an aggregate of 85,000 shares of its Common Stock from three (3) shareholders
at an aggregate price of $4.75 per share, or $403,750. These shares are currently held in treasury.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -4.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note
12 - <U>Stock Options </U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the year ended December 31, 2018, the Company granted stock options to purchase 598,500 shares of its Common Stock to various
employees, vendors and independent contractors. These options vest over periods ranging from twenty-four (24) to thirty-six (36)
months, are exercisable for a period of 5 years, and enable the holders to purchase shares of its common stock at exercise prices
ranging from $3.33 - $4.75. The per-share values of these options range from $1.37 to $1.96, based on Black-Scholes-Merton pricing
models with the following assumptions: (i) Volatility of 43.25%, (ii) Term of 5 years, (iii) Risk free rate of 2.6% and (iv) Dividend
rate of 0.0%.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the three months ended March 31, 2019 no new stock options were granted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
March 31, 2019, the Company had approximately $405,794 of unrecognized compensation costs related to stock options outstanding,
which will be recognized through 2023. The Company will recognize forfeitures as they occur. Share-based compensation expense
at March 31, 2019 and March 31, 2018 was approximately $37,400 and $0, respectively. The total amount recorded in &ldquo;Additional
paid-in capital&rdquo; related to stock options as of March 31, 2019, was approximately $493,000. The weighted average remaining
contractual term for the outstanding options at March 31, 2019 and December 31, 2018 is 3.97 and 4.22 years, respectively.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note
12 - <U>Stock Options (cont&rsquo;d.)</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stock
option activity for the three months ended March 31, 2019 and year ended December 31, 2018, are as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Number of Shares</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Weighted Avg. Exercise Price</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Outstanding at 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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 76%; text-align: left">Options granted</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">598,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">3.91</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Options exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Options forfeited</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(87,500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Options expired</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Outstanding at December 31, 2018</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">511,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.82</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">Options granted</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">Options exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Options forfeited</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,250</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Options 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">(177,000</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Outstanding 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">331,750</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">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3.91</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Vested as of March 31, 2019</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">236,853</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.84</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Expected to vest as of March 31, 2019</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">94,897</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4.10</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; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note
13 - <U>Net Loss per Share Attributable to Common Shareholders</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
basic and diluted net loss per common share was the same for each period presented as the Company&rsquo;s potentially dilutive
shares would be antidilutive.&nbsp; The weighted average shares of Common Stock outstanding was 24,592,516 and 22,206,729 for
the three months ended March 31, 2019 and 2018, respectively.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: 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; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note
14 - <U>Subsequent Events</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subsequent
to quarter-end, the Company purchased 53,600 shares of its common stock from one (1) shareholder at an aggregate price of $4.75
per share, or $254,600. These shares are currently held in treasury.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
April 2019, management decided to restructure its Miami Beach, FL operations and combined it with its Plantation, FL operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subsequent
to March 31, 2019, the Company extended certain of the 6-Month Notes that became due. Two of the 6-Month Notes in the amount of
approximately $121,000 were extended to June 15, 2019, two of the 6-Month Notes in the amount of approximately $45,000 were extended
to August 14, 2019, and another two in the amount of approximately $135,950 were extended to September 17, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
May 2019, the Company engaged two new board of directors for a combined annual compensation of $48,000 and granted options to
purchase 40,000 shares of the Company&rsquo;s common stock.</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"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U><A NAME="f_005"></A>REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</U></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">To the Board of Directors and Stockholders of</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">LMP Automotive Holdings, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Opinion on the Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have audited the accompanying consolidated
balance sheets of LMP Automotive Holdings, Inc. (the &ldquo;Company&rdquo;) as of December 31, 2018 and 2017, and the related consolidated
statements of operations, shareholders&rsquo; equity, and cash flows for the years 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 financial position of the Company as of December 31, 2018 and 2017, and the results of its
operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United
States of America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Basis for Opinion</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These consolidated financial statements
are the responsibility of the Company&rsquo;s management. Our responsibility is to express an opinion on the Company&rsquo;s consolidated
financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight
Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We conducted our audits in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the 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 audits, we are
required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion
on the effectiveness of the Company&rsquo;s internal control over financial reporting. Accordingly, we express no such opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our audits 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 audits 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 audits provide a reasonable basis for our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">/s/ Grassi &amp; Co., CPAs, P.C.</FONT></TD>
    <TD STYLE="width: 50%; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2">We have served as the Company&rsquo;s auditor since 2018.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Jericho, New York <BR>
June 7, 2019</TD>
    <TD>&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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="f_006"></A><B>LMP AUTOMOTIVE HOLDINGS, INC. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED BALANCE SHEETS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AT DECEMBER 31, 2018 AND 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</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">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>ASSETS:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&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">
    <TD>&nbsp;</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%; padding-left: 9pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">424,152</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">217,360</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</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">286,982</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">85,851</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">Automotive inventory</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,558,160</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,696,802</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 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">380,712</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">71,000</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">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,650,006</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,071,013</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Property, equipment and leasehold improvements, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">539,475</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">185,659</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Intangible assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,997</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</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; padding-bottom: 1.5pt">Deferred offering costs</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">987,093</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">0</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">TOTAL ASSETS</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">14,216,571</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4,256,672</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; 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>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; padding-left: 9pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">934,409</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">599,914</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">Line of credit - related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,775,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</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; padding-left: 9pt">Notes and advances payable &ndash; related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,091,500</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">Convertible notes payable and accrued interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,184,707</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</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; padding-bottom: 1.5pt; padding-left: 9pt">Other 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">568,358</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">33,051</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 liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,462,474</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,724,465</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">TOTAL 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">4,462,474</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">1,724,465</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">COMMITMENTS AND CONTINGENCIES</TD><TD>&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>&nbsp;</TD><TD>&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">SHAREHOLDERS&rsquo; EQUITY:</TD><TD>&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: 0.25in; text-indent: -0.125in">Preferred stock, $0.00001 par value, 20,000,000 shares authorized, nil shares&nbsp;issued and outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</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; padding-left: 0.25in; text-indent: -0.125in">Common stock, $0.00001 par value; 100,000,000 shares authorized; 24,645,294 and 21,000,000 shares issued and outstanding at December 31, 2018 and 2017, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">246</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">210</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">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,306,737</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,594,590</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">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">(6,552,886</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">(62,593</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">Total shareholders&rsquo; equity</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">9,754,097</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,532,207</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">TOTAL LIABILITIES AND SHAREHOLDERS&rsquo; EQUITY</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">14,216,571</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4,256,672</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The accompanying notes are an integral part
of these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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    <DIV STYLE="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">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="f_007"></A><B>LMP AUTOMOTIVE HOLDINGS, INC. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF OPERATIONS
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FOR THE YEARS ENDED DECEMBER 31, 2018
AND 2017 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&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">2018</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">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="background-color: White">Revenues</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">&nbsp;</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">&nbsp;</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; padding-left: 9pt">Vehicle sales</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">15,714,511</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,759,031</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">Subscription fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">356,323</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">Rental revenues</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">539,952</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 revenues</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">16,610,786</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">3,759,031</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Cost of revenues</TD><TD>&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">Vehicle sales</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,678,387</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,994,079</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">Subscription and rental</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">889,388</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: 1.5pt">&nbsp;Total cost of revenues</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">18,567,775</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">3,994,079</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Gross loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,956,989</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(235,048</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Selling, general and administrative expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,278,051</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,114,109</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Share-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">455,649</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">Acquisition, consulting and legal expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">722,722</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,858</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Depreciation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45,505</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29,291</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">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,458,916</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,409,306</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 9pt">Interest</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">31,377</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">14,356</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net Loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(6,490,293</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(1,423,662</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss per share attributable to stockholders, basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.27</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.07</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Weighted average shares of common stock 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">23,764,021</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">21,000,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The accompanying notes are an integral part
of these consolidated financial statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="f_008"></A><B>LMP AUTOMOTIVE HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF SHAREHOLDERS&rsquo;
EQUITY </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FOR THE YEARS ENDED DECEMBER 31, 2018
AND 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="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="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">Common Shares Outstanding</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">Preferred Stock</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Common </B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Stock</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Additional Paid-in Capital</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">Members&rsquo; Equity</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>Accumulated Deficit</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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: 23%; font-weight: bold; text-indent: -5pt; padding-left: 5pt">Balance at December&nbsp;31, 2016</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; 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">$</TD><TD STYLE="width: 8%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; 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">$</TD><TD STYLE="width: 8%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">318,614</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">318,614</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -5pt; padding-left: 5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -5pt; padding-left: 5pt">Capital contributions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,637,255</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">3,637,255</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -5pt; padding-left: 5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -5pt; padding-left: 5pt">Contribution of member&rsquo;s interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,000,000</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>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">210</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,594,590</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,594,800</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -5pt; padding-left: 5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -5pt; padding-left: 5pt">&nbsp;Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,361,069</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">(62,593</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">(1,423,662</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -5pt; padding-left: 5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-indent: -5pt; padding-left: 5pt">Balance at December&nbsp;31, 2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">210</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,594,590</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(62,593</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,532,207</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -5pt; padding-left: 5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -5pt; padding-left: 5pt">Issuance of stock for cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,645,294</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">36</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,256,498</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">13,256,534</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -5pt; padding-left: 5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -5pt; padding-left: 5pt">Share-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">455,649</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">455,649</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -5pt; padding-left: 5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -5pt; padding-left: 5pt">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,490,293</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,490,293</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -5pt; padding-left: 5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt; text-indent: -5pt; padding-left: 5pt">Balance at December&nbsp;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">24,645,294</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">246</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">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">16,306,737</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</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">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(6,552,886</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">9,754,097</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The accompanying notes are an integral part
of these consolidated financial statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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"><A NAME="f_009"></A><B>LMP AUTOMOTIVE HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FOR THE YEARS ENDED DECEMBER 31, 2018
AND 2017 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</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">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">CASH FLOWS FROM OPERATING ACTIVITIES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; padding-left: 9pt">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(6,490,293</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,423,662</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">Adjustment to reconcile net loss to net cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.25in">Depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">683,584</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29,291</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">Share-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">455,649</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">Increase in assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(201,131</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(85,851</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: 0.25in">Automotive inventory</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,500,797</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,680,552</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Prepaid expenses and other assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(309,712</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(71,000</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">Increase in liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">334,495</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">581,376</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">Other 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">556,063</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">33,051</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 27pt">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">(13,472,142</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4,617,347</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">CASH FLOWS FROM INVESTING ACTIVITIES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Purchases of property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(392,684</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(214,950</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: 0.25in">Purchases of intangible 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">(45,273</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 27pt">NET CASH USED IN INVESTING&nbsp;&nbsp;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">(437,957</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">(214,950</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">CASH FLOWS FROM FINANCING ACTIVITIES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="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; padding-left: 9pt">Cash received from line of credit &ndash; related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,775,000</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">Cash received from notes and advances payable &ndash; related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,091,500</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-left: 9pt">Principal repayment of notes and advances payable&ndash; related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,091,500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Cash received from convertible notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,448,965</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">Principal repayments on convertible notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(285,015</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Capital contributed from shareholders</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">3,637,255</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">Net cash received from issuance of common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,256,534</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; padding-left: 9pt">Deferred stock offering costs</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(987,093</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="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-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">NET CASH PROVIDED BY FINANCING&nbsp;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">14,116,891</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">4,728,755</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-left: 27pt">&nbsp;</TD><TD>&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: 0.25in">NET INCREASE (DECREASE) IN CASH</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">206,792</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(103,542</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 27pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">CASH, BEGINNING OF YEAR</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">217,360</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">320,902</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 0.25in">CASH, END OF YEAR</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">424,152</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">217,360</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>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-decoration: underline; text-align: left">SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 9pt">Cash paid during the year for interest</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">10,545</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">4,166</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-top: 0pt; text-align: center; margin-bottom: 0pt">The accompanying notes are an integral part
of these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_010"></A>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Note 1 - <U>Nature of Operations and Principles
of Consolidation</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Business Activity</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">LMP Motors.com, LLC (&ldquo;LMP
Motors&rdquo;) is engaged in the buying and selling of vehicles in the automotive industry and operates in the state of Florida.
LMP Motors is a limited liability company and was organized in the state of Delaware. The owner of LMP Motors is designated as
a member and is not liable for the debts of LMP Motors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">601 NSR, LLC (&ldquo;NSR&rdquo;)
was formed to enter into future potential strategic acquisitions and is currently inactive. NSR is a limited liability company
and was organized in the state of Delaware. The owner of NSR is designated as a member and is not liable for the debts of NSR.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">LMP Finance, LLC (&ldquo;LMP
Finance&rdquo;) is engaged in the purchasing, subscribing and renting of vehicles. LMP Finance operates in the state of Florida.
LMP Finance is a limited liability company and was organized in the state of Delaware. The owner of LMP Finance is designated as
a member and is not liable for the debts of LMP Finance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">LMP Automotive Holdings, LLC
(&ldquo;LMP Automotive&rdquo;) was formed to acquire the assets from LMP Motors.com LLC and LMP Finance, LLC and other subsidiary
companies. LMP Automotive operates in the state of Florida. LMP Automotive is a limited liability company and was organized in
the state of Delaware. The owner of LMP Automotive is designated as a member and is not liable for the debts of LMP Automotive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">LMP Automotive Holdings, Inc.
(&ldquo;Automotive&rdquo;) is a holding company incorporated in the state of Delaware on December 15, 2017. On December 15, 2017,
the common ownership contributed 100% of its interest in LMP Motors, NSR, LMP Finance and LMP Automotive to Automotive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Principles of Consolidation</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">These consolidated financial
statements include the amounts of Automotive and its wholly-owned subsidiaries, LMP Motors, NSR, LMP Finance, and LMP Automotive,
which are collectively referred to as the &ldquo;Company.&rdquo; All significant intercompany balances and transactions are eliminated
in the consolidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Prior to the transfer of
interest of LMP Motors, NSR, LMP Finance and LMP Automotive to Automotive on December 15, 2017, LMP Motors, NSR, LMP Finance
and LMP Automotive were affiliates under common control and as such have been recorded at carry over basis.&nbsp; Equity of
LMP Motors, NSR, LMP Finance and LMP Automotive in the amount of approximately $2.6 million, which was net of an accumulated
deficit of approximately $1.4 million, was transferred to additional paid-in capital at the December 15, 2017 transaction
date.&nbsp; Retained earnings (accumulated deficit) of the Company at December 31, 2017, represents only the sixteen (16)
days of operations subsequent to its incorporation in 2017.&nbsp; With respect to the consolidated statements of operations
and cash flows, the Company was treated as the continuation of LMP Motors, NSR, LMP Finance and LMP Automotive and,
accordingly, their financial position and results of operations have been presented on a combined basis with the historical
financial statements of LMP Motors, NSR, LMP Finance and LMP Automotive for all periods prior to the transfer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Note 2 - <U>Summary of Significant Accounting
Policies</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><U>Liquidity</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company has sustained net
losses and negative operating cash flows to date. Its management plans to make strategic acquisitions of pre-owned and new automobile
dealerships and car rental companies to expedite its growth and produce positive margins.&nbsp; The Company also has raised capital
during 2018 through private placement offerings of its common stock and convertible debt securities to help facilitate business
growth and execute its management&rsquo;s plans to become profitable through acquisitions.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Basis of Presentation</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The accompanying consolidated
financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted
in the United States of America (&ldquo;U.S. GAAP&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Use of Estimates</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The preparation of the consolidated
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 consolidated financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Accounts Receivable</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company carries its accounts
receivable at cost. Accounts receivable are due upon receipt. Such estimates are based on management&rsquo;s assessments of the
creditworthiness of its customers, the aged basis of its receivables, as well as current economic conditions and historical information.
Management has determined that no allowance for uncollectible accounts for accounts receivable is necessary at December 31, 2018
and December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Inventory</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Inventory consists of automobiles.
Inventories are valued at the lower of cost or market, with cost determined by specific identification and with market defined
as net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably
predictable costs of completion, disposal, and transportation. Inventories at December 31, 2018 and 2017 are recorded based on
perpetual inventory records.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company depreciates the fleet
inventory monthly based on 1% of initial cost starting in 2018 when the subscriptions and rentals were launched. In 2018, fleet
vehicle depreciation approximated $640,000 and was recorded to Cost of revenues - subscription and rental.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Company management periodically
reviews to determine whether any inventories have declined in value. The Company wrote down approximately $530,000 of inventory
to its net realizable value for the year ended December 31, 2018. &nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid; white-space: nowrap"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>December&nbsp;31,</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2018</B></P></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid; white-space: nowrap"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>December
                                         31, </B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2017</B></P></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Automotive Inventory</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">12,270,478</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,696,802</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Inventory Impairment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(529,983</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Inventory Accumulated Depreciation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(478,718</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Inventory In-transit Deposits</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">296,383</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">Total Automotive Inventory, net</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">11,558,160</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3,696,802</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Note 2 - <U>Summary of Significant Accounting
Policies (cont&rsquo;d.)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Property, Equipment and Leasehold
Improvements</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Property, equipment and leasehold
improvements are stated at cost. The costs of additions and betterments are capitalized and expenditures for repairs and maintenance
are expensed in the period incurred. When items property and equipment are sold or retired, the related costs and accumulated depreciation
are removed from the accounts and any gain or loss is included in sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Vehicles and equipment are depreciated
utilizing the straight-line method over the estimated useful lives of the respective assets as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 84%; text-align: justify">Vehicles</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: justify">5 years</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Furniture and fixtures</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">10 years</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">5 years</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Leasehold improvements are amortized
over the shorter of the remaining term of the lease or the useful life of the improvement utilizing the straight-line method.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Intangible Assets</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Intangible assets are stated
at their historical cost and amortized on a straight-line basis over their expected useful lives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; background-color: white"><U>Deferred Offering Costs</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">The
Company capitalizes certain legal, professional accounting and other third-party fees that are directly associated with in-process
equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing,
these costs are recorded in the Statement of Shareholders&rsquo; Equity as a reduction to additional paid-in capital as a result
of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">Should
a planned equity financing be abandoned, the deferred offering costs would be expensed immediately as a charge to operating expenses
in the statement of operations. The Company recorded deferred offering costs of approximately $987,000 as of December&nbsp;31,
2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Long-lived Assets</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company reviews long-lived
assets and certain identifiable intangibles held and used for possible impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. In evaluating the fair value and future benefits of its intangible
assets, management performs an analysis of the anticipated undiscounted future net cash flow of the individual assets over the
remaining amortization period. The Company recognizes an impairment loss if the carrying value of the asset exceeds the expected
future cash flows. There were no deemed impairments of long-lived assets during the years ended December 31, 2018 and 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Fair Value of Financial Instruments
</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Fair value is defined as the
price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date.&nbsp; To increase the comparability of fair value measurements, a three-tier fair value hierarchy, which
prioritizes the inputs used in the valuation methodologies, is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Level 1 - Valuations based on
quoted prices for identical assets and liabilities in active markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Note 2 - <U>Summary of Significant Accounting
Policies (cont&rsquo;d.)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Fair Value of Financial Instruments
(cont&rsquo;d.)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Level 2 - Valuations based on
observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active
markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are
observable or can be corroborated by observable market data.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Level 3 - Valuations based on
unobservable inputs reflecting the Company&rsquo;s own assumptions, consistent with reasonably available assumptions made by other
market participants.&nbsp; These valuations require significant judgment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">At December 31, 2018 and 2017,
the fair value of these financial instruments, including cash, accounts receivable, and accounts payable, approximated book value
due to the short maturity of these instruments. Notes payable &ndash; related parties and convertible notes payable with accrued
interest estimate fair value due to market interest rates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Convertible Notes</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="background-color: white">The
Company records a discount to convertible notes for the intrinsic value of conversion options embedded in debt instruments based
upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the
effective conversion price embedded in the note. Debt discounts, if any, under these arrangements are amortized to noncash interest
expense using the effective interest rate method over the term of the related debt to their date of maturity. Based on the terms
of the embedded conversion rights, the Company has not recognized any discounts to date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Share-Based Compensation</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company recognizes the cost
of employee services received in exchange for awards of stock options, based on the fair value of those awards at the date of grant
over the requisite service period, which generally is the vesting period of the award. The Company uses the Black-Scholes option
pricing model to determine the fair value of stock option awards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In June 2018, the Financial Accounting
Standards Board (&ldquo;FASB&rdquo;) issued ASU No. 2018-07, Improvements to Share-Based Payment Accounting (Topic 718). This ASU
was issued to simplify the accounting for share-based payments to nonemployees by aligning much of the guidance on measurement
and classification with the accounting for share-based payments to employees. The Company has elected early adoption of this ASU
to conform the accounting for share-based compensation to employees and nonemployees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Share-based compensation plans,
related expenses, and assumptions used in the Black-Scholes option pricing model are more fully described in Note 12.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Revenue Recognition</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In May 2014, the FASB issued
ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is the result of a joint project of the FASB and the
IASB to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS, and provides
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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company adopted FASB ASC
606, Revenue from Contracts with Customers (&quot;ASC 606&quot;) on January 1, 2018 using the modified retrospective method. ASC
606 prescribes a five-step model that includes: (1) identify the contract; (2) identify the performance obligations; (3) determine
the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when (or as)
performance obligations are satisfied. The adoption of ASC 606 did not have a material impact on the amount or timing of the revenue
recognition, and the Company recognized no cumulative effect adjustment upon adoption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Note 2 - <U>Summary of Significant Accounting
Policies (cont&rsquo;d.)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Revenue Recognition (cont&rsquo;d.)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Used Vehicle Sales Revenue</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company&rsquo;s business
consists of retail and wholesale sales of used vehicles to customers. Sales are based on the network of physical showrooms and
efficient online showrooms on the Company&rsquo;s websites. The Company offers a home delivery service so that they deliver the
car to the place agreed with the client. The Company also sells used vehicles in auctions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company recognizes revenue
when it satisfies a performance obligation by transferring control of a vehicle to a customer. The prices of the vehicles are stated
in its contracts at stand-alone selling prices which are agreed upon with its customer prior to delivery. The Company satisfies
its performance obligation for used vehicle sales upon delivery when the transfer of title, risks and rewards of ownership and
control pass to the customer. The Company recognizes revenue at the agreed-upon price stated in the contract, including any delivery
charges. In addition, any noncash consideration received from a customer (i.e., trade-in vehicles) are recognized at fair value.
Customer payment has been received or third-party financing has been confirmed prior to vehicle transfer. The Company collects
sales taxes and other taxes from customers on behalf of governmental authorities at the time of sale. These taxes are accounted
for on a net basis and are not included in sales or cost of sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Subscription Revenue</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company offers a vehicle
subscription plan where a customer will pay a monthly fee in exchange for access to a car. The Company&rsquo;s subscriptions include
monthly swaps, scheduled maintenance and upkeep, and even insurance in some cases. Customers have the flexibility to up-or-downgrade
a vehicle monthly with the vehicle payment adjusted accordingly. There is $575 annual subscription activation fee and the monthly
payments are dependent upon the vehicle selected by the customer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company recognizes revenue
when it satisfies a performance obligation by transferring control of a vehicle to a customer under a subscription contract. The
prices of the vehicles are stated in its contracts at stand-alone subscription prices which are agreed upon with the customer prior
to delivery. The Company satisfies its performance obligation for monthly subscription payments upon delivery to the customer and
in each subsequent month the customer retains possession of the vehicle. The Company recognizes revenue at the agreed-upon price
stated in the contract in the month earned.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company also receives an
upfront customer payment as an annual membership fee to its vehicle subscription program. This fee is deferred and amortized to
income monthly over the period of membership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Customer payment has been received
prior to initial vehicle transfer and on each monthly recurring anniversary date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Rental Revenue</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company recognizes vehicle
rental income over the period the vehicle is rented. Performance obligations associated with vehicle rental transactions are satisfied
over the rental period. Rental periods are short term in nature. Performance obligations associated with rental related activities,
such as charges to the customer for the fueling of vehicles and value-added services such as loss damage waivers, navigation units,
and other ancillary products, are also satisfied over the rental period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Payments are due from customers
at the time of reservation. Additional charges incurred by the customers are collected at the time of vehicle return. The Company
collects sales taxes and other taxes from customers on behalf of governmental authorities at the time of sale. These taxes are
accounted for on a net basis and are not included in sales or cost of sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Note 2 - <U>Summary of Significant Accounting
Policies (cont&rsquo;d.)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Income Taxes</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Income tax expense includes federal
and state taxes currently payable and deferred taxes arising from temporary differences between income for financial reporting
and income tax purposes. Deferred tax assets and liabilities are determined based on the difference between the financial statement
and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the difference is expected to reverse.
The effect of a change in the tax rate on the deferred tax asset and liabilities is recognized in income in the period that includes
the enactment date. The Company establishes a valuation allowance when necessary to reduce its deferred tax assets to amounts that
are expected to be realized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">LMP Motors, NSR, LMP Finance,
and LMP Automotive are limited liability companies, which are treated as partnerships for income tax purposes. The income or loss
and credits from limited liability companies are passed through to their members and reported on the members&rsquo; income tax
returns. As such, there is no provision for income taxes. If applicable, the Company would recognize interest and penalties associated
with tax matters as part of operating expenses and include accrued interest and penalties with the related tax liability in its
consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><U>Advertising</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company expenses advertising
costs in the period incurred. Advertising expense was approximately $266,200 and $107,200 for the years ended December 31, 2018
and 2017, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Leases</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company is party to various
lease agreements for real estate. For each lease agreement, the Company determines the lease term as the non-cancellable period
of the lease and includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option.
The Company also assesses whether each lease is an operating or finance lease at the lease commencement date. Rent expense of operating
leases is recognized on a straight-line basis over the lease term and includes scheduled rent increases as well as amortization
of tenant improvement allowances.&nbsp; Refer to Note 9 for Lease Commitments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Effective January 1, 2019, the
Company adopted ASU No. 2016-02, Leases, which requires lessees to recognize leases as liabilities on the balance sheet, with corresponding
right-of-use assets.&nbsp; Refer to &ldquo;New Accounting Pronouncement Not Yet Adopted&rdquo; for further changes related to the
adoption of this guidance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>New Accounting Pronouncements
not yet Adopted</U>&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In February 2016, the FASB issued
ASU No. 2016-02, Leases (Topic 842).&nbsp; The standard requires lessees to recognize a right-of-use asset and a lease liability,
initially measured at the present value of the lease payments for all leases with a term greater than 12 months, including leases
existing prior to the effective date of this ASU. It also calls for enhanced leasing arrangement disclosures.&nbsp; The Company
has adopted this standard as of January 1, 2019.&nbsp;&nbsp;This guidance will have a material impact on its consolidated balance
sheet due to the recognition of a lease liability and right-of-use asset for its Plantation, Florida lease of approximately&nbsp;$1.4
million. Adoption of this guidance will not have a significant impact on its lease classification, a material impact on the consolidated
statement of operations, or a notable impact on its liquidity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In July 2018, the FASB issued
additional guidance on the accounting for leases. The guidance provides companies with another transition method that allows entities
to recognize a cumulative-effect adjustment to the opening balance of retained earnings as of the date of adoption. Under this
method, previously presented years&rsquo; financial positions and results are not adjusted. The Company adopted this alternative
transition method.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 3 - <U>Concentration of Credit Risk</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company maintains its cash
balances in several financial institutions which are insured by the Federal Deposit Insurance Corporation (&ldquo;FDIC&rdquo;)
for up to $250,000 per institution. From time to time, cash balances may exceed these limits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Note 4 - <U>Property, Equipment and Leasehold
Improvements</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Property, equipment and leasehold
improvements, net are summarized as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid; white-space: nowrap"><B>December 31, <BR>2018</B></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid; white-space: nowrap"><B>December 31, <BR>2017</B></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">Vehicles</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">91,547</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">61,518</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Furniture, fixtures and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">273,024</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">83,800</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">238,287</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">69,632</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Signage</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">4,777</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">607,635</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">214,950</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less: Accumulated depreciation and 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">(68,160</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">(29,291</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">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">539,475</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">185,659</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 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Depreciation and amortization
expense related to vehicles, equipment and leasehold improvements amounted to $44,145 and $29,291 for the years ended December
31, 2018 and 2017, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Note 5 - <U>Related Party Transactions</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company entered into debt
agreements with a related party employee, with interest accruing at rate of 9.0% per annum. At December 31, 2017, $50,000 was outstanding,
which was repaid on February 15, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company entered into debt
agreements with a shareholder, with interest accruing at a rate of 2% per annum. At December 31, 2017, $1,019,000 was outstanding,
which was repaid on February 15, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">During 2018, the Company entered
into a non-interest bearing revolving line of credit with an entity related to the majority shareholder. Amounts drawn on the line
of credit become due and payable on the earlier of written demand by the lender or May 21, 2020. At December 31, 2018, the outstanding
amount was approximately $1,775,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Note 6 - <U>Convertible Notes Payable
</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">During the second and third quarters
of 2018, the Company issued convertible promissory notes (&ldquo;6-Month Notes&rdquo;) in aggregate principal amount of $1,448,965,
pursuant to a private placement offering. The 6-Month Notes bear interest at 4%&nbsp;per annum and mature six (6) months from the
date of issuance,&nbsp;at which time the principal and any accrued but unpaid interest shall be due and payable. Accrued interest
at December 31, 2018 was $20,757. The holders of the 6-Month Notes may, at any time prior to the maturity date, convert the 6-Month
Notes (and accrued interest) into shares of its Common Stock by dividing (a) the outstanding principal balance and unpaid accrued
interest under this Note on the date of conversion by (b) $4.75 (subject to adjustment as provided in the 6-Month Notes). Based
on the terms of the conversion rights, the Company did not recognize a beneficial conversion discount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">During the fourth quarter of
2018, the Company repaid one of the 6-Month Notes in the principal amount of approximately $285,015, leaving a balance of approximately
$1,164,000 at December 31, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Note 7 - <U>Accounts Payable and
Other Current Liabilities </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Accounts payable and other current
liabilities are summarized as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Accounts Payable:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid; white-space: nowrap"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>December
                                         31,</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2018</B></P></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid; white-space: nowrap"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>December
                                         31,</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2017</B></P></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Accounts Payable</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">884,927</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">589,810</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Credit Card Payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,424</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,104</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">Vehicle 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">21,058</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: 4pt">Total Accounts Payable</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">934,409</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">599,914</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 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Other Current Liabilities:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid; white-space: nowrap">December 31,<BR>
2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid; white-space: nowrap">December 31,<BR>
2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap">&nbsp;</TD></TR>

<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Accrued Payroll</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">137,041</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</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">Subscription Security Deposits</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,254</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">Subscription Membership Fees on Hand</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,746</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">Rental Deposits on Hand</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,930</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">Vehicle Sales Deposits on Hand</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,000</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">Property Tax Accrual</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65,509</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">Sales &amp; Other Taxes Payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,284</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,051</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">Other Accruals</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">205,594</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">Total Other Current Liabilities</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">568,358</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">33,051</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Note 8 - <U>Income Tax</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Income taxes are accounted for
under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable
to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis
and operating loss and tax credit carry forwards. 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Deferred tax assets are required
to be reduced by a valuation allowance to the extent that, based on the weight of available evidence, it is more likely than not
that the deferred tax assets will not be realized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Deferred Taxes</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In November 2015, the FASB issued
ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which requires that deferred tax assets and liabilities be classified
as noncurrent in a classified balance sheet.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</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">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Note 8 - <U>Income Tax (cont&rsquo;d.)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Deferred Taxes (cont&rsquo;d.)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Components of income tax benefit
for the year ended December 31, 2018 and 2017 are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; 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="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</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">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: justify; padding-bottom: 1.5pt">Current tax expense (benefit)</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</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: 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: White">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Deferred tax expense (benefit)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</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: justify; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</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: 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 Provision for 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></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 0pt 0.5in; text-align: justify">Temporary differences between
financial statement carrying amount and tax basis of assets and liabilities that give rise to significant portions of the deferred
tax assets and liabilities at December 31, 2018 are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; 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="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</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; border-bottom: Black 1.5pt solid; text-align: center">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</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">
    <TD STYLE="text-align: justify">Deferred tax 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-align: left; padding-left: 9pt">Net operating loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,944,504</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">13,000</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">Intangible assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,176</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">134,324</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: justify; padding-bottom: 1.5pt">Total deferred income tax 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">2,095,004</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">13,000</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: 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: White">
    <TD STYLE="text-align: justify">Deferred income tax 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="padding-bottom: 1.5pt; padding-left: 9pt">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">(78,621</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Total deferred income tax 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">(78,621</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <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: White">
    <TD STYLE="text-align: justify; 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">(2,016,383</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">(13,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="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: White">
    <TD STYLE="text-align: justify; padding-bottom: 4pt">Net deferred income tax asset</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 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company had a net operating
loss carryforward of approximately $7,672,000 as of December 31, 2018. Net deferred tax assets are mainly comprised of temporary
differences between financial statement carrying amount and tax basis of assets and liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>


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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></P></DIV>
    <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">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Note 8 - <U>Income Tax (cont&rsquo;d.)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Deferred Taxes (cont&rsquo;d.)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">FASB ASC 740 requires a valuation
allowance to reduce the deferred tax assets reported if, based on the weight of the evidence, it is more likely than not that some
portion or all of the deferred tax assets will not be realized. At December 31, 2018 and 2017, a valuation allowance of approximately
$2,000,000 and $13,000, respectively, was recorded.</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 0pt 0.5in; text-align: justify">In addition, the Company performed
a comprehensive review of its uncertain tax positions and determined that no adjustments were necessary relating to unrecognized
tax benefits at December 31, 2018. The Company's federal and state income tax returns are subject to examination by taxing authorities
for three years after the returns are filed, and the Company's federal and state income tax returns for 2018 remain open to examination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Note 9 - <U>Lease Commitments</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">During 2018, the Company entered
into a lease with an entity related through common ownership for its facilities in Plantation, Florida. The five-year, triple-net
lease provides for monthly payments of $28,500 plus CAM, with annual escalations of three-percent (3%). The Company has an option
to extend the lease for an additional five-year term, with annual escalations of three-percent (3%).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">During 2018, the Company entered
into a third-party lease for its Miami Beach, Florida operations. The 1-year lease provides for monthly payments of approximately
$3,800, with a renewal option for an additional 12-months at $4,000 monthly. The lease expired April 30, 2019, and was not renewed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">During 2018, the Company entered
into an agreement for the licensed right to use 201 garage parking spaces in Miami Beach, Florida. The 27-month agreement provides
for monthly payments of $140 per space ($28,140 per month total), with annual escalations of two-percent (2%). In April 2019, the
Company terminated the license to use the parking spaces.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Future minimum payments are as
follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">Years Ending December 31:</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left; padding-left: 9pt">2019</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">450,970</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">2020</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">361,067</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">371,898</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">383,055</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">2023</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">64,154</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,631,144</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 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Rent expense charged to operations
for the years ended December 31, 2018 and 2017, inclusive of CAM and taxes, was approximately $732,500 and $282,100 respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">Note 10 - <U>Commitments
and Contingencies</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company is subject to asserted
claims and liabilities that arise in the ordinary course of business. The Company maintains third-party insurance to mitigate potential
losses from these actions. In the opinion of management, the amount of the ultimate liability with respect to those actions will
not materially affect the Company's financial position of results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">Note 11 - <U>Equity
</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">During February 2018, the Company
commenced a private placement equity offering, pursuant to which it sold 2,858,030 shares of its Common stock at a price of $3.33
per share, for aggregate consideration of approximately $9,517,200.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">During the second and third quarters
of 2018, the Company commenced a private placement equity offering, pursuant to which it sold 787,264 shares of its Common Stock
through September 30, 2018 at a price of $4.75 per share, for aggregate consideration of approximately $3,739,500.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">Note 12 - <U>Stock
Options</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">During the year ended December
31, 2018, the Company granted stock options to purchase 598,500 shares of its Common Stock to various employees, vendors and independent
contractors, of which 87,500 were forfeited during the year. These options vest over periods ranging from twenty-four (24) to thirty-six
(36) months, are exercisable for a period of 5 years, and enable the holders to purchase shares of its common stock at exercise
prices ranging from $3.33 - $4.75. The per-share values of these options range from $1.37 to $1.96, based on Black-Scholes-Merton
pricing models with the following assumptions: (i) Volatility of 43.25%, (ii) Term of 5 years, (iii) Risk free rate of 2.6% and
(iv) Dividend rate of 0.0%. The weighted average remaining contractual term for the outstanding options at December 31, 2018 is
4.21 years.</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 0pt 0.5in; text-align: justify">Stock option activity for the
year ended December 31, 2018, is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Number of Shares</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Weighted Avg. Exercise Price</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Outstanding at 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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 76%; text-align: left">Options granted</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">598,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">3.91</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Options exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Options forfeited</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(87,500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Options expired</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt">Outstanding 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">511,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3.82</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>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Vested as of December 31, 2018</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">272,043</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.92</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Expected to vest as of December 31, 2018</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">238,957</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.71</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">At December 31, 2018, approximately
$443,200 of unrecognized compensation costs related to stock options outstanding will be recognized through 2023. The Company recognizes
forfeitures as they occur. Share-based compensation expense for the year ended December 31, 2018 was approximately $455,600.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">Note 13 - <U>Net Loss
per Share Attributable to Common Shareholders</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The basic and diluted net loss
per common share was the same for each period presented as the Company&rsquo;s potentially dilutive shares would be antidilutive.&nbsp;
The weighted average shares of Common Stock outstanding were 23,764,021 and 21,000,000 for the years ended December 31, 2018 and
2017, respectively.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">Note 14 - <U>Subsequent
Events</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Subsequent to year end, the Company
purchased an aggregate of 138,000 shares of its Common Stock from four (4) shareholders at an aggregate price of $4.75 per share,
or $658,350. These shares are currently held in treasury.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Subsequent to year end, the Company
extended certain of the 6-Month Notes that became due. Two of the 6-Month Notes in the amount of approximately $121,000 were extended
to June 15, 2019, two of the 6-Month Notes in the amount of approximately $45,000 were extended to August 14, 2019, and another
two in the amount of approximately $135,950 were extended to September 17, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In April 2019, management decided
to restructure its Miami Beach, FL operations and combined it with its Plantation, FL operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In May 2019, the Company engaged
two new board of directors for combined annual compensation of $48,000 and granted options to purchase 40,000 shares of the Company&rsquo;s
Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 14pt"><B>1,275,000
Shares of Common Stock</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><IMG SRC="image_012.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 40%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 100%; border-top: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>PROSPECTUS</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ThinkEquity</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>a division of Fordham Financial Management,
Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 1in"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2019</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Through and including &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2019 (the 25<SUP>th</SUP> day after the date of this offering), all dealers effecting transactions in these securities, whether
or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer&rsquo;s obligation
to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif"></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>PART
II</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>INFORMATION
NOT REQUIRED IN PROSPECTUS</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>Item
13. <I>Other Expenses of Issuance and Distribution</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: 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: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth all expenses to be paid by the registrant, other than estimated underwriting discounts and commissions,
in connection with our initial public offering. All amounts shown are estimates except for the SEC registration fee and the FINRA
filing fee:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>SEC registration fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">$</TD>
    <TD STYLE="text-align: right">1,124.21</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 88%; text-align: left; text-indent: -10pt; padding-left: 10pt">Nasdaq listing fee</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; 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">FINRA filing fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Printing expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Legal fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Accounting fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Blue Sky fees and expenses (including legal fees)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Transfer agent and registrar fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Miscellaneous</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">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-indent: -10pt; padding-left: 18pt">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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></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="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
be 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">&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
14. <I>Indemnification of Directors and Officers</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><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 to the
registrant. 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. The
registrant&rsquo;s bylaws provide for indemnification by the registrant of its directors, officers and employees to the fullest
extent permitted by the Delaware General Corporation Law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><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. The registrant&rsquo;s certificate of incorporation
provides for such limitation of liability.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
registrant maintains standard policies of insurance under which coverage is provided (a) to its directors and officers against
loss arising from claims made by reason of breach of duty or other wrongful act, and (b) to the registrant with respect to payments
which may be made by the registrant to such officers and directors pursuant to the above indemnification provision or otherwise
as a matter of law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
proposed form of Underwriting Agreement, to be filed by amendment as Exhibit 1.1 to this registration statement, will provide
for indemnification of directors and officers of the registrant by the underwriter against certain liabilities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
registrant expects to enter into customary indemnification agreements with its executive officers and directors that provide them,
in general, with customary indemnification in connection with their service to the registrant or on the registrant&rsquo;s behalf.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><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"><B>Item
15. <I>Recent Sales of Unregistered Securities</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2018, we completed a private placement offering,&nbsp;pursuant
to which we sold 2,858,030 shares of our common stock to certain individual and institutional investors, at a purchase price of
$3.33 per share, for an aggregate purchase price of $9,517,239.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From June 2018 through October 2018, we
sold an aggregate of 787,264 shares of our common stock to certain individual investors, in a private placement offering, at a
purchase price of $4.75 per share, for an aggregate purchase price of $3,739,505.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the second and third quarters of
2018, we issued the 6-month notes to certain individual investors in an aggregate principal amount of $1,448,965, pursuant to a
private placement offering. The 6-month notes bear interest at 4%&nbsp;per annum and mature six (6) months from the date of issuance,&nbsp;at
which time the principal and any accrued but unpaid interest shall be due and payable. The holders of the 6-month notes may, at
any time prior to the maturity date, convert the 6-month notes (and accrued interest) into shares of our common stock by dividing
(a) the outstanding principal balance and unpaid accrued interest under the applicable 6-month note on the date of conversion by
(b) $4.75 (subject to adjustment as provided in the 6-month notes). Based on the terms of the conversion rights, we did not recognize
a beneficial conversion discount.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The proceeds from the sale of the above
mentioned securities were used for working capital and general corporate purposes. No underwriters were used in the offering and
sale of the above mentioned securities. The above mentioned securities were issued in reliance on the exemption from registration
provided by Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D promulgated thereunder.</P>



<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>Item
16. <I>Exhibits and Financial Statement Schedules</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 44pt; text-indent: -18pt"><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: 5%; 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: 3%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</FONT></TD>
    <TD STYLE="width: 92%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Exhibits.
    </I>The following exhibits are included herein or incorporated herein by reference:</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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: top; width: 10%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit&nbsp;No.</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; padding-right: 0.8pt; 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: bottom; width: 89%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit
    Description</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Underwriting Agreement**</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><A HREF="fs12019ex3-1_lmpauto.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certificate of Incorporation*</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><A HREF="fs12019ex3-2_lmpauto.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bylaws*</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Underwriter&rsquo;s Warrant**</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.2</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="fs12019ex4-2_lmpauto.htm" STYLE="-sec-extract: exhibit">Form of Non-Qualified Stock Option Agreement*</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0.8pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.3</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="fs12019ex4-3_lmpauto.htm" STYLE="-sec-extract: exhibit">Form of Incentive Stock Option Agreement*</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Opinion
    of Pryor Cashman LLP**</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><A HREF="fs12019ex10-1_lmpauto.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Employment Agreement, dated February 20, 2018 by and between LMPMotors.com, LLC and Samer Tawfik*</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><A HREF="fs12019ex10-2_lmpauto.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2018 Equity Incentive Plan*</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="fs12019ex10-3_lmpauto.htm">Lease Agreement, dated January 1, 2018, by and between LMPMotors.com, LLC and ST RXR Investments, LLC*</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="fs12019ex10-4_lmpauto.htm">Revolving Line of Credit Agreement, dated July 25, 2018, by and between LMP Automotive Holdings, Inc. and ST RXR Investments, LLC (as amended on May 21, 2019)*</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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; padding-right: 0.8pt; text-align: justify"><A HREF="fs12019ex10-5_lmpauto.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Common Stock Purchase Agreement for the offering of Common Stock at $3.33 per share*</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><A HREF="fs12019ex10-6_lmpauto.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Common Stock Purchase Agreement, for the offering of Common Stock at $4.75 per share*</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="fs12019ex10-7_lmpauto.htm">Lease Agreement, dated as of April 12, 2018, by and between 615 5<SUP>th</SUP> Street, Corp. and LMP Finance LLC d/b/a LMP Rentals Delaware Corporation*</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="fs12019ex10-8_lmpauto.htm">Engagement Letter, dated as of April 25, 2018, by and between LMP Automotive Holdings, Inc. and Dazkal Bolton LLP*</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding-right: 0.8pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.9</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="fs12019ex10-9_lmpauto.htm">Mercedes-Benz Financial Services Financial Commitment, dated as of April 25, 2019*</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="fs12019ex10-10_lmpauto.htm">Form of Convertible Promissory Note*</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><A HREF="fs12019ex21-1_lmpauto.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">List of Subsidiaries of the Registrant*</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="fs12019ex23-1_lmpauto.htm">Consent of Grassi &amp; Co., CPAs, P.C.*</A></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent
    of Pryor Cashman LLP (included 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="padding-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#poa_001">Powers of Attorney (incorporated by reference to the signature page hereto).*</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"><B>&nbsp;&nbsp;&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: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Filed
herewith.</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">**</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
be filed by amendment.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; 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: 5%; 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">(b)</FONT></TD>
    <TD STYLE="width: 91%; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Financial
    Statement Schedules. </I>All financial statement schedules are omitted because they are not applicable or the information
    is included in the Registrant&rsquo;s consolidated financial statements or related notes.</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><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: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&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. <I>Undertakings<SUP></SUP></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
undersigned registrant hereby undertakes to provide to the underwriter at the closing specified in the underwriting agreement,
certificates in such denominations and registered in such names as required by the underwriter to permit prompt delivery to each
purchaser.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><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
SEC 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; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
undersigned registrant hereby undertakes that:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1) For
purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part
of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant
to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the
time it was declared effective.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2) For
purposes of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus
shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.</FONT></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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; text-align: justify"><FONT 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><A NAME="poa_001"></A>SIGNATURES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on
its behalf by the undersigned, thereunto duly authorized in the City of Plantation, State of Florida, on June&nbsp;17, 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;</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>LMP
    AUTOMOTIVE HOLDINGS, 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">/s/
    Samer Tawfik <FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT></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:
    Samer Tawfik</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:
    &nbsp;&nbsp;Chairman, President and </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"><BR></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">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief
    Executive Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.95pt; 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>POWER
OF ATTORNEY</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
person whose signature appears below authorizes Samer Tawfik as his or her true and lawful attorney-in-fact and agent, with full
power of substitution and resubstitution, to execute in his or her name and on his or her behalf, in any and all capacities, the
registrant&rsquo;s registration statement on Form S-1 and any amendments thereto (and any additional registration statement related
thereto permitted by Rule 462(b) promulgated under the Securities Act of 1933 (and all further amendments, including post-effective
amendments thereto)), necessary or advisable to enable the registrant to comply with the Securities Act of 1933, and any rules,
regulations and requirements of the Securities and Exchange Commission, in respect thereof, in connection with the registration
of the securities which are the subject of such registration statement, which amendments may make such changes in such registration
statement as such attorney may deem appropriate, and with full power and authority to perform and do any and all acts and things
whatsoever which any such attorney or substitute may deem necessary or advisable to be performed or done in connection with any
or all of the above-described matters, as fully as each of the undersigned could do if personally present and acting, hereby ratifying
and approving all acts of any such attorney or substitute.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the
capacities and on the dates indicated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.75pt; text-indent: 20.15pt"><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="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">/s/
Samer Tawfik</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated:
    June 17, 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"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:
                                         Samer Tawfik</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:
        Chairman, President and</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
        Executive Officer </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"><BR>
        <FONT STYLE="font-size: 10pt">(Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)</FONT></FONT></P></TD>
    <TD STYLE="padding-right: 0.8pt; 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-right: 0.8pt; 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="padding-right: 0.8pt; 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-right: 0.8pt; 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-right: 0.8pt; 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; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">/s/
William &ldquo;Billy&rdquo; Cohen</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated:
    June 17, 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"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:
                                         William &ldquo;Billy&rdquo; Cohen</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:
        Director</FONT></P></TD>
    <TD STYLE="padding-right: 0.8pt; 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-right: 0.8pt; 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="width: 40%; padding-right: 0.8pt; 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: 20%; padding-right: 0.8pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
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    Robert &ldquo;Bob&rdquo; J. Morris, Jr.</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; 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-right: 0.8pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated:
    June 17, 2019 </FONT></TD></TR>
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                                         Robert &ldquo;Bob&rdquo; J. Morris, Jr.</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:
        Director</FONT></P></TD>
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    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">/s/
Elias Nader</FONT></TD>
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    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated:
    June 17, 2019 </FONT></TD></TR>
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                                         Elias Nader</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:
        Director</FONT></P></TD>
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As filed with the Securities and Exchange Commission on June
17, 2019
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form S-1
REGISTRATION STATEMENT
Under
The Securities Act of 1933
LMP Automotive Holdings, Inc.
(Exact name of Registrant as
specified in its charter)
Delaware
5500
82-3829328
(State or other jurisdiction of
(Primary Standard Industrial
(IRS Employer
incorporation or organization)
Classification Code Number)
Identification No.)
601 N. State Road 7
Plantation, FL 33317
(954) 895-0352
(Address, including zip code,
and telephone number, including area code, of Registrant's principal executive offices)
Samer Tawfik
President, Chief Executive
Officer and Chairman
601 N. State Road 7
Plantation, FL 33317
(954) 895-0352
(Name, address, including zip
code, and telephone number, including area code, of agent for service)
Please send copies of all
communications to:
David C. Rose, Esq.
M. Ali Panjwani, Esq.
Pryor Cashman LLP
7 Times Square
New York, New York 10036
(212) 421-4100
Stephen E. Older, Esq.
Rakesh Gopalan, Esq.
McGuireWoods LLP
1251 Avenue of the Americas,
        20
th
Floor
New York, New York 10020
(212) 548-2100
Approximate date of commencement
of proposed sale to the public:
As soon as practicable after
the effective date of this Registration Statement.
If any of the securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act, 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, 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 ☐
Smaller reporting company ☒
Emerging growth company   ☒
If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐
CALCULATION OF REGISTRATION
FEE
Title of Securities to be Registered
Amount
to Be
Registered(1)
Proposed Maximum Offering Price per Share
Proposed Maximum Aggregate Offering
Price(1)
Amount of Registration Fee
Common Stock, par value $0.00001 per share (2)
1,466,250
$
6.00
$
8,797,500.00
$
1,066.26
Underwriter Warrants
-
$
-
$
-
$
-
Common Stock underlying Underwriter Warrants (3)
63,750
$
7.50
$
478,125.00
$
57.95
Total
1,530,000
$
6.63
$
9,275,625
$
1,124.21
(1)
Estimated
solely for the purpose of determining the amount of registration fee in accordance with Rule 457(a) under the Securities Act of
1933.
(2)
In
accordance with Rule 416(a), the Registrant is also registering an indeterminate number of additional shares of common stock that
shall be issuable pursuant to Rule 416 to prevent dilution resulting from share splits, share dividends or similar transactions.
Includes up to 191,250 shares of common stock, subject to the underwriter's over-allotment option.
(3)
We
have agreed to issue to our underwriter warrants to purchase the number of shares of common stock (the "Underwriter Warrants")
in the aggregate equal to five percent (5%) of the shares of our common stock to be issued and sold in this offering (including
shares issuable upon exercise of the over-allotment option described herein). The Underwriter Warrants are exercisable for a price
per share equal to 125% of the public offering price.
The Registrant hereby amends this Registration
Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment
which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933, as amended, or until the Registration Statement shall become effective on such date as the Commission
acting pursuant to said Section 8(a) may determine.
The information in this preliminary prospectus
is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities
and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting
an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
PRELIMINARY PROSPECTUS
SUBJECT
    TO COMPLETION
DATED              ,
    2019
1,275,000 Shares
Common
Stock
LMP Automotive Holdings,
Inc.
This is the initial public offering of
our common stock. We are offering 1,275,000 shares, par value $0.00001 per share, of our common stock. We currently
estimate that the initial public offering price will be between $5.00 and $6.00 share of common stock.
Currently, no public market exists for
our common stock. We have applied to list our common stock on the Nasdaq Capital Market, or Nasdaq, under the symbol "LMPX."
There is no guarantee or assurance that our common stock will be approved for listing on Nasdaq.
We are an "emerging growth company",
as that term is used in the Jumpstart Our Business Startups Act of 2012, and as such, have elected to comply with certain reduced
public company reporting requirements for this prospectus and future filings. See "
Prospectus Summary—JOBS Act
"
and "
Risk Factors—Risks Related to this Offering and Ownership of Our Common Stock
."
Investing in our common stock is highly
speculative and involves a significant degree of risk. See "
Risk Factors
" beginning on page 7 of this prospectus
for a discussion of information that should be considered before making a decision to purchase our common stock.
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
Offering without Over-Allotment Option
Offering with Over-Allotment Option
Public offering price
$
$
$
Underwriter's discount and commissions(1)
$
$
$
Proceeds to us, before expenses
$
$
$
(1) Does not include additional compensation
payable to ThinkEquity, a division of Fordham Financial Management, Inc., or the underwriter. We have agreed to reimburse the underwriter
for certain expenses incurred relating to this offering. In addition, we will issue to the underwriter a warrant to purchase the
number of shares of our common stock equal to five percent (5%) of the number of shares issued at the initial closing of this offering.
The registration statement of which this prospectus forms a part also registers the issuance of the shares of common stock issuable
upon exercise of the underwriter's warrant.
Samer Tawfik, our founder, Chairman, President
and Chief Executive Officer, has indicated an interest in purchasing up to $1,000,000 of shares of common stock in this offering,
at the offering price to the public and on the same terms and conditions as other investors. However, because indications of interest
are not binding agreements or commitments to purchase, the underwriter could determine to sell or not sell shares to Mr. Tawfik,
and Mr. Tawfik could determine to purchase or not purchase shares in this offering.
This offering is being underwritten on
a firm commitment basis. We have granted the underwriter an option for a period of 45 days from the date of this prospectus to
purchase up to an additional 191,250 shares of our common stock at the public offering price less the underwriting discount and
commissions, or the over-allotment option.
The delivery of the shares of common stock
is expected to be made 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
Summary Consolidated Financial
Data
6
Risk Factors
7
Cautionary Statement Regarding Forward-Looking Statements
28
Industry and Market Data
29
Use of Proceeds
30
Dividend Policy
30
Capitalization
31
Dilution
32
Management's Discussion and Analysis of Financial Condition and Results of Operations
34
Business
43
Management
53
Executive Compensation
58
Certain Relationships and Related Party Transactions
65
Principal Stockholders
66
Description of Capital Stock
67
Shares Eligible for Future Sale
70
Certain U.S. Federal Income and Estate Tax Considerations to Non-U.S. Holders
71
Underwriting
74
Legal Matters
81
Experts
81
Where You Can Find More Information
81
Index to Consolidated Financial Statements
F-1
i
Please read this prospectus carefully.
It describes our business, financial condition, results of operations and prospects, among other things. We are responsible for
the information contained in this prospectus and in any free-writing prospectus we have authorized. Neither we nor the underwriter
have authorized anyone to provide you with different information, and neither we nor the underwriter take responsibility for any
other information others may give you. Neither we nor the underwriter are making an offer to sell these securities in any jurisdiction
where the offer or sale is not permitted. The information contained in this prospectus is accurate only as of the date on the front
of this prospectus, regardless of the time of delivery of this prospectus or any sale of shares of our common stock. You should
not assume that the information contained in this prospectus is accurate as of any date other than its date.
TRADEMARKS AND COPYRIGHTS
We own or have rights to trademarks or
trade names that we use in connection with the operation of our business, including our corporate names, logos and website names.
In addition, we own or have the rights to copyrights, trade secrets and other proprietary rights that protect the services that
we offer. This prospectus may also contain trademarks, service marks and trade names of other companies, which are the property
of their respective owners. Our use or display of third parties' trademarks, service marks, trade names or products in this
prospectus is not intended to, and should not be read to, imply a relationship with or endorsement or sponsorship of us. Solely
for convenience, some of the copyrights, trade names and trademarks referred to in this prospectus are listed without their
©
,
®
and ™ symbols, but we will assert, to the fullest extent under applicable law, our rights to our copyrights,
trade names and trademarks. All other trademarks, service marks and trade names are the property of their respective owners.
ii
PROSPECTUS SUMMARY
This summary highlights
selected information contained elsewhere in this prospectus. This summary is not complete and does not contain all of the information
that you should consider before deciding whether to invest in our common stock. You should carefully read the entire prospectus,
including the risks associated with an investment in the Company discussed in the "Risk Factors" section of this prospectus,
before making an investment decision. Some of the statements in this prospectus are forward-looking statements. See the section
titled "Cautionary Statement Regarding Forward-Looking Statements."
In this prospectus,
"we," "us," "our," "the Company" and similar references refer to LMP Automotive
Holdings, Inc. and, unless otherwise stated, all of its subsidiaries.
Our Mission
Our goal is to provide an e-commerce and
facilities-based retail platform for consumers who desire to buy, sell, rent, subscribe for or finance pre-owned and new automobiles.
We seek to provide our customers with a simple, convenient, flexible, transparent and pleasant retail experience. In addition to
our current operations launched in 2017, we intend to seek strategic acquisitions of pre-owned and new automobile dealerships and
car rental companies in order to facilitate efficient growth.
Our Current Business
LMP, through its wholly owned subsidiaries,
currently offers our customers the opportunity to buy, sell, rent and subscribe for, and obtain financing for automobiles both
online and in person.
We describe our business model as "Buy,
Rent or Subscribe, Sell and Repeat." This means that we "Buy" pre-owned automobiles primarily through auctions
or directly from other automobile dealers, and new automobiles from manufacturers and manufacturer distributors at fleet rates.
We "Rent or Subscribe" by either renting automobiles to our customers or allowing them to enter into our subscription
plan for automobiles in which customers have use of an automobile for a minimum of thirty (30) days. We "Sell" our
inventory, including automobiles previously included in our rental and subscription programs, to customers, and then we hope to
"Repeat" the whole process.
We believe we offer a stress-free and user-friendly
experience, either directly or through arrangements with third parties, that enables consumers to efficiently:
-
Browse and purchase a vehicle
-
Subscribe for a vehicle
-
Rent a vehicle
-
Sell or trade-in vehicle
-
Obtain pre-approval for financing (through third parties)
-
Buy extended warranties (through third parties)
-
Schedule deliveries and pick-ups (typically through third parties)
1
Our platform is designed to streamline
the automobile transaction value chain by digitizing a substantial part of the sales and transaction process. We believe this will
enhance the consumer experience by creating operational efficiencies that are designed to improve our financial and business performance.
We also intend to centralize sales, title, tag, finance, insurance and logistics operations, in order to create additional financial
and operational benefits, as well as a positive consumer experience. We believe that bringing more of the vehicle shopping and
transaction experience online will provide consumers with a broader range of purchase, rental and subscription options while eliminating
time spent in negotiation and haggling.
We commenced our operations in the first
quarter of 2017. Currently, we only offer sales of pre-owned automobiles, and rentals and subscriptions for both pre-owned and
new automobiles. Our fleet consists of 215 automobiles in total. Of those, 118 are offered for subscription, eight are offered
for rental, 40 are available to drivers for rideshare applications, including Uber and Lyft, and 49 are held for sale. Our current
facility is approximately 8,771 square feet on 1.25 acres of land. Our facility contains storage for ten vehicles on the interior
and up to 90 on the exterior. We expect that we can facilitate over 1,000 subscribers in our current facility.
Our Risks
An investment in our common stock involves
a high degree of risk. You should carefully consider the risks summarized below. These risks are discussed more fully in the "
Risk
Factors
" section immediately following this Prospectus Summary. These risks include, but are not limited to, the following:
●
Our
limited operating history makes it difficult for us to evaluate our future business prospects and make decisions based on those
estimates of our future performance.
●
We
depend on key personnel to operate our business, and if we are unable to retain, attract and integrate qualified personnel, our
ability to develop and successfully grow our business could be harmed.
●
We
intend to acquire other companies and/or technologies, which could divert our management's attention, result in additional
dilution to our stockholders and otherwise disrupt our operations and harm our operating results.
●
We
expect that we will require additional debt and equity capital to pursue our business objectives and respond to business opportunities,
challenges and/or unforeseen circumstances. If such capital is not available to us, or is not available on favorable terms, our
business, operating results and financial condition may be harmed.
●
Our
business is subject to risks related to the larger automotive ecosystem, including consumer demand, global supply chain challenges
and other macroeconomic issues.
Implications of Being an "Emerging
Growth Company"
As a public reporting company with less
than $1.07 billion in revenue during our last fiscal year, we qualify as an "emerging growth company" under the Jumpstart
Our Business Startups (JOBS) Act. An emerging growth company may take advantage of certain reduced reporting requirements and is
relieved of certain other significant requirements that are otherwise generally applicable to public companies. In particular,
as an emerging growth company we:
●
are
not required to obtain an attestation and report from our auditors on our management's assessment of our internal control
over financial reporting pursuant to the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act;
●
are
not required to provide a detailed narrative disclosure discussing our compensation principles, objectives and elements and analyzing
how those elements fit with our principles and objectives (commonly referred to as "compensation discussion and analysis");
●
are
not required to obtain a non-binding advisory vote from our stockholders on executive compensation or golden parachute arrangements
(commonly referred to as the "say-on-pay," "say-on-frequency" and "say-on-golden-parachute"
votes);
2
●
are
exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;
●
may
present only two years of audited financial statements and only two years of related Management's Discussion & Analysis
of Financial Condition and Results of Operations, or MD&A; and
●
are
eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of
the JOBS Act.
We intend to take advantage of all of these
reduced reporting requirements and exemptions, including the longer phase-in periods for the adoption of new or revised financial
accounting standards under §107 of the JOBS Act. Our election to use the phase-in periods may make it difficult to compare
our financial statements to those of non-emerging growth companies and other emerging growth companies that have opted out of the
phase-in periods under §107 of the JOBS Act.
Certain of these reduced reporting requirements
and exemptions are also available to us due to the fact that we also qualify as a "smaller reporting company" under
the SEC's rules. For instance, smaller reporting companies are not required to obtain an auditor attestation and report regarding
management's assessment of internal control over financial reporting; are not required to provide a compensation discussion
and analysis; are not required to provide a pay-for-performance graph or CEO pay ratio disclosure; and may present only two years
of audited financial statements and related MD&A disclosure.
Under the JOBS Act, we may take advantage
of the above-described reduced reporting requirements and exemptions for up to five years after our initial sale of common equity
pursuant to a registration statement declared effective under the Securities Act of 1933, as amended, or the Securities Act, or
such earlier time that we no longer meet the definition of an emerging growth company. In this regard, the JOBS Act provides that
we would cease to be an "emerging growth company" if we have more than $1.07 billion in annual revenues, have more
than $700 million in market value of our common stock held by non-affiliates, or issue more than $1 billion in principal amount
of non-convertible debt over a three-year period. Furthermore, under current Commission rules, we will continue to qualify as a
"smaller reporting company" for so long as we have (i) a public float (i.e., the market value of common equity held
by non-affiliates) of less than $250 million as of the last business day of our most recently completed second fiscal quarter or
(ii) (A) if we have no public float or a public float of less than $700 million and (B) annual revenues of less than $100 million
during our most recently completed fiscal year.
Reorganization and Securities Issuances
The Company was incorporated under the
laws of Delaware in December 2017. Samer Tawfik, our founder, Chairman, President and Chief Executive Officer, contributed
one hundred percent (100%) of the equity interests in each of LMP Motors.com, LLC and LMP Finance, LLC to the Company in December
2017, and in January 2018, 601 NSR, LLC and LMP Automotive Holdings, LLC made the Company their sole member. We refer to these
transactions as the reorganization. As a result of the reorganization, the Company now owns one hundred percent (100%) of the equity
in each of these four entities. LMP Motors.com, LLC currently operates our automobile sales business. LMP Finance, LLC currently
operates our rental and subscription business. 601 NSR, LLC and LMP Automotive Holdings, LLC were formed to enter into future potential
strategic acquisitions, but are currently inactive. As a result of the reorganization, Mr. Tawfik was issued 15,750,000 shares
of common stock and ST RXR Investments, LLC, or ST RXR, a company wholly owned and controlled by Mr. Tawfik, was issued 5,250,000
shares of common stock.
In February 2018, we completed an offering
exempt from the registration requirements of the Securities Act, or a private placement offering, pursuant to which we sold
2,858,030 shares of our common stock, at a purchase price of $3.33 per share, for an aggregate purchase price of $9,517,239.
From June 2018 through October 2018, we
sold an aggregate of 787,264 shares of our common stock, in a private placement offering, at a purchase price of $4.75 per share,
for an aggregate purchase price of $3,739,505.
3
During the second and third quarters of
2018, we issued convertible promissory notes in an aggregate principal amount of $1,448,965, or the 6-month notes, pursuant to
a private placement offering. The 6-month notes bear interest at 4% per annum and mature six (6) months from the date of issuance, at
which time the principal and any accrued but unpaid interest shall be due and payable. The holders of the 6-month notes may, at
any time prior to the maturity date, convert the 6-month notes (and accrued interest) into shares of our common stock by dividing
(a) the outstanding principal balance and unpaid accrued interest under the applicable 6-month note on the date of conversion by
(b) $4.75 (subject to adjustment as provided in the 6-month notes). Based on the terms of the conversion rights, we did not recognize
a beneficial conversion discount.
During the fourth quarter of 2018, we repaid
one of the 6-month notes in the principal amount of approximately $285,015, leaving a balance on the remaining 6-month notes of
approximately $1,164,000, plus accrued interest, at December 31, 2018.
During the first quarter of 2019, we repaid
two of the 6-month notes in the aggregate principal amount of $365,000, leaving a balance on the remaining 6-month notes of $798,950,
plus accrued interest, at March 31, 2019.  In April 2019, we repaid seven of the 6-month notes in the principal amount
of $497,000.
Subsequent to March 31, 2019, we extended
certain of the 6-month notes that became due.  Two of the 6-month notes in the amount of approximately $121,000 were
extended to June 15, 2019, two of the 6-month notes in the amount of approximately $45,000 were extended to August 14, 2019, and
another two in the amount of approximately $135,950 were extended to September 17, 2019.
The total outstanding principal balance
on the remaining 6-month notes as of May 31, 2019 was $301,950.
Company and Other Information
Our Company was incorporated in the State
of Delaware in December 2017. Our principal executive office is located at 601 N. State Road 7, Plantation FL, 33317. Our telephone
number is (954) 895-0352. Our main Internet address is www.lmpmotors.com. We do not incorporate the information on or accessible
through our website into this prospectus, and you should not consider any information on, or that can be accessed through, our
website as a part of this prospectus.
4
The Offering
Shares being offered:
1,275,000 shares of common stock. (1)
Number of shares of common stock outstanding after this offering: (2)
7,281,694 shares of common stock (7,472,944 shares of common stock, if the underwriter exercises the over-allotment option in full).
Gross proceeds to us, net of underwriting discount but before expenses:
$6,316,500 ($7,284,225, assuming that the underwriter exercises the over-allotment option in full), based on an assumed public offering price of $5.50 per share, which is the midpoint of the estimated offering range set forth on the cover page of this prospectus.
Use of Proceeds:
We plan to use the net proceeds of this offering primarily for our strategic acquisitions, to build our vehicle inventory, for working capital and other general corporate purposes. For more information on the anticipated use of proceeds of this offering, see "
Use of Proceeds
" on page 30 of this prospectus.
Lock-up
We, all of our directors and officers and substantially all of our shareholders have agreed with the underwriter, subject to certain exceptions, not to sell, transfer or dispose of, directly or indirectly, any of our common stock or securities convertible into or exercisable or exchangeable for our common stock for a period of 180 days after the date of the final closing of this offering. See "
Shares Eligible for Future Sale
" and "
Underwriting
" for more information.
Proposed NASDAQ Symbol:
LMPX
Underwriter's Warrants:
We have agreed to
    issue to the underwriter a warrant to purchase a number of shares of common stock equal to 5% of the total number of shares
    issued at the initial closing of this offering. The underwriter's warrant 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
    underwriter's warrant     is     exercisable at     any time and from time to time, in whole or in part, during the
    four-and-a-half-year period     commencing six     months after the     effective date of the registration statement of which
    this prospectus forms a     part.  The     registration statement of     which this prospectus forms a part also
    registers the issuance of the     shares of common stock     issuable upon exercise of the     underwriter's warrant.
    See     "
Underwriting
" for more     information.
Risk factors:
Investing in our common stock involves a high degree of risk. As an investor, you should be able to bear a complete loss of your investment. You should carefully consider the information set forth in the "
Risk Factors
" section beginning on page.
(1)
In addition, the underwriter has been granted an over-allotment option pursuant to which it may
purchase an additional 191,250 shares of common stock.
(2)
The number of shares of common stock outstanding immediately
following this offering is based on 24,506,693 shares outstanding as of May 31, 2019 and excludes:
●
1,500,000
shares of common stock reserved for issuance under our 2018 Equity Incentive Plan;
●
331,750
shares of common stock issuable upon the exercise of options (of which 236,853 have vested) outstanding as of March 31, 2019;
●
Up to 63,750 shares of common stock issuable
upon exercise of the underwriter's warrants issued in connection with this offering; and
●
Approximately 63,570 shares of common
stock that may be issued by us upon conversion of the 6-month note (assuming no interest is paid on the 6-month notes).
In addition, unless we specifically state
otherwise, the information in this prospectus assumes:
●
an initial public offering price of $5.50
per share, the midpoint of the estimated offering range set forth on the cover page of this prospectus; and
●
with respect to the post-offering
                                                                     share counts, the cancellation of 18,500,000 shares held by Samer Tawfik, our founder, Chairman and Chief Executive
                                                                     Officer.
Samer Tawfik, our founder, Chairman, President
and Chief Executive Officer, has indicated an interest in purchasing up to $1,000,000 of shares of common stock in this offering, at the
offering price to the public and on the same terms and conditions as other investors. However, because indications of interest
are not binding agreements or commitments to purchase, the underwriter could determine to sell or not sell shares to Mr. Tawfik,
and Mr. Tawfik could determine to purchase or not purchase shares in this offering.
5
SUMMARY CONSOLIDATED FINANCIAL DATA
The following tables present the summary
historical consolidated financial and other data for LMP Automotive Holdings, Inc. The summary consolidated statement of operations
data for the years ended December 31, 2018 and 2017 and the summary balance sheet data at December 31, 2018 and 2017 were derived
from the audited consolidated financial statements of LMP Automotive Holdings, Inc. included elsewhere in this prospectus. The
summary consolidated statement of operations data for the three months ended March 31, 2019 and 2018 and the summary balance sheet
data at March 31, 2019 were derived from the unaudited consolidated interim financial statements of LMP Automotive Holdings,
Inc. included elsewhere in this prospectus. The unaudited consolidated interim financial statements have been prepared on the same
basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only
of normal recurring adjustments, that we consider necessary for a fair statement of the financial information set forth in those
statements. The results of operations for the periods presented below are not necessarily indicative of the results to be expected
for any future period and the results for any interim period are not necessarily indicative of the results that may be expected
for a full year. The following summary consolidated financial and other data should be read in conjunction with the section titled
"Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated
financial statements and related notes of LMP Automotive Holdings, Inc. included elsewhere in this prospectus.
Three Months Ended
March 31,
Year Ended
December 31,
2019
2018
2018
2017
(unaudited)
Statement of Operations Data
:
Total Revenues
$
4,937,747
$
2,384,595
$
16,610,786
$
3,759,031
Gross loss
(110,826
)
(174,099
)
(1,956,989
)
(235,048
)
Total cost of revenues
5,048,573
2,558,694
18,567,775
3,994,079
Loss from operations
(1,396,202
)
(761,571
)
(6,458,916
)
(1,409,306
)
Other expenses
(4,409
)
(4,919
)
31,377
14,356
Net loss
(1,400,611
)
(766,490
)
(6,490,293
)
(1,423,662
)
March 31,
As of December 31,
2019
2018
2017
(unaudited)
Balance Sheet Data
:
Cash
$
472,199
$
424,152
$
217,360
Accounts receivable
117,253
286,982
85,851
Automobile inventory, net
8,511,159
11,558,160
3,696,802
Other current assets
220,075
380,712
71,000
Total current assets
9,320,686
12,650,006
4,071,013
Property, equipment and leasehold improvements, net
528,088
539,475
158,659
Intangible assets
45,994
39,997
0
Deferred offering costs
1,022,855
987,094
0
Right-of-use asset
1,347,701
0
0
Total assets
12,265,324
14,216,571
4,256,672
Total current liabilities
3,247,009
4,462,474
1,724,465
Total liabilities
4,295,805
4,462,474
1,724,465
Total shareholders' equity
7,969,519
9,754,097
2,532,207
Total liabilities and shareholders' equity
12,265,324
14,216,571
4,256,672
6
RISK FACTORS
An investment in our common stock involves
a high degree of risk. You should carefully consider the following risk factors, together with the other information contained
in this prospectus, before purchasing our common stock. We have listed below (not necessarily in order of importance of probability
of occurrence) what we believe to be the most significant risk factors applicable to us, but they do not constitute all of the
risks that may be applicable to us. Any of the following factors could harm our business, financial condition, results of operations
or prospects, and could result in a partial or complete loss of your investment. Some statements in this prospectus, including
statements in the following risk factors, constitute forward-looking statements. Please refer to the section titled "Cautionary
Statement Regarding Forward-Looking Statements".
Risks Related
to Our Business
Our limited
operating history makes it difficult for us to evaluate our future business prospects and make decisions based on those estimates
of our future performance.
We are a recently
formed holding company with a limited operating history. The Company was incorporated under the laws of Delaware in December 2017.
Samer Tawfik, our founder, Chairman, President and Chief Executive Officer, contributed one hundred percent (100%) of the equity
interests in each of LMP Motors.com, LLC and LMP Finance, LLC into the Company in December 2017, and in January 2018, 601 NSR,
LLC and LMP Automotive Holdings, LLC made the Company their sole member. Currently, LMP Motors.com, LLC, which operates our automobile
sales business, and LMP Finance, LLC, which operates our rental and subscription business, are the only subsidiaries that generate
revenues. 601 NSR, LLC and LMP Automotive Holdings, LLC were formed to enter into future potential strategic acquisitions, but
are currently inactive. Because of the uncertainties related to our limited historical operations, including the limited historical
operations of LMP Motors.com, LLC, we may be hindered in our ability to anticipate and timely adapt to increases or decreases in
revenues or expenses, which may materially and adversely affect our business, financial condition, results of operations and the
value of an investment in our common stock.
We have a history
of net losses.
We expect to continue
to incur losses at least in the near term as we invest in and strive to grow our business. We may incur significant losses in the
future for a number of reasons, including a decrease in demand for automobiles and our related products and services, losses associated
with our strategic acquisitions, increased competition, weakness in the automotive industry generally, as well as other risks described
in this prospectus, and we may encounter unforeseen expenses, difficulties, complications and delays in generating revenue or profitability.
If our revenues decrease, we may not be able to reduce costs in a timely manner because many of our costs are fixed at least, in
the short term. In addition, if we reduce variable costs to respond to losses, this may limit our ability to acquire customers
and grow our revenues. Accordingly, we may not achieve or maintain profitability and we may continue to incur significant losses
in the future, which may materially and adversely affect our business, financial condition, results of operations and the value
of an investment in our common stock.
We depend on
key personnel to operate our business, and if we are unable to retain, attract and integrate qualified personnel, our ability to
develop and successfully grow our business could be harmed.
We believe our
initial success has depended, and continues to depend, on the efforts and talents of our executives and employees. Our future success
depends on our continuing ability to attract, develop, motivate and retain highly qualified and skilled employees. Qualified individuals
are in high demand, and we may incur significant costs to attract and retain them. In addition, the loss of any of our key employees
or senior management, including our founder, Chairman, President and Chief Executive Officer, Samer Tawfik, could have a materially
adverse effect on our ability to execute our business plan and strategy, and we may not be able to find adequate replacements on
a timely basis, or at all. Our executive officers and other employees are at-will employees, which means they may terminate their
employment relationship with us at any time, and their knowledge of our business and industry would be extremely difficult to replace.
We may not be able to retain the services of any members of our senior management or other key employees. If we do not succeed
in attracting well-qualified employees or retaining and motivating existing employees, our business could be materially and adversely
affected.
7
We intend to
acquire other companies and/or technologies, which could divert our management's attention, result in additional dilution
to our stockholders and otherwise disrupt our operations and harm our operating results.
Our success will
depend, in part, on our ability to grow our business in response to the demands of consumers and other constituents within the
automotive industry, as well as our ability to respond to competitive pressures. Part of our strategy is to do so through the strategic
acquisition of complementary businesses, such as independent and franchised dealerships and car rental companies clustered in key
metropolitan areas, and technologies, in addition to our own internal development efforts. The identification of suitable acquisition
candidates can be difficult, time-consuming and costly, and we may not be able to successfully complete identified acquisitions.
The risks we face in connection with acquisitions include:
●
diversion
of management time and focus from operating our business to addressing acquisition integration challenges;
●
coordination
of technology, research and development, and sales and marketing functions;
●
transition
of the acquired company's users to our website and mobile applications;
●
retention
of employees from the acquired company;
●
cultural
challenges associated with integrating employees from the acquired company into our organization;
●
integration
of the acquired company's accounting, management information, human resources and other administrative systems;
●
the
need to implement or improve controls, policies and procedures at a business that, prior to the acquisition, may have lacked effective
controls, policies and procedures;
●
potential
write-offs of intangibles or other assets acquired in such transactions that may have an adverse effect on our operating results;
●
liability
for activities of the acquired company before the acquisition, including patent and trademark infringement claims, violations
of laws, commercial disputes, tax liabilities, and other known and unknown liabilities; and
●
litigation
or other claims in connection with the acquired company, including claims from terminated employees, consumers, former stockholders,
or other third parties.
Our failure to
address these risks or other problems encountered in connection with our planned acquisitions and investments could cause us to
fail to realize the anticipated benefits of these acquisitions or investments, cause us to incur unanticipated liabilities and
otherwise harm our business. Future acquisitions could also result in dilutive issuances of our equity securities, the incurrence
of debt, contingent liabilities, amortization expenses, or the write-off of goodwill, any of which could harm our financial condition.
Also, the anticipated benefits of any acquisitions may not materialize. Any of these risks, if realized, could materially and adversely
affect our business and results of operations.
We expect that
we will require additional capital to pursue our business objectives and respond to business opportunities, challenges and/or unforeseen
circumstances. If such capital is not available to us, or is not available on favorable terms, our business, operating results
and financial condition may be harmed.
While we intend
to use the proceeds from this offering for our strategic acquisitions, to build our vehicle inventory, for working capital and
other general corporate purposes, we expect that we will require additional capital to pursue our business objectives and respond
to business opportunities, challenges and/or unforeseen circumstances, including to increase our marketing expenditures in order
to improve our brand awareness, build and maintain our inventory of quality pre-owned vehicles, develop new products or services
or further improve existing services, enhance our operating infrastructure and acquire complementary businesses and technologies.
Accordingly, we may need to engage in equity, debt or other types of financings to secure additional funds. Additional funds may
not be available when we need them on terms that are acceptable to us, or at all. In addition, any debt financing that we secure
in the future could involve restrictive covenants which may make it more difficult for us to obtain additional capital and to pursue
business opportunities.
8
Volatility in
the credit markets may also have an adverse effect on our ability to obtain debt financing. If we raise additional funds through
further issuances of equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any
new equity securities we issue could have rights, preferences and privileges superior to those of our common stock. If we are unable
to obtain adequate financing or financing on terms satisfactory to us when we require it, our ability to continue to pursue our
business objectives and to respond to business opportunities, challenges or unforeseen circumstances could be significantly limited,
and our business, operating results, financial condition and prospects could be adversely affected.
Our business
is subject to risks related to the larger automotive ecosystem, including consumer demand, global supply chain challenges and other
macroeconomic issues.
Decreases in consumer
demand could adversely affect the market for vehicle purchases and, as a result, reduce the number of consumers using our platform.
Consumer purchases of vehicles generally decline during recessionary periods and other periods in which disposable income is adversely
affected. Purchases of vehicles are typically discretionary for consumers and have been, and may continue to be, affected by negative
trends in the economy and other factors, including rising interest rates, the cost of energy and gasoline, the availability and
cost of credit, reductions in business and consumer confidence, stock market volatility, increased regulation and increased unemployment.
Increased environmental regulation has made, and may in the future make, used cars more expensive and less desirable for consumers.
In addition, our business may be negatively affected by challenges to the larger automotive ecosystem, including urbanization,
global supply chain challenges and other macroeconomic issues. For example, car rideshare services, such as Uber, Juno, Lyft, and
Via, car sharing, and other services that allow people to supplement transit trips and share vehicles are becoming increasingly
popular as a means of transportation and may decrease consumer demand for the pre-owned vehicles we sell, particularly as urbanization
increases. Additionally, new technologies such as autonomous or self-driving vehicles have the potential to change the dynamics
of car ownership in the future. Any of the foregoing could have a material adverse effect on our business, results of operations
and financial condition.
We participate
in a highly competitive industry, and pressure from existing and new companies may adversely affect our business and operating
results.
We face significant
competition from existing and new companies that provide, among other things, automobile listings, information, lead generation,
and car buying, rental and subscription services.
Our current and
future competitors may include:
●
traditional
car dealerships that could increase investment in technology and infrastructure to compete directly with our online platform;
●
Internet
and online automotive sites that could change their models to directly compete with us, such as Google, Amazon, AutoTrader.com,
eBay Motors, Edmunds.com, KBB.com, Autobytel.com, TrueCar.com and Cars.com;
●
providers
of offline, membership-based car buying services such as the Costco Auto Program;
●
used
car dealers or marketplaces with e-commerce business or online platforms such as Carvana, Vroom and Shift;
●
national
rental car companies such as Sixt Rent A Car, Hertz, Avis, Budget and Enterprise, as well as local and regional car rental services;
9
●
vehicle
subscription services, and other pay-as-you-go services, such as ZipCar and Flexdrive, and similar services offered by large automobile
manufacturers such as Volvo and BMW;
●
other
automobile manufacturers that could change their sales models through technology and infrastructure investment; and
●
Peer-to-peer
ride-sharing companies.
We also expect
that new competitors will continue to enter the online and traditional automotive retail, rental and subscription market with competing
brands, business models, products and services, which could have an adverse effect on our revenue, business and financial results.
Some of these companies have significantly greater resources than we do and may be able to provide consumers access to a greater
inventory of vehicles at lower prices while delivering a competitive online experience.
Our current
and potential competitors may also develop and market new technologies that may adversely affect our business and operating results.
Our current and
potential competitors may also develop and market new technologies that render our existing or future business model, products
and services less competitive, unmarketable or obsolete. For example, manufacturers are beginning to develop automated, driverless
vehicles that could eventually reduce the demand for, or replace, traditional vehicles, including the vehicles that we currently
sell. Additionally, car rideshare services, such as Uber, Juno, Lyft, and Via, car sharing, and other services that allow people
to supplement transit trips and share vehicles, are becoming increasingly popular as a means of transportation and may decrease
consumer demand for vehicle ownership. In addition, if our competitors develop business models, products or services with similar
or superior functionality to our solutions, it may adversely impact our business.
Our competitors
may also impede our ability to reach consumers or commence operations in certain jurisdictions. For example, our competitors may
increase their search engine optimization efforts and outbid us for search terms on various search engines. Additionally, our competitors
could use their political influence and increase lobbying efforts resulting in new regulations or interpretations of existing regulations
that could prevent us from operating in certain jurisdictions.
Our current
and potential competitors may have significantly greater resources than we do.
Our current and
potential competitors may have significantly greater financial, technical, marketing and other resources than we have, and the
ability to devote greater resources to the development, promotion and support of their business. Additionally, they may have more
extensive automotive industry relationships, longer operating histories and greater name recognition than we have. As a result,
these competitors may be able to respond to changes in the automotive industry more quickly with new technologies and undertake
more extensive marketing or promotional campaigns. If we are unable to compete with these companies, the demand for our automobiles,
products and services could substantially decline.
In addition, if
one or more of our competitors were to merge or partner with another one of our competitors, the change in the competitive landscape
could adversely affect our ability to compete effectively. Our competitors may also establish or strengthen cooperative relationships
with our current or future providers and suppliers, or other parties with whom we have relationships, thereby limiting our ability
to develop, improve and grow our business. We may not be able to compete successfully against current or future competitors, and
competitive pressures may harm our revenue, business and financial results.
Our business
is dependent upon access to a desirable vehicle inventory. Obstacles to acquiring attractive inventory, whether because of supply,
competition, or other factors, may have a material adverse effect on our business, sales and results of operations.
Our business requires
that we have access to a large number of quality vehicles. We acquire vehicles for sale through numerous sources, including wholesale
auction, agreements with manufacturers, independent and franchise dealerships, trade-ins and directly from consumers. The sources
from which we can acquire vehicles of a quality and in a quantity acceptable to us are limited, and there is substantial competition
to acquire the vehicles we purchase. There can be no assurance that the supply of desirable vehicles will be sufficient to meet
our needs. A reduction in the availability of or access to sources of inventory, including an increase in competition for quality
vehicles, could diminish our ability to obtain sufficient inventory at a price that we can reflect in retail market prices and
would have a material adverse effect on our business, sales and results of operations.
10
Additionally,
we evaluate potential vehicles regularly using third-party systems to predict mechanical soundness, consumer desirability and relative
value of prospective inventory. If we fail to adjust appraisal offers to stay in line with broader market trade-in offer trends,
or fail to recognize those trends, it could adversely affect our ability to acquire inventory effectively. Our ability to source
vehicles through our appraisal process could also be affected by competition, both from new and used car dealers directly and through
third party websites driving appraisal traffic to those dealers.
Our business
is dependent upon our ability to expeditiously sell inventory. Failure to expeditiously sell our inventory could have a material
adverse effect on our business, sales and results of operations.
Our purchases
of vehicles are based in large part on projected demand. If actual sales are materially less than our forecasts, we would experience
an over-supply of vehicle inventory. An over-supply of vehicle inventory will generally cause downward pressure on our product
sales prices and margins and increase our average days to sale.
Pre-owned vehicle
inventory has typically represented, and will continue to represent, a significant portion of our total assets. Having such a large
portion of our total assets in the form of pre-owned vehicle inventory for an extended period of time subjects us to depreciation
and other risks that may affect our results of operations. Accordingly, if we have excess inventory or our average days-to-sale
increases, we may be unable to liquidate such inventory in a timely manner, or do so at prices that would allow us to meet margin
targets or to recover our costs, which could have a material adverse effect on our results of operations.
Our business
is sensitive to changes in the prices of new and pre-owned vehicles.
Any significant
changes in retail prices for new or pre-owned vehicles could have a material adverse effect on our revenues and results of operations.
For example, if retail prices for pre-owned vehicles rise relative to retail prices for new vehicles, it could make buying a new
vehicle more attractive to consumers than buying a used vehicle, which could have a material adverse effect on our results of operations
and could result in reduced used car sales and lower revenue. Additionally, manufacturer incentives could contribute to narrowing
the price gap between new and pre-owned vehicles. Pre-owned vehicle prices may also decline due to an increased number of new vehicle
lease returns over the next several years. While lower prices of pre-owned vehicles reduce our cost of acquiring new inventory,
lower prices could also lead to reductions in the value of inventory that we currently hold, which could have a negative impact
on gross profit. Furthermore, any significant changes in wholesale prices for pre-owned vehicles could have a material adverse
effect on our results of operations by reducing our profit margins.
If our inventory
or other costs of operations increase and we are unable to pass along these costs to our customers, we may be unable to maintain
or grow our sales margins.
Our inventory
and other costs are variable and dependent upon various factors, many of which are outside of our control. A rise in vehicle acquisition
costs could erode our sales margins and negatively affect our results of operations. If we incur cost increases, we may seek to
pass those increases along to our customers. However, our consumers typically have limits on the maximum amount they can afford,
and we may be unable to pass these costs along to them in the form of higher sales prices, which would adversely affect our ability
to maintain or increase margins.
We rely heavily
on logistics in transporting vehicles for delivery from point of purchase to our facilities, and finally to the customers, via
third parties. Our ability to manage this process both internally and through our network of transportation partners could cause
a rise in inventory costs and a disruption in our inventory supply chain and distribution. Further, any disruption in the vehicle
transport industry or an increase in the cost of transport could adversely affect our results of operations.
11
We could be negatively affected if losses
for which we do not have third-party insurance coverage increase or our insurance coverages prove to be inadequate.
We have third-party insurance coverage,
subject to limits, for bodily injury and property damage resulting from accidents involving our vehicles that are rented or subscribed
for. We self-insure (that is, we do not have third-party insurance coverage) for other risks, such as theft and damages to vehicles
that are rented or subscribed for and are not otherwise covered by renters' or subscribers' insurance, and theft and
damage to vehicles in our inventory. We account for vehicle damage or total loss at the time such damage or loss is incurred. As
a result, we are responsible for damage to our vehicles. A deterioration in claims management, whether by our management or by
a third-party claims administrator, could lead to delays in settling claims, thereby increasing claim costs. In the future, we
may be exposed to liability for which we self-insure at levels in excess of our historical levels and to liabilities for which
we are insured that exceed the level of our insurance. Claims filed against us in excess of insurance limits, or for which we are
otherwise self-insured, or the inability of our insurance carriers to pay otherwise-insured claims, could have an adverse effect
on our financial condition. For example, damages resulting from a significant natural disaster, such as a hurricane, fire or flood,
or judgment against us for liability for damages resulting from our rental program could have a material adverse impact on our
business, operating results and financial condition, and our insurance coverage may be insufficient to compensate us for losses
that may occur. Should we be unable to renew our commercial insurance policies at competitive rates, this loss could have an adverse
effect on our financial condition and results of operations.
The success
of our business relies heavily on our marketing and branding efforts and these efforts may not be successful.
We believe that
an important component of our growth will be to successfully attract new visitors to our physical locations and our online platform.
Because we are a consumer brand, we rely heavily on marketing and advertising to increase brand visibility with potential customers.
We intend to execute our sales and marketing efforts by utilizing a multi-channel approach that utilizes brand building, as well
as direct response channels in order to efficiently establish and grow both locally and nationally and to increase the strength,
recognition and trust in the LMP brand.
Our business model
relies on our ability to scale rapidly and to decrease incremental customer acquisition costs as we grow. If we are unable to recover
our marketing costs through increases in customer traffic and in the number of transactions by users of our platform, or if our
broad marketing campaigns are not successful or are terminated, it could have a material adverse effect on our growth, results
of operations and financial condition.
We rely on
Internet search engines and social networking sites to help drive traffic to our website and our facilities, and if we fail to
appear prominently in the search results or fail to drive traffic through paid advertising, our traffic would decline and our business
would be adversely affected.
We depend in part
on Internet search engines, such as Google, Bing and Yahoo!, and social networking sites, such as Facebook, to drive traffic to
our website and our facilities. Our ability to maintain and increase the number of visitors directed to our website is not entirely
within our control. Our competitors may increase their search engine optimization efforts and outbid us for search terms on various
search engines, resulting in their websites receiving a higher search result page ranking than ours. Additionally, Internet search
engines could revise their methodologies in a way that would adversely affect our search result rankings. If Internet search engines
modify their search algorithms in ways that are detrimental to us, or if our competitors' efforts are more successful than
ours, overall growth in our customer base could decrease or our customer base could decline. Further, Internet search engine providers
could provide automotive dealer and pricing information directly in search results, align with our competitors or choose to develop
competing services. Any reduction in the number of users directed to our website and/or our facilities through Internet search
engines could harm our business and operating results.
The traffic
to our websites and mobile applications may decline and our business may be adversely affected if other companies copy information
from our websites and publish or aggregate it with other information for their own benefit.
From time to time,
other companies copy information from our websites through website scraping, robots or other means, and publish, or aggregate it
with other information for their own benefit. When third parties copy, publish, or aggregate content from our websites, it makes
them more competitive, and decreases the likelihood that consumers will visit our websites or use our mobile applications to find
the information they seek. While we may try to prevent or limit these activities, we cannot guarantee that we will be successful
in preventing or properly detecting such activities in the future. We may not be able to detect such third-party conduct in a timely
manner and, even if we could, we may not be able to prevent it. In some cases, particularly in the case of third parties that operate
outside of the United States, our available remedies may be inadequate to protect us against such activities. In addition, we may
be required to expend significant financial or other resources to successfully enforce our rights. If any of these activities were
to occur, it could adversely affect our business, results of operations and financial condition.
12
We depend on our e-commerce business
and failure to successfully manage this business and deliver a seamless online experience to our customers could have an adverse
effect on our growth strategy, business, financial condition, operating results and prospects.
We believe that sales from our e-commerce
platform will account for a meaningful portion of our revenues. Our business, financial condition, operating results and prospects
are, and we believe will continue to be, dependent on maintaining our e-commerce business. Dependence on our e-commerce business
and the continued growth of our direct and retail channels subjects us to certain risks, including:
●
the
failure to successfully implement new systems, system enhancements and Internet platforms;
●
the
failure of our technology infrastructure or the computer systems that operate our website and their related support systems, causing,
among other things, website downtimes, telecommunications issues or other technical failures;
●
the
reliance on third-party computer hardware/software providers;
●
rapid
technological change;
●
liability
for online content;
●
violations
of federal, state, foreign or other applicable laws, including those relating to data protection;
●
credit
card fraud;
●
cyber
security and vulnerability to electronic break-ins and other similar disruptions; and
●
diversion
of traffic and sales from our stores.
Our failure to
successfully address and respond to these risks and uncertainties could negatively impact sales, increase costs, diminish our growth
prospects and damage the reputation of our brand, each of which could have a material adverse effect on our business, financial
condition, operating results and prospects.
Vehicle subscription is a relatively
new business model, and may not be widely adopted.
We expect to derive a portion of our revenue
from our vehicle subscription service, which is a relatively new and rapidly evolving market. If the market for vehicle subscription
fails to grow or grows more slowly than we currently anticipate, our business could be negatively affected. We currently only offer
vehicle subscription services in Florida. We intend to expand into markets that we believe are the most likely to adopt vehicle
subscription services. However, our efforts to expand within and beyond our existing market may not be successful.
We face risks
related to liabilities resulting from the use of our vehicles by our rental and subscription customers.
Our business can
expose us to claims for personal injury, death and property damage resulting from the use of vehicles by our rental and subscription
customers. For example, a rental or subscription customer may be using a vehicle that has worn tires, a mechanical issue or some
other problem, including a manufacturing defect, which could contribute to a motor vehicle accident resulting in serious bodily
injury, death or significant property damage for which we may be liable. In addition, since we cannot physically inspect our vehicles
after they are delivered to our customers, we depend on our rental and subscription customers and third-party service providers
to inspect the vehicles prior to driving in order to identify any potential damage or safety concern with the vehicle. To the extent
that we are found at fault or otherwise responsible for an accident, our insurance coverage would only cover losses up to a maximum
amount.
13
In addition, in
certain jurisdictions, as the owner of the vehicle, there is the potential that we may have vicarious liability for any damages
caused by our renters or subscribers, even if we are not found to be negligent. Any such liability may have a material adverse
impact on our business.
We anticipate
that our business will be highly seasonal and any occurrence that disrupts our activity during our peak periods could materially
adversely affect our results of operations, financial condition, liquidity and cash flows.
Certain significant
components of our expenses are fixed, including real estate taxes, rent, insurance, utilities, maintenance and other facility-related
expenses, the costs of operating our information technology systems and staffing costs. We anticipate that seasonal changes in
our revenues will not affect those fixed expenses, which typically result in higher profitability in periods when our revenues
are higher, and lower profitability in periods when our revenues are lower. Any circumstance, occurrence or situation that disrupts
our activity during these periods could have a disproportionately material adverse effect on our results of operations, financial
condition, liquidity and cash flows due to a significant change in revenue.
We operate
in a highly regulated industry and are subject to a wide range of federal, state and local laws and regulations. Failure to comply
with these laws and regulations could have a material adverse effect on our business, results of operations and financial condition.
We are subject
to a wide range of federal, state and local laws and regulations. Our sales, rental and subscription services, and related activities,
including the sale of complementary products and services, are, or may potentially be, subject to state and local licensing requirements,
federal and state (or local) laws regulating vehicle advertising, state or local laws related to sales tax, title and registration,
state or local laws regulating vehicle sales and service, and state laws regulating vehicle rentals and subscriptions. For example,
a number of state legislatures are proposing to regulate vehicle subscription programs, and in August 2018, the State of Indiana
issued a moratorium on vehicle subscription programs until May 1, 2019.
Our facilities
and business operations are subject to laws and regulations relating to environmental protection and health and safety. In addition
to these laws and regulations that apply specifically to our business, upon the completion of this offering, we will also be subject
to laws and regulations affecting public companies, including securities laws and Nasdaq listing rules. The violation of any of
these laws or regulations could result in administrative, civil or criminal penalties or in a cease-and-desist order against our
business operations, any of which could damage our reputation and have a material adverse effect on our business, sales and results
of operations. We have incurred and will continue to incur capital and operating expenses and other costs in order to comply with
these laws and regulations.
Our business is
subject to the state and local licensing requirements of the jurisdictions in which we operate and in which our customers reside.
Regulators of jurisdictions in which our customers reside, but for which we do not have an applicable dealer license, could require
that we obtain a license or otherwise comply with various state regulations. Regulators may seek to impose punitive fines for operating
without a license or demand we seek a license in those jurisdictions, any of which may inhibit our ability to do business in those
jurisdictions, increase our operating expenses and adversely affect our financial condition and results of operations.
With respect to
our advertising, private plaintiffs, as well as federal, state and local regulatory and law enforcement authorities, continue to
scrutinize advertising, sales, financing and insurance activities in the sale and leasing of pre-owned vehicles. If, as a result,
other automotive retailers adopt more transparent, consumer-oriented business practices, it may be difficult for us to differentiate
ourselves from other retailers.
The foregoing
description of laws and regulations to which we are or may be subject is not exhaustive, and the regulatory framework governing
our operations is subject to continuous change.
14
Changes in
government regulation affecting the communications industry could harm our prospects and operating results.
The Federal Communications
Commission, or the FCC, has jurisdiction over the U.S. communications industry. Under current rules, the FCC regulates broadband
Internet service providers as telecommunications service carriers under Title II of the Telecommunications Act and enforces net
neutrality regulations that prohibit blocking, degrading or prioritizing certain types of internet traffic.
On February 26,
2015, the FCC reclassified broadband Internet access services in the United States as a telecommunications service subject to some
elements of common carrier regulation, including the obligation to provide service on just and reasonable terms, and adopted specific
net neutrality rules prohibiting the blocking, throttling or "paid prioritization" of content or services. However,
in May 2017, the FCC issued a notice of proposed rulemaking to roll back net neutrality rules and return to a "light touch"
regulatory framework. Consistent with this notice, on December 14, 2017, the FCC once again classified broadband Internet access
service as an unregulated information service and repealed the specific rules against blocking, throttling or "paid prioritization"
of content or services. It retained a rule requiring Internet service providers to disclose their practices to consumers, entrepreneurs
and the FCC. A number of parties have already stated they would appeal this order and it is possible Congress may adopt legislation
restoring some net neutrality requirements.
The elimination
of net neutrality rules and any changes to the rules could affect the market for broadband Internet access service in a way that
affects our business. For example, any actions taken by Internet access providers to provide better Internet access to our competitors'
websites or limit the bandwidth and speed for the transmission of data from our websites, could adversely affect our business,
operating results, and financial condition.
We are subject
to environmental laws and may be subject to environmental liabilities that could have a material adverse effect on us in the future.
We are subject
to various federal, state and local environmental laws and governmental regulations relating to the operation of our business,
including those governing the handling, storage and disposal of hazardous substances such as motor oil, gasoline, solvents, lubricants,
paints and other substances at our facilities. We face potentially significant costs relating to claims, penalties and remediation
efforts in the event of non-compliance with existing and future laws and regulations. A failure by us to comply with environmental
laws and regulations could have a material adverse effect on our business financial condition and results of operations.
Changes in
the laws and regulations to which our business and industry is subject could have a material adverse effect on our business, sales,
results of operations and financial condition.
Recent federal
legislative and regulatory initiatives and reforms may result in an increase in expenses or a decrease in revenues, which could
have a material adverse effect on our results of operations. For example, the Dodd-Frank Wall Street Reform and Consumer Protection
Act of 2010, or the Dodd-Frank Act, regulates, among other things, the provision of consumer financing. The Dodd-Frank Act established
the Consumer Financial Protection Bureau, or the CFPB, a consumer financial protection agency with broad regulatory powers. The
CFPB is responsible for administering and enforcing laws and regulations related to consumer financial products and services, including
our provision of vehicle financing and our receivables sale facilities. The evolving regulatory environment in the wake of the
Dodd-Frank Act and the creation of the CFPB may increase the cost of regulatory compliance or result in changes to business practices
that could have a material adverse effect on our results of operations.
The enactment
of new laws and regulations or the interpretation of existing laws and regulations in an unfavorable way may affect the operation
of our business, directly or indirectly, which could result in substantial regulatory compliance costs, civil or criminal penalties,
including fines, adverse publicity, decreased revenues and increased expenses.
If we fail
to comply with the Telephone Consumer Protection Act, or the TCPA, we may face significant damages, which could harm our business,
financial condition, results of operations and cash flows.
We utilize telephone
calls and intend to utilize text messaging as a means of responding to customer interest in purchasing, renting or subscribing
for vehicles. We generate leads from our website by prompting potential customers to provide their phone numbers so that we may
contact them in response to their interest in specific vehicles. We also intend to engage and pay third parties to provide us with
leads. A portion of our revenue comes from sales that involve calls made by our internal call centers to these potential customers.
15
The TCPA, as interpreted
and implemented by the FCC, imposes significant restrictions on utilization of telephone calls and text messages to residential
and mobile telephone numbers as a means of communication, when the prior consent of the person being contacted has not been obtained.
Violations of the TCPA may be enforced by the FCC or by individuals through litigation, including class actions and statutory penalties
for TCPA violations ranging from $500 to $1,500 per violation, which is often interpreted to mean per phone call.
While we intend
to implement processes and procedures to comply with the TCPA, any failure by us or the third parties on which we rely for data
to adhere to, or successfully implement, appropriate processes and procedures in response to existing or future regulations could
result in legal and monetary liability, fines and penalties, or damage to our reputation in the marketplace, any of which could
have a material adverse effect on our business, financial condition and results of operations. Additionally, any changes to the
TCPA or its interpretation that further restrict the way we contact and communicate with our potential customers or generate leads,
or any governmental or private enforcement actions related thereto, could adversely affect our ability to attract customers and
harm our business, financial condition, results of operations and cash flows.
Government regulation of the Internet
and e-commerce is evolving, and unfavorable changes or failure by us to comply with these regulations could substantially harm
our business and results of operations.
We are subject to general business regulations
and laws as well as regulations and laws specifically governing the Internet and e-commerce. Existing and future regulations and
laws could impede the growth of the Internet, e-commerce or mobile commerce. These regulations and laws may involve taxes, tariffs,
privacy and data security, anti-spam, content protection, electronic contracts and communications, consumer protection, Internet
neutrality and gift cards. It is not clear how existing laws governing issues such as property ownership, sales and other taxes
and consumer privacy apply to the Internet as the vast majority of these laws were adopted prior to the advent of the Internet
and do not contemplate or address the unique issues raised by the Internet or e-commerce. It is possible that general business
regulations and laws, or those specifically governing the Internet or e-commerce, may be interpreted and applied in a manner that
is inconsistent from one jurisdiction to another and may conflict with other rules or our practices.
Though we seek
at all times to be in full compliance with all such laws, we cannot be sure that our practices have complied, comply or will comply
fully with all such laws and regulations. Any failure, or perceived failure, by us to comply with any of these laws or regulations
could result in damage to our reputation, a loss in business and proceedings or actions against us by governmental entities or
others. Any such proceeding or action could damage our reputation and brand, force us to spend significant amounts in defense of
these proceedings, distract our management, increase our costs of doing business, decrease the use of our website by consumers
and result in the imposition of monetary liability. We may also be contractually liable to indemnify and hold harmless third parties
from the costs or consequences of non-compliance with any such laws or regulations.
We collect,
process, store, share, disclose and use personal information and other data, and our actual or perceived failure to protect such
information and data could damage our reputation and brand and harm our business and operating results.
We collect, process,
store, share, disclose and use personal information and other data provided by consumers. We rely on encryption and authentication
technology licensed from third parties to effect secure transmission of such information. We may need to expend significant resources
to protect against security breaches or to address problems caused by breaches. Any failure or perceived failure to maintain the
security of personal and other data that is provided to us by consumers and vendors could harm our reputation and brand and expose
us to a risk of loss or litigation and possible liability, any of which could adversely affect our business and operating results.
16
Additionally,
concerns about our practices with regard to the collection, use or disclosure of personal information or other privacy related
matters, even if unfounded, could harm our business and operating results. There are numerous federal, state and local laws regarding
privacy and the collection, processing, storing, sharing, disclosing, using and protecting of personal information and other data,
the scope of which are changing, subject to differing interpretations, and which may be costly to comply with and may be inconsistent
between jurisdictions or conflict with other rules. We generally comply with industry standards and are subject to the terms of
our privacy policies and privacy-related obligations to third parties. We strive to comply with applicable laws, policies, legal
obligations and industry codes of conduct relating to privacy and data protection, to the extent possible. However, it is possible
that these obligations may be interpreted and applied in new ways or in a manner that is inconsistent from one jurisdiction to
another and may conflict with other rules, our practices, or new regulations that could be enacted. Any failure or perceived failure
by us to comply with our privacy policies, our privacy-related obligations to consumers or other third parties, or our privacy-related
legal obligations, or any compromise of security that results in the unauthorized release or transfer of sensitive information,
which may include personally identifiable information or other customer data, may result in governmental enforcement actions, litigation
or public statements against us by consumer advocacy groups or others. This also could cause consumers and vendors to lose trust
in us, which could have an adverse effect on our business. Additionally, if vendors, developers or other third parties that we
work with violate applicable laws or our policies, such violations may also put consumer and vendor information at risk and could
in turn harm our reputation, business and operating results.
A significant
disruption in service on our website could damage our reputation and result in a loss of consumers, which could harm our business,
brand, operating results and financial condition.
Our brand, reputation
and ability to attract customers depend on the reliable performance of our website and the supporting systems, technology and infrastructure.
We may experience significant interruptions with our systems in the future. Interruptions in these systems, whether due to system
failures, programming or configuration errors, computer viruses, or physical or electronic break-ins, could affect the availability
of our inventory on our website and prevent or inhibit the ability of customers to access our website. Problems with the reliability
or security of our systems could harm our reputation, result in a loss of customers and result in additional costs.
We utilize cloud
computing, or the practice of using shared processing resources at third party locations, to operate our website and e-commerce
platform. We do not own or control the operation of these third party locations. These third party systems, software and operations
are vulnerable to damage or interruption from fire, flood, power loss, telecommunications failure, terrorist attacks, acts of war,
electronic and physical break-ins, computer viruses, earthquakes, and similar events. The occurrence of any of these events could
damage our systems and hardware or could cause them to fail.
Problems faced
by our third party web hosting providers could adversely affect the experience of our customers. For example, our third party web
hosting providers could close their facilities without adequate notice. Any financial difficulties, up to and including bankruptcy,
faced by our third party web hosting providers or any of the service providers with whom they contract may have negative effects
on our business, the nature and extent of which are difficult to predict. If our third party web hosting providers are unable to
keep up with our growing capacity needs, our business could be harmed.
Any errors, defects,
disruptions, or other performance or reliability problems with our network operations could interrupt our customers' access
to our inventory and our access to data that drives our inventory purchase operations as well as cause delays and additional expenses
in arranging access to new facilities and services, any of which could harm our reputation, business, operating results and financial
condition.
We rely on
internal and external logistics to transport our vehicle inventory throughout the United States. Thus, we are subject to business
risks and costs associated with the transportation industry. Many of these risks and costs are out of our control, and any of them
could have a material adverse effect on our business, financial condition and results of operations.
We rely on a combination
of internal and external logistics for third parties to transport vehicles from point of purchase to our facilities, and finally
to the customers. As a result, we are exposed to risks associated with the transportation industry such as weather, traffic patterns,
gasoline prices, recalls affecting our vehicle fleet, local and federal regulations, vehicular crashes, insufficient internal capacity,
rising prices of external transportation vendors, fuel prices and taxes, license and registration fees, insurance premiums, self-insurance
levels, difficulty in recruiting and retaining qualified drivers, disruption of our technology systems, and increasing equipment
and operational costs. Failure to successfully manage our logistics and fulfillment process could cause a disruption in our inventory
supply chain and distribution, which may adversely affect our operating results and financial condition.
17
Our failure
to maintain a reputation of integrity and to otherwise maintain and enhance our brand could adversely affect our business, sales
and results of operations.
Our business model
is based on our ability to provide customers with a transparent and simplified solution to vehicle buying, renting and subscribing
that we believe will save them time and money. If we fail to build and maintain a positive reputation, or if an event occurs that
damages this reputation, it could adversely affect consumer demand and have a material adverse effect on our business, sales and
results of operations. Even the perception of a decrease in the quality of our brand could negatively impact results.
Complaints or
negative publicity about our business practices, marketing and advertising campaigns, compliance with applicable laws and regulations,
the integrity of the data that we provide to users, data privacy and security issues, and other aspects of our business, especially
on industry-specific blogs and social media websites, and irrespective of their validity, could diminish consumer confidence in
our platform and adversely affect our brand. The growing use of social media increases the speed with which information and opinions
can be shared and, thus, the speed with which reputation can be affected. If we fail to correct or mitigate misinformation or negative
information, including information spread through social media or traditional media channels, about us, the vehicles we offer,
our customer experience, or any aspect of our brand, it could have a material adverse effect on our business, sales and results
of operations.
Our ability
to grow our complementary product and service offerings may be limited, which could negatively impact our growth rate, revenues
and financial performance.
If we introduce
or expand additional product and service offerings for our platform, such as services or products involving other vehicles, sales
of new cars, or vehicle trade-ins, we may incur losses or otherwise fail to enter these markets successfully. Our expansion into
these markets would place us in competitive and regulatory environments with which we are unfamiliar and involve various risks,
including the need to invest significant resources and the possibility that returns on such investments will not be achieved for
several years, if at all. In attempting to establish new service or product offerings, we expect to incur significant expenses
and face various other challenges, such as expanding our customer service personnel and management personnel to cover these markets
and complying with complicated regulations that apply to these markets. In addition, we may not successfully demonstrate the value
of these complementary products and services to consumers, and failure to do so would compromise our ability to successfully expand
into these additional revenue streams. Any of these risks, if realized, could adversely affect our business and results of operations.
If we do not
adequately address our customers' shift to mobile device technology, operating results could be harmed and our growth could
be negatively affected.
Our future success
depends in part on our ability to provide adequate functionality for visitors who use mobile devices to shop for vehicles and the
number of transactions with us that are completed by those users. The shift to mobile technology by our users may harm our business
in the following ways:
●
consumers visiting our website from a mobile device may not accept mobile technology as a viable long-term platform to buy or sell a vehicle. This may occur for a number of reasons, including our ability to provide the same level of website functionality to a mobile device that we provide on a desktop computer, the actual or perceived lack of security of information on a mobile device and possible disruptions of service or connectivity;
●
we may not continue to innovate and introduce enhanced products that can be suitably conveyed on mobile platforms;
●
consumers using mobile devices may believe that our competitors offer superior products and features based in part on our inability to provide sufficient website functionality to convince a mobile device user to transact with us; or
●
regulations related to consumer finance disclosures, including the Truth in Lending Act, may be interpreted, in the context of mobile devices, in a manner which could expose us to legal liability in the event we are found to have violated applicable laws.
If we do not develop,
upgrade and maintain suitable functionality for users who visit our website using a mobile device, our business and operating results
could be harmed.
18
Our business
is sensitive to conditions affecting automotive manufacturers, including manufacturer recalls.
Adverse conditions
affecting one or more automotive manufacturers could have a material adverse effect on our sales and results of operations, which
could impact the supply of vehicles. In addition, manufacturer recalls are a common occurrence that have accelerated in frequency
and scope in recent years. Recalls and the increased regulatory scrutiny surrounding selling pre-owned vehicles with open
safety recalls could (i) adversely affect pre-owned vehicle sales or valuations, (ii) cause us to temporarily remove vehicles from
inventory, (iii) cause us to sell affected vehicles at a loss, (iv) force us to incur increased costs and (v) expose us to litigation
and adverse publicity related to the sale of recalled vehicles, which could have a material adverse effect on our business, financial
condition and results of operations.
The current
geographic concentration where we provide services creates an exposure to local economies, regional downturns or severe weather
or catastrophic occurrences that may materially adversely affect our financial condition and results of operations.
We currently conduct
business through our corporate and fulfillment, rental and subscription center located in Plantation, Florida. We currently hold
all of our inventory at our Plantation location. While we have insurance to cover certain losses on those vehicles, events such
as theft, fire, flood, or hail could adversely impact our business. In addition, our business is currently more susceptible to
regional conditions than the operations of more geographically diversified competitors, and we are vulnerable to economic downturns
in those regions. Any unforeseen events or circumstances that negatively affect these areas could materially adversely affect our
revenues and profitability. These factors include, among other things, changes in demographics and population. In addition, severe
weather conditions, acts of God and other catastrophic occurrences in the area in which we operate or from which we obtain inventory
may materially adversely affect our financial condition and results of operations. Such conditions may result in physical damage
to our properties and loss of inventory. Any of these factors may disrupt our business and materially adversely affect our financial
condition and result of operations. Furthermore, there can be no assurance that we will be able to successfully replicate our business
model and achieve levels of success as we enter new geographic markets.
We may rely
on agreements with third parties to finance our vehicle inventory purchases. If we fail to maintain adequate relationships with
third parties to finance our vehicle inventory purchases, we may be unable to maintain sufficient inventory, which would adversely
affect our business and results of operations.
We may rely on
agreements with third party lenders to finance our vehicle inventory purchases. If we are unable to enter into agreements on favorable
terms or at all, or if the agreements expire and are not renewed, our inventory supply may decline, resulting in fewer vehicles
available for sale. New funding arrangements may be at higher interest rates or other less favorable terms. These financing risks,
in addition to rising interest rates and changes in market conditions, if realized, could negatively impact our results of operations
and financial condition.
Our business
is affected by the availability of financing to its customers.
Many of our customers
finance their vehicle purchases. Although consumer credit markets have improved, consumer credit market conditions continue to
influence demand and may continue to do so. There continue to be fewer lenders, more stringent underwriting and loan approval criteria,
and greater down payment requirements than in the past. If credit conditions or the credit worthiness of our customers worsen,
and adversely affect the ability of consumers to finance potential purchases at acceptable terms and interest rates, it could result
in a decrease in the sales of our products and have a material adverse effect on our business, financial condition and results
of operations.
19
Failure to
adequately protect our intellectual property, technology and confidential information could harm our business and operating results.
Our business depends
on our intellectual property, technology and confidential information, the protection of which is crucial to the success of our
business. We attempt to protect our intellectual property, technology and confidential information by requiring certain of our
employees and consultants to enter into confidentiality agreements and certain third parties to enter into nondisclosure agreements.
These agreements may not effectively prevent unauthorized use or disclosure of our confidential information, intellectual property
or technology and may not provide an adequate remedy in the event of unauthorized use or disclosure of our confidential information,
intellectual property or technology. Despite our efforts to protect our intellectual property, unauthorized parties may attempt
to copy aspects of our website features, software and functionality or obtain and use information that we consider proprietary.
Changes in the law or adverse court rulings may also negatively affect our ability to prevent others from using our technology.
We currently hold
rights to the "lmpmotors.com," "lmprentals.com" and "lmpsubscriptions.com" Internet domain
names and various other related domain names. The regulation of domain names in the United States is subject to change. Regulatory
bodies could establish additional top-level domains, appoint additional domain name registrars, or modify the requirements for
holding domain names. As a result, we may not be able to acquire or maintain all domain names that we believe are important for
our business.
We may be subject
to claims asserting that our employees, consultants or advisors have wrongfully used or disclosed alleged trade secrets of their
current or former employees or claims asserting ownership of what we regard as our own intellectual property.
Although we try
to ensure that our employees, consultants and advisors do not use the proprietary information or know-how of others in their work
for us, we may be subject to claims that these individuals or we have used or disclosed intellectual property, including trade
secrets or other proprietary information, of any such individual's current or former employer. Litigation may be necessary
to defend against these claims. If we fail in defending any such claims, in addition to paying monetary damages, we may lose valuable
intellectual property rights or personnel. Even if we are successful in defending against such claims, litigation could result
in substantial costs and be a distraction to management.
In addition, while
we intend to require our employees and contractors who may be involved in the conception or development of intellectual property
to execute agreements assigning such intellectual property to us, we may be unsuccessful in executing such an agreement with each
party who, in fact, conceives or develops intellectual property that we regard as our own. The assignment of intellectual property
may not be self-executing or the assignment agreement may be breached, and we may be forced to bring claims against third parties,
or defend claims that they may bring against us, to determine the ownership of what we regard as our intellectual property.
We may in the
future be subject to intellectual property disputes, which are costly to defend and could harm our business and operating results.
We may, from time
to time, face allegations that we have infringed the trademarks, copyrights, patents and other intellectual property rights of
third parties. We may be unaware of the intellectual property rights that others may claim cover some or all of our technology
or services. Patent and other intellectual property litigation may be protracted and expensive, the results are difficult to predict
and may require us to stop offering some features, purchase licenses or modify our products and features while we develop non-infringing
substitutes or may result in significant settlement costs.
Even if these
matters that do not result in litigation are resolved in our favor or without significant cash settlements, these matters, and
the time and resources necessary to litigate or resolve them, could harm our business, our operating results and our reputation.
20
Our platform
utilizes open source software, and any failure to comply with the terms of one or more of these open source licenses could negatively
affect our business.
We use open source
software in our platform and expect to use open source software in the future. The terms of various open source licenses have not
been interpreted by United States courts, and there is a risk that such licenses could be construed in a manner that imposes unanticipated
conditions or restrictions on our ability to market our platform. By the terms of certain open source licenses, if we combine our
proprietary software with open source software in a certain manner, we could be required to release the source code of our proprietary
software and to make our proprietary software available under open source licenses. In the event that portions of our proprietary
software are determined to be subject to an open source license, we could be required to publicly release the affected portions
of our source code, or to re-engineer all or a portion of our technologies or otherwise be limited in the licensing of our technologies,
each of which could reduce or eliminate the value of our technologies and services. In addition to risks related to license requirements,
usage of open source software can lead to greater risks than use of third-party commercial software, as open source licensors generally
do not provide warranties or controls on the origin of the software. Many of the risks associated with usage of open source software
cannot be eliminated and could negatively affect our business and operating results.
We rely on
third party technology to complete critical business functions. If that technology fails to adequately serve our needs and we cannot
find alternatives, it may negatively impact our operating results.
We rely on third
party technology for certain of our critical business functions, including vehicle telemetry, network infrastructure for hosting
the website and inventory data, software libraries and development environments and tools, services that allow customers to digitally
sign contracts, and customer service call center management software. If these technologies fail or we cannot maintain our relationships
with the technology providers and we cannot find suitable alternatives, our financial condition and operation results may be adversely
affected.
The obligations
associated with being a public company will require significant resources and management attention, and we will incur increased
costs as a result of becoming a public company.
As a public company,
we will face increased legal, accounting, administrative and other costs and expenses that we have not incurred as a private company,
and we expect to incur additional costs related to operating as a public company. After the completion of this offering, we will
be subject to the reporting requirements of the Exchange Act, which requires that we file annual, quarterly and current reports
with respect to our business and financial condition, and proxy and other information statements, as well as the rules and regulations
implemented by the SEC, the Sarbanes-Oxley Act, the Dodd-Frank Act and the Public Company Accounting Oversight Board, or the PCAOB,
and the listing requirements of Nasdaq (if our common stock is approved for listing), each of which imposes additional reporting
and other obligations on public companies. As a public company, we will be required to, among other things:
●
prepare
and distribute periodic reports, proxy statements and other stockholder communications in compliance with the federal securities
laws and rules and Nasdaq rules;
●
expand
the roles and duties of our board of directors and committees thereof and management;
●
hire
additional financial and accounting personnel and other experienced accounting and finance staff with the expertise to address
complex accounting matters applicable to public companies;
●
institute
more comprehensive financial reporting and disclosure compliance procedures;
●
involve
and retain, to a greater degree, outside counsel and accountants to assist us with the activities listed above;
●
build
and maintain an investor relations function;
●
establish
new internal policies, including those relating to trading in our securities and disclosure controls and procedures;
●
comply
with the initial listing and maintenance requirements of Nasdaq; and
●
comply
with the Sarbanes-Oxley Act.
21
We expect these
rules and regulations, and any future changes in laws, regulations and standards relating to corporate governance and public disclosure,
which have created uncertainty for public companies, to increase legal and financial compliance costs and make some activities
more time consuming and costly. These laws, regulations and standards are subject to varying interpretations, in many cases, due
to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance is provided
by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated
by ongoing revisions to disclosure and governance practices. Our investment in compliance with existing and evolving regulatory
requirements will result in increased administrative expenses and a diversion of management's time and attention from revenue-generating
activities to compliance activities, which could have a material adverse effect on our business, financial condition and results
of operations.
We also expect
that being a public company will make it more expensive for us to obtain director and officer liability insurance, and we may be
required to accept reduced coverage or incur substantially higher costs to obtain coverage. These increased costs may require us
to divert a significant amount of money that we could otherwise use to expand our business and achieve our strategic objectives.
We may be subject
to legal proceedings in the ordinary course of our business. If the outcomes of these proceedings are adverse to us, they could
have a material adverse effect on our business, results of operations and financial condition.
We may be subject
to various litigation matters from time to time, which could have a material adverse effect on our business, results of operations
and financial condition. Claims arising out of actual or alleged violations of law could be asserted against us by individuals,
either individually or through class actions, by governmental entities in civil or criminal investigations, and proceedings or
by other entities. These claims could be asserted under a variety of laws, including but not limited to consumer finance laws,
consumer protection laws, intellectual property laws, privacy laws, labor and employment laws, securities laws and employee benefit
laws. These actions could expose us to adverse publicity and to substantial monetary damages and legal defense costs, injunctive
relief and criminal and civil fines and penalties, including but not limited to suspension or revocation of licenses to conduct
business.
Unanticipated
changes in effective tax rates or adverse outcomes resulting from examination of our income or other tax returns could adversely
affect our operating results and financial condition.
We are subject
to income taxes in the United States, and our tax liabilities will be subject to the allocation of expenses in differing jurisdictions.
Our future effective tax rates could be subject to volatility or adversely affected by a number of factors, including:
●
changes in the valuation of our deferred tax assets and liabilities;
●
expected timing and amount of the release of any tax valuation allowances; or
●
changes in tax laws, regulations or interpretations thereof.
In addition, we
may be subject to audits of our income, sales and other transaction taxes by U.S. federal and state authorities. Outcomes from
these audits could have an adverse effect on our operating results and financial condition.
The wording,
interpretation and enforcement of existing and future sales, use and excise tax laws by state and local governments could impact
sales and income from operations.
We are subject
to state and local sales, use and excise tax laws of those states and localities in which we have a sufficient tax nexus. As we
expand our operations we will likely be subject to more taxing jurisdictions. In that regard, the wording, interpretation and enforcement
of those tax laws by such state or local governments could negatively impact our income and sales in such jurisdictions. Because
a state or locality's wording, interpretation or enforcement of its tax laws may change over time, such as through new legislation,
the issuance of new rules, regulations or by court or administrative decisions, or merely from new administrative or audit policies
or positions, it cannot be predicted whether or to what extent these changes will be negative to our operations and sales in any
such jurisdiction.
22
An increasing number of states and foreign
jurisdictions have considered or adopted laws or administrative practices, with or without notice, that impose new taxes on all
or a portion of gross revenue or other similar amounts or impose additional obligations on remote sellers and online marketplaces
to collect transaction taxes such as sales, consumption, value added, or similar taxes. In June 2018, the U.S. Supreme Court in
South Dakota v. Wayfair, Inc. et al.
held that states can require remote sellers to collect state and local sales taxes,
which, given the scope of our anticipated operations, could increase the complexity and risks for us to comply with such laws.
We may not have sufficient lead time to build systems and processes to collect these taxes properly, or at all. Failure to comply
with such laws or administrative practices, or a successful assertion by such states or foreign jurisdictions requiring us to collect
taxes where we do not, could result in substantial tax liabilities and could have a material adverse effect on our business, financial
condition, operating results and prospects.
We are also subject to U.S. (federal and
state) and foreign laws, regulations and administrative practices that require us to collect information from our customers, vendors
merchants, and other third parties for tax reporting purposes and report such information to various government agencies. The scope
of such requirements continues to expand, requiring us to develop and implement new compliance systems. Failure to comply with
such laws and regulations could result in significant penalties and could have a material adverse effect on our business, financial
condition, operating results and prospects.
Risks Related
to This Offering and Ownership of our Common Stock
There has been
no public market for our common stock prior to this offering, and an active market in which investors can resell their shares of
our common stock may not develop.
Prior to this
offering, there has been no public market for our common stock. We cannot predict the extent to which an active market for our
common stock will develop or be sustained after this offering, or how the development of such a market might affect the market
price of our common stock. The initial offering price of our shares in this offering has been agreed to between us and the underwriter
based on a number of factors, including market conditions in effect around the time of this offering, and it may not be in any
way indicative of the price at which the shares our common stock will trade following the completion of this offering. Investors
may not be able to resell their shares of our common stock at or above the initial offering price.
Our founder,
Chief Executive Officer, President, and Chairman of the board of directors, Samer Tawfik, beneficially owns a majority of our outstanding
common stock. As a result, he has substantial voting power in all matters submitted to our stockholders.
Our founder, Chief
Executive Officer, President, and Chairman of the board of directors, Samer Tawfik, beneficially owns approximately 85.69% of our
outstanding common stock prior to this offering, and will own approximately 34.33% of our outstanding common stock following this
offering, assuming he does not purchase any shares in this offering. However, Mr. Tawfik has indicated an interest
in purchasing up to $1,000,000 of additional shares of common stock in this offering, although indications of interest are not
binding agreements or commitments to purchase, the underwriter could determine to not sell shares to Mr. Tawfik, or Mr. Tawfik
could determine not to purchase shares in this offering. In any case, he has substantial voting power in all matters submitted to our stockholders for approval including:
●
election of our board of directors;
●
removal of any of our directors;
●
any amendments to our certificate of incorporation or our Bylaws; and
●
adoption of measures that could delay or prevent a change in control or impede a merger, takeover or other business combination involving us.
In addition, Mr.
Tawfik's beneficial stock ownership may discourage a potential acquirer from making a tender offer or otherwise attempting
to obtain control of us, which in turn could reduce our stock price or prevent our stockholders from realizing a premium over our
stock price.
23
Our management
has broad discretion as to the use of the net proceeds from this offering.
Our management
will have broad discretion in the application of the net proceeds. Accordingly, you will have to rely upon the judgment of our
management with respect to the use of these 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. Our management
not applying 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. Please see "
Use of Proceeds
" below for
more information.
Anti-takeover
provisions in our charter documents and under Delaware law could make an acquisition of our Company more difficult, and limit attempts
by our stockholders to replace or remove our current management.
Provisions in
our Certificate of Incorporation and Bylaws may have the effect of delaying or preventing a change of control or changes in our
management. Our Certificate of Incorporation and Bylaws include provisions that:
●
permit the board of directors to establish the number of directors and fill any vacancies and newly created directorships by the affirmative vote of a majority of the directors or stockholders holding at least 66
2/3
% of the issued and outstanding shares of common stock;
●
provide that directors may only be removed by the majority of the shares of voting stock then outstanding;
●
require a two-thirds majority of all directors who constitute the board of directors or a 75% majority voting of all holders of common stock to adopt, amend or repeal any and all provisions of our Bylaws;
●
provide different term limits to the directors of the Company according to their classification;
●
require 66
2/3
% of the voting power of all then-outstanding shares of capital stock of the Company entitled to vote generally in election of directors to amend, alter or repeal, or adopt any provision inconsistent with certain sections of our Certificate of Incorporation;
●
eliminate the ability of our stockholders to call special meetings of stockholders;
●
restrict the forum for certain litigation against us to Delaware; and
●
establish advance notice requirements for nominations for election to our board of directors or for proposing matters that can be acted upon by stockholders at annual stockholder meetings.
These provisions
may frustrate or prevent any attempts by our stockholders to replace or remove our current management by making it more difficult
for stockholders to replace members of our board of directors, which is responsible for appointing the members of our management.
In addition, because we are incorporated in Delaware, we are governed by the provisions of Section 203 of the Delaware General
Corporation Law, or Section 203. Section 203 generally prohibits a Delaware corporation from engaging in any of a broad range
of business combinations with any holder of at least 15% of our capital stock for a period of three years following the date on
which the stockholder became a 15% stockholder unless the business combination is, or the transaction in which the person became
an interested stockholder was, approved in a prescribed manner or another prescribed exception applies.
The market
price of our common stock may fluctuate, and you could lose all or part of your investment.
The price of our
common stock may decline below the initial offering price our common stock following this offering. The stock market in general,
and the market price of our common stock, will likely be subject to fluctuation, whether due to, or irrespective of, our operating
results, financial condition and prospects.
24
Our financial
performance, our industry's overall performance, changing consumer preferences, technologies, government regulatory action,
tax laws and market conditions in general could have a significant negative impact on the future market price of our common stock.
Some of the other factors that could negatively affect our share price or result in fluctuations in our share price include:
●
actual or anticipated variations in our periodic operating results;
●
increases in market interest rates that lead investors of our common stock to demand a higher investment return;
●
changes in earnings estimates;
●
changes in market valuations of similar companies;
●
actions or announcements by our competitors;
●
adverse market reaction to any increased indebtedness we may incur in the future;
●
additions or departures of key personnel;
●
actions by stockholders;
●
speculation in the media, online forums, or investment community; and
●
our intentions and ability to list our common stock on Nasdaq and our subsequent ability to maintain such listing.
Upon the completion of this offering,
we will become a public reporting company under the Exchange Act, and thereafter publicly report on an ongoing basis as an "emerging
growth company" under the reporting rules set forth under the Exchange Act.
Upon the completion of this offering, we
will become a public reporting company under the Exchange Act. We may elect to publicly report on an ongoing basis as an "emerging
growth company" under the reporting rules set forth under the Exchange Act. For so long as we remain an emerging growth company,
we intend to take advantage of certain exemptions from various reporting requirements that are applicable to other Exchange Act
reporting companies that are not emerging growth companies which may make our common stock less attractive to investors, including
but not limited to:
●
not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act;
●
taking advantage of extensions of time to comply with certain new or revised financial accounting standards;
●
being permitted to comply with reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; and
●
being exempt from the requirement to hold a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.
We expect to take advantage of these reporting
exemptions until we are no longer an emerging growth company. We would remain an emerging growth company for up to five years;
although, we would cease to be an emerging growth company if we have more than $1.07 billion in annual revenues, have more than
$700 million in market value of our common stock held by non-affiliates, or issue more than $1 billion in principal amount of non-convertible
debt over a three-year period.
Accordingly, for so long as we report as
an emerging growth company, we will be subject to ongoing public reporting requirements that are less rigorous than Exchange Act
rules for companies that are not "emerging growth companies," and our stockholders could receive less information than
they might expect to receive from more mature public companies.
25
You will experience immediate and substantial
dilution as a result of this offering.
As of March
31, 2019, our net tangible book value was approximately $6,900,000, or $0.28 per share. Since the effective price per share
of our common stock being offered in this offering is substantially higher than the net tangible book value per share of our
common stock, you will suffer substantial dilution with respect to the net tangible book value of the common stock you
purchase in this offering. Based on the assumed public offering price of $5.50 per share of common stock being sold in
this offering, which is the midpoint of the estimated offering range set forth on the cover page of this prospectus, and our
net tangible book value per share as of March 31, 2019, if you purchase shares of common stock in this offering, you will
suffer immediate and substantial dilution of $3.72 per share (or $3.64 per share if the underwriter exercises the over-allotment option in full)
with respect to the net tangible book value of the common stock. See the section titled "
Dilution
" for a
more detailed discussion of the dilution you will incur if you purchase securities in this offering.
We may not
complete our analysis of our internal control over financial reporting in a timely manner, or these internal controls may not be
determined to be effective.
We will be required,
pursuant to Section 404 of the Sarbanes-Oxley Act, to furnish a report by management on, among other things, the effectiveness
of our internal control over financial reporting in the second annual report we file with the SEC. This assessment will need to
include disclosure of any material weaknesses identified by our management in our internal control over financial reporting. However,
our auditors will not be required to formally attest to the effectiveness of our internal control over financial reporting pursuant
to Section 404 until we are no longer a non-accelerated filer or no longer an emerging growth company if we take advantage of the
exemptions available to us through the JOBS Act.
We are in the very early stages of the
costly and challenging process of compiling the system and process documentation necessary to perform the evaluation needed to
comply with Section 404. In this regard, we will need to continue to dedicate internal resources, engage outside consultants and
adopt a detailed work plan to assess and document the adequacy of internal control over financial reporting, continue steps to
improve control processes as appropriate, validate through testing that controls are functioning as documented and implement a
continuous reporting and improvement process for internal control over financial reporting. As we transition to the requirements
of reporting as a public company, we may need to add additional finance staff. We may not be able to remediate any future material
weaknesses, or to complete our evaluation, testing and any required remediation in a timely fashion. During the evaluation and
testing process, if we identify one or more material weaknesses in our internal control over financial reporting, we will be unable
to assert that our internal controls are effective. If we are unable to assert that our internal control over financial reporting
is effective, or if our auditors are unable to express an opinion on the effectiveness of our internal controls when they are required
to issue such opinion, investors could lose confidence in the accuracy and completeness of our financial reports, which could harm
our stock price.
We may not
be able to satisfy listing requirements of Nasdaq or obtain or maintain a listing of our common stock on Nasdaq.
If our common
stock is listed on Nasdaq, we must meet certain financial and liquidity criteria to maintain such listing. If we violate Nasdaq
listing requirements, our common stock may be delisted. If we fail to meet any of Nasdaq's listing standards, our common
stock may be delisted. In addition, our board of directors may determine that the cost of maintaining our listing on a national
securities exchange outweighs the benefits of such listing. A delisting of our common stock from Nasdaq may materially impair our
stockholders' ability to buy and sell our common stock and could have an adverse effect on the market price of, and the efficiency
of the trading market for, our common stock. The delisting of our common stock could significantly impair our ability to raise
capital and the value of your investment.
We do not expect
to declare or pay dividends in the foreseeable future.
We do not expect
to declare or pay dividends in the foreseeable future, as we anticipate that we will invest future earnings in the development
and growth of our business. Therefore, holders of our common stock will not receive any return on their investment unless they
sell their securities, and holders may be unable to sell their securities on favorable terms or at all.
26
The preparation of our financial statements
involves the use of estimates, judgments and assumptions, and our financial statements may be materially affected if such estimates,
judgments or assumptions prove to be inaccurate.
Financial statements prepared in accordance
with accounting principles generally accepted in the United States of America typically require the use of estimates, judgments
and assumptions that affect the reported amounts. Often, different estimates, judgments, and assumptions could reasonably be used
that would have a material effect on such financial statements, and changes in these estimates, judgments and assumptions may occur
from period to period over time. Significant areas of accounting requiring the application of management's judgment include,
but are not limited to, determining the fair value of assets and the timing and amount of cash flows from assets. These estimates,
judgments and assumptions are inherently uncertain and, if our estimates were to prove to be wrong, we would face the risk that
charges to income or other financial statement changes or adjustments would be required. Any such charges or changes could harm
our business, including our financial condition and results of operations and the price of our securities. See "
Management's
Discussion and Analysis of Financial Condition and Results of Operations
" for a discussion of the accounting estimates,
judgments and assumptions that we believe are the most critical to an understanding of our financial statements and our business.
If securities industry analysts do not
publish research reports on us, or publish unfavorable reports on us, then the market price and market trading volume of our common
stock could be negatively affected.
Any trading market for our common stock
may be influenced in part by any research reports that securities industry analysts publish about us. We do not currently have
and may never obtain research coverage by securities industry analysts. If no securities industry analysts commence coverage of
us, the market price and market trading volume of our common stock could be negatively affected. In the event we are covered by
analysts, and one or more of such analysts downgrade our securities, or otherwise reports on us unfavorably, or discontinues coverage
of us, the market price and market trading volume of our common stock could be negatively affected.
Future issuances
of our common stock or securities convertible into, or exercisable or exchangeable for, our common stock, or, together, our securities,
or the expiration of lock-up agreements that restrict the issuance of new common stock or the trading of outstanding common stock,
could cause the market price of our common stock to decline and would result in the dilution of your holdings.
Future issuances of our securities, or
the expiration of lock-up agreements that restrict the issuance of new common stock or the trading of outstanding common stock,
could cause the market price of our common stock to decline. We cannot predict the effect, if any, of future issuances of our securities,
or the future expirations of lock-up agreements, on the price of our common stock. In all events, future issuances of our common
stock would result in the dilution of your holdings. In addition, the perception that new issuances of our securities could occur,
or the perception that locked-up parties will sell their securities when the lock-ups expire, could adversely affect the market
price of our common stock. In connection with this offering, the Company will enter into a lock-up agreement that prevents it,
subject to certain exceptions, from offering additional shares of capital stock of the Company for up to one hundred and eighty
(180) days after the date of this prospectus, as further described in the section titled "
Underwriting
." In
addition to any adverse effects that may arise upon the expiration of these lock-up agreements, the lock-up provisions in these
agreements may be waived, at any time and without notice. If the restrictions under the lock-up agreements are waived, our common
stock may become available for resale, subject to applicable law, including without notice, which could reduce the market price
for our common stock.
27
Future issuances of debt securities,
which would rank senior to our common stock upon our bankruptcy or liquidation, and future issuances of preferred stock, which
could rank senior to our common stock for the purposes of dividends and liquidating distributions, may adversely affect the level
of return you may be able to achieve from an investment in our common stock.
In the future, we may attempt to increase
our capital resources by offering debt securities. Upon bankruptcy or liquidation, holders of our debt securities, and lenders
with respect to other borrowings we may make, would receive distributions of our available assets prior to any distributions being
made to holders of our common stock. Moreover, if we issue preferred stock, the holders of such preferred stock could be entitled
to preferences over holders of common stock in respect of the payment of dividends and the payment of liquidating distributions.
Because our decision to issue debt or preferred stock in any future offering, or borrow money from lenders, will depend in part
on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of any such
future offerings or borrowings. Holders of our common stock must bear the risk that any future offerings we conduct or borrowings
we make may adversely affect the level of return, if any, they may be able to achieve from an investment in our common stock.
If our shares of common stock become
subject to the penny stock rules, it would become more difficult to trade our shares.
The SEC has adopted rules that regulate
broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price
of less than $5.00, other than securities registered on certain national securities exchanges or authorized for quotation on certain
automated quotation systems, provided that current price and volume information with respect to transactions in such securities
is provided by the exchange or system. If we do not obtain or retain a listing on Nasdaq or another national securities exchange
and if the price of our common stock is less than $5.00, our common stock could be deemed a penny stock. The penny stock rules
require a broker-dealer, before a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized
risk disclosure document containing specified information. In addition, the penny stock rules require that before effecting any
transaction in a penny stock not otherwise exempt from those rules, a broker-dealer must make a special written determination that
the penny stock is a suitable investment for the purchaser and receive (i) the purchaser's written acknowledgment of the
receipt of a risk disclosure statement; (ii) a written agreement to transactions involving penny stocks; and (iii) a signed and
dated copy of a written suitability statement. These disclosure requirements may have the effect of reducing the trading activity
in the secondary market for our common stock, and therefore stockholders may have difficulty selling their shares.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
Some of the statements under "Prospectus
Summary," "Risk Factors," "
Management's Discussion and Analysis of Financial Condition and Results
of Operations
," "
Business
" and elsewhere in this prospectus constitute forward-looking statements.
Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends
and similar matters that are not historical facts. In some cases, you can identify forward-looking statements by terms such as
"anticipate," "believe," "could," "estimate," "expect," "intend,"
"may," "plan," "potential," "should," "will" and "would"
or the negatives of these terms or other comparable terminology.
You should not place undue reliance on
forward-looking statements. The events and circumstances reflected in our forward-looking statements may not be achieved or occur
and actual results could materially differ from those projected in, or implied by, the forward-looking statements due to a variety
of factors, including, but not limited to:
●
our dependence upon external sources for the financing of our operations ;
●
our ability to effectively execute our business plan;
●
our ability to maintain and grow our reputation and to achieve and maintain the market acceptance of our services and platform;
●
our ability to manage the growth of our operations over time;
●
our ability to maintain adequate protection of our intellectual property and to avoid violation of the intellectual property rights of others;
●
our ability to maintain relationships with existing customers and automobile suppliers, and develop relationships; and
●
our ability to compete and succeed in a highly competitive and evolving industry.
Although the forward-looking statements
in this prospectus are based on our beliefs, assumptions and expectations, taking into account all information currently available
to us, we cannot guarantee future transactions, results, performance, achievements or outcomes. No assurance can be made to any
investor by anyone that the expectations reflected in our forward-looking statements will be attained, or that deviations from
them will not be material and adverse. We undertake no obligation, other than as may be required by law, to re-issue this prospectus
or otherwise make public statements updating our forward-looking statements.
Due to rounding, numbers presented throughout
this prospectus may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
28
INDUSTRY AND MARKET DATA
Certain market and industry data included
in this prospectus, including data concerning the automobile market, is derived from information provided by third-party market
research firms, third-party financial or analytics firms, or public sources that we believe to be reliable. Market estimates are
calculated by using independent industry publications, government publications and third-party forecasts in conjunction with our
assumptions about our markets. We have not independently verified such third-party information. The market data used in this prospectus
involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. While we are
not aware of any misstatements regarding any market, industry or similar data presented herein, such data involves risks and uncertainties
and are subject to change based on various factors, including those discussed under the headings "
Cautionary Statement
Regarding Forward-Looking Statements
" and "
Risk Factors
" in this prospectus. These and other factors
could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.
Certain data are also based on our good
faith estimates, which are derived from management's knowledge of the industry and independent sources. Industry publications,
surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable,
but there can be no assurance as to the accuracy or completeness of included information. We have not independently verified any
of the data from third-party sources nor have we ascertained the underlying economic assumptions relied upon therein. Statements
as to our market position are based on market data currently available to us. While we are not aware of any misstatements regarding
the industry data presented herein, our estimates involve risks and uncertainties and are subject to change based on various factors,
including those discussed under the heading "
Risk Factors
" in this prospectus. Similarly, we believe our internal
research is reliable, even though such research has not been verified by any independent sources.
29
USE OF PROCEEDS
After deducting the estimated underwriter's
commissions and offering expenses payable by us, we expect to receive net proceeds of approximately $6,316,500 from this offering
(or approximately $7,284,225 if the underwriter exercises the over-allotment option in full), based on an assumed public offering
price of $5.50 per share, which is the midpoint of the estimated offering range set forth on the cover page of this prospectus.
We intend to use these net proceeds for our strategic acquisitions, to build our vehicle inventory, for working capital and other
general corporate purposes.
Each $1.00 increase or decrease
in the assumed initial public offering price of $5.50 per share, which is the midpoint of the estimated offering price range
set forth on the cover page of this prospectus, would increase or decrease the net proceeds that we receive from this
offering by approximately $1,173,000, assuming that the number of shares offered by us, as set forth on the cover page of
this prospectus, remains the same and after deducting the estimated underwriting discounts and commissions payable by
us. Similarly, each increase or decrease of 1,000,000 shares of common stock offered by us in this offering would increase or
decrease the net proceeds that we receive from this offering by approximately $5,060,000, assuming the assumed initial public
offering price remains the same and after deducting the estimated underwriting discounts and commissions payable by us.
The precise amounts that we will devote
to each of the foregoing items, and the timing of expenditures, will vary depending on numerous factors.
The following table sets forth a breakdown
of our estimated use of our net proceeds as we currently expect to use them.
Amount
Strategic acquisitions
$
1,263,300
Vehicle inventory
$
947,475
Working capital
$
4,105,725
Total use of proceeds
$
6,316,500
In the event that the underwriter exercises
the over-allotment option, we intend to use such net proceeds (up to $7,284,225) for our strategic acquisitions, to build our vehicle
inventory, for working capital and other general corporate purposes.
The expected use of net proceeds from this
offering represents our intentions based upon our current plans and business conditions, which could change in the future as our
plans and business conditions evolve and change. The amounts and timing of our actual expenditures, specifically with respect to
working capital, may vary significantly depending on numerous factors. As a result, our management will retain broad discretion
over the allocation of the net proceeds from this offering.
DIVIDEND POLICY
Since our inception, we have not paid any
dividends on our common stock, and we currently expect that, for the foreseeable future, all earnings (if any) will be retained
for the development of our business and no dividends will be declared or paid. In the future, our board of directors may decide,
at its discretion, whether dividends may be declared and paid, taking into consideration, among other things, our earnings (if
any), operating results, financial condition and capital requirements, general business conditions and other pertinent facts.
30
CAPITALIZATION
The following table sets forth our
capitalization as of March 31, 2019:
●
on an actual basis;
●
on a pro forma basis to reflect the sale of 1,275,000 shares
by us in this offering at an assumed price to the public of $5.50 per share, which is the midpoint of the estimated offering range
set forth on the cover page of this prospectus, resulting in net proceeds to us of $6,316,500 after deducting (i) Underwriter
commissions of $ 490,875 and (ii) our estimated other offering expenses of $205,125; and
●
on
a pro forma basis to reflect the sale of 1,466,250 shares by us in this offering, assuming the underwriter elects to exercise
the over-allotment option in full, at an assumed price to the public of $5.50 per share, which is the midpoint of the estimated
offering range set forth on the cover page of this prospectus, resulting in net proceeds to us of $7,284,225 after deducting (i)
Underwriter commissions of $ 564,506 and (ii) our estimated other offering expenses of $215,644.
The pro forma information below is illustrative only and our
capitalization following the completion of this offering is subject to adjustment based on the initial public offering price of
our common stock and other terms of this offering determined at pricing. You should read this table together with our consolidated
financial statements and the related notes included elsewhere in this prospectus and the information under "
Management's
Discussion and Analysis of Financial Condition and Results of Operations
".
Offering (1,275,000 Shares)
Actual
(1)
Pro Forma
Offering
Amount
(Unaudited)
(3)
Pro Forma
Offering
Amount
including
Over-Allotment
(3)
Cash and Cash Equivalents
$
472,199
$
6,534,099
$
7,501,824
Stockholders (deficit) equity:
Common Stock, $0.00001 par value per share, 100,000,000 shares authorized
(1)
$
246
$
78
$
80
Additional Paid-in Capital
$
16,344,141
$
21,637,954
$
22,605,677
Treasury Stock
$
(403,750
)
$
(658,350
)
(2)
$
(658,350
)
Accumulated deficit
$
(7,971,118
)
$
(7,971,118
)
$
(7,971,118
)
Total Stockholders' Equity
$
7,969,519
$
13,008,564
$
13,976,289
Total Capitalization
$
8,441,718
$
19,542,663
$
21,478,113
(1)
24,560,294 shares of common stock issued and outstanding actual as of March 31, 2019.
(2)
Subsequent to quarter-end, the Company purchased 53,600
shares of its common stock from one (1) shareholder at an aggregate price of $4.75 per share, or $254,600. These shares are currently
held in treasury; the transaction reduced cash and reduced common shares outstanding to 24,506,694 as of May 31, 2019.
(3)
The outstanding number of shares of common stock after
the completion of the offering was derived from 24,506,694 shares of common stock outstanding as of May 31, 2019, less 18,500,000
shares previously beneficially owned by Samer Tawfik that were cancelled for no consideration.
Each $1.00 increase (decrease) in the assumed offering price
per share of $5.50, assuming no change in the number of shares to be sold, would increase (decrease) the net proceeds that we receive
in this offering and each of total stockholders' equity and total capitalization by approximately $1,173,000 (or $1,348,950
if the underwriter exercises the over-allotment option in full), after deducting (i) estimated underwriter commissions and (ii)
offering expenses, in each case, payable by us. Similarly, an increase (decrease) of one million shares of our common stock offered
by us in this offering, assuming no change in the offering price, would increase (decrease) the new proceeds that we receive in
this offering and each of total stockholders' equity and total capitalization by approximately $5,060,000, after deducting
(i) estimated underwriter commissions and (ii) offering expenses, in each case, payable by us.
The table above excludes the following shares:
●
1,500,000 shares of common stock reserved
for future issuance under our 2018 Equity Incentive Plan as of May 31, 2019;
●
331,750 shares of common stock issuable
upon the exercise of options (of which 236,853 have vested) outstanding as of March 31, 2019;
●
Up to 63,750 shares of common stock issuable
upon exercise of the underwriter's warrants in connection with this offering, assuming the Maximum Amount is sold, with a
full exercise by the underwriter of the over-allotment option; and
●
Approximately 63,570 shares of common
stock that may be issued by us upon conversion of the 6-month notes (assuming no interest is paid on the 6-month notes).
31
DILUTION
Dilution in net tangible book value per
share to new investors is the amount by which the offering price paid by the purchasers of the shares of our common stock sold
in this offering exceeds the pro forma net tangible book value per share of common stock after this offering. Net tangible book
value per share is determined at any date by subtracting our total liabilities from the total book value of our tangible assets
and dividing the difference by the number of shares of common stock deemed to be outstanding at that date.
The net tangible book value of our common
stock as of March 31, 2019 was approximately $6.9 million, or approximately $0.28 per share.
Pro forma as adjusted net tangible book
value dilution per share to new investors represents the difference between the amount per share paid by purchasers of our common
stock in this offering and the pro forma as adjusted net tangible book value per share of our common stock immediately after completion
of this offering. Investors participating in this offering will incur immediate, substantial dilution. After giving effect to our
sale of 1,275,000 shares of our common stock in this offering at an assumed initial public offering
price of $5.50 per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus,
and after deducting the estimated underwriting discounts and commissions and estimated offering expenses, our pro forma as adjusted
net tangible book value as of March 31, 2019 would have been approximately $13.0 million or approximately $1.78 per share. This
amount represents an immediate increase in pro forma net tangible book value of $1.50 per share to existing stockholders and an
immediate dilution in pro forma net tangible book value of $3.72 per share to purchasers of our common stock in this offering,
as illustrated in the following table.
The following table illustrates the estimated dilution on a
per Share basis:
Assumed initial public offering price per Share
$
5.50
Net tangible book value per Share as of March 31, 2019
$
0.28
Increase in net tangible book value per Share after this offering
$
1.50
Pro forma net tangible book value per Share after this offering
$
1.78
Dilution in net tangible book value per Share to new investors
$
(3.72
)
If the underwriter's option to purchase additional shares of our common stock from us is exercised in full, the pro
forma as adjusted net tangible book value per share of our common stock, as adjusted to give effect to this offering, would
be $1.78 per share, and the dilution in pro forma net tangible book value per share to new investors purchasing shares of
common stock in this offering would be $3.72 per share.
The following table sets forth, assuming
the sale of 1,275,000 shares of our common stock in this offering, as of March 31, 2019, the total number
of shares of common stock previously issued and sold to existing investors, the total consideration paid for the foregoing and
the average price per share of common stock, before deducting estimated underwriter commissions, offering expenses and the repayment
of the amount outstanding under the revolving credit facility, in each case payable by us. As the table shows, new investors purchasing
shares of our common stock in this offering may in certain circumstances pay an average price per Share substantially higher than
the average price per share paid by our existing stockholders.
March 31, 2019
Number of Shares
Purchased Percentage
Total Consideration Amount
Total Consideration Percent
Average Price Per Share
Existing Stockholders
6,006,694
82.5
%
$
15,940,637
69.4
%
$
2.65
New Investors
1,275,000
17.5
%
$
7,012,500
30.6
%
$
5.50
Total:
7,281,693
100
%
$
22,953,137
100
%
32
A $1.00 increase (decrease) in the assumed
public offering price of $5.50 per Share would increase (decrease) our pro forma net tangible book value (deficit), as adjusted
to give effect to this offering, to $1.94 per share ($2.04, if the underwriter exercises the over-allotment option in full), the
increase (decrease) attributable to this offering by $0.16 per share ($0.18, if the underwriter exercises the over-allotment option
in full), and the dilution in pro forma net tangible book value (deficit) per Share to new investors in this offering by ($0.84)
per Share ($0.82, if the underwriter exercises the over-allotment option in full), assuming the number of shares of our common
stock offered by us remains the same and after deducting estimated underwriter commissions and offering expenses payable by us.
Similarly, an increase (decrease) of one
million shares of our common stock offered by us would increase (decrease) our pro forma net tangible book value (deficit), as
adjusted to give effect to this offering, to $2.18 per share ($2.24, if the underwriter exercises the over-allotment option in
full), the increase (decrease) attributable to this offering by $0.40 per share ($0.38, if the underwriter exercises the over-allotment
option in full), and the dilution in pro forma as adjusted net tangible book value (deficit) per Share to new investors in this
offering by $0.40 per share ($0.38, if the underwriter exercises the over-allotment option in full), assuming the public offering
price remains the same and after deducting estimated underwriter commissions and offering expenses payable by us.
The tables above exclude the following shares:
●
1,500,000 shares of common stock reserved
for future issuance under our 2018 Equity Incentive Plan as of May 31, 2019;
●
331,750 shares of common stock issuable
upon the exercise of options (of which 236,853 have vested) outstanding as of March 31, 2019;
●
Up to 63,750 shares of common stock issuable
upon exercise of the underwriter's warrants in connection with this offering, assuming the Maximum Amount is sold, with the
full exercise by the underwriter of the over-allotment option; and
●
Approximately 63,570 shares of common
stock that may be issued by us upon conversion of the 6-month notes (assuming no interest is paid on the 6-month notes).
33
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The following discussion and analysis
summarizes the significant factors affecting the consolidated operating results, financial condition, liquidity and cash flows
of our Company as of and for the periods presented below. The following discussion and analysis should be read in conjunction with
our consolidated financial statements and the related notes thereto included elsewhere in this prospectus. The discussion contains
forward-looking statements that are based on the beliefs of management, as well as assumptions made by, and information currently
available to, our management. Actual results could differ materially from those discussed in or implied by forward-looking statements
as a result of various factors, including those discussed below and elsewhere in this prospectus, particularly in the sections
titled "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements".
Overview
LMP Automotive Holdings, Inc., through
its subsidiaries, currently offers our customers the opportunity to buy, sell, rent, and subscribe for, and obtain financing for
automobiles both online and in person.
We describe our business model as "Buy,
Rent or Subscribe, Sell and Repeat." This means that we "Buy" pre-owned automobiles primarily through auctions
or directly from other automobile dealers, and new automobiles from manufacturers and manufacturer distributors at fleet rates.
We "Rent or Subscribe" by either renting automobiles to our customers or allowing them to enter into our subscription
plan for automobiles in which customers have use of an automobile for a minimum of thirty (30) days. We "Sell" our
inventory, including automobiles previously included in our rental and subscription programs, to customers as well, and then we
hope to "Repeat" the whole process.
Recent Developments
Reorganization
The Company was incorporated under the
laws of Delaware in December 2017. Samer Tawfik, our founder, Chairman, President and Chief Executive Officer, contributed one
hundred percent (100%) of the equity interests in each of LMP Motors.com, LLC and LMP Finance, LLC into the Company in December
2017, and in January 2018, 601 NSR, LLC and LMP Automotive Holdings, LLC made the Company their sole member. As a result of the
reorganization, the Company now owns one hundred percent (100%) of the equity in each of these four entities. LMP Motors.com, LLC
currently operates our automobile sales business. LMP Finance, LLC currently operates our rental and subscription business. 601
NSR, LLC and LMP Automotive Holdings, LLC were formed to enter into future potential strategic acquisitions, but are currently
inactive. As a result of the reorganization, Mr. Tawfik received 15,750,000 shares of common stock and ST RXR Investments, Inc.,
a company wholly owned and controlled by Mr. Tawfik, received 5,250,000 shares of common stock.
Private Placement Offerings
In February 2018, we completed a private
placement offering, pursuant to which we sold 2,858,030 shares of our common stock, at a purchase price of $3.33 per share,
for an aggregate purchase price of $9,517,239.
From June 2018 through October 2018, we
sold an aggregate of 787,264 shares of our common stock, in a private placement offering, at a purchase price of $4.75 per share,
for an aggregate purchase price of $3,739,505. We intend to continue to offer and sell additional shares of our common stock until
the consummation of this offering.
During the second and third quarters of
2018, we issued the 6-month notes in an aggregate principal amount of $1,448,965, pursuant to a private placement offering. The
6-month notes bear interest at 4% per annum and mature six (6) months from the date of issuance, at which time the principal
and any accrued but unpaid interest shall be due and payable. The holders of the 6-month notes may, at any time prior to the maturity
date, convert the 6-month notes (and accrued interest) into shares of our common stock by dividing (a) the outstanding principal
balance and unpaid accrued interest under the applicable 6-month note on the date of conversion by (b) $4.75 (subject to adjustment
as provided in the 6-month notes). Based on the terms of the conversion rights, we did not recognize a beneficial conversion discount.
34
During the fourth quarter of 2018, we repaid
one of the 6-month notes in the principal amount of approximately $285,015, leaving a balance on the remaining 6-month notes of
approximately $1,164,000, plus accrued interest, at December 31, 2018.
During the first quarter of 2019, we repaid
two of the 6-month notes in the aggregate principal amount of $365,000, leaving a balance on the remaining 6-month notes of $798,950,
plus accrued interest, at March 31, 2019.  In April 2019, we repaid seven of the 6-month notes in the principal amount
of $497,000.
Subsequent to March 31, 2019, we extended
certain of the 6-month notes that became due.  Two of the 6-month notes in the amount of approximately $121,000 were
extended to June 15, 2019, two of the 6-month notes in the amount of approximately $45,000 were extended to August 14, 2019, and
another two in the amount of approximately $135,950 were extended to September 17, 2019.
The total outstanding principal balance
on the remaining 6-month notes as of May 31, 2019 was $301,950.
In connection with the private placement
offerings, each of the investors executed a stockholders' agreement. The stockholders' agreement contains, among other
things, certain restrictions on the ability of such investors to freely transfer shares of our common stock, as well as customary
drag-along rights and tag-along rights, and such agreement terminates upon the consummation of this offering. In connection with
this offering, we are soliciting lock-up agreements from all of our current shareholders whereby they will agree, for a period
of 180 days after the date of this prospectus, not to directly or indirectly:
●
offer, pledge, assign, encumber, announce the intention to sell, sell, contract to sell, sell any
option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend,
or otherwise transfer or dispose of, directly or indirectly, any shares of our capital stock or any securities convertible into
or exercisable or exchangeable for shares of our capital stock; or
●
enter into any swap or other agreement that transfers, in whole or in part, any of the economic
consequences of ownership of our securities, whether any such transaction is to be settled by delivery of shares of our common
stock or such other securities, in cash or otherwise; or
●
sell, agree to sell, offer or sell, solicit offers to purchase, grant any call option, warrant
or other right to purchase, purchase any put option or other right to sell, pledge, borrow or otherwise dispose of our securities;
or
●
establish or increase any "put equivalent position" or liquidate or decrease any "call
equivalent position" (in each case within the meaning of Section 16 of the Exchange Act) with respect to any of our securities;
●
make any demand for or exercise any right with respect to, the registration of any of our securities;
or
●
otherwise enter into any swap, derivative or other transaction or arrangement that transfers to
another, in whole or in part, any economic consequence of ownership of securities, whether or not such transaction is to be settled
by delivery of our securities, other securities, cash or other consideration; or
●
publicly announce an intention to do any of the foregoing.
Critical Accounting Policies and Estimates
The preparation of financial statements
in conformity with accounting principles generally accepted in the United States requires our management to make assumptions, estimates
and judgments that affect the amounts reported in the financial statements, including the notes thereto, and related disclosures
of commitments and contingencies, if any. We consider our critical accounting policies to be those that require the more significant
judgments and estimates in the preparation of financial statements, including the following:
35
Revenue Recognition
Used Vehicle Sales Revenue
The Company's business consists of
retail and wholesale sales of used vehicles to customers. Sales are based on the network of physical showrooms and efficient online
showrooms on the Company's websites. The Company offers a home delivery service so that the Company delivers the car to the
place agreed upon with the client. The Company also sells used vehicles in auctions.
The Company recognizes revenue when it
satisfies a performance obligation by transferring control of a vehicle to a customer. The prices of the vehicles are stated in
its contracts at stand-alone selling prices which are agreed upon with its customer prior to delivery. The Company satisfies its
performance obligation for used vehicle sales upon delivery when the transfer of title, risks and rewards of ownership and control
pass to the customer. The Company recognizes revenue at the agreed-upon price stated in the contract, including any delivery charges.
In addition, any noncash consideration received from a customer (i.e., trade-in vehicles) are recognized at fair value. Customer
payment is received or 3
rd
-party financing has been confirmed prior to vehicle transfer. The Company collects sales
taxes and other taxes from customers on behalf of governmental authorities at the time of sale. These taxes are accounted for on
a net basis and are not included in sales or cost of sales.
Subscription Revenue
The Company offers a vehicle subscription
plan where a customer will pay a monthly fee in exchange for access to a car. The Company's subscriptions include monthly
swaps, scheduled maintenance and upkeep, and even insurance in some cases. Customers have the flexibility to up-or-downgrade a
vehicle monthly with the vehicle payment adjusted accordingly. There is $575 annual subscription activation fee and the monthly
payments are dependent upon the vehicle selected by the customer.
The Company recognizes revenue when it
satisfies a performance obligation by transferring control of a vehicle to a customer under a subscription contract. The prices
of the vehicles are stated in its contracts at stand-alone subscription prices which are agreed upon with the customer prior to
delivery. The Company satisfies its performance obligation for monthly subscription payments upon delivery to the customer and
in each subsequent month the customer retains possession of the vehicle. The Company recognizes revenue at the agreed-upon price
stated in the contract in the month earned.
The Company also receives an upfront customer
payment as an annual membership fee to its vehicle subscription program. This fee is deferred and amortized to income monthly over
the period of membership.
Customer payment has been received prior
to initial vehicle transfer and on each monthly recurring anniversary date.
Rental Revenue
The Company recognizes vehicle rental income
over the period the vehicle is rented. Performance obligations associated with vehicle rental transactions are satisfied over the
rental period. Rental periods are short term in nature. Performance obligations associated with rental related activities, such
as charges to the customer for the fueling of vehicles and value-added services such as loss damage waivers, navigation units,
and other ancillary products, are also satisfied over the rental period.
Payments are due from customers at the
time of reservation. Additional charges incurred by the customers are collected at the time of vehicle return. The Company collects
sales taxes and other taxes from customers on behalf of governmental authorities at the time of sale. These taxes are accounted
for on a net basis and are not included in sales or cost of sales.
Accounts Receivable
We carry our accounts receivable at cost.
The terms of our accounts receivable require payment upon receipt. We establish an allowance based on our management's assessment
of the creditworthiness of the customers, the aged basis of the receivables, as well as current economic conditions and historical
information. Management has determined that no allowance for uncollectible accounts for accounts receivable were necessary at December
31, 2018 and 2017.
36
Stock-Based Compensation
We recognize the cost of services received
in exchange for awards of stock options in accordance with ASC 718 "Stock Compensation", based on the fair value of
those awards at the date of grant over the requisite service period, which generally is the vesting period of the award. We use
the Black-Scholes option pricing model to determine the fair value of stock option awards.
Income Taxes
We account for income taxes under ASC 740
"Income Taxes" which codified SFAS 109, "Accounting for Income Taxes" and FIN 48 "Accounting for
Uncertainty in Income Taxes – an Interpretation of the Financial Accounting Standards Board, or the FASB, Statement No. 109."
Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective
tax bases. 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. Under ASC 740, the effect on deferred tax assets
and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided
for certain deferred tax assets if it is more likely than not that we will not realize tax assets through future operations.
Per Share Information
We compute net loss per share accordance
with FASB ASC 205 "Earnings per Share." FASB ASC 205 requires presentation of both basic and diluted earnings per share
(EPS) on the face of the income statement.
Basic EPS is computed by dividing net loss
available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period.
Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period. Diluted EPS excludes all potentially
dilutive shares if their effect is anti-dilutive.
Fair Value of Financial Instruments
Our financial instruments consist of cash,
prepaid expenses, payables, accrued expenses and notes payable. Fair value estimates are made at a specific point in time, based
on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties
and matters of significant judgment and therefore cannot be determined with precision. We consider the carrying values of our financial
instruments in the consolidated financial statements to approximate fair value, due to their short-term nature.
Inventory
The Company's inventory consists
of automobiles. Inventories are valued at the lower of cost or market, with cost determined by specific identification and with
market defined as net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business,
less reasonably predictable costs of completion, disposal, and transportation. Inventories at March 31, 2019 and December 31, 2018
are recorded based on perpetual inventory records.
The Company depreciates its fleet inventory
monthly based on 1% of initial cost starting in 2018 when the subscriptions and rentals were launched.
We periodically review our automobile inventory
to determine whether any inventories have become obsolete or have declined in value, and record a charge to operations for known
and estimated inventory obsolescence.
Property and Equipment
Property and equipment are recorded at
cost, less accumulated depreciation. Depreciation is provided for using straight-line methods over the estimated useful lives of
the respective assets, ranging from 5 to 7 years.
37
Valuation of Long-Lived Assets
We periodically evaluate long-lived assets
for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable.
If the estimated future cash flows (undiscounted and without interest charges) from the use of an asset were less than the carrying
value, a write-down would be recorded to reduce the related asset to its estimated fair value.
Recently issued Accounting Pronouncements
In February 2016, the FASB issued ASU 2016-02,
"Leases" which, for operating leases, requires a lessee to recognize a right-of-use asset and a lease liability, initially
measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single
lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The
ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption
of ASU 2016-02 resulted in the recognition of right of use assets and related obligations on our balance sheets. The provisions
of ASU 2016-02 also conforms lessor accounting to the new revenue recognition guidance in ASU 2014-09. We are assessing the provisions
of our vehicle rental contracts that convey the right to control the use of identified assets to determine whether these contracts
are within the scope of the accounting guidance contained in ASU 2016-02.
In July 2018, the FASB issued additional
guidance on the accounting for leases. The guidance provides companies with another transition method that allows entities to recognize
a cumulative-effect adjustment to the opening balance of retained earnings as of the date of adoption. Under this method, previously
presented years' financial positions and results are not adjusted. The Company adopted this alternative transition method.
The provisions of ASU 2016-02 also conforms
lessor accounting to the new revenue recognition guidance in ASU 2014-09. We recognize our rental revenue contracts, which are
short-term in nature, in accordance with the guidance provided by ASU 2014-09.
Results of Operations
Quarter Ended March 31, 2019 Compared
to Quarter Ended March 31, 2018
Revenues
We generated revenues of $4,937,747 for
the three month period ended March 31, 2019 from the sales of pre-owned vehicles from our website and Plantation, Florida location,
in addition to rental and subscription revenue, as compared with revenues of $2,384,595, during the comparative three-month period
ended March 31, 2018, an increase of $2,553,152. The increase was mainly due to the Company having to sell vehicle inventory earlier
than anticipated to satisfy short-term convertible note obligations that matured and to accept additional vehicle inventory ordered
earlier in the year. We do not expect revenues from vehicle sales to remain at these heightened levels in 2019. Revenues in 2019
include $172,433 from our rental program and $292,422 from our subscription program, which commenced subsequent to the first quarter
of 2018.
Cost of vehicles sold was $5,048,573 for
the three months ended March 31, 2019, resulting in a negative gross margin of $110,826. Cost of vehicles sold for the comparative
three months ended March 31, 2018 was $2,558,694, resulting in a negative gross margin of $174,099 due to test marketing and incentive
pricing.
Selling, General and Administrative
Expenses
We incurred SG&A expenses of
$1,041,728 during the three months ended March 31, 2019, an increase of $614,059 as compared with the balance for the three
months ended March 31, 2018 of $427,669. The significant increase in SG&A expenses is a result of increases in payroll
expenses of $213,225 from the three-month period ended March 31, 2018 to the same period in 2019, in addition to increases in
the use of outside services for legal and consulting fees of $97,477 comparing the three-month periods, and increases in rent
expenses of $97,313, which were related to the implementation of our business plan.
In 2019, we discontinued our Miami Beach,
FL rental operations and consolidated them with our Plantation, FL operation.  As a result, two leases that approximated $415,000
per year were terminated and we reduced staff by eight employees whose salaries approximated $356,000 in an effort to reduce overhead
expenses.
38
Depreciation
We incurred depreciation expenses of $314,008
during the three months ended March 31, 2019 including $290,919 included in cost of revenues for depreciation of inventory, as
compared to $8,373 during the three months ended March 31, 2018, an increase of $305,636. This increase was primarily due to depreciation
on vehicles held in inventory.
Net Losses
We sustained net losses of $1,400,611 and
$766,490 for the three months ended March 31, 2019 and 2018, respectively, for the reasons described above.
Liquidity and Capital Resources
Cash Flow Activities
As of March 31, 2019, we had an accumulated
deficit of $7,971,118. We have incurred net losses since inception, and have funded operations primarily through sales of our common
stock and issuance of debt. As of March 31, 2019 we had $472,199 in cash. The net increase in cash of $48,047 during the three
month period ended March 31, 2019 and net increase in cash of $354,990 during the three month period ended March 31, 2018 is due
to the following activities:
Operating Activities
Net cash provided by operating activities
was $1,145,261 as compared to net cash used of $7,740,184 for the three months ended March 31, 2019 and 2018, respectively. The
$8,885,445 increase in net cash generated by operating activities was primarily due to a decrease in inventory of $2,756,083 during
the three month period ended March 31, 2019, reduced by the net loss for the period of $1,400,611, as compared to an increase in
inventory of $6,209,235 during the three month period ended March 31, 2018, in addition to the net loss of $766,490 for the period.
Investing Activities
Net cash used in investing activities was
$17,703 as compared to $51,741 for the three months ended March 31, 2019 and 2018, respectively. The $34,038 decrease in net cash
used in investing activities was primarily due to fewer purchases of property and equipment in 2019, with $7,484 of property and
equipment purchased in the three month period ended March 31, 2019, as compared to $49,491 purchased during the same period in
2018.
Financing Activities
Net cash used in financing activities was
$1,079,511 as compared to net cash generated of $8,146,915 for the three months ended March 31, 2019 and 2018, respectively. The
$9,226,426 decrease in net cash from financing activities was primarily due to cash received from the issuance of common stock
of $9,513,415 during the three month period ended March 31, 2018, as compared to cash used to pay down certain Convertible Notes
Payable of $365,000 and repurchase shares recorded to Treasury Stock of $403,750 during the three month period ended March 31,
2019.
Use of Cash and Cash Requirements
During the fourth quarter of 2018 and in
the first quarter of 2019, we sold certain fleet vehicles to make payments on convertible notes and fund our common stock repurchases,
as well as to purchase additional fleet vehicles and fund our monthly recurring overhead.
In the first quarter of 2019 we purchased
an aggregate of 85,000 shares of our common stock from three (3) shareholders at an aggregate price of $4.75 per share, or $403,750.
In April 2019, we purchased 53,600 shares of our common stock from one (1) shareholder at an aggregate price of $4.75 per share,
or $254,600. These shares are currently held in treasury.
39
Consolidation of Operations
In 2019, we discontinued our Miami Beach,
FL rental operations and consolidated them with our Plantation, FL operation.  As a result, two leases that approximated $415,000
per year were terminated and we reduced staff by eight employees whose salaries approximated $356,000 in effort to reduce overhead
expenses.
Sources of Capital
From inception to December 31, 2017 we
have funded our activities through capital contributions from Mr. Tawfik and issuances of notes payable to related parties.
In January 2018, we entered into the
$1,500,000 revolving credit facility with ST RXR, which is owned and controlled by our founder, Chairman, President and Chief
Executive Officer, pursuant to a Revolving Line of Credit Agreement, or the LOC agreement. At March 31, 2019,
approximately $1,500,000 was outstanding under the revolving credit facility. The LOC agreement expires on the earlier
of written demand by the lender or May 21, 2020.
From January 1 through March 31, 2018,
we received an aggregate of $9,517,239 through the issue and sale of our common stock, at purchase price of $3.33 per share pursuant
to a private placement offering to accredited investors.
During the fourth quarter of 2018, we repaid
one of the 6-month notes in the principal amount of approximately $285,015, leaving a balance of approximately $1,164,000, plus
accrued interest, at December 31, 2018. During the first quarter of 2019, we repaid two of the 6-month notes in the principal amount
of $365,000, leaving a balance of $798,950, plus accrued interest, at March 31, 2019. In April 2019 we repaid seven of the 6-month
notes in the principal amount of $497,000 leaving a balance of $301,950, plus accrued interest, at April 30, 2019.
In 2019 we extended certain of the 6-month notes that became
due. Two of the 6-month notes were extended to June 15, 2019 for approximately $121,000, two of the 6-month notes were extended
to August 14, 2019 for approximately $45,000, and another two were extended to September 17, 2019 for approximately $135,950.
Contractual Commitments
Commitments to Purchase Vehicles
In 2018, we have entered into a letter
agreement with an importer of new BMW and MINI automobiles which has expired and the remaining balance for vehicles to be delivered
is approximately $530,000 as of April 30, 2019.
In the second quarter of 2019, Mercedes-Benz
Financial has approved $3.5 million leasing credit line for our subscription and rental fleet inventory purchases.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements
as defined in Regulation S-K Item 303(a)(4).
Year Ended December 31, 2018 Compared
to the Year Ended December 31, 2017
Revenues
We generated revenues of $16,610,786 for
the year ended December 31, 2018 from the sales of pre-owned vehicles from our website and Plantation, Florida location, in addition
to rental and subscription revenue, as compared with revenues of $3,759,031, during the comparative year ended December 31, 2017,
an increase of $11,955,480. The increase was mainly due to our ability to fulfill more transactions that come from greater brand
acceptance of our platform due to continuing expenditures in marketing and sales. Revenues in 2018 include $539,952 from our rental
program and $356,323 from our subscription program, which commenced in 2018.
Costs of revenues were $18,567,775 for
the year ended December 31, 2018, resulting in a negative gross margin of $1,956,989. These costs included $889,388 of costs of
revenues for rental revenues and subscription fees in 2018. Costs of revenues for the comparative year ended December 31, 2017
were $3,994,079, resulting in a negative gross margin of $235,048 due to test marketing and incentive pricing.
40
Selling, General and Administrative
Expenses
We incurred SG&A expenses of $3,278,051
during the year ended December 31, 2018, an increase of $2,163,942 as compared with the amount incurred during the year ended December
31, 2017 of $1,114,109. The increase in SG&A expenses is a result of increases in payroll and other administrative costs to
support our increase in revenues and overall business activity during 2018.
Depreciation
We incurred depreciation expenses of $45,505
during the year ended December 31, 2018, as compared to $29,291 during the year ended December 31, 2017, an increase of $16,214.
This increase is due to the purchase of significant fixed assets during the year, especially in furniture and leasehold improvements
as we moved locations in March, 2018 and performed remodels for both the Plantation, FL and the Miami Beach, FL locations.
Net Losses
We sustained net losses of $6,490,293 and
$1,423,662 for the years ended December 31, 2018 and 2017, respectively, for the reasons described above.
Liquidity and Capital Resources
Cash Flow Activities
As of December 31, 2018, we had an accumulated
deficit of $6,552,886. We have incurred net losses since inception, and have funded operations primarily through sales of our common
stock, issuance of debt and a related party line of credit. As of December 31, 2018 we had $424,152 in cash.
The following table sets forth the primary
sources and uses of cash for the years ended December 31, 2018 and 2017:
Years Ended December 31,
2018
2017
Net cash used in operating activities
$
(13,472,142
)
$
(4,617,347
)
Net cash used in investing activities
(437,957
)
(214,950
)
Net cash provided by financing activities
14,116,891
4,728,755
Net increase (decrease) in cash
206,792
(103,452
)
Operating Activities
Net cash used in operating activities was
$13,472,142 as compared to $4,617,347 for the years ended December 31, 2018 and 2017, respectively. The $8,854,795 increase in
net cash used in operating activities was primarily due to an increase in purchases of vehicles in inventory and a larger net loss
for the year ended December 31, 2018, as compared to December 31, 2017.
Investing Activities
Net cash used in investing activities was
$437,957 as compared to $214,950 for the years ended December 31, 2018 and 2017, respectively. The $223,007 increase in net cash
used in investing activities was due to larger purchases of property and equipment in 2018, two location remodels and purchases
of software included in intangible assets.
41
Financing Activities
Net cash provided by financing activities
was $14,116,891 as compared to $4,728,755 for the years ended December 31, 2018 and 2017, respectively. The $9,388,136 increase
in net cash provided by financing activities was primarily due to cash received from the issuance of common stock of $13,256,534
during the year ended December 31, 2018, as compared to cash contributed from shareholders of $3,637,255 during the year ended
December 31, 2017. In 2018 the Company also issued $1,448,965 in 6 month, 4% convertible notes.
Use of Cash and Cash Requirements
During 2018 and in the first quarter of
2019, we sold certain fleet vehicles to make payments on convertible notes and fund our common stock repurchases, as well as to
purchase additional fleet vehicles and fund our monthly recurring overhead.
In the first quarter of 2019, we purchased
an aggregate of 85,000 shares of our common stock from three shareholders at an aggregate price of $4.75 per share, or $403,750.
In April 2019, we purchased 53,600 shares of our common stock from one shareholder at an aggregate price of $4.75 per share, or
$254,600. These shares are currently held in treasury.
Sources of Capital
From inception to December 31, 2018 we
have funded our activities through capital contributions from Mr. Tawfik, issuances of common stock, and issuances of notes payable.
In January 2018, we entered into the $1,500,000
revolving credit facility with ST RXR, a company owned and controlled by Mr. Tawfik, pursuant to the LOC agreement.  At December
31, 2018, approximately $1,775,000 was outstanding under the revolving credit facility.  The LOC agreement expires on the
earlier of written demand by the lender or May 21, 2020.
From January 1 through December 31, 2018,
we received an aggregate of $13,256,534 through the issue and sale of our common stock, at a purchase price of $3.33 per share
pursuant to a private placement offering to accredited investors.
During the fourth quarter of 2018, we repaid
one of the 6-month notes in the principal amount of approximately $285,015, leaving a balance of approximately $1,164,000, plus
accrued interest, at December 31, 2018.
Subsequent to December 31, 2018, we repaid
two of the 6-month notes in the principal amount of $365,000, leaving a balance of $798,950, plus accrued interest, at March 31,
2019. In April 2019 we repaid seven of the 6-month notes in the principal amount of $497,000 leaving a balance of $301,950, plus
accrued interest, at April 30, 2019.
Subsequent to December 31, 2018, we extended
certain of the 6-month notes that became due. Two of the 6-month notes were extended to June 15, 2019 for approximately $121,000,
two of the 6-month notes were extended to August 14, 2019 for approximately $45,000, and another two were extended to September
17, 2019 for approximately $135,950.
Contractual Commitments
Commitments to Purchase Vehicles
In 2018, we entered into a letter agreement
with an importer of new BMW and MINI automobiles which has expired and the remaining balance for vehicles to be delivered is approximately
$530,000 as of April 30, 2019.
Subsequent to year-end, Mercedes-Benz Financial
approved $3.5 million for our subscription and rental fleet inventory purchases.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements
as defined in Regulation S-K Item 303(a)(4).
42
BUSINESS
Our Mission
Our goal is to provide an e-commerce and
facilities-based retail platform for consumers who desire to buy, sell, rent, subscribe for or finance pre-owned and new automobiles.
We seek to provide our customers with a simple, convenient, transparent and pleasant retail experience. In addition to our current
operations launched in 2017, we intend to seek strategic acquisitions of pre-owned and new automobile dealerships and car rental
companies in order to facilitate efficient growth.
Our Current Business
LMP Automotive Holdings, Inc., through
its wholly owned subsidiaries, currently offers our customers the opportunity to buy, sell, rent and subscribe for, and obtain
financing for automobiles both online and in person.
We describe our business model as "Buy,
Rent or Subscribe, Sell and Repeat." This means that we "Buy" pre-owned automobiles primarily through auctions
or directly from other automobile dealers, and new automobiles from manufacturers and manufacturer distributors at fleet rates.
We "Rent or Subscribe" by either renting automobiles to our customers or allowing them to enter into our subscription
plan for automobiles in which customers have use of an automobile for a minimum of thirty (30) days. We "Sell" our
inventory, including automobiles previously included in our rental and subscription programs, to customers as well, and then we
hope to "Repeat" the whole process.
We believe we offer a stress-free and user-friendly
experience, either directly or through arrangements with third parties, that enables consumers to efficiently:
-
Browse and purchase a vehicle
-
Subscribe for a vehicle(s)
-
Rent a vehicle
-
Sell or trade-in vehicles
-
Obtain pre-approval for financing (through third parties)
-
Buy extended warranties (through third parties)
-
Schedule deliveries and pick-ups (typically through third parties)
Our platform is designed to streamline
the automobile transaction value chain by digitizing a substantial part of the sales and transaction process. We believe this will
enhance the consumer experience by creating operational efficiencies designed to improve our financial and business performance.
We also intend to centralize sales, title, tag, finance, insurance and logistics operations in order to create additional financial
and operational benefits, as well as a positive consumer experience. We believe that bringing more of the vehicle shopping and
transaction experience online will provide consumers with a broader range of purchase, rental and subscription options while eliminating
time spent in negotiation and haggling.
We commenced our operations in the first
quarter of 2017. Currently we only offer sales of pre-owned automobiles, and rentals and subscriptions for both pre-owned and new
automobiles. Our fleet consists of 215 automobiles in total. Of those, 118 are offered for subscription, eight are offered for
rental, 40 are available to drivers for rideshare applications, including Uber and Lyft, and 49 are held for sale. Our current
facility is approximately 8,771 square feet on 1.25 acres of land. Our facility contains storage for ten vehicles on the interior
and up to 90 on the exterior. We expect that we can facilitate over 1,000 subscribers in our current facility.
43
The Company was incorporated under the
laws of Delaware in December 2017. Samer Tawfik, our founder, Chairman, President and Chief Executive Officer, contributed one
hundred percent (100%) of the equity interests in each of LMP Motors.com, LLC and LMP Finance, LLC into the Company in December
2017, and in January 2018, 601 NSR, LLC and LMP Automotive Holdings, LLC made the Company their sole member. As a result of the
reorganization, the Company now owns 100% of the equity in each of these four entities. LMP Motors.com, LLC currently operates
our automobile sales business. LMP Finance, LLC currently operates our rental and subscription business. 601 NSR, LLC and LMP Automotive
Holdings, LLC were formed to enter into future potential strategic acquisitions, but are currently inactive.
Industry Overview
We believe that the following are the current
key drivers of growth for the automobile industry:
●
Economic Drivers
. Consumer confidence and employment are currently at a 17-year high, which we believe will lead to continued growth in consumer spending, including increased spending on automobiles.
●
Emerging Technologies and Disruptive Business Models
. We believe the U.S. automobile industry is rapidly evolving through the adoption of new technologies and disruptive business models, which we believe is driven primarily by consumer expectations and demands for a better purchasing experience.
●
Off-Lease Vehicles
.
Sales of "off-lease vehicles," or automobiles that are resold after being leased, have increased steadily from 17% growth in 2010 to nearly 25% in 2017. We believe that the off-lease vehicle market can provide a steady supply of high-quality automobiles that will offer consumers a viable alternative to the new-vehicle market. We expect that this will result in increased competition with the new vehicle market.
●
Subscription Market
. The subscription model has been widely adopted in several different sectors, such as consumer goods, streaming media and data cloud services. Driven by consumer demand, the automobile industry has begun adopting a subscription model as an alternative to ownership and leasing. Although we believe that car ownership will continue to dominate the industry, we expect that the auto subscription segment will grow steadily.
●
Pre-Owned Automobile Sales Market
.
In 2017, the U.S. automotive industry generated approximately $1.2 trillion in sales, which represented approximately 21% of the U.S. retail economy. According to the Cox Automotive 2018 Used Car Market Report & Outlook, in 2018, approximately 39.5 million pre-owned vehicles are expected to be sold, up from 39.3 million pre-owned vehicles sold in 2017, with an average price, according to Edmund.com, of approximately $19,500. New vehicle sales fell by approximately 2% from 2017.
44
Source: Edmunds.com
The pre-owned automobile retail industry
is highly fragmented. Currently, there are approximately 43,000 used car dealerships in the U.S., with the largest dealer compromising
approximately 1.7% of the market in the United States. The top 100 pre-owned auto dealers collectively account for approximately
7.0% of the U.S. market according to Edmunds.com and Automotive News.
We believe that the traditional pre-owned
auto dealership model is cost intensive, operationally challenging and difficult to scale. In general, providing full service to
a customer requires inspection, repair, reconditioning and showroom facilities, as well as inventory sourcing and financing capabilities,
substantially all of which are done at each dealership location. All of these services require a substantial initial investment.
Historically, consumers would research
and shop for automobiles using a combination of print and broadcast media, or by visiting local dealerships. However, we believe
this paradigm is shifting, as consumers are now increasingly relying on the Internet to research automobiles, compare pricing and
financing options, estimate trade-in values, and even complete transactions. According to the 2018 Cox Automotive Car Buyer Journey,
today's average car buyer spends 60% of their time online researching and shopping for an automobile, or almost nine hours.
We believe that consumers have also become
comfortable conducting their retail purchases of higher-priced products such as consumer electronics and home furnishings through
the Internet. According to the U.S. Census Bureau, 10.5% of total retail sales in the U.S. in the fourth quarter of 2017 were completed
online. We believe that similar trends are emerging in the automobile industry, as consumers are interested in e-commerce solutions
for their pre-owned automobile purchasing needs. According to Capgemini's 2017 Cars Online Trend Study, 80% of U.S. car buyers
would consider completing their entire automobile purchase online if given the opportunity.
Traditionally, the process of purchasing
an automobile has been lengthy and involved. On average, consumers spend three hours in the dealership to purchase a vehicle, with
more than half of that time spent negotiating and completing paperwork. Through our e-commerce and facilities based platform, we
believe that we broaden the consumer's access to the pre-owned automobile market, boost transaction efficiency, more effectively
facilitate supply and demand matching, and modernize traditional transaction processes.
Automobile-related companies that operate
through an Internet-based business model are demonstrating significant growth.
45
Source: Public filings.
Our Solution
Our hybrid business model combines an e-commerce
platform for those wishing to purchase online with the option for a traditional in-person transaction at our physical location.
We intend to eventually carry significant inventory at multiple locations throughout the United States, expanding the selection
available to consumers. We also offer multiple alternatives for automobile acquisition, including sale (with or without financing),
rental and subscription. Management is not aware of any other company currently offering this unique suite of options for consumers.
Currently, we operate from one location in Plantation, Florida. We believe that by providing these alternatives, we can be more
attractive to potential customers and compete favorably in the marketplace.
We are able to effect sales nationwide,
subject to local regulation, whereas existing non-Internet based car dealers are generally limited to their local region. Through
our platform, either directly or through third parties, consumers can research and identify an automobile, obtain financing and
warranty coverage, purchase, rent or subscribe for an automobile, and schedule and arrange for delivery or pick-up, all from their
desktop or mobile device or in person at our location.
Our business model can be characterized
as "Buy, Rent or Subscribe, Sell, and Repeat." We believe that a key differentiator to our business will be how this
combination of services will enable us to maximize revenue and profits per automobile.
●
Buying
. We purchase pre-owned automobiles primarily through auctions or directly from other automobile dealers. We purchase new automobiles from manufacturers and manufacturer distributors at fleet rates.
●
Rentals
. We believe that renting automobiles in our fleet will enable us to capture incremental revenues from our inventory. In addition, we believe that the average amount of time an automobile remains on a lot prior to its sale ranges from approximately thirty (30) to one hundred and twenty (120) days. By placing a fraction of our automobiles into the rental fleet, we believe we can collect rental fees, as well as ancillary and insurance fees, which enhance our revenue and profit per automobile. We believe that there is growing demand for rental vehicles from drivers utilizing ride sharing services, including Uber and Lyft.
●
Subscriptions
. Offering a subscription service is another key component of our business model. Our subscription service will provide consumers with the ability to access, use and switch automobiles offered in accordance with the terms of the specific subscription package, which includes, in many cases, insurance, registration, and maintenance. We believe that a subscription model will create a recurring stream of revenue consisting of monthly subscription fees, and other ancillary fees, which we believe will enhance our profit per automobile. We believe that there is growing demand for subscription vehicles from ride-sharing service drivers, including Uber and Lyft drivers.
46
●
Sales
. Sales of pre-owned automobiles are expected to remain the primary driver of our business, and currently represents a significant portion of our revenues. In connection with the sales process, we assist customers with obtaining financing and extended warranty coverage through third-party providers.
Keys to our business strategy:
●
Automobile sourcing and acquisition
. We plan to build and rebuild our inventories through fleet purchases, wholesale auctions, off-lease acquisitions and strategic acquisitions. Acquired automobiles are inspected and detailed, and reconditioned if necessary. Automobiles are then placed into our inventory, and descriptive information is uploaded to our e-commerce platform. We then determine which automobiles will be offered for rental and subscription, and which will be offered for sale.
●
Automobiles
. We offer our consumers the opportunity to buy, rent or subscribe for automobiles built by foreign and domestic manufacturers. Consumers are able to select among sedans, sport utility vehicles, pick-up trucks, convertibles and sports cars from brands such as BMW, Mercedes-Benz, Land Rover, Toyota, Nissan, Jeep, Chevrolet, Ford, and GMC.
●
Building large, centralized and clustered points-of-presence in key metropolitan areas throughout the United States
. Our plan is to establish large, centralized brick and mortar points-of-presence through organic development and/or strategic acquisitions of independent and franchised dealerships and car rental companies clustered in key metropolitan areas in order to expand our business. By integrating our platform and services with acquired entities, we seek to quickly and efficiently grow our inventory of automobiles, gain access to new facilities, expand our back-office capabilities and expand our business into new locations.
As illustrated below, we intend to establish
large, centralized brick and mortar points-of-presence in key strategic regions in the Southeast, Northeast, Midwest and West regions
of the United States.
●
Additional Revenue.
In addition to revenues from our automobile sales, rental and subscription services, we generate revenue from our customers through the sale of optional ancillary products and services, such as insurance, warranties, fuel charges and toll-passes. In addition, we arrange for our customers to obtain financing and warranty coverage through third parties for the automobiles they purchase. We may receive discounts and commissions for such services.
●
Photography and merchandising
. We photograph the interior and exterior of each automobile featured on our website and provide consumers with a virtual tour and relevant information about the automobile, including a vehicle history report. By providing consumers with detailed information about the automobile, we believe we can generate confidence and trust in our e-commerce platform.
47
Competition
In our various business segments, we compete
with online automotive marketplaces, dealers' websites, dealers' physical locations, car rental and subscription companies,
and ride-hailing and ride-sharing services. We believe that consumers are focused primarily on the quality of their experience,
price and selection. We believe that we compete favorably in each of these areas.
Pre-Owned Vehicle Sales
We compete for consumer visits with other
online automotive marketplaces and dealers' physical locations and websites. We believe we compete for consumers primarily
on the basis of the quality of the consumer experience, price and selection. In addition, we are able to access inventory from
vehicles previously utilized in our rental and subscription platforms and subsequently offered for sale as pre-owned vehicles on
our platforms.
We have also negotiated arrangements to
obtain new vehicles directly from certain manufacturers and manufacturer distributors at wholesale, fleet prices. These vehicles
initially will be offered in our rental and subscription platforms, and then offered for sale as pre-owned vehicles when the vehicle
is ready to be transitioned off of our rental and subscription platforms. We believe this strategy allows us to capture greater
total revenue per vehicle than most of our competitors.
Vehicle Rental
According to Auto Rental News, 2017 vehicle
rentals in the United States generated approximately $29 billion in revenues. Monthly revenue per unit in 2017 was approximately
$1,091, which was an improvement of 6.5% over 2016. We believe that the luxury vehicles offered under our rental program will likely
generate revenues at a higher level than this amount, since consumers are willing to pay more to rent these vehicles. In addition
to our current locations, we plan to open additional rental locations in close proximity to airports, popular tourist locations,
and business centers. We believe this will maximize our opportunity to attract business and leisure travelers who are seeking to
rent a luxury vehicle.
We believe that the U.S. vehicle rental
industry is characterized by intense price and service competition among global, regional and local players. Competition is based
primarily on price, customer service quality, including the usability of booking systems and ease of rental and return, vehicle
availability, reliability, rental locations, and product innovation. In addition, we believe that competition is also strongly
influenced by advertising, marketing, loyalty programs and brand reputation.
The use of online technology has increased
pricing transparency among vehicle rental companies by enabling cost-conscious consumers to more easily price-compare on the Internet.
We believe this transparency has further increased the prevalence and intensity of price competition in the industry. We believe
we will be able to offer competitive pricing for luxury vehicle rentals because our multiple platforms share overhead synergistically
in many cases. We also believe that there exists latent demand for luxury vehicle rentals in the U.S., and that this segment of
the rental market has strong growth potential.
Our vehicle rental operations compete primarily
with Turo, Sixt Rent a Car; Enterprise Holdings, Inc. which operates the Enterprise, National and Alamo Car rental brands; Hertz
Global Holdings, Inc. which operates the Hertz, Dollar and Thrifty brands; Avis Budget Group, Inc., which operates the Avis, Budget
and Zipcar brands; and Europcar Group. In addition, there are smaller local and regional vehicle rental companies and ride-hailing
and ride-sharing companies that we compete with largely in urban areas.
Vehicle Subscription
The automotive industry has started to
adopt a subscription model that offers an alternative to the traditional automotive purchase or lease. Our subscription model enables
consumers to avoid the upfront capital requirements, financing costs and long-term contracts associated with buying or leasing.
In addition, the subscription model offers the convenience and flexibility of switching vehicles with a monthly fee, which includes,
in many cases, insurance, maintenance, servicing and roadside assistance, with a short-term commitment.
48
Our subscription model is intended to attract
consumers that have short-term and frequently changing vehicle needs, desire to switch vehicles regularly, and/or are seeking a
convenient alternative to a traditional purchase or lease arrangement. We believe that the subscription market is growing with
entrants including vehicle manufacturers such as Hyundai and Ford, and luxury manufacturer and brands including Audi, Volvo, Porsche
and BMW. We also compete with companies such as Fair, Clutch, Wyler FastLane, Drive Germain, Mobiliti, and Borrow.
We believe that, as in our rental platform,
our shared overhead strategy allows us to offer vehicle subscriptions at competitive rates. We also believe that vehicle subscriptions
generally are poised for meaningful growth.
Our Competitive Advantages
We believe our multi-pronged business model
is disruptive to the automobile industry, and creates operational efficiencies, multiple revenue streams and scalability, while
creating a better consumer experience.
●
Multi-Pronged Business Approach
.
We intend to combine our rental, subscription and sales operations in most of our planned facilities. As a result, we expect to achieve operational efficiencies and cost savings.
●
Cycle of "Buy, Rent or Subscribe, Sell and Repeat"
. We believe that a key differentiator to our business will be how offering sales, rentals and subscriptions will enable us to maximize revenue and profits per vehicle. We intend for rentals and subscriptions to be product extensions to our core pre-owned vehicle sales platform and believe this will be a powerful differentiator and advantage in the market.
●
Centralized Back-Office Operations
. A significant portion of overhead for vehicle sales and rentals are back-office operations, including finance, titling, administration and data processing. We intend to further develop our technology platform to centralize and automate many of these functions both in our current facilities and any new facilities that we acquire, which we believe will reduce our costs.
●
Centralized Facilities in Strategic Regions
. Our plan is to establish large, centralized brick and mortar points-of-presence through organic development and/or strategic acquisitions of independent and franchised dealerships and car rental companies clustered in key metropolitan areas in order to expand our business. By integrating our platform and services with acquired entities, we seek to quickly and efficiently grow our inventory of automobiles, gain access to new facilities, expand our back-office capabilities, expand our business into new locations and increase market share.
Marketing
We believe our consumer base is similar
to the overall market for pre-owned vehicle sales, rentals and subscriptions. We intend to execute our sales and marketing efforts
utilizing a multi-channel approach that utilizes brand building, as well as direct response channels to efficiently establish and
grow both locally and nationally. Our advertising efforts currently include Internet and online automotive sales sites and search
engines such as Google, eBay Motors, CarGurus, CarFax and Cars.com, as well as social media sites such as Facebook, Instagram and
Twitter. We also intend to advertise through local television, search engine marketing, inventory site listing, retargeting, organic
referral, display, digital radio, direct mail and branded pay-per-click channels. We believe a strong consumer focused approach
ensures customer loyalty which will drive both repeat purchases and referrals. In addition to our paid channels, we intend to attract
new customers through enhancing our earned media and public relations efforts.
49
Our Growth Strategies
Our primary revenue drivers are intended
to be pre-owned vehicle sales, rentals and subscriptions. We plan to generate ancillary revenues from related services, including
sale of third-party finance contracts, services and parts and rental insurance.
We believe that our ability to generate
pre-owned vehicle sales, rentals and subscriptions is a function of the size of our inventory and ability to offer competitive
prices and a pleasant consumer experience. Our expansion plan is to establish a small number of large clustered inventory and sales
facilities throughout the U.S., some with service and reconditioning capabilities and state-of-the-art photo studios. We intend
to establish large, centralized brick and mortar points-of-presence in key-strategic locations in the Southeast, Northeast, Midwest
and West regions of the United States. We believe this plan will enable us to service the largest demand regions and provide us
with cost-efficient distribution and logistics capabilities. Moreover, we believe our ability to increase staffing across regions,
acquire additional inventory and third-party companies, and centralize our back office will allow us to take advantage of economies
of scale and enhance our foundational platform.
We plan to grow sales by executing the
following elements of our growth strategy:
●
Increase Sales By Growing our Inventory
. We believe that sales growth is directly correlated with depth and breadth of inventory, and we are focused on aggressively building our inventory through auctions, off-lease and fleet purchases, and strategic acquisitions of dealerships.
●
Strategic Acquisitions
.
Our plan is to establish large, centralized brick and mortar points-of-presence through organic development and/or strategic acquisitions of independent and franchised dealerships and car rental companies clustered in key metropolitan areas in order to expand our business. By integrating our platform and services with acquired entities, we seek to quickly and efficiently grow our inventory of automobiles, gain access to new facilities, expand our back-office capabilities, and expand our business into new locations.
●
Increase Sales Through Offering Value
. We believe that value for the consumer is a combination of price, selection and transaction experience. As our business model is designed to maximize revenue per vehicle unit, we believe we will be competitive on price. We intend to maximize selection by offering consumers access to our centralized database of nationally pooled inventory of vehicles via our platform. In addition, our goal is that our integrated model combines the best of offline retail and rental and subscription services, with the best of e-commerce features in order to provide our consumers with an unparalleled experience.
●
Develop Broader Brand Awareness
. We believe our marketing and brand development efforts will meaningfully impact our ability to acquire new consumers, and ultimately grow our business. We intend to attract new consumers, and retain existing customers, through advertising, loyalty programs, public relations and referrals. We believe these efforts will be further enhanced once we are able to economically launch national advertising campaigns.
●
Increase Rentals Through Building A Well-Stocked Inventory Featuring a Wide Variety Of Vehicles, With a Focus On Luxury Vehicles
. We believe that consumers want to drive a vehicle similar to the one they have at home when they travel, and we believe that there exists latent demand for luxury vehicle rentals in the U.S., and that this segment of the rental market has strong growth potential.
●
Establishing Facilities in Key Areas
. We plan to establish facilities in key areas, including locations that are in close proximity to airports, popular tourist locations, and business centers. In particular, we believe this will maximize our opportunity to attract business and leisure travelers who are seeking to rent a vehicle.
●
Growing Our Subscription Program
. As in our rental business, we believe that having a well-stocked inventory is key to building our subscription service. Our subscription service offers customers an alternative to buying, renting or leasing.
Comparison
Subscription
Renting
Leasing
Purchasing
Flexible term lengths.
ü
ü
ü
ü
Ability to switch vehicles.
ü
û
û
û
Included insurance, maintenance, service and roadside assistance.*
ü
û
û
û
No Down Payment.
ü
ü
ü
ü
*
Availability based on the specific subscription plan.
50
Seasonality
We expect our quarterly results of operations,
including our revenue, gross profit, profitability, if any, and cash flow to vary significantly in the future, based in part on,
among other things, consumers' car buying patterns. We are a growing company. As we grow, we expect revenues may decrease
in the second half of the calendar year. We believe our future results will be subject to seasonal buying patterns driven in part
by the timing of income tax refunds, which we believe are a primary source of our customers' down payments on pre-owned automobiles.
Due to our limited operating history and the overall growth of our business, these seasonal trends have not yet been pronounced,
but we expect that, in the future, our revenues may be affected by these seasonal trends as well as cyclical trends affecting the
overall economy, specifically the automotive retail industry.
Facilities
We lease our headquarters and fulfillment,
sales, rental and subscription center in Plantation, Florida, pursuant to the ST RXR lease agreement (as defined below) that expires
in 2023. We believe that our current location is adequate to facilitate our current and near-term growth plans.
Government Regulation
Various aspects of our business are or
may be subject to U.S. federal and state regulation. In particular, the advertising, sale, rental, subscription, financing, transport
of vehicles, and employment practices are highly regulated by states in which we do business and by the U.S. federal government.
The regulatory bodies that regulate our business include the Consumer Financial Protection Bureau, the Federal Trade Commission,
the United States Department of Transportation, the Occupational Health and Safety Administration, the Department of Justice, the
Federal Communications Commission, various state dealer licensing authorities, various state consumer protection agencies and various
state financial regulatory agencies. We are subject to compliance audits of our operations by many of these authorities.
Certain states may conclude that our activities
are subject to vehicle dealer licensing laws, requiring us to maintain a used vehicle dealer license in order to conduct business
in that state. Currently, we have at least one licensed facility in Florida, and as we expand to other states, we may be subject
to applicable vehicle dealer licensing laws in those states.
Most states regulate retail installment
sales, including setting a maximum interest rate, caps on certain fees, or maximum amounts financed. In addition, certain states
require that finance companies in general and the Company in particular, file a notice of intent or have a sales finance license
or an installment seller's license in order to solicit or originate installment sales in that state. We currently have a
sales finance license and an installment seller's license in Florida.
For a discussion of the various risks we
face from regulation and compliance matters, see "
Risk Factors — Risks Related to Our Business
."
We operate in a highly regulated industry and are subject to a wide range of federal, state and local laws and regulations. Failure
to comply with these laws and regulations could have a material adverse effect on our business, sales, results of operations and
financial condition.
51
Environmental, Health, and Safety Laws
and Regulations
Our operations involve the use, handling,
storage and contracting for recycling and/or disposal of materials such as motor oil and filters, transmission fluids, antifreeze,
refrigerants, paints, thinners, batteries, cleaning products, lubricants, degreasing agents, tires and fuel. Consequently, our
business is subject to a complex variety of federal, state and local requirements that regulate the environment and public health
and safety.
Our planned facilities may use above ground
storage tanks, and, to a lesser extent, underground storage tanks, primarily for petroleum-based products. Storage tanks are subject
to periodic testing, containment, upgrading and removal under the Resource Conservation and Recovery Act and its state law counterparts.
Clean-up or other remedial action may be necessary in the event of leaks or other discharges from storage tanks or other sources.
In addition, water quality protection programs under the federal Water Pollution Control Act (commonly known as the Clean Water
Act), the Safe Drinking Water Act and comparable state and local programs govern certain discharges from our operations. Similarly,
certain air emissions from operations, such as auto body painting, may be subject to the federal Clean Air Act and related state
and local laws. Health and safety standards promulgated by the Occupational Safety and Health Administration of the United States
Department of Labor and related state agencies also apply.
Certain of our facilities may also become
a party to proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act, or CERCLA, typically in
connection with materials that were sent to former recycling, treatment and/or disposal facilities owned and operated by independent
businesses. The remediation or clean-up of facilities where the release of a regulated hazardous substance occurred is required
under CERCLA and other laws.
We incur certain costs to comply with environmental,
health and safety laws and regulations in the ordinary course of our business. We do not anticipate, however, that the costs of
such compliance will have a material adverse effect on our business, results of operations, cash flows or financial condition,
although such outcome is possible given the nature of our operations and the extensive environmental, public health and safety
regulatory framework. We may become aware of minor contamination at certain of our facilities, and we conduct investigations and
remediation at properties as needed. As we acquire additional facilities, the current or prior property owner may conduct the investigation
and/or remediation, or we may be indemnified by either the current or prior property owner for such contamination. In general,
we do not currently expect to incur significant costs for remediation. However, no assurances can be given that material environmental
commitments or contingencies will not arise in the future, or that they do not already exist but are unknown to us.
Employees
As of May 18, 2019, we employed approximately
11 full-time employees. Certain employees are subject to contractual agreements that specify requirements for confidentiality,
ownership of newly developed intellectual property and restrictions on working for competitors, as well as other matters. None
of our employees are represented by a labor union or covered by a collective bargaining agreement.
Intellectual Property
Our intellectual property consists of websites,
domain names, algorithms, trade secrets and contractual provisions and restrictions on access and use of our proprietary information
and technology.
We are the registered holder of a variety
of domain names, including "lmpmotors.com," "lmprentals.com" and "lmpsubscriptions.com."
In addition to the protection provided
by our intellectual property rights, we enter into confidentiality and proprietary rights agreements with certain of our employees,
consultants, contractors and business partners.
Legal Proceedings
There are no legal proceedings material
to our business or financial condition pending and, to the best of our knowledge, there are no such legal proceedings contemplated
or threatened. We may from time to time be subject to various legal claims arising in the ordinary course of business.
52
MANAGEMENT
Set forth below is information regarding our directors and executive
officers as of the date of this prospectus.
Name
Age
Title
Samer Tawfik
53
President, Chief Executive Officer and Chairman of the Board of Directors
William "Billy" Cohen
62
Lead Independent Director
Robert "Bob" J. Morris, Jr.
72
Director
Elias Nader
55
Director
Samer "Sam" Tawfik
is the founder of LMP Automotive Holdings, Inc. and has served as our President, Chief Executive Officer and Chairman of the board
of directors since January 2018. Prior to founding LMP Automotive Holdings, Inc., Mr. Tawfik was the founder and Managing Partner
of ST RXR Investments, LLC. Mr. Tawfik was also the founder and Chief Executive Officer of Telco Group, Inc. which was acquired
by Leucadia National Corp in 2007 and was the founder and Chief Executive Officer of PT-1 Communications, Inc., which was acquired
by Star Telecommunications Inc. in 1998. From February 1999 through March 2000, Mr. Tawfik served as a Director of Star Telecommunications,
Inc. Mr. Tawfik has extensive experience in technology, finance, banking and statistical science.
We believe that Mr. Tawfik should
continue to serve as a member of our board of directors due to his executive experience, and his financial, investment, and management
experience, which will provide the requisite qualifications, skills, perspectives, and experience that make him well qualified.
William "Billy" Cohen
has served as a member of our board of directors and the Lead Independent Director since March 2018. He is currently the Vice Chairman
at Newmark Knight Frank, a global commercial real estate advisory firm. Mr. Cohen has over 38 years' of experience with commercial
real estate acquisitions, conflict management, negotiation, fund raising, tenant representation, owner representation, leasing
advisory services, property and asset management, and corporate advisory services. Mr. Cohen holds a B.A. in Finance from the University
of Miami.
We believe that Mr. Cohen should continue
to serve as a member of our board of directors due to his executive experience, management experience and substantive experience
working with companies in the real estate industry which will provide the requisite qualifications, skills, perspectives, and experience
that make him well qualified.
Robert "Bob" J. Morris,
Jr.
has served as a member of our board of directors since May 2019. He is currently
Director of The Southeast region
for the Tim Lamb Group and Former Chairman of the Pontiac-GMC National Dealer Council.
Mr. Morris has represented AutoNation,
Hendrick Automotive Group, AMSI (Terry Taylor) and many others in buy-sell transactions of franchised dealerships. Mr. Morris brings
over three decades of retail automotive experience that encompasses franchise dealer acquisitions and operations, pre-owned dealer
operations, as well as leasing, finance and sales expertise. We believe that Mr. Morris should continue to serve as a member of
our board of directors because he brings the necessary leadership experience to the LMP Board of Directors. Prior to joining the
Tim Lamb Group, he led and owned franchise dealerships for over two decades and always exceeded factory goals.
Elias Nader
has served as
a member of our board of directors since May 2019. Mr. Nader has over 25 years of experience in Finance and Accounting. He is a
versatile, high-energy finance executive who leads companies through change and challenge to profitable growth. He is skilled in
negotiating partnerships and alliances with a keen ability to forecast industry trends and capture opportunities as well as experienced
in transforming and growing technology start-ups to global businesses. We believe that Mr. Nader should continue to serve as a
member of our board of directors because Mr. Nader has built financially sophisticated teams as well as ERP systems, creating transparent
communication from the management level to the boardroom and shareholders. Prior to joining LMP's Board, Mr. Nader was the
interim President and CEO of Sigma Designs, Inc., a Nasdaq-listed Company, as well as its Chief Financial Officer. He has also
served as a Board Member of the company from 2012 to 2019. Mr. Nader also serves as an Advisory Board member of Bottles Waiting,
a private company, and served as an Audit Committee Member of the Board of Directors of YuMe, Inc., a Nasdaq-listed company
from 2016 to 2018.  Prior to that, Mr. Nader was the Chief Financial Officer for Imperial Holding, based in Europe and the
Middle East, and held numerous senior executive roles in a number of Fortune 500 public companies. Mr. Nader is a graduate of San
Jose State University.
53
Involvement in Certain Legal Proceedings
None of our directors or executive officers
have been involved in any of the following events during the past ten years:
●
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;
●
any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);
●
being subject to 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 or her involvement in any type of business, securities or banking activities; or
●
being found by a court of competent jurisdiction (in a civil action), the SEC 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.
Board Composition
Our board of directors currently consists
of four (4) members and is authorized to have up to seven (7) members. Our board of directors is authorized to appoint persons
to the offices of President, Secretary and such other offices as may be determined by the board of directors.
We have no formal policy regarding board
diversity. In selecting board candidates, we seek individuals who will further the interests of our stockholders through an established
record of professional accomplishment, the ability to contribute positively to our collaborative culture, knowledge of our business
and understanding of our prospective markets. We plan to recruit additional independent directors who can bring specific expertise
and experience that is relevant to the Company's business and our future direction.
Classified Board
In accordance with the terms of our Certificate
of Incorporation and Bylaws upon the consummation of this offering, our board of directors will be divided into three classes,
Class I, Class II and Class III, with each class serving staggered three-year terms. Upon the expiration of the term of a class
of directors, directors in that class will be eligible to be elected for a new three-year term at the annual meeting of stockholders
in the year in which their term expires. Set forth below is information regarding the membership of each class of directors.
Director:
Initial Term Expires:
Class I Directors:
At the 2022 annual meeting of stockholders
Robert "Bob" J. Morris, Jr.
Elias Nader
Class II Directors:
At the 2020 annual meeting of stockholders
William "Billy" Cohen
Class III Directors:
At the 2021 annual meeting of stockholders
Samer Tawfik
Our Certificate of Incorporation and Bylaws
provide that the authorized number of directors may be changed only by resolution of the board of directors. Any additional directorships
resulting from an increase in the number of directors will be distributed among the three classes so that, as nearly as possible,
each class shall consist of one third of the board of directors.
54
The division of
our board of directors into three (3) classes with staggered three-year terms may delay or prevent stockholder efforts to effect
a change of our management or a change in control.
Director Independence
The board of directors has determined that
Messrs. Cohen, Morris, and Nader satisfy the requirement for independence set out in Nasdaq rules and that each of these directors
has no material relationship with us (other than being a director and/or a stockholder). In making its independence determinations,
the board of directors sought to identify and analyze all of the facts and circumstances relating to any relationship between a
director, his or her immediate family or affiliates and our Company and our affiliates and did not rely on categorical standards
other than those contained in Nasdaq rule referenced above.
Board Committees
Our board of directors has established
three standing committees — audit, compensation, and nominating and corporate governance — each of which operates under
a charter that has been approved by our board of directors. We have appointed persons to the board of directors and committees
of the board of directors as required to satisfy the corporate governance requirements of Nasdaq. We currently have a majority
of independent directors on our board of directors.
Audit Committee
We have a separately designated standing
audit committee of our board of directors, as defined in Section 3(a)(58)(A) of the Exchange Act. The audit committee is currently
comprised of our three independent directors: Messrs. Cohen, Morris and Nader. Mr. Cohen is the Chair of our audit committee. Our
board of directors has determined that each of the members of our audit committee is "independent" within the meaning
of Nasdaq Listing Rules and the SEC, and that each of the members of our audit committee is financially literate and has accounting
or related financial management expertise, as such qualifications are defined under Nasdaq Listing Rules. In addition, our board
of directors has determined that Mr. Cohen is an "audit committee financial expert," as defined by the SEC. Our audit
committee operates under a written charter that was adopted in 2018. A copy of the charter may be found on our website at www.lmpmotors.com
and will be provided in print, free of charge, to any stockholder who requests a copy by submitting a written request to our Secretary
at LMP Automotive Holdings, Inc., 601 N. State Road 7, Plantation, Florida, 33317.
Our audit committee assists our board of directors in its oversight
of our accounting and financial reporting process and the audits of our financial statements. Our audit committee's responsibilities
include:
●
appointing, approving the compensation of, and assessing the independence of, our registered public accounting firm;
●
overseeing the work of our registered public accounting firm, including through the receipt and consideration of reports from such firm;
●
reviewing and discussing with management and the registered public accounting firm our annual and quarterly financial statements and related disclosures;
●
monitoring our internal control over financial reporting, disclosure controls and procedures and code of business conduct and ethics;
●
overseeing our internal accounting function;
●
discussing our risk management policies;
●
establishing policies regarding hiring employees from our registered public accounting firm and procedures for the receipt and retention of accounting-related complaints and concerns;
55
●
meeting independently with our internal accounting staff, registered public accounting firm and management;
●
reviewing and approving or ratifying related party transactions; and
●
preparing the audit committee reports required by SEC rules.
Compensation Committee
The members of the compensation committee
are Messrs. Cohen, Morris and Nader. Mr. Cohen is the Chair of the compensation committee. Our board of directors has determined
that each of the members of the Compensation Committee is "independent" within the meaning of the rules of Nasdaq.
Our compensation committee assists our board of directors in the discharge of its responsibilities relating to the compensation
of our executive officers. Our compensation committee operates under a written charter that was adopted in 2018. A copy of the
charter may be found on our website at www.lmpmotors.com and will be provided in print, free of charge, to any stockholder who
requests a copy by submitting a written request to our Secretary at LMP Automotive Holdings, Inc., 601 N. State Road 7, Plantation,
Florida, 33317.
The compensation committee's responsibilities include:
●
reviewing and approving corporate goals and objectives with respect to Chief Executive Officer compensation;
●
making recommendations to our board of directors with respect to the compensation of our Chief Executive Officer and our other executive officers;
●
overseeing evaluations of our senior executives;
●
reviewing and assessing the independence of compensation advisers;
●
overseeing and administering our 2018 Plan; and
●
reviewing and making recommendations to our board of directors with respect to director compensation.
Nominating and Corporate Governance Committee
The members of the nominating and corporate
governance committee are Messrs. Cohen, Morris and Nader. Mr. Cohen is the Chair of the nominating and corporate governance
committee. Our board of directors has determined that each of the members of the nominating and corporate governance committee
is "independent" within the meaning of the rules of Nasdaq. Our nominating and corporate governance committee operates
under a written charter that was adopted in 2018. A copy of the charter may be found on our website at www.lmpmotors.com and will
be provided in print, free of charge, to any stockholder who requests a copy by submitting a written request to our Secretary at
LMP Automotive Holdings, Inc., 601 N. State Road 7, Plantation, Florida, 33317.
The nominating and corporate governance committee's responsibilities
include:
●
identifying individuals qualified to become board members;
●
recommending to our board the persons to be nominated for election as directors and to be appointed to each committee of our board of directors;
●
reviewing and making recommendations to the board of directors with respect to management succession planning;
●
developing and recommending corporate governance principles to the board of directors; and
●
overseeing periodic evaluations of board members.
56
Board Leadership Structure and Risk Oversight
Our board of directors currently believes
that our Company is best served by combining the roles of Chairman, President and Chief Executive Officer. Our board of directors
believes that as Chief Executive Officer, Mr. Tawfik is the director most familiar with our business and industry and most capable
of effectively identifying strategic priorities and leading discussion and execution of strategy. Our independent directors bring
experience, oversight and expertise from outside our Company, while our Chief Executive Officer brings company-specific experience
and expertise. Our board of directors believes that the combined role of Chairman, President and Chief Executive Officer is the
best leadership structure for us at the current time as it promotes the efficient and effective development and execution of our
strategy and facilitates information flow between management and our board of directors. The board of directors recognizes, however,
that no single leadership model is right for all companies at all times. Our corporate governance guidelines provide that the board
of directors should be free to choose a chairperson of the board of directors based upon the board's view of what is in the
best interest of our Company. Accordingly, the board of directors intends to periodically review its leadership structure.
The board of directors oversees our business
and considers the risks associated with our business strategy and decisions. The board of directors currently implements its risk
oversight function as a whole. Each of the board committees also provides risk oversight in respect to its areas of concentration
and reports material risks to the board of directors for further consideration.
Lead Independent Director
Our independent directors have designated
William Cohen as our lead independent director. The lead independent director coordinates the activities of our other independent
directors. In addition to the duties of all members of the board of directors, the lead independent director has the following
additional responsibilities and authority:
●
presiding at meetings of the board of directors in the absence of, or upon the request of, the Chairman;
●
scheduling, developing the agenda for, and presiding at executive sessions of the independent directors;
●
advising the Chairman and/or the board of directors as to the decisions reached, if any, at each executive session;
●
serving as the principal liaison between the independent directors and the Chairman/Chief Executive Officer;
●
advising the Chairman as to the quality, quantity and timeliness of the information submitted by the Company's management that is necessary or appropriate for the independent directors to effectively and responsibly perform their duties;
●
assisting the board of directors and the nominating and corporate governance committee in better ensuring compliance with and implementation of our corporate governance guidelines; and
●
recommending to the Chairman, at the direction of the independent directors, the retention of outside advisors and consultants who report directly to the board of directors on board-wide issues.
Code of Business Conduct and Ethics
We have adopted a written code of business
conduct and ethics that applies to our directors, officers and employees, including our principal executive officer, principal
financial officer and principal accounting officer or controller, or persons performing similar functions. Upon the listing of
our common stock on Nasdaq, we will post on our website a current copy of the code and all disclosures that are required by law
or Nasdaq rules in regard to any amendments to, or waivers from, any provision of the code.
Family Relationships
There are no family relationships among
any of our directors or executive officers. There are no family relationships between any director, executive officer or significant
employee of the Company.
57
EXECUTIVE COMPENSATION
Summary Compensation Table
The following table
sets forth information regarding compensation earned during 2018 and 2017 by our principal executive officer and our other most
highly compensated executive officers, or the named executive officers, as of the end of the 2018 fiscal year.
Name and Principal Position
Year
Salary
($)
Bonus
($)
Stock
Awards
($)
(1)
Option
Awards
($)
(1)
All Other Compensation
($)
Total
($)
Samer Tawfik, Chairman,
2018
$
120,000
$
0
$
0
$
0
$
0
$
120,000
President and CEO
2017
(2)
$
0
$
0
$
0
$
0
$
0
$
0
(1)
Represents the aggregate grant date fair value of the award computed in accordance with the provisions of FASB ASC Topic 718. The assumptions used in calculating the aggregate grant date fair value of the awards reported in this column are set forth in Note 1 to our consolidated financial statements included in this prospectus.
(2)
Mr. Tawfik did not receive compensation for his role as Chairman, President and Chief Executive Officer of our company for fiscal year 2017.
Narrative Disclosures Regarding Compensation; Employment
Agreements
Samer Tawfik Employment Agreement
On February 20, 2018, our wholly owned
subsidiary, LMPMotors.com, LLC, and our Chairman, President and Chief Executive Officer, Samer Tawfik, entered into an employment
agreement, or the Tawfik agreement, pursuant to which Mr. Tawfik shall serve as Chief Executive Officer of LMPMotors.com, LLC.
Pursuant to the Tawfik agreement, his annual salary is equal to one hundred and twenty thousand dollars ($120,000).
2018 Equity Incentive Plan
We have reserved one million five hundred
thousand (1,500,000) shares of our common stock for issuance under the 2018 Equity Incentive Plan, or the 2018 Plan. Participation
in the 2018 Plan will continue until all of the benefits to which the participants are entitled have been paid in full.
Description of Awards under the 2018
Plan
Awards to Company Employees
.
Under
the 2018 Plan, the compensation committee, or the committee, which will administer the plan, may award to eligible employees incentive
and nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance
shares.
Awards to Non-Employees
.
The
Committee may award to non-employees, including non-employee directors, non-qualified stock options, stock appreciation rights,
or SARs, restricted stock and restricted stock units.
58
Stock Options
The Committee has discretion to award incentive
stock options, or ISOs, which are intended to comply with Section 422 of the Code, or nonqualified stock options, or NQSOs, which
are not intended to comply with Section 422 of the Code. The exercise price of an option may not be less than the fair market value
of the underlying shares of common stock on the date of grant. The 2018 Plan defines "fair market value" as the closing
sale price at which shares of our common stock have been sold regular way on the principal securities exchange on which the shares
are traded.
Options granted to employees under the
2018 Plan will expire at such times as the Committee determines at the time of the grant; provided, however, that no option will
be exercisable later than ten years after the date of grant. Each option award agreement will set forth the extent to which the
participant will have the right to exercise the option following termination of the participant's employment with the Company.
The termination provisions, which will be determined within the discretion of the Committee, might not be uniform among all participants
and might reflect distinctions based on the reasons for termination of employment. Notwithstanding the preceding sentences, unless
the terms of the award agreement otherwise provide for a shorter exercise period, ISOs must be exercised within three (3) months
after an employee's termination of employment. However, if the termination is due to death or disability (as defined under
Code Section 22(e)(3)), the ISOs must be exercised within one (1) year after an employee's termination of employment. Subject
to the specific terms of the 2018 Plan, the Committee will have discretion to set such additional limitations on such grants as
it deems appropriate. The award agreement will reflect these limitations.
Upon the exercise of an option granted
under the 2018 Plan, the option price is payable in full to the Company, either: (a) in cash or its equivalent, (b) if permitted
in the award agreement, by tendering shares having a fair market value at the time of exercise equal to the total option price
(provided that such shares have been held by the optionee for at least six months prior to their tender) or (c) by any combination
of the foregoing methods of payment. The Committee may also allow options granted under the 2018 Plan to be exercised by a cashless
exercise through a broker, as permitted under Federal Reserve Board Regulation T, or any other means the Committee determines to
be consistent with the 2018 Plan's purpose and applicable law, including by cashless exercise directly with the Company whereby
the Company, following its receipt of the participant's notice of exercise, would withhold the proper number of Company shares
which would have a fair market value on the date of exercise equal to the option exercise price.
Stock Appreciation Rights
The Committee may award SARs under the 2018 Plan upon such terms
and conditions as it may establish. At the discretion of the Committee, the payment upon SAR exercise may be in cash, in shares
of Company common stock of equivalent value, or in some combination thereof. The Committee's determination regarding the
form of payment for the exercised SAR will be set forth in the award agreement. The Committee may award either (i) freestanding
SARs, which are SARs granted as an independent instrument and are not granted in conjunction with any stock options, or (ii) SARs
in tandem with stock options, or tandem SARs. A tandem SAR entitles the participant to exercise it as an option or as an SAR. The
election of one type of exercise prevents it from being exercised as the other type. A tandem SAR may not be granted to a non-employee
Director unless the related option is a NQSO. The exercise price of a freestanding SAR will equal the fair market value of a share
of common stock on the date of grant, whereas the exercise price of a tandem SAR issued in connection with a stock option will
equal the option price of the related option.
The Committee will determine in its discretion
the term of an SAR granted under the 2018 Plan. Each award agreement will set forth the extent to which the participant will have
the right to exercise the SAR following termination of the participant's employment with the Company. The termination provisions
will be determined by the Committee in its sole discretion, need not be uniform among all participants and may reflect distinctions
based on the reasons for termination of employment. The term of an SAR may not exceed ten years from the date of grant. Therefore,
no SAR may be exercisable later than ten years after the date of award.
Except as otherwise limited by the 2018
Plan, freestanding SARs may be exercised upon whatever terms and conditions the Committee, in its sole discretion, imposes upon
them. The Committee will determine the number of shares of common stock covered by and the exercise period of the SAR. Upon exercise
of a freestanding SAR, the participant will receive an amount equal to the excess of the fair market value of one share of common
stock on the date of exercise over the grant price, multiplied by the number of shares of stock exercised under the SAR.
59
In the case of a tandem SAR, the Committee
may determine the exercise period of the SAR, except that the exercise period may not exceed that of the related option. The participant
may exercise the tandem SAR when the option is exercisable and receive on exercise an amount equal to the excess of the fair market
value of one share of common stock on the date of exercise over the option purchase price, multiplied by the number of shares of
common stock covered by the surrendered option. Upon exercise of an SAR awarded in tandem with a stock option, the number of shares
of our common stock for which the related option was exercisable will be reduced by the number of shares for which the SAR was
exercised.
Notwithstanding any other provision of
this 2018 Plan to the contrary, with respect to a tandem SAR granted in connection with an ISO, (i) the tandem SAR will expire
no later than the expiration of the underlying ISO; (ii) the value of the payout with respect to the tandem SAR may be for no more
than 100% of the difference between the option price of the underlying ISO and the fair market value of the shares of common stock
subject to the underlying ISO at the time the tandem SAR is exercised; and (iii) the tandem SAR may be exercised only when the
fair market value of the shares subject to the ISO exceeds the option price of the ISO.
Restricted Stock
The Committee may impose restrictions and
conditions as to awards of shares of restricted stock as it deems advisable. As specified in the relevant award agreement, restrictions
may include a requirement that participants pay a stipulated purchase price for each share of restricted stock, restrictions based
upon the achievement of specific performance goals (Company-wide, divisional and/or individual), time-based restrictions on vesting
following the attainment of the performance goals and/or restrictions under applicable federal or state securities laws.
We may retain in our possession the certificates
representing shares of restricted stock until the time when all conditions and/or restrictions applicable to those shares awarded
under the 2018 Plan have been satisfied. Generally, shares of restricted stock covered by each restricted stock grant made under
the 2018 Plan will become freely transferable by the participant following the last day of the applicable period of restriction.
However, even after the satisfaction of the restrictions and conditions imposed by the 2018 Plan and the particular award agreement,
shares owned by an affiliate of the Company will be subject to restrictions on transfer under the Securities Act.
Awards to Employees
.
The Committee may choose
to award shares of restricted stock under the 2018 Plan upon such terms and conditions as it may establish. The award agreement
will specify the period(s) of restriction, the number of shares of restricted stock granted, the requirement that a participant
pay a stipulated purchase price for each share, restrictions based upon the achievement of specific performance objectives, other
restrictions governing the subject award and/or restrictions under applicable federal or state securities laws. Recipients may
have the right to vote these shares from the date of grant, as determined by the Committee on the date of award. As determined
by the Committee on the date of award, participants may receive dividends on their shares of restricted stock. Dividends accrued
on restricted stock will be paid only if the restricted stock vests.
Each award agreement for restricted stock
will specify the extent to which the participant will have the right, if any, to retain unvested restricted stock following termination
of the participant's employment with the Company. In its sole discretion, the Committee will make these determinations; these
provisions need not be uniform among all awards of restricted stock issued under the 2018 Plan and may reflect distinctions based
on reasons for termination of employment.
Awards to Non-Employee Directors
.
Restricted
stock awards to non-employee Directors will be subject to the restrictions for a period, which will commence upon the date when
the restricted stock is awarded and will end on the earliest of the first to occur of the following:
●
the retirement of the non-employee Director from the board of directors in compliance with the board's retirement policy as then in effect;
●
the termination of the non-employee Director's service on the board of directors as a result of the non-employee Director's not being nominated for reelection by the board of directors;
60
●
the termination of the non-employee Director's service on the board of directors because of the non-employee Director's resignation or failure to stand for reelection with the consent of the board (which means approval by at least 80% of the Directors voting, with the affected non-employee Director abstaining);
●
the termination of the non-employee Director's service on the board of directors because the non-employee Director, although nominated for reelection by the board of directors, is not reelected by the stockholders;
●
the termination of the non-employee Director's service on the board of directors because of (i) the non-employee Director's resignation at the request of the nominating and corporate governance of the board of directors, (ii) the non-employee Director's removal by action of the stockholders or by the board of directors, or (iii) a change in control of the Company, as defined in the 2018 Plan;
●
the termination of the non-employee Director's service on the board of directors because of disability or death; or
●
the vesting of the award in accordance with its terms.
As of the date specified by the Committee,
each non-employee Director will be awarded that number of shares of restricted stock as determined by the board of directors, after
consideration of the recommendations of the Committee. A non-employee Director who is first elected to the board of directors on
a date subsequent to the date so specified will be awarded that number of shares of restricted stock as determined by the board
of directors, after consideration of the recommendations of the Committee. The amount of the award for the upcoming 2018 Plan year
will be disclosed in the Company's proxy statement for the Company's annual meeting of stockholders. The 2018 Plan
provides that non-employee Directors receiving restricted stock may have, subject to the provisions of the 2018 Plan, all of the
rights of a stockholder with respect to the shares of restricted stock, including the right to vote the shares and receive cash
dividends and other cash distributions thereon. If a non-employee Director ceases to be a member of the board of directors for
any other reason, including removal or resignation for "Cause," as defined in the 2018 Plan, the non-employee Director
will forfeit to the Company all restricted stock awarded to him or her for which the restricted period has not ended.
Restricted Stock Units
The Committee may award restricted stock
units, or RSUs. Each RSU will have a value equal to the fair market value of a share of the Company's common stock on the
date of grant. In its discretion, the Committee may impose conditions and restrictions on RSUs, as specified in the RSU award agreement,
including restrictions based upon the achievement of specific performance goals and time-based restrictions on vesting. As determined
by the Committee at the time of the award, settlement of vested RSUs may be made in the form of cash, shares of Company stock,
or a combination of cash and Company stock. Settlement of vested RSUs will be in a lump sum as soon as practicable after the vesting
date but in no event later than two and one-half (2½) months following the vesting date. The amount of the settlement will
equal the fair market value of the RSUs on the vesting date. Each RSU will be credited with an amount equal to the dividends paid
on a share of Company stock between the date of award and the date the RSU is paid to the participant, if at all. Dividend equivalents
will vest, if at all, upon the same terms and conditions governing the vesting of the RSUs under the 2018 Plan. Payment of the
dividend equivalent will be paid at the same time as payment of the RSU. The holders of RSUs will have no voting rights.
Each award agreement for RSUs will specify
the extent to which the participant will have the right, if any, to retain unvested RSUs following termination of the participant's
employment with the Company or, in the case of a non-employee Director, service with the board of directors. In its sole discretion,
the Committee will make these determinations; these provisions need not be uniform among all awards of RSUs issued under the 2018
Plan and may reflect distinctions based on reasons for termination of employment or, in the case of a non-employee Director, service
with the board of directors.
61
Performance Units/Performance Shares
The Committee has the discretion to award
performance units and performance shares under the 2018 Plan upon such terms and conditions as it may establish, as evidenced in
the relevant award agreement. Performance units will have an initial value as determined by the Committee, whereas performance
shares will have an initial value equal to one share of common stock on the date of award. At the time of the award of the performance
units or shares, the Committee in its discretion will establish performance goals which, depending on the extent to which they
are met, will determine the number and/or value of performance units or shares that will be paid out to the participant. Under
the terms of the 2018 Plan, after the applicable performance period has ended, the holder of performance units or shares will be
entitled to receive payout on the number and value of performance units or shares earned by the participant over the performance
period. The payout on the number and value of the performance units and performance shares will be a function of the extent to
which corresponding performance goals are met.
Payment of performance shares and performance
units will be made in a single lump sum following the close of the applicable performance period. Upon satisfaction of the specified
performance goals, but in no event later than two and one-half (2½) months following the close of the performance period,
the Committee in its discretion, may pay earned performance units and earned performance shares in cash, in shares of Company stock
or in a combination of cash and stock, which will have an aggregate fair market value equal to the value of the earned performance
share or performance unit at the close of the applicable performance period. Participants will not be entitled to dividend or voting
rights with respect to any performance shares or performance units earned but not yet distributed to a participant. Unless otherwise
determined by the Committee in the case of a separation of service during the performance period, the participant, or his or her
estate, will not be entitled to receive any payout of the performance shares or performance units.
Adjustment and Amendments
The 2018 Plan provides for appropriate
adjustments in the number of shares of Company stock subject to awards and available for future awards in the event of changes
in outstanding common stock by reason of a merger, stock split, stock dividend, or certain other events.
The 2018 Plan may be modified or amended
by the board of directors at any time and for any purpose which the board deems appropriate. However, no such amendment may adversely
affect any outstanding awards without the affected holder's consent. No amendment may, without stockholder approval, (i)
materially increase the benefits earned by participants under the 2018 Plan, (ii) materially increase the number of shares which
may be issued under the 2018 Plan or (iii) materially modify the requirements for participation in the 2018 Plan.
Change in Control
In the event of a change in control, as
defined in the 2018 Plan, generally all options and SARs granted under the 2018 Plan will vest and become immediately exercisable;
and restriction periods and other restrictions imposed on restricted stock and RSUs will lapse.
Non-transferability
No award under the 2018 Plan may be sold,
transferred, pledged, assigned or otherwise transferred in any manner by a participant except by will or by the laws of descent
and distribution; and any award will be exercisable during a participant's lifetime only by the participant or by the participant's
guardian or legal representative. These limitations may be waived by the Committee, subject to restrictions imposed under the SEC's
short-swing trading rules and federal tax requirements relating to incentive stock options.
Duration of the 2018 Plan
The 2018 Plan will remain in effect until
all shares subject to the 2018 Plan have been purchased or acquired under the terms of the 2018 Plan, and all performance periods
for performance-based awards granted under the 2018 Plan have been completed. However, no award is permitted to be granted under
the 2018 Plan on or after the day prior to the tenth anniversary of the date the board of directors approved the 2018 Plan. The
board of directors, upon recommendation of the Committee, may at any time amend, suspend or terminate the 2018 Plan in whole or
in part for any purpose the Committee deems appropriate, subject, however, to the limitations referenced in "Adjustment and
Amendments" above.
62
Outstanding Equity Awards at Fiscal Year End
2018 Outstanding Equity Awards at Fiscal
Year-end Table
The following table
sets forth information regarding the outstanding equity awards held by our Named Executive Officers as of the end of our 2018 fiscal
year:
Option
    Awards
Stock
    Awards
Number
    of
Securities
Underlying
Unexercised
Options
(#)
Number
    of
Securities
Underlying
Unexercised
Options
(#)
Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
Option
Exercise
Price
Option
Expiration
Number
    of
Shares or
Units
    of
Stock That Have Not
    Vested
Market
Value of
Shares or
Units of
Stock
That
Have Not
Vested
Equity
Incentive
Plan
Awards:
Number
of
Unearned
Shares,
Units
or Other
Rights
That
Have Not
Vested
Equity
Incentive
Plan
Awards:
Market
or Payout
Value of
Unearned
Shares,
Units or
Other
Rights
That
Have Not
Vested
Name
Exercisable
Unexercisable
(#)
($)
Date
(#)
($)
(#)
($)
Samer
    Tawfik
N/A
N/A
N/A
N/A
N/A
—
—
—
—
We have not engaged in any option re-pricings
or other modifications to any of our outstanding equity awards to our Named Executive Officers during fiscal year 2018.
Compensation of Directors
2018 Director Compensation Table
The following Director Compensation Table
sets forth information concerning compensation for services rendered by our independent directors for fiscal year 2018.
Name
Fees Earned
or
Paid in Cash
($)
Stock
Awards
($)
Option
Awards
($)
(1)
All Other
Compensation
($)
Total
($)
William Cohen
(2)
$
20,000
—
$
63,650
$
—
$
83,650
Tarang Gupta
(3)
20,000
—
40,150
—
60,150
Derek Goodman
(4)
12,000
—
49,000
—
61,000
Total:
$
52,000
—
$
152,800
—
$
204,800
(1)
Represents
the aggregate grant date fair value under FASB ASC Topic 718 of options to purchase shares of our common stock granted during
2018.
63
(2)
Mr. Cohen was appointed to serve as a member of the Board in March 2018. As of December 31, 2018, Mr. Cohen held options to purchase up to 40,000 shares of our common stock.
(3)
Mr. Gupta was appointed to serve as a member of the Board in March 2018. Mr. Gupta's term expired on February 28, 2019 and he did not stand for reelection to the Board.  As of December 31, 2018, Mr. Gupta held options to purchase up to 25,000 shares of our common stock.  Such options were terminated upon the expiration of Mr. Gupta's term on the Board.
(4)
Mr. Goodman was appointed to serve as a member of the Board in June 2018.  Mr. Goodman resigned from the Board effective February 28, 2019.  As of December 31, 2018, Mr. Goodman held options to purchase up to 25,000 shares of our common stock.  Such options were terminated upon Mr. Goodman's resignation from the Board.
Mr. Tawfik, who served as a director and
as an executive officer of our company during our 2018 fiscal year, has not been included in the Director Compensation Table because
he is a Named Executive Officer of our company, and all compensation paid to him during 2018 is reflected in the Summary Compensation
Table above.
Securities Authorized for Issuance under Equity Compensation
Plans
In January 2018, the board of directors
approved the 2018 Plan and our stockholders approved its adoption. Upon effectiveness of the 2018 Plan, no additional awards will
be granted under our prior equity incentive plans. We have reserved one million five hundred thousand (1,500,000) shares of our
common stock for issuance under the 2018 Plan. Participation in the 2018 Plan will continue until all of the benefits to which
the participants are entitled have been paid in full.
As of June 10, 2019, we issued a total
of 595,500 options to purchase shares of our common stock under the 2018 Plan, including 90,000 options to purchase shares of our
common stock to our directors and officers. See "
Security Ownership of Certain Beneficial Owners and Management
."
Plan Category
Number of securities to be issued upon exercise of outstanding options, warrants and rights
Weighted-average exercise price of outstanding options, warrants and rights(1)
Number of securities remaining available for future issuance under equity compensation plans (excluding securities to be issued upon exercise of outstanding options, warrants and rights)
Equity compensation plans approved by security holders
595,000
$
3.91
905,000
Equity compensation plans not approved by security holders
—
—
—
Total:
595,000
$
3.91
905,000
(1)
Calculated
as of March 31, 2019.
64
CERTAIN RELATIONSHIPS AND RELATED PARTY
TRANSACTIONS
The following are summaries of certain
provisions of our related party agreements and are qualified in their entirety by reference to all of the provisions of such agreements.
Because these descriptions are only summaries of the applicable agreements, they do not necessarily contain all of the information
that you may find useful. We therefore urge you to review the agreements in their entirety. To the extent required, copies of the
agreements (or forms of the agreements) have been filed as exhibits to the Registration Statement of which this prospectus is a
part, and are available electronically on the website of the SEC at www.sec.gov.
Reorganization
The Company was incorporated under the
laws of Delaware in December 2017. Samer Tawfik, our founder, President, Chief Executive Officer and Chairman, contributed one
hundred percent (100%) of the equity interests in each of LMP Motors.com, LLC and LMP Finance, LLC into the Company in December
2017, and in January 2018, 601 NSR, LLC and LMP Automotive Holdings, LLC made the Company their sole member. As a result of the
Reorganization, the Company now owns one hundred percent (100%) of the equity in each of these four entities. LMP Motors.com, LLC
currently operates our automobile sales business. LMP Finance, LLC currently operates our rental and subscription business. 601
NSR, LLC and LMP Automotive Holdings, LLC were formed to enter into future potential strategic acquisitions, but are currently
inactive. As a result of the reorganization, our founder, President, Chief Executive Officer and Chairman, Samer Tawfik received
15,750,000 shares of common stock and ST RXR received 5,250,000 shares of common stock.
Lease Agreement with ST RXR Investment,
Inc.
On February 1, 2018, our wholly owned subsidiary,
LMPMotors.com, LLC, entered into a lease agreement with ST RXR, or the ST RXR lease agreement, for our principal executive office
located in Plantation, Florida. Pursuant to the ST RXR lease agreement, the term of the lease will run from March 1, 2018 to March 1,
2023, with an option to extend the lease for one additional five (5) year period, at a rental amount equal to $28,500 per month,
subject to increase, as fully in the ST RXR lease agreement. Under the terms of the ST RXR lease agreement, the rental amount shall
increase each year by an amount equal to three percent (3%) over the previous year on the 1
st
day. Our Chairman, President
and Chief Executive Officer, Samer Tawfik, owns all membership interests of, and is sole manager of ST RXR. We believe the terms
of the ST RXR lease agreement are similar to lease terms the Company would have obtained in an arm's-length transaction not
involving Company related parties.
Line of Credit Agreement with ST RXR
In January 2018, we entered into the
$1,500,000 revolving credit facility with ST RXR pursuant to the LOC agreement. Under the LOC agreement, the revolving credit
facility shall mature on the earlier of written demand by the lender or May 21, 2020. Upon completion of this offering, the
revolving credit facility may be repaid, in part or in full, with other credit facilities in the normal course of business or
cash generated from our business.
Financing Activities
During the year ended December 31, 2017,
we received cash of $1,091,500 from the issuance of notes payable to certain related parties. In addition, we received $3,637,255
from contributions of capital from Mr. Tawfik. The capital contributions made by Mr. Tawfik are not debt, and Mr. Tawfik did not
receive any additional equity in connection with his contributions. Accordingly, we are not obligated to repay Mr. Tawfik the amounts
contributed or any interest on his contribution.
Indications of Interest to Participate
in this Offering
Samer Tawfik, our founder, Chairman,
President and Chief Executive Officer, has indicated an interest in purchasing up to $1,000,000 of shares of common stock in
this offering, at the offering price to the public and on the same terms and conditions as other investors. However, because
indications of interest are not binding agreements or commitments to purchase, the underwriter could determine to sell or not
sell shares to Mr. Tawfik, and Mr. Tawfik could determine to purchase or not purchase shares in this offering.
Related Party Transactions Policy
In connection with this offering, we will
adopt a policy with respect to the review, approval and ratification of related party transactions. Under the policy, the audit
committee will be responsible for reviewing and approving related party transactions. The policy will apply to transactions, arrangements
and relationships (including any indebtedness or guarantee of indebtedness) or any series of similar transactions, arrangements
or relationships in which the aggregate amount involved will, or may be expected to, exceed $120,000 with respect to any fiscal
year, and where we (or one of our subsidiaries) are a participant and in which a related party has or will have a direct or indirect
material interest. In the course of reviewing potential related party transactions, the audit committee will consider the nature
of the related party's interest in the transaction; the presence of standard prices, rates or charges or terms otherwise
consistent with arms-length dealings with unrelated third parties; the materiality of the transaction to each party; the reasons
for the Company entering into the transaction with the related party; the potential effect of the transaction on the status of
a director as an independent, outside or disinterested director or committee member; and any other factors the audit committee
may deem relevant.
65
PRINCIPAL STOCKHOLDERS
The following table sets forth the
total number and percentage of our shares of common stock beneficially owned on June 6, 2019 by: (1) each holder of more than 5%
of our common stock; (2) each director; (3) each Named Executive Officer; and (4) all executive officers and directors as a group.
In addition, the following table assumes that the underwriter has not exercised the over-allotment option.
Beneficial ownership is determined in accordance
with SEC rules and generally includes voting or investment power with respect to securities. For purposes of this table, a person
or group of persons is deemed to have "beneficial ownership" of any shares of common stock that such person or any
member of such group has the right to acquire within sixty (60) days of June 6, 2019. For purposes of computing the percentage
of outstanding shares of our common stock held by each person or group of persons named above, any shares that such person or persons
has the right to acquire within sixty (60) days of June 6, 2019 are deemed to be outstanding for such person, but not deemed to
be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion herein of any shares listed
as beneficially owned does not constitute an admission of beneficial ownership by any person.
Unless otherwise indicated, the business
address of each person listed is c/o LMP Automotive Holdings, Inc. 601 N. State Road 7, Plantation FL, 33317 and each person set
forth below has sole investment and dispositive power with respect to the shares listed.
Name
of Beneficial Owners
Common Stock
Beneficially Owned
Prior to This
Offering
(1)
Common Stock
Beneficially Owned After
This Offering
Number
%
Number
%
Directors and Executive Officers**:
Samer Tawfik(2)
21,000,000
85.69
%
2,500,000
34.33
%
William "Billy" Cohen(3)
150,150
*
150,150
*
Elias Nader
0
*
0
*
Robert "Bob" J. Morris, Jr.
0
*
0
*
All directors and executive officers as a group (two individuals)
21,150,150
86.30
%
2,650,150
36.39
%
*
Less than 1%
**
The address of those listed is c/o LMP Automotive Holdings, Inc., 601 N. State Road 7, Plantation FL, 33317.
(1)
Based on 24,506,693 shares of common stock issued and outstanding as of June 6, 2019.
(2)
The number of shares beneficially owned by Mr. Tawfik includes: (i) 15,750,000 shares of common stock issued pursuant to the reorganization and (ii) 5,250,000 shares of common stock issued pursuant to the reorganization to ST RXR Investments, LLC, a company wholly owned and controlled by Mr. Tawfik, but does not include any shares that Mr. Tawfik may purchase in this offering pursuant to the indication
of interest he has made
because indications of interest
are not binding agreements or commitments to purchase, the underwriter could determine to not sell shares to Mr. Tawfik, and Mr.
Tawfik could determine to not purchase shares in this offering.
(3)
The number of shares beneficially owned by Mr. Cohen includes: (i) 150,150 shares of common stock purchased in a private placement offering, (ii) an option to acquire up to 25,000 shares of common stock pursuant to the 2018 Plan at $3.33 per share and (iii) an option to acquire up to 15,000 shares of common stock pursuant to the 2018 Plan at $4.75 per share.
Changes in Control
We are unaware of any contract or other arrangement the operation
of which may, at a subsequent date, result in a change of control of our Company.
66
DESCRIPTION OF CAPITAL STOCK
The following description summarizes
the most important terms of our capital stock, as they are expected to be in effect upon the closing of this offering. Because
it is only a summary, it does not contain all of the information that may be important to you. For a complete description of the
matters set forth in "Description of Capital Stock," you should refer to our Certificate of Incorporation and Bylaws,
which are or will be included as exhibits to the Registration Statement of which this prospectus forms a part, and to the applicable
provisions of Delaware law. Immediately following the closing of this offering, our authorized capital stock will consist of 100,000,000
shares of common stock, $0.00001 par value per share, and 20,000,000 shares of undesignated preferred stock, $0.00001 par value
per share.
Common Stock
As of June 6, 2019, we had 24,506,693 shares
of common stock outstanding held by 158 stockholders of record.
Immediately following the closing of this offering, and giving effect to the cancellation of 18,500,000 shares currently held
by Samer Tawfik, our founder, Chairman and Chief Executive Officer, we will have 7,281,694 shares of common stock issued and
outstanding. In the event the underwriter exercises the over-allotment option in full, we will have 7,472,944 shares of common
stock issued and outstanding.
Voting Rights
The holders of our common stock are entitled
to one vote for each share of common stock held of record on all matters submitted to a vote of the stockholders, including the
election of directors, and do not have cumulative voting rights. Accordingly, the holders of a majority of the outstanding shares
of common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they so
choose, other than any directors that holders of any preferred stock we may issue may be entitled to elect.
Dividends
Subject to limitations under Delaware law
and preferences that may be applicable to any then outstanding preferred stock, holders of common stock are entitled to receive
ratably those dividends, if any, as may be declared by our board of directors out of legally available funds.
Liquidation
In the event of any voluntary or involuntary
liquidation, dissolution or winding up of our affairs, the holders of our common stock will be entitled to share ratably in the
net assets legally available for distribution to stockholders after the payment of or provision for all of our debts and other
liabilities, subject to the prior rights of any preferred stock then outstanding.
Rights and Preferences
Holders of common stock have no preemptive
or conversion rights or other subscription rights, and there are no redemption or sinking funds provisions applicable to the common
stock.
Fully Paid and Non-assessable
All outstanding shares of common stock
are, and the common stock to be outstanding upon completion of this offering will be, duly authorized, validly issued, fully paid
and non-assessable.
Transfer Agent and Registrar
The transfer agent and registrar for our
common stock will be Securities Transfer Corporation upon consummation of this offering.
67
Preferred Stock
We have no shares of preferred stock outstanding.
Warrants
Upon the closing of this offering, there
will be up to 63,750 shares of common stock issuable upon exercise of the underwriter's warrants.
Anti-Takeover Effects of Provisions
of Our Certificate of Incorporation, Our Bylaws and Delaware Law
Upon the consummation of this offering,
some provisions of Delaware law, our Certificate of Incorporation and our Bylaws will contain provisions that could make the following
transactions more difficult: an acquisition of us by means of a tender offer; an acquisition of us by means of a proxy contest
or otherwise; or the removal of our incumbent officers and directors. It is possible that these provisions could make it more difficult
to accomplish or could deter transactions that stockholders may otherwise consider to be in their best interest or in our best
interests, including transactions which provide for payment of a premium over the market price for our shares.
These provisions, summarized below, are
intended to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage
persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of the increased
protection of our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure
us outweigh the disadvantages of discouraging these proposals because negotiation of these proposals could result in an improvement
of their terms.
Classified Board
Our Certificate of Incorporation and our
Bylaws will provide that our board of directors will be divided into three classes of directors, with the classes as nearly equal
in number as possible. As a result, approximately one-third of our board of directors will be elected each year. The classification
of directors will have the effect of making it more difficult for stockholders to change the composition of our board of directors.
Our Certificate of Incorporation and our Bylaws will also provide that, subject to any rights of holders of preferred stock to
elect additional directors under specified circumstances, the number of directors will be fixed exclusively pursuant to a resolution
adopted by our board of directors. Upon the closing of this offering, we expect that our board of directors will consist of four
(4) members.
Undesignated Preferred Stock
The ability of our board of directors,
without action by the stockholders, to issue up to 20,000,000 shares of undesignated preferred stock with voting or other rights
or preferences as designated by our board of directors could impede the success of any attempt to change control of us. These and
other provisions may have the effect of deferring hostile takeovers or delaying changes in control or management of our Company.
Appointment and Removal of Directors
Our Certificate of Incorporation and our
Bylaws will provide that the number of directors constituting our board of directors is set only by resolution adopted by a majority
vote of our entire board of directors. These provisions restricting the filling of vacancies will prevent a stockholder from increasing
the size of our board of directors and gaining control of our board of directors by filling the resulting vacancies with its own
nominees. In addition, our Certificate of Incorporation and our Bylaws will provide that no member of our board of directors may
be removed from office by our stockholders without cause and, in addition to any other vote required by law, upon the approval
of not less than the majority of the total voting power of all of our outstanding voting stock then entitled to vote in the election
of directors.
68
Advance
Notice Procedures
Our Certificate
of Incorporation and our Bylaws will establish an advance notice procedure for stockholder proposals to be brought before an annual
meeting of our stockholders, including proposed nominations of persons for election to the board of directors. Stockholders at
an annual meeting will only be able to consider proposals or nominations specified in the notice of meeting or brought before the
meeting by or at the direction of the board of directors or by a stockholder who was a stockholder of record on the record date
for the meeting, who is entitled to vote at the meeting and who has given our Secretary timely written notice, in proper form,
of the stockholder's intention to bring that business before the meeting. Although our Bylaws will not give the board of
directors the power to approve or disapprove stockholder nominations of candidates or proposals regarding other business to be
conducted at a special or annual meeting, our Bylaws may have the effect of precluding the conduct of certain business at a meeting
if the proper procedures are not followed or may discourage or deter a potential acquirer from conducting a solicitation of proxies
to elect its own slate of directors or otherwise attempting to obtain control of the Company.
Delaware Anti-Takeover Statute
We are subject to Section 203 of the DGCL,
which prohibits persons deemed to be "interested stockholders" from engaging in a "business combination"
with a publicly held Delaware corporation for three years following the date these persons become interested stockholders unless
the business combination is, or the transaction in which the person became an interested stockholder was, approved in a prescribed
manner or another prescribed exception applies. Generally, an "interested stockholder" is a person who, together with
affiliates and associates, owns, or within three years prior to the determination of interested stockholder status did own, 15%
or more of a corporation's voting stock. Generally, a "business combination" includes a merger, asset or stock
sale, or other transaction resulting in a financial benefit to the interested stockholder. The existence of this provision may
have an anti-takeover effect with respect to transactions not approved in advance by the board of directors. A Delaware corporation
may "opt out" of these provisions with an express provision in its original certificate of incorporation or an express
provision in its certificate of incorporation or bylaws resulting from a stockholders' amendment approved by at least a majority
of the outstanding voting shares. We have not opted out of these provisions. As a result, mergers or other takeover or change in
control attempts of us may be discouraged or prevented.
Amendment of Charter and Bylaw Provisions
The amendment of our Bylaws requires approval
by a stockholder vote by the holders of at least three-quarters of the voting power of the then outstanding voting stock. In addition,
upon at least a two-thirds vote, our directors are expressly authorized to amend our Bylaws. The amendment of our Certificate of
Incorporation would require approval by a stockholder vote by the holders of at least two-thirds of the voting power of the then
outstanding voting stock to the extent such amendment is inconsistent with the purpose and intent of the provisions therein relating
to the composition and election of the board of directors, amending our Bylaws, amending our Certificate of Incorporation, liability
and indemnification of directors and stockholder actions.
Authorized but Unissued Shares
Our authorized but unissued shares of common
stock and preferred stock will be available for future issuance without stockholder approval. These additional shares may be utilized
for a variety of corporate purposes, including future public offerings to raise additional capital and corporate acquisitions.
The existence of authorized but unissued shares of common stock and preferred stock could render more difficult or discourage an
attempt to obtain control of a majority of our common stock by means of a proxy contest, tender offer, merger or otherwise.
The provisions of Delaware law, our Certificate
of Incorporation and our Bylaws could have the effect of discouraging others from attempting hostile takeovers and, as a consequence,
they may also inhibit temporary fluctuations in the market price of our common stock that often result from actual or rumored hostile
takeover attempts. These provisions may also have the effect of preventing changes in the composition of our board of directors
and management. It is possible that these provisions could make it more difficult to accomplish transactions that stockholders
may otherwise deem to be in their best interests.
69
SHARES ELIGIBLE FOR FUTURE SALE
Before this offering, there has not been
a public market for shares of our common stock. Future sales of substantial amounts of shares of our common stock, including shares
issued upon the conversion of convertible notes, the exercise of outstanding options and warrants, in the public market after this
offering, or the possibility of these sales occurring, could cause the prevailing market price for our common stock to fall or
impair our ability to raise equity capital in the future.
Immediately following the closing of this
offering, we will have 7,281,693 shares of common stock issued and outstanding. In the event the underwriter exercises the over-allotment
option in full, we will have 7,472,943 shares of common stock issued and outstanding. The common stock sold in this offering will
be freely tradable without restriction or further registration or qualification under the Securities Act.
Previously issued shares of common stock
that were not offered and sold in this offering, as well as shares issuable upon the exercise of warrants and subject to employee
stock options, are or will be upon issuance, "restricted securities," as that term is defined in Rule 144 under the
Securities Act. These restricted securities are eligible for public sale only if such public resale is registered under the Securities
Act or if the resale qualifies for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, which are
summarized below.
Rule 144
In general, a person who has beneficially
owned restricted shares of our common stock for at least twelve months, or at least six months in the event we have been a reporting
company under the Exchange Act for at least ninety (90) days before the sale, would be entitled to sell such securities, provided
that such person is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time
during the ninety (90) days preceding the sale. A person who is an affiliate of ours at such time would be subject to additional
restrictions, by which such person would be entitled to sell within any three-month period only a number of shares that does not
exceed the greater of the following:
●
1% of the number of shares of our common stock then outstanding; or
●
1% of the average weekly trading volume of our common stock during the four calendar weeks preceding the filing by such person of a notice on Form 144 with respect to the sale;
provided that, in each case, we are subject
to the periodic reporting requirements of the Exchange Act for at least 90 days before the sale. Rule 144 trades must also comply
with the manner of sale, notice and other provisions of Rule 144, to the extent applicable.
Rule 701
In general, Rule 701 allows a stockholder
who purchased shares of our capital stock pursuant to a written compensatory plan or contract and who is not deemed to have been
an affiliate of ours during the immediately preceding 90 days to sell those shares in reliance upon Rule 144, but without being
required to comply with the public information, holding period, volume limitation or notice provisions of Rule 144. All holders
of Rule 701 shares, however, are required to wait until ninety (90) days after the date of this prospectus before selling shares
pursuant to Rule 701.
Lock-Up Agreements
We and our officers, directors, and all
or substantially all holders of our common stock, as of the effective date of the Registration Statement of which this prospectus
forms a part, and investors in our recent private placements have agreed, or will agree, with the underwriter, subject to certain
exceptions, that, without the prior written consent of the underwriter, we and they will not, directly or indirectly, during the
period ending one hundred and eighty (180) days after the date of the final closing of this offering (See "
Underwriting—
Lock-Up Agreements
"):
●
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 for the sale of, or otherwise dispose of or transfer any shares of the common stock or any securities convertible into or exchangeable or exercisable for the common stock, whether now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or hereafter acquires the power of disposition; or
●
enter into any swap or any other agreement or any transaction that transfers, in whole or in part, the economic consequence of ownership of the common stock, whether any such swap or transaction is to be settled by delivery of the common stock or other securities, in cash or otherwise.
This agreement does not apply, in our case,
to securities issued pursuant to existing employee benefit plans or securities issued upon exercise of options, and other exceptions.
70
CERTAIN U.S. FEDERAL INCOME AND ESTATE
TAX CONSIDERATIONS TO NON-U.S. HOLDERS
The following is a summary of certain U.S.
federal income and estate tax consequences of the purchase, ownership and disposition of shares of our common stock as of the date
hereof. Except where noted, this summary deals only with common stock that is held as a capital asset by a non-U.S. holder (as
defined below).
A "non-U.S. holder" means a
beneficial owner of shares of our common stock (other than an entity treated as a partnership for U.S. federal income tax purposes)
that is not, for U.S. federal income tax purposes, any of the following:
●
an individual citizen or resident of the
        United States;
●
a corporation (or any other entity treated
        as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state
        thereof or the District of Columbia;
●
an estate the income of which is subject
        to U.S. federal income taxation regardless of its source; or
●
a trust if it (1) is subject to the primary supervision of a court within the United States and one or more United States persons have the authority to control all substantial decisions of the trust or (2) has a valid election in effect under applicable U.S. Treasury regulations to be treated as a United States person.
This summary is based upon provisions of
the Code, and regulations, rulings and judicial decisions as of the date hereof. Those authorities may be changed, perhaps retroactively,
so as to result in U.S. federal income and estate tax consequences different from those summarized below. This summary does not
address all aspects of U.S. federal income and estate taxes and does not deal with foreign, state, local or other tax considerations
that may be relevant to non-U.S. holders in light of their particular circumstances. In addition, it does not represent a detailed
description of the U.S. federal income and estate tax consequences applicable to you if you are subject to special treatment under
the U.S. federal income tax laws (including if you are a United States expatriate, foreign pension fund, "controlled foreign
corporation," "passive foreign investment company" or a partnership or other pass-through entity for U.S. federal
income tax purposes). We cannot assure you that a change in law will not alter significantly the tax considerations that we describe
in this summary.
If a partnership (or other entity treated
as a partnership for U.S. federal income tax purposes) holds shares of our common stock, the tax treatment of a partner will generally
depend upon the status of the partner and the activities of the partnership. If you are a partner of a partnership holding our
common stock, you should consult your tax advisors.
If you are considering the purchase
of our common stock, you should consult your own tax advisors concerning the particular U.S. federal income and estate tax consequences
to you of the purchase, ownership and disposition of our common stock, as well as the consequences to you arising under other U.S.
federal tax laws and the laws of any other taxing jurisdiction.
Dividends
In the event that we make a distribution
of cash or other property (other than certain pro rata distributions of our stock) in respect of shares of our common stock, the
distribution generally will be treated as a dividend for U.S. federal income tax purposes to the extent it is paid from our current
or accumulated earnings and profits, as determined under U.S. federal income tax principles. Any portion of a distribution that
exceeds our current and accumulated earnings and profits generally will be treated first as a tax-free return of capital, causing
a reduction in the adjusted tax basis of a non-U.S. holder's common stock, and to the extent the amount of the distribution
exceeds a non-U.S. holder's adjusted tax basis in shares of our common stock, the excess will be treated as gain from the
disposition of shares of our common stock (the tax treatment of which is discussed below under "
—Gain on Disposition
of Common Stock
").
71
Dividends paid to a non-U.S. holder generally
will be subject to withholding of U.S. federal income tax at a 30% rate or such lower rate as may be specified by an applicable
income tax treaty. However, dividends that are effectively connected with the conduct of a trade or business by the non-U.S. holder
within the United States (and, if required by an applicable income tax treaty, are attributable to a U.S. permanent establishment)
are not subject to the withholding tax, provided certain certification and disclosure requirements are satisfied. Instead, such
dividends are subject to U.S. federal income tax on a net income basis in the same manner as if the non-U.S. holder were a United
States person as defined under the Code. Any such effectively connected dividends received by a foreign corporation may be subject
to an additional "branch profits tax" at a 30% rate or such lower rate as may be specified by an applicable income
tax treaty.
A non-U.S. holder who wishes to claim the
benefit of an applicable treaty rate and avoid backup withholding, as discussed below, for dividends will be required (a) to provide
the applicable withholding agent with a properly executed U.S. Internal Revenue Service, or the IRS Form W-8BEN or Form W-8BEN-E
(or other applicable form) certifying under penalty of perjury that such holder is not a United States person as defined under
the Code and is eligible for treaty benefits or (b) if our common stock is held through certain foreign intermediaries, to satisfy
the relevant certification requirements of applicable U.S. Treasury regulations. Special certification and other requirements apply
to certain non-U.S. holders that are pass-through entities rather than corporations or individuals.
A non-U.S. holder eligible for a reduced
rate of U.S. federal withholding tax pursuant to an income tax treaty may obtain a refund of any excess amounts withheld by timely
filing an appropriate claim for refund with the IRS.
Gain on Disposition of Common Stock
Subject to the discussion of backup withholding
below, any gain realized by a non-U.S. holder on the sale or other disposition of our common stock generally will not be subject
to U.S. federal income tax unless:
●
the gain is effectively connected with a trade or business of the non-U.S. holder in the United
States (and, if required by an applicable income tax treaty, is attributable to a U.S. permanent establishment of the non-U.S.
holder);
●
the non-U.S. holder is an individual who is present in the United States for 183 days or more in
the taxable year of that disposition, and certain other conditions are met; or
●
we are or have been a "United States real property holding corporation" for U.S. federal
income tax purposes and certain other conditions are met.
A non-U.S. holder described in the first
bullet point immediately above will be subject to tax on the gain derived from the sale or other disposition in the same manner
as if the non-U.S. holder were a United States person as defined under the Code. In addition, if any non-U.S. holder described
in the first bullet point immediately above is a foreign corporation, the gain realized by such non-U.S. holder may be subject
to an additional "branch profits tax" at a 30% rate or such lower rate as may be specified by an applicable income
tax treaty. An individual non-U.S. holder described in the second bullet point immediately above will be subject to a 30% (or such
lower rate as may be specified by an applicable income tax treaty) tax on the gain derived from the sale or other disposition,
which gain may be offset by U.S. source capital losses even though the individual is not considered a resident of the United States.
Generally, a corporation is a "United
States real property holding corporation" if the fair market value of its United States real property interests equals or
exceeds 50% of the sum of the fair market value of its worldwide real property interests and its other assets used or held for
use in a trade or business (all as determined for U.S. federal income tax purposes). We believe we are not and do not anticipate
becoming a "United States real property holding corporation" for U.S. federal income tax purposes.
Federal Estate Tax
Common stock held by an individual non-U.S.
holder at the time of death will be included in such holder's gross estate for U.S. federal estate tax purposes, unless an
applicable estate tax treaty provides otherwise.
72
Information Reporting and Backup Withholding
Distributions paid to a non-U.S. holder
and the amount of any tax withheld with respect to such distributions generally will be reported to the IRS. Copies of the information
returns reporting such distributions and any withholding may also be made available to the tax authorities in the country in which
the non-U.S. holder resides under the provisions of an applicable income tax treaty.
A non-U.S. holder will not be subject to
backup withholding on dividends received if such holder certifies under penalty of perjury that it is a non-U.S. holder (and the
payor does not have actual knowledge or reason to know that such holder is a United States person as defined under the Code), or
such holder otherwise establishes an exemption.
Information reporting and, depending on
the circumstances, backup withholding will apply to the proceeds of a sale or other disposition of our common stock made within
the United States or conducted through certain U.S.-related financial intermediaries, unless the beneficial owner certifies under
penalty of perjury that it is a non-U.S. holder (and the payor does not have actual knowledge or reason to know that the beneficial
owner is a United States person as defined under the Code), or such owner otherwise establishes an exemption.
Backup withholding is not an additional
tax and any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against a non-U.S. holder's
U.S. federal income tax liability provided the required information is timely furnished to the IRS.
Additional Withholding Requirements
Under Sections 1471 through 1474 of the
Code (such Sections commonly referred to as FATCA), a 30% U.S. federal withholding tax may apply to any dividends paid on our common
stock to (i) a "foreign financial institution" (as specifically defined in the Code) which does not provide sufficient
documentation, typically on IRS Form W-8BEN-E, evidencing either (x) an exemption from FATCA or (y) its compliance (or deemed compliance)
with FATCA (which may alternatively be in the form of compliance with an intergovernmental agreement with the United States) in
a manner which avoids withholding, or (ii) a "non-financial foreign entity" (as specifically defined in the Code) which
does not provide sufficient documentation, typically on IRS Form W-8BEN-E, evidencing either (x) an exemption from FATCA or (y)
adequate information regarding certain substantial United States beneficial owners of such entity (if any). If a dividend payment
is both subject to withholding under FATCA and subject to the withholding tax discussed above under "
—Dividends
,"
the withholding under FATCA may be credited against, and therefore reduce, such other withholding tax. You should consult your
own tax advisors regarding these requirements and whether they may be relevant to your ownership and disposition of our common
stock.
73
UNDERWRITING
ThinkEquity, a division of Fordham Financial
Management, Inc., is underwriter of this offering. We have entered into an underwriting agreement dated                      , 2019 with the underwriter.
Subject to the terms and conditions of the underwriting agreement, we have agreed to sell to the underwriter, and the underwriter
has 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 initial 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.
1,275,0000
Total
1,275,000
The underwriting agreement provides that
the obligations of the underwriter 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 underwriter of officers' certificates and legal opinions.
We have agreed to indemnify the underwriter
against specified liabilities, including liabilities under the Securities Act, and to contribute to payments the underwriter may
be required to make in respect thereof.
The underwriter is offering the shares
of common stock subject to prior sale, when, as and if issued to and accepted by it, subject to approval of legal matters by its
counsel and other conditions specified in the underwriting agreement.
We have granted the underwriter an over-allotment
option. This option, which is exercisable for up to 45 days after the date of this prospectus, permits the underwriter s to purchase
up to an aggregate of 191,250 additional shares of common stock (equal to 15% of the 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 underwriter
exercises this option in whole or in part, then the underwriter will be committed, subject to the conditions described in the underwriting
agreement, to purchase the additional shares of common stock.
Samer Tawfik, our founder, Chairman, President
and Chief Executive Officer, has indicated an interest in purchasing up to $1,000,000 of shares of common stock in this offering, at the
offering price to the public and on the same terms and conditions as other investors. However, because indications of interest
are not binding agreements or commitments to purchase, the underwriter could determine to sell or not sell shares to Mr. Tawfik,
and Mr. Tawfik could determine to purchase or not purchase shares in this offering.
Discounts, Commissions and Reimbursement
The underwriter has advised us that the
underwriter proposes to offer the shares of common stock to the public at the initial public offering price per share set forth
on the cover page of this prospectus. The underwriter 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 underwriter.
The following table summarizes the underwriting
discounts and commissions and proceeds, before expenses, to us assuming both no exercise and full exercise by the underwriter of
its over-allotment option:
Total
Per Share
Without
Option
With Option
Public offering price
$
$
$
Underwriting discounts and commissions (7%)
$
$
$
Proceeds, before expenses, to us
$
$
$
Non-accountable expense allowance (1%)
(1)
$
$
$
(1)
The non-accountable expense allowance of 1% is not payable
with respect to shares sold upon exercise of the underwriter's over-allotment option.
74
We have paid an expense deposit of $35,000
to (or on behalf of) the underwriter, which will be applied against the out-of-pocket accountable expenses that will be paid by
us to the underwriter in connection with this offering, and will be reimbursed to us to the extent not incurred. We have also agreed
to pay a non-accountable expense allowance to the underwriter equal to 1.0% of the gross proceeds received in this offering.
In addition, we have also agreed to reimburse
certain expenses of the underwriter relating to this offering as set forth in the underwriting agreement, including the fees and
expenses of the underwriter's legal counsel, not to exceed $110,000, and all filing fees and expenses associated with the
review of this offering by FINRA.
We estimate the expenses of this offering
payable by us, not including underwriting discounts, commissions and expense allowance, will be approximately $135,000.
Underwriter Warrants
Upon the closing of this offering, we
have agreed to issue to the underwriter warrants, or the underwriter's warrants, to purchase a number of shares of
common stock equal to 5% of the total shares sold in the initial closing of this public offering. The underwriter'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 underwriter's warrants are exercisable at any time and from time to time, in whole or
in part, during the four-and-½-year period commencing six months after the effective date of the registration
statement related to this offering.
The underwriter's warrants and the
shares of common stock underlying the underwriter'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 underwriter, or permitted
assignees under such rule, may not sell, transfer, assign, pledge, or hypothecate the underwriter's warrants or the securities
underlying the underwriter's warrants, nor will the underwriter engage in any hedging, short sale, derivative, put, or call
transaction that would result in the effective economic disposition of the underwriter's warrants or the underlying shares
for a period of 180 days from the effective date of the registration statement. Additionally, the underwriter'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 this offering and their bona fide officers or partners.
The underwriter's warrants will provide for adjustment in the number and price of the underwriter's warrants and the
shares of common stock underlying such underwriter'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 twelve (12) months from the closing
of this offering, the underwriter shall have an irrevocable right of first refusal to act as sole investment banker, sole book-runner
and/or sole placement agent, at the underwriter's sole discretion, for each and every future public and private equity offerings
for the Company, or any successor to or any subsidiary of the Company, including all equity linked financings, on terms customary
to the underwriter. The underwriter 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 underwriter will not have more
than one opportunity to waive or terminate the right of first refusal in consideration of any payment or fee.
Discretionary Accounts
The underwriter does not intend to confirm
sales of the securities offered hereby to any accounts over which they have discretionary authority.
75
Lock-Up Agreements
We, each of our directors, officers and
our stockholders, have agreed for a period of (i) 180 days after the date of this prospectus in the case of our directors and officers
and (ii) 180 days after the date of this prospectus in the case of the Company, without the prior written consent of the underwriter,
not to directly or indirectly:
●
issue (in the case of us), offer, pledge, assign, encumber, announce the intention to sell, sell,
contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or
warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of capital stock of the Company
or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; 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 that transfers, in whole or in part, any of the economic
consequences of ownership of the Company's securities, whether any such transaction is to be settled by delivery of shares
of our common stock or such other securities, in cash or otherwise;
●
sell, agree to sell, offer or sell, solicit offers to purchase, grant any call option, warrant
or other right to purchase, purchase any put option or other right to sell, pledge, borrow or otherwise dispose of Company's
securities
●
establish or increase any "put equivalent position" or liquidate or decrease any "call
equivalent position" (in each case within the meaning of Section 16 of the Exchange Act) with respect to any Company security;
●
make any demand for or exercise any right with respect to, the registration of any Company security;
●
otherwise enter into any swap, derivative or other transaction or arrangement that transfers to
another, in whole or in part, any economic consequence of ownership of a Company security, whether or not such transaction is to
be settled by delivery of Company securities, other securities, cash or other consideration; 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 the underwriter or selling group members. The underwriter may agree to allocate a
number of securities to selling group members for sale to its online brokerage account holders. Internet distributions will be
allocated by the underwriter 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 underwriter
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 this offering is in progress.
Over-allotment transactions involve sales
by the underwriter of shares in excess of the number of shares the underwriter is 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 underwriter 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 underwriter may close out any short position by exercising its 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 underwriter will consider, among other things, the price
of shares available for purchase in the open market as compared with the price at which it may purchase shares through exercise
of the over-allotment option. If the underwriter sells more shares than could be covered by exercise of the over-allotment option
and, therefore, has 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 underwriter is 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 this offering.
76
Penalty bids permit the underwriter 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 underwriter
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
The underwriter 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 underwriter that would permit a public offering of the securities offered by this prospectus in any
jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly
or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of
any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance
with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised
to inform themselves about and to observe any restrictions relating to this 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.
77
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.
78
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 this 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.
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.
79
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.
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.
80
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 underwriter is not required to comply with the disclosure requirements of NI33-105
regarding underwriter conflicts of interest in connection with this offering.
LEGAL MATTERS
Certain legal matters with respect to the
shares of common stock offered hereby will be passed upon by Pryor Cashman LLP. McGuireWoods LLP, New York, New York, is acting
as counsel to the underwriter.
EXPERTS
The financial statements of the Company
appearing elsewhere in this prospectus have been included herein in reliance upon the report of Grassi & Co., CPAs, P.C., an
independent registered public accounting firm, appearing elsewhere herein, and upon the authority of Grassi & Co., CPAs, P.C.,
as experts in accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration
statement on Form S-1 under the Securities Act with respect to the shares of our common stock offered hereby. This prospectus,
which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement
or the exhibits filed therewith. For further information about us and the common stock offered hereby, we refer you to the registration
statement and the exhibits filed therewith. Statements contained in this prospectus regarding the contents of any contract or any
other document that is filed as an exhibit to the registration statement are not necessarily complete, and each such statement
is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the registration
statement. We currently do not file periodic reports with the SEC. Upon closing of our initial public offering, we will be required
to file periodic reports, proxy statements and other information with the SEC pursuant to the Exchange Act. The SEC also maintains
a website that contains reports, proxy and other information statements about issuers, including us, that file electronically with
the SEC. The address of the website is
www.sec.gov
.
81
FINANCIAL
STATEMENTS
LMP
AUTOMOTIVE HOLDINGS, INC. AND SUBSIDIARIES
INDEX
TO CONSOLIDATED FINANCIAL STATEMENTS
Page
Consolidated
    Financial Statements
Condensed Consolidated Balance Sheets at March 31, 2019 and December 31, 2018
F-2
Condensed Consolidated Statements of Operations for the Three-Months Ended March 31, 2019 and 2018
F-3
Condensed Consolidated Statements of Shareholders' Equity for the Three-Months Ended March 31, 2019
F-4
Condensed Consolidated Statements of Cash Flows for the Three-Months Ended March 31, 2019, and 2018
F-5
Report of Independent Registered Public Accounting Firm
F-17
Consolidated Balance Sheets at December 31, 2018 and 2017
F-18
Consolidated Statements of Operations for the Years Ended December 31, 2018 and 2017
F-19
Consolidated Statements of Shareholders' Equity for the Years Ended December 31, 2018 and 2017
F-20
Consolidated Statements of Cash Flows for the Years Ended December 31, 2018, and 2017
F-21
Notes to Consolidated Financial Statements
F-22
F-
1
LMP AUTOMOTIVE HOLDINGS,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
AT
MARCH 31, 2019 (UNAUDITED) AND DECEMBER 31, 2018
March 31,
2019
December 31,
2018
(unaudited)
ASSETS:
Cash
$
472,199
$
424,152
Accounts receivable
117,253
286,982
Automotive inventory, net
8,511,159
11,558,160
Other current assets
220,075
380,712
Total current assets
9,320,686
12,650,006
Property, equipment and leasehold improvements, net
528,088
539,475
Intangible assets
45,994
39,997
Deferred offering costs
1,022,855
987,093
Right-of-use asset
1,347,701
-
TOTAL ASSETS
$
12,265,324
$
14,216,571
LIABILITIES:
Accounts payable
$
181,336
$
934,409
Line of credit - related party
1,500,000
1,775,000
Convertible notes payable and accrued interest
816,816
1,184,707
Other current liabilities
427,901
568,358
Operating lease liability, current portion
320,956
-
Total current liabilities
3,247,009
4,462,474
Operating lease liability, net of current portion
1,048,796
-
TOTAL LIABILITIES
4,295,805
4,462,474
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred Stock, $0.00001 par value, 20,000,000 shares authorized, nil shares issued and outstanding
-
-
Common Stock, $0.00001 par value; 100,000,000 shares authorized; 24,560,294 and 24,645,294 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively
246
246
Additional paid-in capital
16,344,141
16,306,737
Treasury stock
(403,750
)
-
Accumulated deficit
(7,971,118
)
(6,552,886
)
Total shareholders' equity
7,969,519
9,754,097
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
12,265,324
$
14,216,571
The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-
2
LMP
AUTOMOTIVE HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR
THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 (UNAUDITED)
2019
2018
Revenues
Vehicle sales
$
4,472,892
$
2,383,639
Subscription fees
292,422
-
Rental revenues
172,433
956
Total revenues
4,937,747
2,384,595
Cost of revenues
Vehicle sales
4,569,067
2,558,694
Subscription and rental
479,506
-
Total cost of revenues
5,048,573
2,558,694
Gross loss
(110,826
)
(174,099
)
Selling, general and administrative expenses
1,041,728
427,669
Share-based compensation
37,404
-
Acquisition, consulting and legal expenses
183,155
151,430
Fixed asset depreciation
23,089
8,373
Loss from operations
(1,396,202
)
(761,571
)
Other expenses:
Interest
(4,409
)
(4,919
)
Net loss
$
(1,400,611
)
(766,490
)
Net loss per share attributable to stockholders, basic and diluted
$
(0.06
)
$
(0.03
)
Weighted average shares of common stock outstanding, basic and diluted
24,592,516
22,206,729
The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-
3
LMP
AUTOMOTIVE HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
FOR
THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 (UNAUDITED)
Common Shares Outstanding
Preferred
Stock
Common
Stock
Additional Paid-in Capital
Treasury Stock
Accumulated Deficit
Total
Balance at December 31, 2017
21,000,000
$
-
$
210
$
2,594,590
$
-
$
(62,593
)
$
2,532,207
Issuance of stock for cash
2,858,042
-
29
9,513,386
-
-
9,513,415
Net loss
-
-
-
-
-
(766,490
)
(766,490
)
Balance at March 31, 2018 (unaudited)
23,858,042
$
-
$
239
$
12,107,976
$
-
$
(829,083
)
$
11,279,132
Balance at December 31, 2018
24,645,294
$
-
$
246
$
16,306,737
$
-
$
(6,552,886
)
$
9,754,097
Common stock repurchased
(85,000
)
-
-
-
(403,750
)
-
(403,750
)
Share-based compensation
-
-
-
37,404
-
-
37,404
Net loss
-
-
-
-
-
(1,400,611
)
(1,400,611
)
Impact of adoption of ASU 2016-02 related to leases
-
-
-
-
-
(17,621
)
(17,621
)
Balance at March 31, 2019 (unaudited)
24,560,294
$
-
$
246
$
16,344,141
$
(403,750
)
$
(7,971,118
)
$
7,969,519
The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-
4
LMP
AUTOMOTIVE HOLDINGS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR
THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 (UNAUDITED)
2019
2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss
$
(1,400,611
)
$
(766,490
)
Adjustment to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization
314,008
8,373
Share-based compensation
37,404
-
(Increase) Decrease in assets:
Accounts receivable
169,729
(237,596
)
Automotive inventory, net
2,756,083
(6,209,235
)
Prepaid expenses and other assets
160,637
(270,341
)
Right-of-use asset
81,440
-
(Decrease) Increase in liabilities:
Accounts payable
(753,073
)
(319,301
)
Other current liabilities
(143,347
)
54,406
Operating lease liability
(77,009
)
-
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
1,145,261
(7,740,184
)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment
(7,484
)
(49,491
)
Purchases to intangible assets
(10,219
)
(2,250
)
NET CASH USED IN INVESTING ACTIVITIES
(17,703
)
(51,741
)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash received from line of credit – related parties
250,000
-
Principal reduction on line of credit – related parties
(525,000
)
-
Principal advances of notes and advances payable – related parties
-
39,000
Principal repayment of notes and advances payable – related parties
-
(1,130,500
)
Principal repayments on convertible notes payable
(365,000
)
-
Repurchase of treasury stock
(403,750
)
-
Net cash received from issuance of common stock
-
9,513,415
Deferred stock offering costs
(35,761
)
(275,000
)
NET CASH (USED IN) PROVIDED BY FINANCING  ACTIVITIES
(1,079,511
)
8,146,915
NET INCREASE IN CASH
48,047
354,990
CASH, BEGINNING OF PERIOD
424,152
217,360
CASH, END OF PERIOD
$
472,199
$
572,350
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest
$
7,300
$
4,845
Noncash payment on note payable
$
-
$
160,000
Right-of-use asset obtained in exchange for operating lease liability
$
1,697,027
$
-
The
accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-
5
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note
1 -
Nature of Operations and Principles of Consolidation
Business
Activity
LMP
Motors.com, LLC ("LMP Motors") is engaged in the buying, selling and sales of subscriptions of vehicles in the automotive
industry and operates in the state of Florida. LMP Motors is a limited liability company and was organized in the state of Delaware.
The owner of LMP Motors is designated as a member and is not liable for the debts of LMP Motors.
601
NSR, LLC ("NSR") was formed to enter into future potential strategic acquisitions and is currently inactive. NSR is
a limited liability company and was organized in the state of Delaware. The owner of NSR is designated as a member and is not
liable for the debts of NSR.
LMP
Finance, LLC ("LMP Finance") is engaged in the purchasing, subscribing and renting of vehicles. LMP Finance operates
in the state of Florida. LMP Finance is a limited liability company and was organized in the state of Delaware. The owner of LMP
Finance is designated as a member and is not liable for the debts of LMP Finance.
LMP
Automotive Holdings, LLC ("LMP Automotive") was formed to acquire the assets from LMP Motors.com LLC and LMP Finance,
LLC and other subsidiary companies. LMP Automotive operates in the state of Florida. LMP Automotive is a limited liability company
and was organized in the state of Delaware. The owner of LMP Automotive is designated as a member and is not liable for the debts
of LMP Automotive.
LMP
Automotive Holdings, Inc. ("Automotive") is a holding company incorporated in the state of Delaware on December 15,
2017. On December 15, 2017, the common ownership contributed 100% of its interest in LMP Motors, NSR, LMP Finance and LMP Automotive
to Automotive.
Principles
of Consolidation
These
condensed consolidated financial statements include the amounts of Automotive and its wholly-owned subsidiaries, LMP Motors, NSR,
LMP Finance, and LMP Automotive, collectively referred to as the "Company." All significant intercompany balances
and transactions are eliminated in the consolidation.
Prior
to the transfer of interest of LMP Motors, NSR, LMP Finance and LMP Automotive to Automotive on December 15, 2017, LMP
Motors, NSR, LMP Finance and LMP Automotive were affiliates under common control and as such have been recorded at carry over
basis.  Equity of LMP Motors, NSR, LMP Finance and LMP Automotive in the amount of approximately $2.6 million, which was
net of an accumulated deficit of approximately $1.4 million, was transferred to additional paid-in capital at the December
15, 2017 transaction date.  Accumulated deficit of the Company at December 31, 2018 represents only the sixteen (16)
days of operations subsequent to its incorporation in 2017.  With respect to the consolidated statements of
operations and cash flows, the Company was treated as the continuation of LMP Motors, NSR, LMP Finance and LMP Automotive
and, accordingly, their financial position and results of operations have been presented on a combined basis with the
historical financial statements of LMP Motors, NSR, LMP Finance and LMP Automotive for all periods prior to the
transfer.
F-
6
Note
2 -
Summary of Significant Accounting Policies
Liquidity
The
Company has sustained net losses and an accumulated deficit of $7,971,118 to date. Its management plans to make strategic acquisitions
of pre-owned and new automobile dealerships and car rental companies to expedite the Company's growth and produce positive
margins.  The Company also has raised capital during 2018 through private placement offerings of its common stock and convertible
debt securities to help facilitate business growth and execute its management's plans to become profitable through acquisitions. 
Management plans to either continue obtaining funding through 2019 or until it has secured a capital market transaction.
Basis
of Presentation
The
accompanying condensed consolidated financial statements are unaudited. These unaudited interim financial statements have been
prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and pursuant
to the rules and regulations of the SEC. Certain information and note disclosures, which are included in annual financial statements,
have been omitted pursuant to these rules and regulations. Management believes the disclosures made in these interim unaudited
financial statements are adequate to make the information not misleading.
Although
these interim financial statements for the three months ended March 31, 2019 and 2018 are unaudited, in the opinion of management,
such statements include all adjustments (consisting of normal recurring entries) necessary to present fairly the Company's
financial position, results of operations and cash flows for the periods presented. The results for the three months ended March
31, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 or for any future
period. For more complete information, these unaudited condensed consolidated financial statements should be read in conjunction
with the audited financial statements for the year ended December 31, 2018.
Use of Estimates
The
preparation of the consolidated 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Accounts
Receivable
The
Company carries its accounts receivable at cost. Accounts receivable are due upon receipt. Such estimates are based on management's
assessments of the creditworthiness of its customers, the aged basis of its receivables, as well as current economic conditions
and historical information. Management has determined that no allowance for uncollectible accounts for accounts receivable is
necessary at March 31, 2019 and December 31, 2018.
Inventory
The
Company's inventory consists of automobiles. Inventories are valued at the lower of cost or market, with cost determined
by specific identification and with market defined as net realizable value. Net realizable value is the estimated selling prices
in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventories
at March 31, 2019 and December 31, 2018 are recorded based on perpetual inventory records.
F-
7
Note
2 -
Summary of Significant Accounting Policies (cont'd.)
Inventory
(cont'd.)
The
Company depreciates its fleet inventory monthly based on 1% of initial cost starting in 2018 when the subscriptions and rentals
were launched. For the three months ended March 31, 2019 and 2018, fleet vehicle depreciation approximated $291,000 and $0 and
was recorded to Cost of revenues - subscription and rental.
Company
management periodically reviews its inventories to determine whether any inventories have declined in value. The Company wrote
down approximately $90,000 and $530,000 of inventory to its net realizable value for the three months ended March 31, 2019 and
year ended December 31, 2018, respectively.
March 31,
2019
December 31,
2018
Automotive Inventory
$
9,104,108
$
12,270,478
Inventory Impairment
(150,307
)
(529,983
)
Inventory Accumulated Depreciation
(517,010
)
(478,718
)
Inventory In-transit Deposits
74,368
296,383
Total Automotive Inventory, net
$
8,511,159
$
11,558,160
Property,
Equipment and Leasehold Improvements
Property,
equipment and leasehold improvements are stated at cost. The costs of additions and betterments are capitalized and expenditures
for repairs and maintenance are expensed in the period incurred. When items property and equipment are sold or retired, the related
costs and accumulated depreciation are removed from the accounts and any gain or loss is included in sales.
Vehicles
and equipment are depreciated utilizing the straight-line method over the estimated useful lives of the respective assets as follows:
Vehicles
5 years
Furniture and fixtures
10 years
Equipment
7 years
Leasehold
improvements are amortized over the shorter of the remaining term of the lease or the useful life of the improvement utilizing
the straight-line method.
Intangible
Assets
Intangible
assets are stated at their historical cost and amortized on a straight-line basis over their expected useful lives.
Long-lived
Assets
The
Company reviews long-lived assets and certain identifiable intangibles held and used for possible impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In evaluating the fair value and
future benefits of its intangible assets, management performs an analysis of the anticipated undiscounted future net cash flow
of the individual assets over the remaining amortization period. The Company recognizes an impairment loss if the carrying value
of the asset exceeds the expected future cash flows. There were no deemed impairments of long-lived assets at March 31, 2019 and
December 31, 2018.
F-
8
Note
2 -
Summary of Significant Accounting Policies (cont'd.)
Fair
Value of Financial Instruments
Fair
value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.  To increase the comparability of fair value measurements, a three-tier
fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is as follows:
Level
1 - Valuations based on quoted prices for identical assets and liabilities in active markets.
Level
2 - Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets
or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active,
or other inputs that are observable or can be corroborated by observable market data.
Level
3 - Valuations based on unobservable inputs reflecting the Company's own assumptions, consistent with reasonably available
assumptions made by other market participants.  These valuations require significant judgment.
At
March 31, 2019 and December 31, 2018, the fair value of these financial instruments, including cash, accounts receivable, and
accounts payable, approximated book value due to the short maturity of these instruments. Notes payable – related parties
and convertible notes payable with accrued interest estimate fair value due to market interest rates.
Convertible
Notes
The
Company records a discount to convertible notes for the intrinsic value of conversion options embedded in debt instruments based
upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and
the effective conversion price embedded in the note. Debt discounts, if any, under these arrangements are amortized to noncash
interest expense using the effective interest rate method over the term of the related debt to their date of maturity. Based on
the terms of the embedded conversion rights, the Company has not recognized any discounts to date.
Share-Based
Compensation
The
Company recognizes the cost of employee services received in exchange for awards of stock options, based on the fair value of
those awards at the date of grant over the requisite service period, which generally is the vesting period of the award. The Company
uses the Black-Scholes option pricing model to determine the fair value of stock option awards.
In
June 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-07, Improvements to Share-Based Payment
Accounting (Topic 718). This ASU was issued to simplify the accounting for share-based payments to nonemployees by aligning much
of the guidance on measurement and classification with the accounting for share-based payments to employees. The Company has elected
early adoption of this ASU to conform the accounting for share-based compensation to employees and nonemployees.
Share-based
compensation plans, related expenses, and assumptions used in the Black-Scholes option pricing model are more fully described
in Note 12.
F-
9
Note
2 -
Summary of Significant Accounting Policies (cont'd.)
Revenue
Recognition
In
May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is the result of a joint
project of the FASB and the IASB to clarify the principles for recognizing revenue and to develop a common revenue standard for
U.S. GAAP and IFRS, and provides 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
Company adopted FASB ASC 606, Revenue from Contracts with Customers ("ASC 606") on January 1, 2018 using the modified
retrospective method. ASC 606 prescribes a five-step model that includes: (1) identify the contract; (2) identify the performance
obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize
revenue when (or as) performance obligations are satisfied. The adoption of ASC 606 did not have a material impact on the amount
or timing of the revenue recognition, and the Company recognized no cumulative effect adjustment upon adoption.
Used
Vehicle Sales Revenue
The
Company's business consists of retail and wholesale sales of used vehicles to customers. Sales are based on the network
of physical showrooms and efficient online showrooms on the Company's websites. The Company offers a home delivery service
so that they deliver the car to the place agreed with the client. The Company also sells used vehicles in auctions.
The
Company recognizes revenue when it satisfies a performance obligation by transferring control of a vehicle to a customer. The
prices of the vehicles are stated in its contracts at stand-alone selling prices which are agreed upon with its customer prior
to delivery. The Company satisfies its performance obligation for used vehicle sales upon delivery when the transfer of title,
risks and rewards of ownership and control pass to the customer. The Company recognizes revenue at the agreed-upon price stated
in the contract, including any delivery charges. In addition, any noncash consideration received from a customer (i.e., trade-in
vehicles) are recognized at fair value. Customer payment has been received or third-party financing has been confirmed prior to
vehicle transfer. The Company collects sales taxes and other taxes from customers on behalf of governmental authorities at the
time of sale. These taxes are accounted for on a net basis and are not included in sales or cost of sales.
Subscription
Revenue
The
Company offers a vehicle subscription plan where a customer will pay a monthly fee in exchange for access to a car. The Company's
subscriptions include monthly swaps, scheduled maintenance and upkeep, and even insurance in some cases. Customers have the flexibility
to up-or-downgrade a vehicle monthly with the vehicle payment adjusted accordingly. There is a $575 annual subscription activation
fee and the monthly payments are dependent upon the vehicle selected by the customer.
The
Company recognizes revenue when it satisfies a performance obligation by transferring control of a vehicle to a customer under
a subscription contract. The prices of the vehicles are stated in its contracts at stand-alone subscription prices which are agreed
upon with the customer prior to delivery. The Company satisfies its performance obligation for monthly subscription payments upon
delivery to the customer and in each subsequent month the customer retains possession of the vehicle. The Company recognizes revenue
at the agreed-upon price stated in the contract in the month earned.
The
Company also receives an upfront customer payment as an annual membership fee to its vehicle subscription program. This fee is
deferred and amortized to income monthly over the period of membership.
Customer
payment has been received prior to initial vehicle transfer and on each monthly recurring anniversary date.
F-
10
Note
2 -
Summary of Significant Accounting Policies (cont'd.)
Revenue
Recognition (cont'd.)
Rental
Revenue
The
Company recognizes vehicle rental income over the period the vehicle is rented. Performance obligations associated with vehicle
rental transactions are satisfied over the rental period. Rental periods are short term in nature. Performance obligations associated
with rental related activities, such as charges to the customer for the fueling of vehicles and value-added services such as loss
damage waivers, navigation units, and other ancillary products, are also satisfied over the rental period.
Payments
are due from customers at the time of reservation. Additional charges incurred by the customers are collected at the time of vehicle
return. The Company collects sales taxes and other taxes from customers on behalf of governmental authorities at the time of sale.
These taxes are accounted for on a net basis and are not included in sales or cost of sales.
Income
Taxes
Income
tax expense includes federal and state taxes currently payable and deferred taxes arising from temporary differences between income
for financial reporting and income tax purposes. Deferred tax assets and liabilities are determined based on the difference between
the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the difference
is expected to reverse. The effect of a change in the tax rate on the deferred tax asset and liabilities is recognized in income
in the period that includes the enactment date. The Company establishes a valuation allowance when necessary to reduce its deferred
tax assets to an amount that is expected to be realized.
LMP
Motors, NSR, LMP Finance, LMP Automotive are a limited liability companies, which are treated as partnerships for income tax purposes.
The income or loss and credits from limited liability companies are passed through to their members and reported on the members'
income tax returns. As such, there is no provision for income taxes. If applicable, the Company would recognize interest and penalties
associated with tax matters as part of operating expenses and include accrued interest and penalties with the related tax liability
in its condensed consolidated financial statements. There are no unrecognized tax benefits at March 31, 2019 and December 31,
2018.
Advertising
The
Company expenses advertising costs in the period incurred. Advertising expense was approximately $65,900 and $30,200 for the three
months ended March 31, 2019 and 2018, respectively.
Leases
The
Company adopted ASU No. 2016-02, Leases ("Topic 842") using the modified retrospective adoption method with
an effective date of January 1, 2019. The condensed consolidated financial statements for 2019 are presented under the
new standard, while the comparative periods presented are not adjusted and continue to be reported in accordance with the Company's
historical accounting policy and Topic 840. This standard requires all lessees to recognize a right-of-use asset and a lease liability,
initially measured at the present value of the lease payments.
Under
Topic 842, the Company applied a dual approach to all leases whereby the Company is a lessee and classifies
leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed
purchase by the Company. Lease classification is evaluated at the inception of the lease agreement. Regardless of classification,
the Company records a right-of-use asset and a lease liability for all leases with a term greater than 12 months. The
lease for the premises occupied in Plantation, Florida, was classified as an operating lease as of March 31, 2019. Operating
lease expense is recognized on a straight-line basis over the term of the lease.
F-
11
Note
2 -
Summary of Significant Accounting Policies (cont'd.)
Leases
(cont'd.)
The
adoption of the new lease standard had a significant impact on the Consolidated Balance Sheets resulting in the
recognition of $1.4 million of right-of-use assets, $0.3 million of current lease liabilities, and $1.1 million
of long-term lease liabilities. In addition, the Company recognized an approximately $17,000 cumulative effect adjustment
to accumulated deficit on the Consolidated Balance Sheet related to the unamortized deferred lease costs incurred
in prior periods which do not meet the definition of initial direct costs under Topic 842. The adoption of Topic 842 did
not have a significant impact on the lease classification or a material impact on the Consolidated Statements of Operations
and liquidity.
The
components of the right-of-use asset and lease liabilities as of March 31, 2019 are as follows:
Operating lease right-of-use asset
$
1,347,701
Operating lease liability, current portion
320,956
Operating lease liability, net of current portion
$
1,048,796
Operating
Leases
During
2018, the Company entered into a lease with an entity related through common ownership for its facilities in Plantation, Florida.
The five-year, triple-net lease provides for monthly payments of $28,500 plus CAM and sales taxes, with annual escalations of
three-percent (3%). The Company has an option to extend the lease for an additional five-year term, with annual escalations of
three-percent (3%). The option to extend the lease is not recognized in the right-of-use asset or operating lease liability.
Discount
Rate
When
available, the Company uses the rate implicit in the lease or a borrowing rate based on similar debt to discount lease payments
to present value. However, the lease generally does not provide a readily determinable implicit rate, and the Company's
existing debt does not have similar terms. Therefore, the Company used the 5-year Treasury constant maturity at the lease commencement
date to discount lease payments.
Lease
Cost
Operating
lease cost related to right-of-use assets for the three months ended March 31, 2019 and 2018 is $96,572 and $28,500, respectively.
The weighted average remaining term on the lease is 3.92 years. The weighted average discount rate is 2.63%.
Note
3 -
Concentration of Credit Risk
The
Company maintains its cash balances in several financial institutions which are insured by the Federal Deposit Insurance Corporation
("FDIC") for up to $250,000 per institution. From time to time, its balances may exceed these limits.
F-
12
Note
4 -
Property, Equipment and Leasehold Improvements
Property,
equipment and leasehold improvements, net are summarized as follows:
March 31,
2019
December 31,
2018
Vehicles
$
91,547
$
91,547
Furniture, fixtures and equipment
282,588
273,024
Leasehold improvements
240,981
238,287
Signage
-
4,777
615,116
607,635
Less: Accumulated depreciation and amortization
(87,028
)
(68,160
)
$
528,088
$
539,475
Depreciation
and amortization expense related to vehicles, equipment, and leasehold improvements amounted to $18,868 and $8,373 for the three
months ended March 31, 2019 and 2018, respectively.
Note
5 -
Related Party Transactions
The
Company entered into debt agreements with a related party employee, with interest accruing at rate of 9.0% per annum. At December
31, 2017, $50,000 was outstanding, which was repaid on February 15, 2018.
The
Company entered into debt agreements with a shareholder, with interest accruing at a rate of 2% interest per annum. At December
31, 2017, $1,019,000 was outstanding, which was repaid on February 15, 2018.
During
2018, the Company entered into a non-interest bearing revolving line of credit agreement with an entity related to the majority
shareholder. Amounts drawn on the line of credit become due and payable on the earlier of written demand by the lender or May
21, 2020, as defined in the agreement. At March 31, 2019 and December 31, 2018, the outstanding amount was $1,500,000 and $1,775,000,
respectively.
Note
6 -
Convertible Notes Payable
During
the second and third quarters of 2018, the Company issued convertible promissory notes ("6-Month Notes") in an aggregate
principal amount of $1,448,965, pursuant to a private placement offering. The 6-Month Notes bear interest at 4% per annum
and mature six (6) months from the date of issuance, at which time the principal and any accrued but unpaid interest shall
be due and payable. Accrued interest at March 31, 2019 and December 31, 2018 was $17,866 and $20,757, respectively. The holders
of the 6-Month Notes may, at any time prior to the maturity date, convert the 6-Month Notes (and accrued interest) into shares
of the Company's Common Stock by dividing (a) the outstanding principal balance and unpaid accrued interest under this Note
on the date of conversion by (b) $4.75 (subject to adjustment as provided in the 6-Month Notes). Based on the terms of the conversion
rights, the Company did not recognize a beneficial conversion discount.
During
the fourth quarter of 2018, the Company repaid one of the 6-Month Notes in the principal amount of approximately $285,015, leaving
a balance of approximately $1,164,000, plus accrued interest, at December 31, 2018.
During
the first quarter of 2019, the Company repaid two of the 6-Month Notes in the principal amount of $365,000, leaving a balance
of $798,950, plus accrued interest, at March 31, 2019.
F-
13
Note
7 -
Accounts Payable and Other Current Liabilities
Accounts
payable and other current liabilities are summarized as follows:
Accounts
Payable:
March 31,
2019
December 31,
2018
Accounts Payable
$
127,302
$
884,927
Credit Card Payable
32,976
28,424
Vehicle Payable
21,058
21,058
Total Accounts Payable
$
181,336
$
934,409
Other
Current Liabilities:
March 31,
2019
December 31,
2018
Accrued Payroll
$
126,440
$
137,041
Subscription Security Deposits
52,596
53,254
Subscription Membership Fees on Hand
49,874
42,746
Rental Deposits on Hand
21,458
30,930
Vehicle Sales Deposits on Hand
1,000
6,000
Property Tax Accrual
15,222
65,509
Sales & Other Taxes Payable
31,550
27,284
Other Accruals
129,761
205,594
Total Other Current Liabilities
$
427,901
$
568,358
Note
8 -
Lease Commitments
The
annual minimum lease payments, including fixed rate escalations, on the Company's operating lease liability as of March
31, 2019 are as follows:
Years Ending December 31:
2019 (nine months)
$
264,195
2020
361,067
2021
371,898
2022
383,055
2023
64,154
Total minimum lease payments
1,444,369
Less: amount representing interest
(74,617
)
Present value of future payments
1,369,752
Less: current obligations
(320,956
)
Long-term obligations
$
1,048,796
Operating
Leases
During
2018, the Company entered into a third-party lease for its Miami Beach, Florida operations. The 1-year lease provides for monthly
payments of $3,800, with a renewal option for an additional 12-months at $4,000 monthly. The lease expired April 30, 2019 and
was not renewed.
F-
14
Note
8 -
Lease Commitments (cont'd.)
During
2018, the Company entered into an agreement for the licensed right to use 201 garage parking spaces in Miami Beach, Florida. The
27-month agreement provides for monthly payments of $140 per space ($28,140 per month total), with annual escalations of two-percent
(2%). In April 2019, the Company terminated the license to use the parking spaces.
Rent
expense charged to operations for the three months ended March 31, 2019 and 2018 was $200,258 and $102,946, respectively.
Note
9 -
Commitments and Contingencies
The
Company is subject to asserted claims and liabilities that arise in the ordinary course of business. The Company maintains third-party
insurance to mitigate potential losses from these actions. In the opinion of management, the amount of the ultimate liability
with respect to those actions will not materially affect the Company's financial position of results of operations.
Note
10 -
Equity
During
February 2018, the Company commenced a private placement equity offering, pursuant to which it sold 2,858,030 shares of its Common
Stock at a price of $3.33 per share, for aggregate consideration of approximately $9,517,200.
During
the second and third quarters of 2018, the Company commenced a private placement equity offering, pursuant to which it sold 787,264
shares of its Common Stock through September 30, 2018 at a price of $4.75 per share, for aggregate consideration of approximately
$3,739,500.
Note
11 -
Treasury Stock
During
the first quarter of 2019, the Company purchased an aggregate of 85,000 shares of its Common Stock from three (3) shareholders
at an aggregate price of $4.75 per share, or $403,750. These shares are currently held in treasury.
Note
12 -
Stock Options
During
the year ended December 31, 2018, the Company granted stock options to purchase 598,500 shares of its Common Stock to various
employees, vendors and independent contractors. These options vest over periods ranging from twenty-four (24) to thirty-six (36)
months, are exercisable for a period of 5 years, and enable the holders to purchase shares of its common stock at exercise prices
ranging from $3.33 - $4.75. The per-share values of these options range from $1.37 to $1.96, based on Black-Scholes-Merton pricing
models with the following assumptions: (i) Volatility of 43.25%, (ii) Term of 5 years, (iii) Risk free rate of 2.6% and (iv) Dividend
rate of 0.0%.
During
the three months ended March 31, 2019 no new stock options were granted.
At
March 31, 2019, the Company had approximately $405,794 of unrecognized compensation costs related to stock options outstanding,
which will be recognized through 2023. The Company will recognize forfeitures as they occur. Share-based compensation expense
at March 31, 2019 and March 31, 2018 was approximately $37,400 and $0, respectively. The total amount recorded in "Additional
paid-in capital" related to stock options as of March 31, 2019, was approximately $493,000. The weighted average remaining
contractual term for the outstanding options at March 31, 2019 and December 31, 2018 is 3.97 and 4.22 years, respectively.
F-
15
Note
12 -
Stock Options (cont'd.)
Stock
option activity for the three months ended March 31, 2019 and year ended December 31, 2018, are as follows:
Number of Shares
Weighted Avg. Exercise Price
Outstanding at December 31, 2017
-
$
-
Options granted
598,500
3.91
Options exercised
-
-
Options forfeited
(87,500
)
-
Options expired
-
-
Outstanding at December 31, 2018
511,000
$
3.82
Options granted
-
-
Options exercised
-
-
Options forfeited
(2,250
)
-
Options expired
(177,000
)
-
Outstanding at March 31, 2019
331,750
$
3.91
Vested as of March 31, 2019
236,853
$
3.84
Expected to vest as of March 31, 2019
94,897
$
4.10
Note
13 -
Net Loss per Share Attributable to Common Shareholders
The
basic and diluted net loss per common share was the same for each period presented as the Company's potentially dilutive
shares would be antidilutive.  The weighted average shares of Common Stock outstanding was 24,592,516 and 22,206,729 for
the three months ended March 31, 2019 and 2018, respectively.
Note
14 -
Subsequent Events
Subsequent
to quarter-end, the Company purchased 53,600 shares of its common stock from one (1) shareholder at an aggregate price of $4.75
per share, or $254,600. These shares are currently held in treasury.
In
April 2019, management decided to restructure its Miami Beach, FL operations and combined it with its Plantation, FL operations.
Subsequent
to March 31, 2019, the Company extended certain of the 6-Month Notes that became due. Two of the 6-Month Notes in the amount of
approximately $121,000 were extended to June 15, 2019, two of the 6-Month Notes in the amount of approximately $45,000 were extended
to August 14, 2019, and another two in the amount of approximately $135,950 were extended to September 17, 2019.
In
May 2019, the Company engaged two new board of directors for a combined annual compensation of $48,000 and granted options to
purchase 40,000 shares of the Company's common stock.
F-
16
REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
To the Board of Directors and Stockholders of
LMP Automotive Holdings, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated
balance sheets of LMP Automotive Holdings, Inc. (the "Company") as of December 31, 2018 and 2017, and the related consolidated
statements of operations, shareholders' equity, and cash flows for the years 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 financial position of the Company as of December 31, 2018 and 2017, and the results of its
operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United
States of America.
Basis for Opinion
These consolidated financial statements
are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated
financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight
Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the 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 audits, we are
required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion
on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures
to assess the risks of material misstatement of the 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 audits 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 audits provide a reasonable basis for our opinion.
/s/ Grassi & Co., CPAs, P.C.
We have served as the Company's auditor since 2018.
Jericho, New York
June 7, 2019
F-
17
LMP AUTOMOTIVE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2018 AND 2017
2018
2017
ASSETS:
Cash
$
424,152
$
217,360
Accounts receivable
286,982
85,851
Automotive inventory
11,558,160
3,696,802
Other current assets
380,712
71,000
Total current assets
12,650,006
4,071,013
Property, equipment and leasehold improvements, net
539,475
185,659
Intangible assets
39,997
0
Deferred offering costs
987,093
0
TOTAL ASSETS
$
14,216,571
$
4,256,672
LIABILITIES:
Accounts payable
$
934,409
$
599,914
Line of credit - related party
1,775,000
0
Notes and advances payable – related parties
0
1,091,500
Convertible notes payable and accrued interest
1,184,707
0
Other current liabilities
568,358
33,051
Total current liabilities
4,462,474
1,724,465
TOTAL LIABILITIES
4,462,474
1,724,465
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, $0.00001 par value, 20,000,000 shares authorized, nil shares issued and outstanding
0
0
Common stock, $0.00001 par value; 100,000,000 shares authorized; 24,645,294 and 21,000,000 shares issued and outstanding at December 31, 2018 and 2017, respectively
246
210
Additional paid-in capital
16,306,737
2,594,590
Accumulated deficit
(6,552,886
)
(62,593
)
Total shareholders' equity
9,754,097
2,532,207
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
14,216,571
$
4,256,672
The accompanying notes are an integral part
of these consolidated financial statements.
F-
18
LMP AUTOMOTIVE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2018
AND 2017
2018
2017
Revenues
Vehicle sales
$
15,714,511
$
3,759,031
Subscription fees
356,323
-
Rental revenues
539,952
-
Total revenues
16,610,786
3,759,031
Cost of revenues
Vehicle sales
17,678,387
3,994,079
Subscription and rental
889,388
-
Total cost of revenues
18,567,775
3,994,079
Gross loss
(1,956,989
)
(235,048
)
Selling, general and administrative expenses
3,278,051
1,114,109
Share-based compensation
455,649
-
Acquisition, consulting and legal expenses
722,722
30,858
Depreciation
45,505
29,291
Loss from operations
(6,458,916
)
(1,409,306
)
Other expenses:
Interest
31,377
14,356
Net Loss
$
(6,490,293
)
$
(1,423,662
)
Net loss per share attributable to stockholders, basic and diluted
$
(0.27
)
$
(0.07
)
Weighted average shares of common stock outstanding, basic and diluted
23,764,021
21,000,000
The accompanying notes are an integral part
of these consolidated financial statements
F-
19
LMP AUTOMOTIVE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS'
EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2018
AND 2017
Common Shares Outstanding
Preferred Stock
Common
Stock
Additional Paid-in Capital
Members' Equity
Accumulated Deficit
Total
Balance at December 31, 2016
-
$
-
$
-
$
-
$
318,614
$
-
$
318,614
Capital contributions
-
-
-
-
3,637,255
-
3,637,255
Contribution of member's interest
21,000,000
-
210
2,594,590
(2,594,800
)
-
-
Net loss
-
-
-
-
(1,361,069
)
(62,593
)
(1,423,662
)
Balance at December 31, 2017
21,000,000
$
-
$
210
$
2,594,590
$
-
$
(62,593
)
$
2,532,207
Issuance of stock for cash
3,645,294
-
36
13,256,498
-
-
13,256,534
Share-based compensation
-
-
-
455,649
-
-
455,649
Net loss
-
-
-
-
-
(6,490,293
)
(6,490,293
)
Balance at December 31, 2018
24,645,294
$
-
$
246
$
16,306,737
$
-
$
(6,552,886
)
$
9,754,097
The accompanying notes are an integral part
of these consolidated financial statements
F-
20
LMP AUTOMOTIVE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2018
AND 2017
2018
2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss
$
(6,490,293
)
$
(1,423,662
)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
683,584
29,291
Share-based compensation
455,649
-
Increase in assets:
Accounts receivable
(201,131
)
(85,851
)
Automotive inventory
(8,500,797
)
(3,680,552
)
Prepaid expenses and other assets
(309,712
)
(71,000
)
Increase in liabilities
Accounts payable
334,495
581,376
Other current liabilities
556,063
33,051
NET CASH USED IN OPERATING ACTIVITIES
(13,472,142
)
(4,617,347
)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment
(392,684
)
(214,950
)
Purchases of intangible assets
(45,273
)
-
NET CASH USED IN INVESTING  ACTIVITIES
(437,957
)
(214,950
)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash received from line of credit – related party
1,775,000
-
Cash received from notes and advances payable – related parties
-
1,091,500
Principal repayment of notes and advances payable– related parties
(1,091,500
)
-
Cash received from convertible notes payable
1,448,965
-
Principal repayments on convertible notes payable
(285,015
)
-
Capital contributed from shareholders
-
3,637,255
Net cash received from issuance of common stock
13,256,534
-
Deferred stock offering costs
(987,093
)
-
NET CASH PROVIDED BY FINANCING ACTIVITIES
14,116,891
4,728,755
NET INCREASE (DECREASE) IN CASH
206,792
(103,542
)
CASH, BEGINNING OF YEAR
217,360
320,902
CASH, END OF YEAR
$
424,152
$
217,360
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for interest
$
10,545
$
4,166
The accompanying notes are an integral part
of these consolidated financial statements.
F-
21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 1 -
Nature of Operations and Principles
of Consolidation
Business Activity
LMP Motors.com, LLC ("LMP
Motors") is engaged in the buying and selling of vehicles in the automotive industry and operates in the state of Florida.
LMP Motors is a limited liability company and was organized in the state of Delaware. The owner of LMP Motors is designated as
a member and is not liable for the debts of LMP Motors.
601 NSR, LLC ("NSR")
was formed to enter into future potential strategic acquisitions and is currently inactive. NSR is a limited liability company
and was organized in the state of Delaware. The owner of NSR is designated as a member and is not liable for the debts of NSR.
LMP Finance, LLC ("LMP
Finance") is engaged in the purchasing, subscribing and renting of vehicles. LMP Finance operates in the state of Florida.
LMP Finance is a limited liability company and was organized in the state of Delaware. The owner of LMP Finance is designated as
a member and is not liable for the debts of LMP Finance.
LMP Automotive Holdings, LLC
("LMP Automotive") was formed to acquire the assets from LMP Motors.com LLC and LMP Finance, LLC and other subsidiary
companies. LMP Automotive operates in the state of Florida. LMP Automotive is a limited liability company and was organized in
the state of Delaware. The owner of LMP Automotive is designated as a member and is not liable for the debts of LMP Automotive.
LMP Automotive Holdings, Inc.
("Automotive") is a holding company incorporated in the state of Delaware on December 15, 2017. On December 15, 2017,
the common ownership contributed 100% of its interest in LMP Motors, NSR, LMP Finance and LMP Automotive to Automotive.
Principles of Consolidation
These consolidated financial
statements include the amounts of Automotive and its wholly-owned subsidiaries, LMP Motors, NSR, LMP Finance, and LMP Automotive,
which are collectively referred to as the "Company." All significant intercompany balances and transactions are eliminated
in the consolidation.
Prior to the transfer of
interest of LMP Motors, NSR, LMP Finance and LMP Automotive to Automotive on December 15, 2017, LMP Motors, NSR, LMP Finance
and LMP Automotive were affiliates under common control and as such have been recorded at carry over basis.  Equity of
LMP Motors, NSR, LMP Finance and LMP Automotive in the amount of approximately $2.6 million, which was net of an accumulated
deficit of approximately $1.4 million, was transferred to additional paid-in capital at the December 15, 2017 transaction
date.  Retained earnings (accumulated deficit) of the Company at December 31, 2017, represents only the sixteen (16)
days of operations subsequent to its incorporation in 2017.  With respect to the consolidated statements of operations
and cash flows, the Company was treated as the continuation of LMP Motors, NSR, LMP Finance and LMP Automotive and,
accordingly, their financial position and results of operations have been presented on a combined basis with the historical
financial statements of LMP Motors, NSR, LMP Finance and LMP Automotive for all periods prior to the transfer.
F-
22
Note 2 -
Summary of Significant Accounting
Policies
Liquidity
The Company has sustained net
losses and negative operating cash flows to date. Its management plans to make strategic acquisitions of pre-owned and new automobile
dealerships and car rental companies to expedite its growth and produce positive margins.  The Company also has raised capital
during 2018 through private placement offerings of its common stock and convertible debt securities to help facilitate business
growth and execute its management's plans to become profitable through acquisitions.
Basis of Presentation
The accompanying consolidated
financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted
in the United States of America ("U.S. GAAP").
Use of Estimates
The preparation of the consolidated
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 consolidated financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates.
Accounts Receivable
The Company carries its accounts
receivable at cost. Accounts receivable are due upon receipt. Such estimates are based on management's assessments of the
creditworthiness of its customers, the aged basis of its receivables, as well as current economic conditions and historical information.
Management has determined that no allowance for uncollectible accounts for accounts receivable is necessary at December 31, 2018
and December 31, 2017.
Inventory
Inventory consists of automobiles.
Inventories are valued at the lower of cost or market, with cost determined by specific identification and with market defined
as net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably
predictable costs of completion, disposal, and transportation. Inventories at December 31, 2018 and 2017 are recorded based on
perpetual inventory records.
The Company depreciates the fleet
inventory monthly based on 1% of initial cost starting in 2018 when the subscriptions and rentals were launched. In 2018, fleet
vehicle depreciation approximated $640,000 and was recorded to Cost of revenues - subscription and rental.
Company management periodically
reviews to determine whether any inventories have declined in value. The Company wrote down approximately $530,000 of inventory
to its net realizable value for the year ended December 31, 2018.
December 31,
2018
December
                                         31,
2017
Automotive Inventory
$
12,270,478
$
3,696,802
Inventory Impairment
(529,983
)
-
Inventory Accumulated Depreciation
(478,718
)
-
Inventory In-transit Deposits
296,383
-
Total Automotive Inventory, net
$
11,558,160
$
3,696,802
F-
23
Note 2 -
Summary of Significant Accounting
Policies (cont'd.)
Property, Equipment and Leasehold
Improvements
Property, equipment and leasehold
improvements are stated at cost. The costs of additions and betterments are capitalized and expenditures for repairs and maintenance
are expensed in the period incurred. When items property and equipment are sold or retired, the related costs and accumulated depreciation
are removed from the accounts and any gain or loss is included in sales.
Vehicles and equipment are depreciated
utilizing the straight-line method over the estimated useful lives of the respective assets as follows:
Vehicles
5 years
Furniture and fixtures
10 years
Equipment
5 years
Leasehold improvements are amortized
over the shorter of the remaining term of the lease or the useful life of the improvement utilizing the straight-line method.
Intangible Assets
Intangible assets are stated
at their historical cost and amortized on a straight-line basis over their expected useful lives.
Deferred Offering Costs
The
Company capitalizes certain legal, professional accounting and other third-party fees that are directly associated with in-process
equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing,
these costs are recorded in the Statement of Shareholders' Equity as a reduction to additional paid-in capital as a result
of the offering.
Should
a planned equity financing be abandoned, the deferred offering costs would be expensed immediately as a charge to operating expenses
in the statement of operations. The Company recorded deferred offering costs of approximately $987,000 as of December 31,
2018.
Long-lived Assets
The Company reviews long-lived
assets and certain identifiable intangibles held and used for possible impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. In evaluating the fair value and future benefits of its intangible
assets, management performs an analysis of the anticipated undiscounted future net cash flow of the individual assets over the
remaining amortization period. The Company recognizes an impairment loss if the carrying value of the asset exceeds the expected
future cash flows. There were no deemed impairments of long-lived assets during the years ended December 31, 2018 and 2017.
Fair Value of Financial Instruments
Fair value is defined as the
price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date.  To increase the comparability of fair value measurements, a three-tier fair value hierarchy, which
prioritizes the inputs used in the valuation methodologies, is as follows:
Level 1 - Valuations based on
quoted prices for identical assets and liabilities in active markets.
F-
24
Note 2 -
Summary of Significant Accounting
Policies (cont'd.)
Fair Value of Financial Instruments
(cont'd.)
Level 2 - Valuations based on
observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active
markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are
observable or can be corroborated by observable market data.
Level 3 - Valuations based on
unobservable inputs reflecting the Company's own assumptions, consistent with reasonably available assumptions made by other
market participants.  These valuations require significant judgment.
At December 31, 2018 and 2017,
the fair value of these financial instruments, including cash, accounts receivable, and accounts payable, approximated book value
due to the short maturity of these instruments. Notes payable – related parties and convertible notes payable with accrued
interest estimate fair value due to market interest rates.
Convertible Notes
The
Company records a discount to convertible notes for the intrinsic value of conversion options embedded in debt instruments based
upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the
effective conversion price embedded in the note. Debt discounts, if any, under these arrangements are amortized to noncash interest
expense using the effective interest rate method over the term of the related debt to their date of maturity. Based on the terms
of the embedded conversion rights, the Company has not recognized any discounts to date.
Share-Based Compensation
The Company recognizes the cost
of employee services received in exchange for awards of stock options, based on the fair value of those awards at the date of grant
over the requisite service period, which generally is the vesting period of the award. The Company uses the Black-Scholes option
pricing model to determine the fair value of stock option awards.
In June 2018, the Financial Accounting
Standards Board ("FASB") issued ASU No. 2018-07, Improvements to Share-Based Payment Accounting (Topic 718). This ASU
was issued to simplify the accounting for share-based payments to nonemployees by aligning much of the guidance on measurement
and classification with the accounting for share-based payments to employees. The Company has elected early adoption of this ASU
to conform the accounting for share-based compensation to employees and nonemployees.
Share-based compensation plans,
related expenses, and assumptions used in the Black-Scholes option pricing model are more fully described in Note 12.
Revenue Recognition
In May 2014, the FASB issued
ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is the result of a joint project of the FASB and the
IASB to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS, and provides
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 Company adopted FASB ASC
606, Revenue from Contracts with Customers ("ASC 606") on January 1, 2018 using the modified retrospective method. ASC
606 prescribes a five-step model that includes: (1) identify the contract; (2) identify the performance obligations; (3) determine
the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when (or as)
performance obligations are satisfied. The adoption of ASC 606 did not have a material impact on the amount or timing of the revenue
recognition, and the Company recognized no cumulative effect adjustment upon adoption.
F-
25
Note 2 -
Summary of Significant Accounting
Policies (cont'd.)
Revenue Recognition (cont'd.)
Used Vehicle Sales Revenue
The Company's business
consists of retail and wholesale sales of used vehicles to customers. Sales are based on the network of physical showrooms and
efficient online showrooms on the Company's websites. The Company offers a home delivery service so that they deliver the
car to the place agreed with the client. The Company also sells used vehicles in auctions.
The Company recognizes revenue
when it satisfies a performance obligation by transferring control of a vehicle to a customer. The prices of the vehicles are stated
in its contracts at stand-alone selling prices which are agreed upon with its customer prior to delivery. The Company satisfies
its performance obligation for used vehicle sales upon delivery when the transfer of title, risks and rewards of ownership and
control pass to the customer. The Company recognizes revenue at the agreed-upon price stated in the contract, including any delivery
charges. In addition, any noncash consideration received from a customer (i.e., trade-in vehicles) are recognized at fair value.
Customer payment has been received or third-party financing has been confirmed prior to vehicle transfer. The Company collects
sales taxes and other taxes from customers on behalf of governmental authorities at the time of sale. These taxes are accounted
for on a net basis and are not included in sales or cost of sales.
Subscription Revenue
The Company offers a vehicle
subscription plan where a customer will pay a monthly fee in exchange for access to a car. The Company's subscriptions include
monthly swaps, scheduled maintenance and upkeep, and even insurance in some cases. Customers have the flexibility to up-or-downgrade
a vehicle monthly with the vehicle payment adjusted accordingly. There is $575 annual subscription activation fee and the monthly
payments are dependent upon the vehicle selected by the customer.
The Company recognizes revenue
when it satisfies a performance obligation by transferring control of a vehicle to a customer under a subscription contract. The
prices of the vehicles are stated in its contracts at stand-alone subscription prices which are agreed upon with the customer prior
to delivery. The Company satisfies its performance obligation for monthly subscription payments upon delivery to the customer and
in each subsequent month the customer retains possession of the vehicle. The Company recognizes revenue at the agreed-upon price
stated in the contract in the month earned.
The Company also receives an
upfront customer payment as an annual membership fee to its vehicle subscription program. This fee is deferred and amortized to
income monthly over the period of membership.
Customer payment has been received
prior to initial vehicle transfer and on each monthly recurring anniversary date.
Rental Revenue
The Company recognizes vehicle
rental income over the period the vehicle is rented. Performance obligations associated with vehicle rental transactions are satisfied
over the rental period. Rental periods are short term in nature. Performance obligations associated with rental related activities,
such as charges to the customer for the fueling of vehicles and value-added services such as loss damage waivers, navigation units,
and other ancillary products, are also satisfied over the rental period.
Payments are due from customers
at the time of reservation. Additional charges incurred by the customers are collected at the time of vehicle return. The Company
collects sales taxes and other taxes from customers on behalf of governmental authorities at the time of sale. These taxes are
accounted for on a net basis and are not included in sales or cost of sales.
F-
26
Note 2 -
Summary of Significant Accounting
Policies (cont'd.)
Income Taxes
Income tax expense includes federal
and state taxes currently payable and deferred taxes arising from temporary differences between income for financial reporting
and income tax purposes. Deferred tax assets and liabilities are determined based on the difference between the financial statement
and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the difference is expected to reverse.
The effect of a change in the tax rate on the deferred tax asset and liabilities is recognized in income in the period that includes
the enactment date. The Company establishes a valuation allowance when necessary to reduce its deferred tax assets to amounts that
are expected to be realized.
LMP Motors, NSR, LMP Finance,
and LMP Automotive are limited liability companies, which are treated as partnerships for income tax purposes. The income or loss
and credits from limited liability companies are passed through to their members and reported on the members' income tax
returns. As such, there is no provision for income taxes. If applicable, the Company would recognize interest and penalties associated
with tax matters as part of operating expenses and include accrued interest and penalties with the related tax liability in its
consolidated financial statements.
Advertising
The Company expenses advertising
costs in the period incurred. Advertising expense was approximately $266,200 and $107,200 for the years ended December 31, 2018
and 2017, respectively.
Leases
The Company is party to various
lease agreements for real estate. For each lease agreement, the Company determines the lease term as the non-cancellable period
of the lease and includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option.
The Company also assesses whether each lease is an operating or finance lease at the lease commencement date. Rent expense of operating
leases is recognized on a straight-line basis over the lease term and includes scheduled rent increases as well as amortization
of tenant improvement allowances.  Refer to Note 9 for Lease Commitments.
Effective January 1, 2019, the
Company adopted ASU No. 2016-02, Leases, which requires lessees to recognize leases as liabilities on the balance sheet, with corresponding
right-of-use assets.  Refer to "New Accounting Pronouncement Not Yet Adopted" for further changes related to the
adoption of this guidance.
New Accounting Pronouncements
not yet Adopted
In February 2016, the FASB issued
ASU No. 2016-02, Leases (Topic 842).  The standard requires lessees to recognize a right-of-use asset and a lease liability,
initially measured at the present value of the lease payments for all leases with a term greater than 12 months, including leases
existing prior to the effective date of this ASU. It also calls for enhanced leasing arrangement disclosures.  The Company
has adopted this standard as of January 1, 2019.  This guidance will have a material impact on its consolidated balance
sheet due to the recognition of a lease liability and right-of-use asset for its Plantation, Florida lease of approximately $1.4
million. Adoption of this guidance will not have a significant impact on its lease classification, a material impact on the consolidated
statement of operations, or a notable impact on its liquidity.
In July 2018, the FASB issued
additional guidance on the accounting for leases. The guidance provides companies with another transition method that allows entities
to recognize a cumulative-effect adjustment to the opening balance of retained earnings as of the date of adoption. Under this
method, previously presented years' financial positions and results are not adjusted. The Company adopted this alternative
transition method.
F-
27
Note 3 -
Concentration of Credit Risk
The Company maintains its cash
balances in several financial institutions which are insured by the Federal Deposit Insurance Corporation ("FDIC")
for up to $250,000 per institution. From time to time, cash balances may exceed these limits.
Note 4 -
Property, Equipment and Leasehold
Improvements
Property, equipment and leasehold
improvements, net are summarized as follows:
December 31,
2018
December 31,
2017
Vehicles
$
91,547
$
61,518
Furniture, fixtures and equipment
273,024
83,800
Leasehold Improvements
238,287
69,632
Signage
4,777
-
607,635
214,950
Less: Accumulated depreciation and amortization
(68,160
)
(29,291
)
$
539,475
$
185,659
Depreciation and amortization
expense related to vehicles, equipment and leasehold improvements amounted to $44,145 and $29,291 for the years ended December
31, 2018 and 2017, respectively.
Note 5 -
Related Party Transactions
The Company entered into debt
agreements with a related party employee, with interest accruing at rate of 9.0% per annum. At December 31, 2017, $50,000 was outstanding,
which was repaid on February 15, 2018.
The Company entered into debt
agreements with a shareholder, with interest accruing at a rate of 2% per annum. At December 31, 2017, $1,019,000 was outstanding,
which was repaid on February 15, 2018.
During 2018, the Company entered
into a non-interest bearing revolving line of credit with an entity related to the majority shareholder. Amounts drawn on the line
of credit become due and payable on the earlier of written demand by the lender or May 21, 2020. At December 31, 2018, the outstanding
amount was approximately $1,775,000.
Note 6 -
Convertible Notes Payable
During the second and third quarters
of 2018, the Company issued convertible promissory notes ("6-Month Notes") in aggregate principal amount of $1,448,965,
pursuant to a private placement offering. The 6-Month Notes bear interest at 4% per annum and mature six (6) months from the
date of issuance, at which time the principal and any accrued but unpaid interest shall be due and payable. Accrued interest
at December 31, 2018 was $20,757. The holders of the 6-Month Notes may, at any time prior to the maturity date, convert the 6-Month
Notes (and accrued interest) into shares of its Common Stock by dividing (a) the outstanding principal balance and unpaid accrued
interest under this Note on the date of conversion by (b) $4.75 (subject to adjustment as provided in the 6-Month Notes). Based
on the terms of the conversion rights, the Company did not recognize a beneficial conversion discount.
During the fourth quarter of
2018, the Company repaid one of the 6-Month Notes in the principal amount of approximately $285,015, leaving a balance of approximately
$1,164,000 at December 31, 2018.
F-
28
Note 7 -
Accounts Payable and
Other Current Liabilities
Accounts payable and other current
liabilities are summarized as follows:
Accounts Payable:
December
                                         31,
2018
December
                                         31,
2017
Accounts Payable
$
884,927
$
589,810
Credit Card Payable
28,424
10,104
Vehicle Payable
21,058
-
Total Accounts Payable
$
934,409
$
599,914
Other Current Liabilities:
December 31,
2018
December 31,
2017
Accrued Payroll
$
137,041
$
-
Subscription Security Deposits
53,254
-
Subscription Membership Fees on Hand
42,746
-
Rental Deposits on Hand
30,930
-
Vehicle Sales Deposits on Hand
6,000
-
Property Tax Accrual
65,509
-
Sales & Other Taxes Payable
27,284
33,051
Other Accruals
205,594
-
Total Other Current Liabilities
$
568,358
$
33,051
Note 8 -
Income Tax
Income taxes are accounted for
under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable
to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis
and operating loss and tax credit carry forwards. 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.
Deferred tax assets are required
to be reduced by a valuation allowance to the extent that, based on the weight of available evidence, it is more likely than not
that the deferred tax assets will not be realized.
Deferred Taxes
In November 2015, the FASB issued
ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which requires that deferred tax assets and liabilities be classified
as noncurrent in a classified balance sheet.
F-
29
Note 8 -
Income Tax (cont'd.)
Deferred Taxes (cont'd.)
Components of income tax benefit
for the year ended December 31, 2018 and 2017 are as follows:
December 31,
2018
2017
Current tax expense (benefit)
$
-
$
-
$
-
$
-
Deferred tax expense (benefit)
$
-
$
-
$
-
$
-
Total Provision for Income Taxes
$
-
$
-
Temporary differences between
financial statement carrying amount and tax basis of assets and liabilities that give rise to significant portions of the deferred
tax assets and liabilities at December 31, 2018 are as follows:
December 31,
2018
2017
Deferred tax assets:
Net operating loss
$
1,944,504
$
13,000
Intangible assets
16,176
-
Other
134,324
-
Total deferred income tax assets
2,095,004
13,000
Deferred income tax liabilities:
Depreciation
(78,621
)
-
Total deferred income tax liabilities
(78,621
)
-
Valuation allowance
(2,016,383
)
(13,000
)
Net deferred income tax asset
$
-
$
-
The Company had a net operating
loss carryforward of approximately $7,672,000 as of December 31, 2018. Net deferred tax assets are mainly comprised of temporary
differences between financial statement carrying amount and tax basis of assets and liabilities.
F-
30
Note 8 -
Income Tax (cont'd.)
Deferred Taxes (cont'd.)
FASB ASC 740 requires a valuation
allowance to reduce the deferred tax assets reported if, based on the weight of the evidence, it is more likely than not that some
portion or all of the deferred tax assets will not be realized. At December 31, 2018 and 2017, a valuation allowance of approximately
$2,000,000 and $13,000, respectively, was recorded.
In addition, the Company performed
a comprehensive review of its uncertain tax positions and determined that no adjustments were necessary relating to unrecognized
tax benefits at December 31, 2018. The Company's federal and state income tax returns are subject to examination by taxing authorities
for three years after the returns are filed, and the Company's federal and state income tax returns for 2018 remain open to examination.
Note 9 -
Lease Commitments
During 2018, the Company entered
into a lease with an entity related through common ownership for its facilities in Plantation, Florida. The five-year, triple-net
lease provides for monthly payments of $28,500 plus CAM, with annual escalations of three-percent (3%). The Company has an option
to extend the lease for an additional five-year term, with annual escalations of three-percent (3%).
During 2018, the Company entered
into a third-party lease for its Miami Beach, Florida operations. The 1-year lease provides for monthly payments of approximately
$3,800, with a renewal option for an additional 12-months at $4,000 monthly. The lease expired April 30, 2019, and was not renewed.
During 2018, the Company entered
into an agreement for the licensed right to use 201 garage parking spaces in Miami Beach, Florida. The 27-month agreement provides
for monthly payments of $140 per space ($28,140 per month total), with annual escalations of two-percent (2%). In April 2019, the
Company terminated the license to use the parking spaces.
Future minimum payments are as
follows:
Years Ending December 31:
2019
$
450,970
2020
361,067
2021
371,898
2022
383,055
2023
64,154
$
1,631,144
Rent expense charged to operations
for the years ended December 31, 2018 and 2017, inclusive of CAM and taxes, was approximately $732,500 and $282,100 respectively.
Note 10 -
Commitments
and Contingencies
The Company is subject to asserted
claims and liabilities that arise in the ordinary course of business. The Company maintains third-party insurance to mitigate potential
losses from these actions. In the opinion of management, the amount of the ultimate liability with respect to those actions will
not materially affect the Company's financial position of results of operations.
F-
31
Note 11 -
Equity
During February 2018, the Company
commenced a private placement equity offering, pursuant to which it sold 2,858,030 shares of its Common stock at a price of $3.33
per share, for aggregate consideration of approximately $9,517,200.
During the second and third quarters
of 2018, the Company commenced a private placement equity offering, pursuant to which it sold 787,264 shares of its Common Stock
through September 30, 2018 at a price of $4.75 per share, for aggregate consideration of approximately $3,739,500.
Note 12 -
Stock
Options
During the year ended December
31, 2018, the Company granted stock options to purchase 598,500 shares of its Common Stock to various employees, vendors and independent
contractors, of which 87,500 were forfeited during the year. These options vest over periods ranging from twenty-four (24) to thirty-six
(36) months, are exercisable for a period of 5 years, and enable the holders to purchase shares of its common stock at exercise
prices ranging from $3.33 - $4.75. The per-share values of these options range from $1.37 to $1.96, based on Black-Scholes-Merton
pricing models with the following assumptions: (i) Volatility of 43.25%, (ii) Term of 5 years, (iii) Risk free rate of 2.6% and
(iv) Dividend rate of 0.0%. The weighted average remaining contractual term for the outstanding options at December 31, 2018 is
4.21 years.
Stock option activity for the
year ended December 31, 2018, is as follows:
Number of Shares
Weighted Avg. Exercise Price
Outstanding at December 31, 2017
-
$
-
Options granted
598,500
3.91
Options exercised
-
-
Options forfeited
(87,500
)
-
Options expired
-
-
Outstanding at December 31, 2018
511,000
$
3.82
Vested as of December 31, 2018
272,043
$
3.92
Expected to vest as of December 31, 2018
238,957
$
3.71
At December 31, 2018, approximately
$443,200 of unrecognized compensation costs related to stock options outstanding will be recognized through 2023. The Company recognizes
forfeitures as they occur. Share-based compensation expense for the year ended December 31, 2018 was approximately $455,600.
Note 13 -
Net Loss
per Share Attributable to Common Shareholders
The basic and diluted net loss
per common share was the same for each period presented as the Company's potentially dilutive shares would be antidilutive. 
The weighted average shares of Common Stock outstanding were 23,764,021 and 21,000,000 for the years ended December 31, 2018 and
2017, respectively.
F-
32
Note 14 -
Subsequent
Events
Subsequent to year end, the Company
purchased an aggregate of 138,000 shares of its Common Stock from four (4) shareholders at an aggregate price of $4.75 per share,
or $658,350. These shares are currently held in treasury.
Subsequent to year end, the Company
extended certain of the 6-Month Notes that became due. Two of the 6-Month Notes in the amount of approximately $121,000 were extended
to June 15, 2019, two of the 6-Month Notes in the amount of approximately $45,000 were extended to August 14, 2019, and another
two in the amount of approximately $135,950 were extended to September 17, 2019.
In April 2019, management decided
to restructure its Miami Beach, FL operations and combined it with its Plantation, FL operations.
In May 2019, the Company engaged
two new board of directors for combined annual compensation of $48,000 and granted options to purchase 40,000 shares of the Company's
Common Stock.
F-
33
1,275,000
Shares of Common Stock
PROSPECTUS
ThinkEquity
a division of Fordham Financial Management,
Inc.
,
2019
Through and including             ,
2019 (the 25
th
day after the date of this offering), all dealers effecting transactions in these securities, whether
or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation
to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.
PART
II
INFORMATION
NOT REQUIRED IN PROSPECTUS
Item
13.
Other Expenses of Issuance and Distribution
The
following table sets forth all expenses to be paid by the registrant, other than estimated underwriting discounts and commissions,
in connection with our initial public offering. All amounts shown are estimates except for the SEC registration fee and the FINRA
filing fee:
SEC registration fee
$
1,124.21
Nasdaq listing fee
*
FINRA filing fee
*
Printing expenses
*
Legal fees and expenses
*
Accounting fees and expenses
*
Blue Sky fees and expenses (including legal fees)
*
Transfer agent and registrar fees
*
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 to the
registrant. 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. The
registrant's bylaws provide for indemnification by the registrant of its directors, officers and employees to the fullest
extent permitted by the Delaware General Corporation Law.
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. The registrant's certificate of incorporation
provides for such limitation of liability.
The
registrant maintains standard policies of insurance under which coverage is provided (a) to its directors and officers against
loss arising from claims made by reason of breach of duty or other wrongful act, and (b) to the registrant with respect to payments
which may be made by the registrant to such officers and directors pursuant to the above indemnification provision or otherwise
as a matter of law.
The
proposed form of Underwriting Agreement, to be filed by amendment as Exhibit 1.1 to this registration statement, will provide
for indemnification of directors and officers of the registrant by the underwriter against certain liabilities.
The
registrant expects to enter into customary indemnification agreements with its executive officers and directors that provide them,
in general, with customary indemnification in connection with their service to the registrant or on the registrant's behalf.
II-
1
Item
15.
Recent Sales of Unregistered Securities
In February 2018, we completed a private placement offering, pursuant
to which we sold 2,858,030 shares of our common stock to certain individual and institutional investors, at a purchase price of
$3.33 per share, for an aggregate purchase price of $9,517,239.
From June 2018 through October 2018, we
sold an aggregate of 787,264 shares of our common stock to certain individual investors, in a private placement offering, at a
purchase price of $4.75 per share, for an aggregate purchase price of $3,739,505.
During the second and third quarters of
2018, we issued the 6-month notes to certain individual investors in an aggregate principal amount of $1,448,965, pursuant to a
private placement offering. The 6-month notes bear interest at 4% per annum and mature six (6) months from the date of issuance, at
which time the principal and any accrued but unpaid interest shall be due and payable. The holders of the 6-month notes may, at
any time prior to the maturity date, convert the 6-month notes (and accrued interest) into shares of our common stock by dividing
(a) the outstanding principal balance and unpaid accrued interest under the applicable 6-month note on the date of conversion by
(b) $4.75 (subject to adjustment as provided in the 6-month notes). Based on the terms of the conversion rights, we did not recognize
a beneficial conversion discount.
The proceeds from the sale of the above
mentioned securities were used for working capital and general corporate purposes. No underwriters were used in the offering and
sale of the above mentioned securities. The above mentioned securities were issued in reliance on the exemption from registration
provided by Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D promulgated thereunder.
Item
16.
Exhibits and Financial Statement Schedules
(a)
Exhibits.
The following exhibits are included herein or incorporated herein by reference:
Exhibit No.
Exhibit
    Description
1.1
Form
    of Underwriting Agreement**
3.1
Certificate of Incorporation*
3.2
Bylaws*
4.1
Form
    of Underwriter's Warrant**
4.2
Form of Non-Qualified Stock Option Agreement*
4.3
Form of Incentive Stock Option Agreement*
5.1
Opinion
    of Pryor Cashman LLP**
10.1
Employment Agreement, dated February 20, 2018 by and between LMPMotors.com, LLC and Samer Tawfik*
10.2
2018 Equity Incentive Plan*
10.3
Lease Agreement, dated January 1, 2018, by and between LMPMotors.com, LLC and ST RXR Investments, LLC*
10.4
Revolving Line of Credit Agreement, dated July 25, 2018, by and between LMP Automotive Holdings, Inc. and ST RXR Investments, LLC (as amended on May 21, 2019)*
10.5
Form of Common Stock Purchase Agreement for the offering of Common Stock at $3.33 per share*
10.6
Form of Common Stock Purchase Agreement, for the offering of Common Stock at $4.75 per share*
10.7
Lease Agreement, dated as of April 12, 2018, by and between 615 5
th
Street, Corp. and LMP Finance LLC d/b/a LMP Rentals Delaware Corporation*
10.8
Engagement Letter, dated as of April 25, 2018, by and between LMP Automotive Holdings, Inc. and Dazkal Bolton LLP*
10.9
Mercedes-Benz Financial Services Financial Commitment, dated as of April 25, 2019*
10.10
Form of Convertible Promissory Note*
21.1
List of Subsidiaries of the Registrant*
23.1
Consent of Grassi & Co., CPAs, P.C.*
23.2
Consent
    of Pryor Cashman LLP (included in Exhibit 5.1)**
24.1
Powers of Attorney (incorporated by reference to the signature page hereto).*
*
Filed
herewith.
**
To
be filed by amendment.
(b)
Financial
    Statement Schedules.
All financial statement schedules are omitted because they are not applicable or the information
    is included in the Registrant's consolidated financial statements or related notes.
II-
2
Item
17.
Undertakings
The
undersigned registrant hereby undertakes to provide to the underwriter at the closing specified in the underwriting agreement,
certificates in such denominations and registered in such names as required by the underwriter 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
SEC 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.
The
undersigned registrant hereby undertakes that:
(1) For
purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part
of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant
to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the
time it was declared effective.
(2) For
purposes of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus
shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
II-
3
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on
its behalf by the undersigned, thereunto duly authorized in the City of Plantation, State of Florida, on June 17, 2019.
LMP
    AUTOMOTIVE HOLDINGS, INC.
By:
/s/
    Samer Tawfik
Name:
    Samer Tawfik
Title:
      Chairman, President and
Chief
    Executive Officer
POWER
OF ATTORNEY
Each
person whose signature appears below authorizes Samer Tawfik as his or her true and lawful attorney-in-fact and agent, with full
power of substitution and resubstitution, to execute in his or her name and on his or her behalf, in any and all capacities, the
registrant's registration statement on Form S-1 and any amendments thereto (and any additional registration statement related
thereto permitted by Rule 462(b) promulgated under the Securities Act of 1933 (and all further amendments, including post-effective
amendments thereto)), necessary or advisable to enable the registrant to comply with the Securities Act of 1933, and any rules,
regulations and requirements of the Securities and Exchange Commission, in respect thereof, in connection with the registration
of the securities which are the subject of such registration statement, which amendments may make such changes in such registration
statement as such attorney may deem appropriate, and with full power and authority to perform and do any and all acts and things
whatsoever which any such attorney or substitute may deem necessary or advisable to be performed or done in connection with any
or all of the above-described matters, as fully as each of the undersigned could do if personally present and acting, hereby ratifying
and approving all acts of any such attorney or substitute.
Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the
capacities and on the dates indicated.
/s/
Samer Tawfik
Dated:
    June 17, 2019
Name:
                                         Samer Tawfik
Title:
        Chairman, President and
Chief
        Executive Officer
(Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)
/s/
William "Billy" Cohen
Dated:
    June 17, 2019
Name:
                                         William "Billy" Cohen
Title:
        Director
/s/
    Robert "Bob" J. Morris, Jr.
Dated:
    June 17, 2019
Name:
                                         Robert "Bob" J. Morris, Jr.
Title:
        Director
/s/
Elias Nader
Dated:
    June 17, 2019
Name:
                                         Elias Nader
Title:
        Director
II-4